topic 8- unit 4

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what is the purpose of the marketing mix?
to attract and retain customers using a combination of right product, promotion, price and place
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what are 3 additional Ps used by service providers?
people, process and physical evidence
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what's another name for a product?
commodity
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what's another name for promotion?
communication
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why are elements of the marketing mix interdependent?
if a provider changes one element of the mix, they may have to change another to keep balance right
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what makes the marketing mix balanced?
the right balance can provide the right product at the right price via the right channels presented in the right way
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what is a customer led approach to marketing?
designing products that meet needs of individual customers
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what is a generic product?
product that doesnt contain features that add value
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what is a generic heading or brand?
each product in a generic brand is a seperate product. the basis of each is similar but each is targeted at different segments to satisfy different needs
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what is a unique selling point?
an aspect of a brand that makes it different from others
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what is the price of mortgage loan?
rate of interest on amount borrowed, could also be an arrangement fee
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what is the price of an insurance policy?
premium
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what does the price determine for the provider?
revenue and profit
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what are 4 factors determining price?
cost of providing product, demand for it, prices charged by competitors for similar products and images provider wishes to promote
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what is the law of demand?
the higher the price the lower the demand
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what is meant by a promotion campaign shoudl be informed and persuasive?
it will describe the product and will point out strengths compared to rival products
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what can a provider use to promote a brand?
use of slogans and logos
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what's another name for a slogan?
taglines
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what's another marketing name for place?
channel of distribution
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what are the main channels of distribution which a provider can use?
face to face, online, mobile and telephone
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what are the factors determining the channels used?
cost, maket segment, effectiveness and competition
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why can face to face be cost effective?
it can have a much better success rate. people are able to ask questions directly
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what are 3 financial intermediaries used by providers as an alternative to direct selling?
financial advisers for investments for unit trusts, insurance brokers for insurance policies and mortgage brokers for mortgage loans
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which is the most important additional P to provider if marketing mix is to be effective?
people- provision of financial services is very people orientated. reputation of provider depends largely on employees
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what are 3 examples of process in financial services?
computer hardware/software that processes accounts, info given and length of time customers have to wait for payments into accounts cleared or interest payment made
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what are 2 examples of physical evidence in financial services?
pleasant/well decorated reception in branch and good reports from other customers
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why is persuasive advertising so important to financial services market?
oligopolistic market- cant compete on price so need to convince people of own brand rather than competitors
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how could advertising be a barrier to entry for small challenger banks?
dont have the large budgets and combination of media that larger banks would have
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what is a brand?
name, logo or symbol that immediately distinguishes one product and provider from another
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why is a brand considered an intangible asset?
a strong brand is a very valuable asset which can increase the worth of a provider
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how can a brand lead to competitive advantage?
if customers trust a brand they will buy the product. they will become loyal, may not switch
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what are 4 elements of a strong brand?
image, colour, distinctive word and conceptual phrase
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what are advantages of a strong brand?
product differentiation, effective advertising, brand loyalty and better targeted marketing
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what is price insensitivity?
strong brand helps to reduce number of customers who will switch to another product when price of branded product rises
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whar is purpose of a "house style" brand identity guidelines?
to ensure consistency and brand recognition, also result of careful research carried out by company or 3rd party, which identifies impression that one house style can be compared with another
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what is punlic relation?
long term process by which provider promotes particular public image and reputation
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how is PR different from advertising?
involves liasing with journalists to try and shape stories in newspapers or on TV to present provider in positive light
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what are examples of PR activities?
issuing press releases abour provider/products, commenting on impact of changes in external environment and supporting charities
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how can customer service be assessed?
measuring number of complaints received
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what is the most common complaint in financial services market?
payment on insurance claims
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brand alone isn't capable of satisfying customers. true or false?
true- only a good product, fair price and high quality customer service can do that
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what is a loss leader?
product that a firm offers at a price below cost but which brings in customers, who then buy products on which profit is earned
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what are examples of a loss leader in financial services?
opening of savings accounts for children with very small minimum deposit and no limit on the amount paid or taken out
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why is a children's account considered a loss leader?
the amount of the deposit or withdrawal might be less than average administrative cost of clearing the transaction, and yet bank allows children to use this- seen as future customers
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what is the savings watch scheme offered by Nationwide?
customers offered by SMS or email if interest rate on savings changes. also notified if Nationwide launches a new savings account
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what are 2 general approaches to selling a product?
transactional selling and relationship marketing
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what is transactional selling?
approach to finding and keeping customers that centres on product rather than customers
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what is relationship marketing?
approach centred on building long term relationship with customers
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what is an advantage and disadvantage of transactional selling?
may be better at achieving sales short term, but theyre less likely to be repeated
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what's an advantage and disadvantage of relationship marketing?
may sell fewer products initially, but it has a higehr probability of multiple transactions because it leads to customer loyalty
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what is the pareto principle?
states in many situations, 80% of effects arise from 20% of causes. also known as 80:20 rule
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Card 2

Front

what are 3 additional Ps used by service providers?

Back

people, process and physical evidence

Card 3

Front

what's another name for a product?

Back

Preview of the front of card 3

Card 4

Front

what's another name for promotion?

Back

Preview of the front of card 4

Card 5

Front

why are elements of the marketing mix interdependent?

Back

Preview of the front of card 5
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