Marketing HSC flashcards

Market research

The process of collecting, recording and analysing data to solve a specific marketing problem

Marketing Objectives

The realistic and measurable goals to be achieved through the marketing plan

Marketing

a set of interrelated activities to plan, price, promote and distribute products to both current and potential customers

Role of marketing

• strategic role of marketing goods and services •interdependence with other key business functions • production, selling, marketing approaches • types of markets

Purposes of marketing

achieve competitive advantage, increasing market share, improving brand awareness

Interdependence

The mutual dependence that the four key business functions have in each other

Marketing approaches

production, selling, marketing

Production approach

Manufacturing enough goods and services to meet demand

Selling approach

Businesses became sales oriented, emphasising sales targets and high pressure tactics

Marketing approach

focuses on finding out what customers want - through market research - and then satisfying that need.

Market approach factors

Corporate social responsibility, customer orientation, relationship marketing

What type of marketing approach does Qantas use

Marketing approach --> Maximises customer sales

Marketing approach Apple

evolved from selling approach to established marketing approach

Market

a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade

resource

The supply and purchase of raw materials from the primary industry e.g. Meat & Livestock Australia

Industrial

Involves businesses that purchase materials to produce their own goods and services or for use in their daily operation e.g. Toyota buying parts

Intermediate

Consists of wholesalers and retailers who purchase finished products and sell them again to make a profit e.g. Coles

Consumer market

Individuals and households who intend to use or consume the product they buy.

Mass market

A very large market in which products with mass appeal are targeted

Niche market

A narrowly selected target market segment.

Factors influencing customer choice

psychological, sociocultural, economic, government (PEGS)

Psychological Factors

motivation, perception, learning, beliefs and attitudes

Psychological Factors

Influences within individual that affect their buying behavior

Sociocultural factors

Exerted by other people or groups but still impact an individual purchasing decisions

Economic factors

Fluctuations in the economy play into whether a business succeeds or fails

Government influences

Influence customer spending habits

Consumer Laws

A national law guaranteeing consumer rights when buying goods and services

Australian consumer law 2011

ensures all customers have the same rights and all Australian businesses are subject to the same regulations

Competition and Consumer act 2010

1.) Protecting consumers against undesirable practices

2.) Regulating trade practices that restrict competition

Deceptive and misleading advertising

creates a false impression of a product and what it can do so customers are misled

Deceptive and misleading advertising examples

fine print, before and after advertisements, tests and surveys, country of origin, packaging and special offer.

Greenwashing

A practice in which companies promote their products as environmentally friendly when in truth the brand provides little ecological benefit.

Bait and switch

ad that attracts consumers with a low-priced product, then tries to sell them a higher-priced product

price discrimination

the business practice of selling the same good at different prices to different customers

implied conditions

The unspoken and unwritten terms of a contract.

Warranties

Promise to repair or replace a faulty product

Ethical behaviour

Exceeding legal requirements

Ethical criticisming of marketing

Materialsim, stereotypes, invasion of privacy

Truth and accuracy in advertising

Untruths due to concealed facts, exaggerated claims, vague statements

Good taste in advertising

Because of its subjective nature, marketers should ensure advertising is sensitive to the beliefs and values of all people

Products that may damage health

Marketing of junk food being criticised by health advocates. Digital advertising of junk food to children through social networking sites=unregulated

Engaging in fair competition

A competitive environment provides consumers with choice when it comes to the price and quality of goods and services

Sugging

The act of selling or attempting to sell a product under the guise of conducting market research.

Marketing processes

SMEIDI

SWOT analysis

Allows the business to have a better understanding of its current position and where it aims to be assessing the business internal strengthens and weaknesses as well as external opportunities and threats

Product Life Cycle (PLC)

the course of a product's sales and profits over its lifetime

Introduction

Where the product first hits the market and familiarising customers is the main goal

Growth

Where the product experiences increased popularity and a rapid increase in sales and profits

Maturity

Where the total market potential is reached and demand, sales and profits peak and then plateau

Decline

Where interest in the product decreases and business efforts are focused on recovering any possible sales

Purpose of market research

To identify and understand customer needs, To identify gaps in the market, To reduce risk, To inform business decisions

Primary data collection

Observation, Focus groups, -Surveys, -Experiments

Secondary data

information that already exists somewhere, having been collected for another purpose e.g. Australian Bureau of Statistics

Market objective

The relaistic and measureable goals to be achieved through the marketing plan

Marketing objectives key goals

Increase market share, expanding the product range, maximising customer service

Target market

A group of customers at which a business aims to sell its products

Mass marketing

A business targets a range of customers with common needs, wants and demands

Market segmentation

is when the total market is divided into subgroups of people of share one or more common characteristics 

Implementation

The process of putting marketing strategies into operation 

Financial Forecast

Estimates what the income statement will look like for a particular strategy

Cost estimate

Estimate costs, like market research or promotional costs

Revenue estimate

A revenue estimate is how much sales and revenue the strategy  is expected to generate

Monitoring

The process of measuring actual performance against planned performance

Sales analysis

Compared actual sales against budgeted sales to measure the success of the marketing strategy

Market analysis

Compares the business’s portion of total market sales to competitors 

Marketing profitability analysis

Involves splitting up total marketing costs into specific activities

Controlling

Is when the KPIs are assessed against predetermined targets and corrective action is taken.

Market segmentation example

Demographics, Geographic, Psychographic, Behavioural

Demographic

The process of dividing the total market according to particular features of a population, age, sex, income, cultural background and family size 

Geographic

The process of dividing the total market according to geographic locations

Psychographic

The process of dividing the total market according to personality characteristics, motives, opinions, socioeconomic group and lifestyles

Behavioral

The process of dividing the total market according to the customer' relationship to the product