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Marketing
The management process responsible for identifying, anticipating and satisfying consumers' requirements profitability.
Marketing of Goods (marketing mix 4 P's)
the use of the 4 Ps - product, price, place, and promotion in the marketing mix
Marketing Services
The use of the 7Ps - product, price, place, promotion, process, people, and physical evidence in the marketing mix
Market Led Production
The business identifies/predicts the needs of the market, then develops and markets a product to meet that need
Product Led Production
The business develops a product that fits their objectives then markets the product to try and attract/reach customers.
Commercial Marketing
Marketing activities that determine consumer needs and wants before using appropriate strategies to market the product
Social Marketing
A marketing approach aimed at influencing a positive change in individual behaviour and improvements in societal well-being
Social Media Marketing
A marketing approach adopted by businesses that uses social networking websites from the Internet to market its products.
Market Growth
Tthe percentage change in the market size over a given period of time, usually a year. This can be based on the market value or volume.
Market Share
The percentage of one firm's share of the total sales in the market
Market Leader
The firm with the highest market share in a given market
Main Marketing Objective for For-Profit Organizations
To identify, design and develop marketing strategies that are profitable to the business.
Product
The good or service that is offered in the market. A television is a tangible product, a service such as health insurance is an intangible product. Products should aim to satisfy the needs and wants of consumers.
Price
The amount consumers are charged for a product. It indicates the value consumers perceive the product to have.
Promotion
The various ways in which consumers are informed about and persuaded to purchase a product.
Place
A product's location or channels of distribution used to get the product to the consumer. Products can be purchased in shops or over the Internet.
Marget Segmentation
The process of dividing the market into smaller or distinct groups of consumers in an effort spefically to meet their desired needs and wants.
Demographic Segmentation
this considers the varying characteristics og the human population in a market, such as age, gender, religion, family characteristics and ethnic grouping.
Geographic Segmentation
where the market is divided into different geographical sectors and may consider factors including country and climactic regions
Psychologic Segmentation
this divides the market based on people's lifestyle choices or personality characteristics, such as social and economic status and values.
Target Market
a group of consumers with common needs or wants that a business decides to serve or sell to
Niche Market
A narrow, smaller or more specifc market segment
Mass Market
A large or broad market that ignores specific market segments
Consumer Profile
The characteristics of consumers of a particular product in different markets based on their gender, age, and income levels, etc.
Positioning
Involves analyzing how consumers define or perceive a product compared to other products in the market.
Perception Map
a visual representation of how consumers perceive a product in relation to other competing products
Unique Selling Point
A product's feature that differentiates it from other competing products in the market
SMART Targets
Specific
Measurable
Achievable
Relevant
Time Bound
Sales Forecasting
The process of predicting the future sales of a firm
Market Research
The process of collecting, analyzing, and reporting data related to a particular market, including data on consumption of goods and services and on competitors behavior.
Primary Market Research
First-hand information from the market. Most organizations will conduct this research to find out specific buying patterns of consumers and attempt to anticipate any changes in their spending behavior over a given period of time.
Secondary Market Research
Second-hand information from the market - also known as desk research.
Involves analyzing data that already exists in some form.
The Product Life Cycle
Stage 1: Development
Stage 2: Introduction
Stage 3: Growth
Stage 4: Maturity
Stage 5: Saturation
Stage 6: Decline
Price Skimming
Setting a high price when introducing a new product to the market
Penetration Pricing
Setting a low initial price for a product with the aim of attracting a large number of customers quickly and gaining a high market share
Extension Strategies
An attempt by firms to stop sales from falling by lengthening or extending the product's life cycle.
For example:
sell existing products into new markets
find new uses for the product
change packaging
target different market segments
develop new promotional strategies
Branding
The process of distinguishing one business's product from another and can add great value to a product.
Brand Awareness
The ability of consumers to recognize the existence and availability of a firm's good or service
Brand Loyalty
When consumers become committed to a firm's brand and are willing to make repeat purchases over time
Brand Value
How much a brand is worth in terms of its reputation, potential income, and market value. - the extra money a business can make from its products because of its brand name.
Packaging
The design and production of the physical container or wrapper of a product. Packaging plays a significant role in marketing and can help in distinguishing one product from another.
Cost-Plus Pricing (mark-up pricing)
Adding a mark-up to the average cost of producing a product.
Above the Line Promotion
Advertisements paid for by a business to communicate with consumers, e.g. Television, internet, etc.
Below the Line Promotion
Promotion activities including sales promotions, e.g. sponsorship, coupons, customer loyalty schemes, etc. (the business has direct control over its promotional activities.)
Informative Adverts
Designed to communicate information about the product, such as cost, technical specifications, etc. to consumers
Persuasive Adverts
Designed to develop the identity of a product and/or brand
Viral Marketing
a form of peer-to-peer communication where individuals are encouraged to pass on promotional messages within their social networks
Guerilla Marketing
Marketing and promotional activities in places you dont expect to see them. For ex. subliminal messaging, comments, pop-ups
Distribution Channels
A distribution channel or channel of distribution is the path taken by a product from the producer to the consumer.
Distribution Channels - Direct Selling
Manufacturer/Service Provider —> Customer
Distribution Channels - One Intermediary Channel
Manufacturer/Service Provider —> Retailer Agent —> Consumer
Distribution Channels - Two Intermediary Channel
Manufacturer —> Warehouse —> Retailer—> Customer
The 7 P's
Product
People
Physical Evidence
Processes
Promotion
Place
Price
People
An essential element of any service business so businesses should ensure that their employees have the right attitude, skills and appearance at all times as they are the face of the organization.
Processes
The procedures and policies pertaining to how an organization's product is provided and delivered to the consumer.
Physical Evidence
The visible touch points that are observable to customers in a business and is an important differentiator in service marketing.
International Marketing
The marketing of goods and services across national boundaries
Methods:
Direct Exporting
Joint Ventures with Local Organizations
Licensing Agreements
Franchising
Foreign Subsidiaries
Online Marketing
Globalization
The increasing worldwide competition leading to a rise in international marketing
Piggybacking
The use of the existing distribution channels of one domestic business by another home country business trying to sell a new product overseas
Seasonal Trends
Regular increases/decreases in sales occurring at regular, predictable, interval. These are often connected to the type of product. e.g. spices will increase in sales every Q4
E-Commerce
The buying and selling of goods and services through electronic networks, commonly via the Internet.
E-Commerce - Business to Business
Where a business trades with another business.
E-Commerce - Business to Customer
Carried out from a business to a particular end user who is usually the customer or consumer.
E-Commerce - Consumer to Consumer
Allows for transactions from one customer or consumer to another.