Marketing Final Revision (MKTG11-100)

What is an effective method of applying the AIDA concept?

Creating a maximum reach through mass media for Awareness and Interest. Then using more personalised techniques for desire and action.

What are the factors affecting buying decisions?

Culture Factors: Values, Languages, Myths, Laws, Rituals Individual Factors: Age, Gender, Race, Life Cycle Social Factors: 'Class', Occupation, Income, Education Psychological Factors: Perception, Belief, Culture

What are the various pricing tactics?

Discounts & Allowances, Geographic Pricing, Special Tactics (Leader, bait, psychological etc.)

What are the four divisions of the BCG Matrix?

Dog, Question mark, Star and Cash cow.

What are the Cost Determinants of Price?

Fixed and Variable costs, Mark Up costs, the Breakeven point and Profit Maximisation.

What are the Segmentation Bases?

Geographic, Demographic, Psychographic, Benefits, usage rate etc.

Corporate Strategy is

Highest level - Deals with the organisations direction overall

What are the stages of the new product development process?

Idea Generation, Screening and Evaluation, Business Analysis, Development Testing and Commercialisation.

What are some disadvantages of Direct Marketing (promotion)?

Image Factors, Accuracy, Content Support, Rising Costs

What are the aspects of a 'Service'

Intangibility - Cannot be touched Inseparability - Produced and consumed simultaneously. Heterogeneity - Less standardise and uniform than goods. Perishability - Less standardised and uniform than goods.

What are the three levels of distribution?

Intensive, Selective and Exclusive.

What are the important characteristics of a brand?

Name, Mark, Equity, Loyalty and Personality.

Product Mix Width is:

Number of different product lines carried by the company

Product Mix Depth is:

Number of version offered of each product in the line.

What processes would be used to scan the environment?

PESTEL+C & SWOT

What is the difference between Primary and Secondary Data?

Primary data is data you collect yourself, where secondary data is data you collect from a third party source.

What is the Product mix?

Products of a company

What are the various Pricing Objectives?

Profit oriented: Profit maximisation Satisfactory profits Target ROI Sales Oriented: Market Share Sales Maximisation Status Quo

What discrepancies can channel members overcome in distribution?

Quantity, Assortment, Temporal and Spatial.

What are the factors affecting media planning?

Reach, Frequency, Cost per Contact.

What are the Five Marketing Orientations?

Sales, Relationship, Product, Societal and Market.

Channel Power (place) is:

When a particular marketing channel member, controls or influences the behavior of other channel members

Channel Control (place) is:

When one marketing channel member intentionally affects another member's behaviour

What is the concept of Positioning Bases

The evaluation of your product/service compared to competitors in regards to two 'things'... e.g. Price/Quality

VIDEO: 'Rabbit Telecoms (Phones)' is about...

The introductory stage of the product life cycle and how the company did not conduct enough research, to determine viability (idea failed).

VIDEO: 'Polaroid Camera' is about...

The maturity stage of the life cycle. Instead of keeping up with competitors technology and changing to digital, they decided to stick with polaroid, which bankrupted their business.

What is Marketing?

The process of creating, communicating and delivering value to the customer through the marketing mix.

Consumer Behaviour is

The processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods and services. It also includes factors that influence purchase decisions and the use of products.

Product Differentiation Competitive Advantage

The provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitor.

Customer Value

The ratio of benefits to the sacrifice necessary to obtain those benefits.

What is the 'rate of adoption'?

The relative speeds of society to adopt to a new innovation (e.g. new phone)

Competitive Advantage is

The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

Functional Strategy is

Third Level - Deals with the implementation of the strategic direction at the organisational level.

What is the role of Promotion?

To inform, persuade and remind the consumers of value.

What are the three functions of distribution?

Transactional (Contacting/Promotion) , logistical (Physically Distributing) and facilitating (financing).

What are the factors that influence the rate of Adoption?

Trial-ability, observability, compatibility, and relative advantage.

What are the target-market strategies?

Undifferentiated (Mass), Concentrated (niche), Multi-segment (two or more defined) and One-to-One (relationship).

What are the benefits of branding (product)?

• Product identification • Brand loyalty • New-product sales • Develop brand equity • Brand personality

What are the Six promotion mix tools?

- Advertising, - Direct Marketing - Internet Marketing - Sales Promotion - Personal Selling - Public Relations

What is the Consumer Decision Making Process?

- Need Recognition - Information Search - Evaluation of Alternatives - Purchase - Post-purchase behavioir

What are the Involvement Levels?

- Routine Response - Limited Decision Making - Extensive Decision Making

The factors that influence consumer behaviour:

- Time - Cost - Information Search - Number of Alternatives

What are the conditions of an exchange?

- Two parties, - Something of Value to exchange - Be able to communicate and deliver - The freedom to accept or reject the offer - Both parties must want to deal with one another

Why Segment your market

1. Define customer's product needs and preferences more precisely 2. More accurate marketing objectives and evaluation 3. Improved resources allocation 4. Better marketing results

What are the 3 channel relationships

Channel Power, Channel Control, Channel Conflict

What is the Product line?

Close related products

What are the Four types of products?

Convenience, Shopping, Specialty and Unsought.

What are the three components of a Product?

Core (essential benefit), Actual (packaging, brand) & Augmented (warranty, customer-service).

What are the 'Forms of Encoding' (Promotion)?

Musical, Verbal, Animation, Graphic,

What are the various pricing strategies?

Skimming, Penetration Pricing and Status Quo pricing.

The Product life cycle stages are:

1. Introductory - The full-scale launch of a new product into the marketplace 2. Growth & Shakeout - Sales typically grow at an increasing rate, many competitors enter the market, large companies may start acquiring small pioneering organisations and profits are healthy 3. Maturity - A period during which sales increase at a slower rate 4. Decline - A long-run drop in sales

Factors affecting the level of consumer involvement

1. Previous experience 2. Interest 3. Perceived risk of negative consequences 4. situation 5. social visibility

What are the steps in the marketing research process?

1. Problem Definition 2. Plan Research Design 3. Sampling 4. Data collection & Analysis 5. Reporting and recommendations

Steps in Segmentation Process:

1. Select a Market or product category 2. Choose a basis for segmenting 3. Select Segmentation descriptors 4. Profile & analyse segments 5. Select target markets 6. Design, implement and maintain appropriate marketing mixes

Marketing Objectives

Specific Measurable Achievable Realistic Timely (SMART)

Benefits of product lines are:

Advertising Economies, Package Uniformity, Standardised Components, Efficient Sales and Distribution, Equivalent Quantity

What are the Promotional Media Types:

Advertising methods: ¥ Newspaper ¥ Magazines ¥ Outdoor billboards ¥ Radio ¥ Transit Advertising ¥ Ambient/alternative ¥ Direct marketing ¥ Loyalty marketing ¥ Inbound Telemarketing

Peretos Saying is that...

80% of business is made up by 20% of customers

Channel Conflict (place) is:

A clash of goals and methods between distribution channel members

What is a Product item?

A specific version of a product that can be designated as a distinct offering among an organisations products.

What is creative development (promotion)?

A unique selling proposition.

VIDEO: 'Persil Power' Clothes Washer is about...

An invention of a new clothes washer, added to a existing product line... damaged clothes and demand dropped to nothing.

What factors influence elasticity of demand?

Availability of substitutes, price relative to purchasing power, product durability, other uses etc.

What is the AIDA concept (promotion)?

Awareness, Interest, Desire & Action.

VIDEO : 'Coca-Cola' is about what?

Branding... They changed their formula to something else and it was not liked by consumers.

Important components of Packaging include:

Labels, information, barcodes/QR codes

What are the Advertising appeals and executional techniques?

Lifestyle Testimonial Humor Fantasy

Strategic Planning

Managerial process of creating and maintaining a fit between an organisation's objectives, resources and evolving market opportunities.

What are the various channel members of distribution?

Manufacturers, wholesalers, retailers, brokers & consumers

What are Ansoff's Strategic Directions?

Market Penetration, Product Development, Market Development and Diversification.

What are the factors affecting choice?

Market, Product, & Producer.

Business Strategy is

Second Level - Deals with the overall direction of strategic business unit. A subgroup of a single business or collection of related businesses within the larger organisation

What are some advantages of Direct Marketing (promotion)?

Selective Reach, Segmentation Culpability, Frequency Potential, Flexibility, Timing, Personalisation, Economy, Measurement of Effectiveness

What are the factors of the communication process?

Sender, encoding, message, channel, decoding receiver || noise and feedback ||

What are the criteria for assessing Segmentation?

Substantial, Measurable, Accessible and Responsive.

Niche Competitive Advantage

The advantage achieved when an organisation seeks to target and effectively serve a small segment of the market.

Cost Competitive Advantage

The advantage of being a low-cost competitor in an industry while maintaining satisfactory profit margins.

VIDEO: 'Pacific Coast Feather Co' is about...

The effectiveness of being efficient in distributing products. Were distributing to Hyatt etc. and had great relationships with the businesses they were supplying.