The strategic role of marketing
To remind, persuade and inform consumers about a business's good or service. This will ultimately lead to increased sales and therefore profit maximisation.
Marketing interdependence with Finance
Marketing will sell the product that will gain profits for finance. This means budgets and targets can be met. Finance will monitor and control business financial performance and work with marketing to increase sales figures and decrease costs. They will also provide the funds marketing needs to carry out its activities.
Marketing interdependence with Operations.
Marketing will create campaigns that will increase the 4 V's of operations. It is crucial there is communication between the two functions as operations needs to be able to meet the requirement of volume, variety and variation in demand. Operations needs to ensure marketing campaign realistically and they can meet the objectives of marketing safely and with quality.
The production approach
The production approach involves producing and selling a good with no customer or market interaction. It was the original approach that has since been grown.
The selling approach
Refers to how businesses began to develop a sales method to sell their goods or services. Door-to-door sales people and personal selling offers its advantages but can be a expensive, slow and narrowly spread approach to marketing.
The marketing approach: 1 and 2
Refers to how many different strategies work to engage the customer with the business and their brand and develop a relationship that encourages sales. Includes strategies such as CSR and customer service.
Apple example of selling and marketing approaches
When Apple first launched their products they were a new type of good; therefore Apple adopted a selling approach as personal expertise was needed to introduce and inform potential customers of the new product. However, as smartphones have become more general, they has adopted a marketing approach that focuses on new design features and price instead of how to use the product.
acryonym for types of markets
MRICNI
MRICNI
Mass, Resource, Industrial, Consumer, Niche, Intermediate
factors influencing consumer choice
psychological, sociocultural, economic, government
Consumer laws- deceptive and misleading advertising
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Consumer Laws- price discrimination
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Consumer Laws- Implied conditions
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Consumer Laws- Warranties
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Ethics in Marketing
Truth, accuracy, good taste in advertising, products that may damage health, sugging, engaging in fair competition
Marketing Process Step 1
SWOT and product lifecycle
Marketing Process Step 2
Market Research
Marketing Process Step 3
Establishing marketing objectives
Marketing process step 4
Identifying target markets
Marketing process step 5
Developing strategies
Marketing process step 6
implement, monitor and control
Marketing segmentation acronym
GDPB
GDPB
Geographic, Demographic, Psychographic and Behavioral
Product Positioning
positioning the product relative to competing products in the minds of consumers. For example brand may try to be perceived with quality, gourmet, design or performance
Product
The good or service that is produced with the consumer in mind
Product- Branding
Branding is used to create an image around a product that the customers can identify it with. It helps businesses gain repeat sales through recognition, introduce new products with a sense of familiarity and encourage customer loyalty. Other words to remember: trademarks, logos, symbols, types of brands (Private house, generic or manufacturing)
Product- Packaging
The container, graphic and label that will help send a message to the customer about the business and their product. It can be so successful its associated with the product itself. Can be a point of CSR.
Price Methods acronym
MCC
MCC
Market-based pricing- what the market is prepared to pay and based on supply and demandCost- based pricing- determined by the cost of producing the good/service and then with a appropriate profit marginCompetition-based pricing- covers costs but is comparable to the competition in the market
Pricing Strategy -Price Skimming
where a business charges a premium price when the product is first launched to maximise revenue per unit. Price can be lowered after time to continue sales but the strategy has effectively skimmed the top of the market.
Pricing Strategy- Penetration
involves the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance.
Pricing Strategy- Loss leader
Product sold at low prices or at or below cost to simulate other profitable sales.
Pricing strategy- Predetermined price points
Selling at organsied price points no matte the cost. It is just a predetermined higher price.
Price and quality interaction
the psychological assumption made by consumers that goods with higher price are higher quality
Elements of the promotion mix
Advertising, sales promotion, personal selling, public relations/publicity
Advertising
Paid, non-personal message that can be communicated through; mass medium, direct, telemarketing, e-marketing, SMA, billboards
Personal selling
selling a product via a physical human seller
Relationship marketing
building a relationship with the customer by using loyalty programs, VIP and benefits
Publicity
Uncontrollable, un-paid, news story about a brand, business or product than can positively or negatively influence the business
Public relations
The positive relationship/association between the public and the brand. Could include charity, sponsorship, positive messages to communities
The communication process
Includes opinion leaders and word of mouth
Place (channel choice)
Intensive- everywhereExclusive- for only a certain market, such as high end stores Selective- only a moderate proportion of outlets.
Place- Distribution channels
Traditional- producer, wholesaler, retailer, consumerInnovative- online, via phone
Place- Distribution issues
Warehousing-Transport-Inventory
People
The quality of interaction between the brand and the consumer e..g training employees
Physical evidence
tangible evidence of a positive experience or atmosphere
Processes
The processes involved in getting the good to the customer
E-marketing
Online SMA (Social media advertising)
Global branding
worldwide recognition of a brand that is of invaluable assistance to global businesses
global marketing
Standardisation- same for every country Customisation- differing for different regions
Gobal pricing
Customised Standardised market-customised
Competitive Positioning
relates to how a business will differentiate its products globally