State the 4 main features of marketing.
- involves a wide range of activities
- is directed at a wide range of goods, services and ideas
- stresses the importance of satisfying exchanges
- not limited to the activities of businesses
Outline the 4 principles to the development of a marketing concept.
- supported by integrated marketing strategies
- aimed at satisfying customers
- integrated into the business plan so as to achieve the business's goals
Identify the 6 different types of markets.
- resource market: agricultural businesses
- industrial: secondary and tertiary businesses
- intermediate: wholesalers and retailers
- consumer: individuals and households
- mass: vast numbers of individuals
- niche: small target market
Factors influencing customer choice?
- psychological: perception, motives, attitudes, personality & learning
- sociocultural: social class, culture and subculture, family roles & reference groups
- economic: boom & recession
Identify under what circumstances a business is required to offer a refund.
- does not match the description or a sample
- failure to do the job they were supposed to do
State the main ethical criticisms.
- creation of needs
- stereotypical images of males and females
- use of sex to sell products
- product placement
List some unethical marketing practices.
- untruths due to concealed facts
- exaggerated claims
- vague statements
- invasion of privacy
Strengths, Weaknesses, Opportunities & Threats provides the information needed to assess the business's position compared with its competitors.
define market research
the process of systematically collecting, recording and analysing information concerning a specific marketing problem.
Identify the 3 step of a market research process.
- 1. Determining information needs
- 2. Collecting data from primary and secondary sources.
- 3. Data analysis and interpretation
Marketing objectives include:
- increase market share
- expand the product range
- maximising customer service
Distinguish between primary and secondary target markets.
Primary target market share where most of the marketing resources are directed, whereas secondary target markets is usually a smaller market segment.
Identify the 3 approaches to identifying and selecting a consumer target market,.
- mass marketing : the seller mass-produces, mass-distributors and mass-promotes one product to all buyers
- market segmentation: the total market is subdivided into groups of people who share one or more common characteristics
- niche market: a narrowly selected target market segment
Summarise the 2 steps involved in developing a financial forecast.
- 1. Estimate the cost of the marketing plan
- 2. Estimate the revenue the marketing plan expected to generate
Identify the 3 key performance indicators used to measure the success of the marketing plan.
- sales analysis
- market share analysis
- marketing profitability analysis.
Revising the marketing plan.
- changes in the marketing mix
- new product development
- product deletion
Identify the 7 marketing elements that make up the marketing mix. [7 P's]
- physical evidence
Summarise the 4 main ways of segmenting consumer markets.
- demographic: features of a population
- geographic: urban, regional and rural locations
- psycholographic: personality characteristics
- behavioural: customers' relationship to the product
Benefits of branding
- identify the specific products that they like
- evaluate the quality of products
- reduce the level of perceived risk of purchase
- gain a psychological reward that comes from purchasing a brand
Recall the 3 main pricing methods.
- Cost-based method derived from the cost of producing or purchasing a product and then adding a mark-up.
- Market-based pricing method of setting prices according to the interaction between the levels of supply and demand
- Competition-based method where the price covers costs and is comparable to the competitor's price
Identify the 4 main pricing strategies.
- price skimming
- price penetration
- loss leader
- price points
The 4 elements of the promotion mix.
- personal selling & relationship marketing
- sales promotion
- publicity & public relations
Identify the 3 ways of distribution.
- intensive : when the businesses wishes to saturate the market with its products
- selective : using only a moderate proportion of all possible outlets
- exclusive : only one retail outlet for a product in a large geographic area.
2 approaches to global marketing strategies.
- Standardised: assumes the way the product is used and the needs it satisfies are the same the world over
- Customised: assumes the way the product is used and the needs it satisfies are different between countries
3 main reasons why businesses use global marketing strategies.
- cost effective
- provides a uniform worldwide image
- successful brand name can be linked to new products into the market
3 global pricing methods.
- Customised pricing
- Market-customised pricing
- Standardised pricing