Introduction to marketing/ Marketing and People (Theme 1)
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- Created by: jannell_a
- Created on: 25-09-17 10:55
What is marketing?
Targeting the right product at the right target market using the right combination of the marketing mix (Price, Promotion, Product, Place).
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What is the aim of marketing?
To gain and understanding of what product or service is needed to match customer requirements.
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How can a business make marketing effective and profitable?
By having the ability to communicate the customer benefits clearly and consistently.
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What is a marketing objective?
A marketing target or goal that an organisation aims to achieve.
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How are marketing objectives useful?
They steer the direction of the business.
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Why does the probabilty of success increase if firms set marketing objectives?
Because decision making is more focused.
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How does a business make marketing objectives effective?
By making objectives quantifiable and measurable. Targets should also be set within a time frame.
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Give an example of a marketing objective that Nestlé might set:
"To achieve a 9% increase in sales of KitKat by the end of next year."
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What is a marketing strategy?
A medium to long term plan for how to achieve your marketing objectives.
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What does P.O.I.S.E. stand for?
P-Profitable, O-Offensive, I-Integrated, S-Strategic, E-Effectively executed
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What is "Profitable"?
A proper balance between the firm's need for profit and the customer's need for value.
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What is "Offensive"?
Getting on the attack, leading the market, taking risks and forcing competitors to be followers.
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What is "Intergrated"?
The marketing approach must flow through the whole company, from directors to telephonists.
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What is "Strategic"?
Probing analysis of the market and your competitors leading to a winning strategy.
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What is "Effectively executed"?
Strong and disciplined teamwork in carrying the strategy through effectively.
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What does effective marketing start with?
Effective marketing starts with identifying an opportunity
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How do small businesses make marketing effective?
The owner will come into regular contact with customers. This allows the owner to hear first-hand about the needs and wants of the target market.
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How do large businesses make marketing effective?
Formal market research is undertaken because heaad office managers cannot feel sure that they know what customers think and want.
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What happens once consumer wants have been identified?
Products and services will need to be designed to match consumer preferences.
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What sort of decisions does launching a marketing mix involve?
Involves decisions such as settingprice, choosing an appropiate distribution channel and setting a promotional strategy.
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Name the 4 stages of the marketing process:
1) Set marketing objectives. 2) Identify your market opportunity. 3) Decide on a strategy. 4) Devise a coherent marketing mix.
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Consumers tend to be quite rational. They will seek out fairly priced products that satisfy their needs. Due to this in a competitive market, what does the success of a firm depend on?
A firm's ability to satisfy the needs of the consumer.
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Generally, what do firms that fail lack?
Firms that fail lack customer loyalty and will be punished automatically by the market. The firm will lose market share and profit.
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What helps firms attract revenue and profit?
Having products and services that offer genuine consumer benefits.
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Consumer tastes do not tend to stay the same for very long. Therefore, what is a key aspect of effective marketing?
The ability to respond, quickly, to any change in consumer tastes.
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What happens to firms that fail to adapt their business model, at a time when consumer tastes are changing?
They are normally forced outof business.
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Name 3 characteristics of effective marketing:
1) Identifying the target market, 2) Segment your markets. 3) A coherent (logical and consistent) brand image through a coherent marketing mix.
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Explain "Identifying the target market":
When a business creates a new maket it can aim its products at eveyone who can afford them. Some time later competitors will arrive and usually focus in one segment of the market.
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What do you need to do to suceed in marketing?
You need to know and understand the customers within your market.
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What does having a clear idea of the age, sex and personality of the target market enable the business to do?
1) Focus on your market research. 2)Focus on your advertising spending.
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Explain "Segment your markets":
Most markets are not made up of consumers who all want the exact same product. Firms that market their products effectively in this situation produce a range of products, each targeted at a specefic market segment.
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Explain "A Coherent brand image through a coherent marketing mix":
Firms use the marketing mix to create an attractive and coherent brand image for each of their products. Creating the right brand image is important.
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What should happen if the brand image created by the marketing mix appeals to the target market?
There should be an increase chance that the product will suceed.
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What happens if the marketing mix is not co-ordinated?
Mixed product messages will be sent to the taget market.
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What is short termism?
When a firm pursues strategies that could boost profit levels in the short run, even if these strategies damage the firm's long run profitability
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Name a short termist strategy:
a)High prices designed to exploit consumer loyalty or a dominant market position. Or b)Short-run sales driven by marketing.
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Explain "High prices" strategy:
In the short run, firms that operate in a market where there is little competition may be tempted to raise their prices to boost revenue and profits.
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Explain "Short-run sales" strategy:
Some managers believe that their employees can only be motivated to work hard if they are set targets that are linked to bonuses and other performance-related payments.
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What happens when businesses over-rely on these types of pay?
It can create a ruthless and dishonest culture that can affect a firm's marketing.
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Why is it so hard for large firms to launch new products successfully?
Because modern markets are so croweded with rival products that it's hard ro carve out a profitable new segment.
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Why do firms set marketing objectives?
Because they clarify the goals that the marketing strategy must achieve.
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Why is it a mistake to "segment a segment"?
If you slice up the market into tiny fragments, it may be impossible to make a profit.
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How do firms decide on how much to spend on marketing?
With difficulty, but often reference to rivals.
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Why is maketing harder than it looks/seems?
Largely becuase it is easy toask questions, but harder to interpret the results.
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Other cards in this set
Card 2
Front
What is the aim of marketing?
Back
To gain and understanding of what product or service is needed to match customer requirements.
Card 3
Front
How can a business make marketing effective and profitable?
Back
Card 4
Front
What is a marketing objective?
Back
Card 5
Front
How are marketing objectives useful?
Back
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