Terms in this set (60)
The planning and modification of the four different product areas within the business, with the aim of maximising the business's success.
Types of markets
Resource market (direct & indirect), industrial market, intermediate market and consumer market (niche & mass).
Where raw materials are sold.
Where businesses involved in manufacturing products buy resources for their production processes.
Where businesses buy goods for the purpose of reselling them.
Where individuals and households buy the final product.
When a business concentrates on making as many goods as possible at the lowest cost.
"If we can make it, we will sell it."
When a business concentrates on selling techniques to attract customers.
"How do we sell our products?"
When a business collects information on consumer trends to sell its products.
"The aim of the business should be to identify customers' needs and meet those needs so well that the product practically sells itself."
The idea that customer satisfaction is the key goal business operations.
(Customer satisfaction, customer orientation, relationship marketing)
Marketing concept revolves around achieving customer satisfaction, and thereby maximising the success of the organisation. By listening to what consumers want, and by focusing production and marketing towards consumers, businesses will maximise their sales and thus their profits.
When a business focuses on maximising customer satisfaction to sell its product.
The focus on encouraging repeat purchases and loyalty to the business by managing customer relations, at the time of and after the initial purchase.
Building personal, long-term bonds with its customers.
A written marketing strategy that includes objectives, market research and specific details of what and how the strategies will be implemented.
(Who, What & How)
The Marketing Planning Process
1. Situational analysis 2. Establish marketing objectives 3. Identify target markets 4. Develop marketing strategies 5. Implementation, monitoring and controlling
Elements of the marketing plan
Situational analysis, SWOT and the Product life cycle
Allows the business to identify the internal and external factors affecting the implementation of the marketing plan.
The Product Life Cycle (PLC)
The succession of stages a new product goes through from its launch to the end of its life in the market.
The clear set of goals that helps the business plan its marketing campaign.
Possible market objectives
1. Expanding into new markets 2. Diversifying product base 3. Increasing market share 4. Increasing size of existing markets
A group of customers whom share common market characteristics. The marketing strategies are developed to satisfy the needs of the chosen target market.
Identifying target markets
Demographic factors, geographic factors, psychographic factors, behavioural factors.
The strategies that help the business meet its marketing goals.
Factors that could influence the marketing strategies
Legal, socio-cultural, environmental, economic, political, technological & competition.
The prediction of how much the marketing campaign will cost the business; predicts the costs, revenue and profits associated with a particular plan.
Comparing actual and planned results
1. Financial forecasting - allows management to judge whether predicted levels of sales and expenditures were accurate. 2. Market share - indicator of how well a business is performing against its competitors. 3. Profitability - indicator of the success of marketing strategies.
The Market Research Process
1. Determine information needs 2. Data collection (primary & secondary) 3. Data analysis 4. Data Interpretation
Types of Customers
People and households, firms, educational institutions, government, clubs and societies and religious organisations.
The Buying Process
1. Need recognition
2. Information search
5. Post-purchase behaviour and evaluation
The process of identifying niche markets within a mass market.
How businesses separate themselves from the competition by altering their product and creating a competitive advantage.
Refers to how customers view the business's product, compared to its competitiors.
Describes how customers perceive a product in relation to similar products in a market.
marketing planning tool that helps identify competition in the market.
Use of names, terms or symbols to identify a product or service.
1. Functional role - protects and stores the product and provides information to the consumer.
2. Branding role - first thing consumers see. Should be used to create an image to consumers/communicate brand attributes.
Value it holds in the monetary exchange. Plays a role in influencing consumer choice.
Most important strategic pricing decision
Whether the product will compete against the competition on price, or use product differentiation.
Cost-based method, market-based method & competition-based method.
Pricing products where the product/service selling price is the total of a profit margin added to the cost of producing each product.
1. By adding a profit margin (%)
2. By adding a fixed profit amount
The market or 'going' price is determined by the market forces of demand and supply.
The market price is the price at which the number of products a business is willing to produce and sell is exactly equal to the amount of products the market will buy.
Setting a price at or close to that of competitors.
Pricing strategies and tactics
Price skimming, Penetration pricing, loss leader pricing and price points.
Where the business sets the price at a relatively high level and then reduces it over time in a market with little competition.
- create status
- prestige product (based on exclusiveness)
Where a business sets a very low price to attract initial customers.
1. They might get used to the price and create a backlash
2. Low price = low quality
Loss leader pricing
Eliminating the competition by setting prices so low that the competitors will have to follow to avoid losing significant market share until they can no longer sustain losses.
Having a base price for a product with optional extras or variations of the product costing extra.
Strategies used to draw the consumer to the product.
The Promotion Mix
Personal selling, advertising, below-the-line promotion & public relations. (Opinion leaders & word of mouth)
Place and distribution
The locations where the customers make their purchase decisions and determining how to get the products to these locations.
the link between the produce/supplier and the customer.
Direct: manufacturer -> customer
Indirect distribution: manufacturer -> intermediary -> customer
A business that is involved in the distribution of products; it acts as a link between the supplier and the customer.
length of the channel, intensity at various stages (intensive, selective & exclusive), what intermediaries are involved.
Physical distribution issues
Transport, warehousing, inventory & environmental effects on distribution (technological advances & local governments).
values and morals that determine the generally accepted behaviour.
How the business can damage the environment
1. By depleting natural resources in production
2. By creating products or packing that is not environmentally friendly
Trade Practices Act 1974 (Cth)
Prevents deceptive and misleading advertising, implied conditions and warranties, and resale price maintenance.
Administered by the Australian Competition and Consumer Council (ACCC), which has the power to prosecute and fine any business found in breach of the act.
Deceptive and misleading advertising
Section 53 of the act prohibits the business from engaging in deceptive and misleading advertising. False representation of goods.
Section 49. Businesses must not charge different prices for goods, if those prices do not reflect differences in the costs of providing those goods to different businesses.
Implied conditions and warranties
Condition of sale that requires the product to be fit to serve the purpose for which it is purchased.
(Warranty) Governs any defect that is the fault of the manufacturer or seller of the product.
Resale price maintenance
Section 48. Practice which involves a manufacturer making an agreement with its distributors that the product will be sold at a certain price.
YOU MIGHT ALSO LIKE...
MARKETING- BUSINESS STUDIES YEAR 12
IGCSE Business Studies - Marketing
Marketing key terms
OTHER SETS BY THIS CREATOR