MARK213 Lectures 5-12 Review

What is Sports Marketing?

"Sport marketing is a social and managerial process by which the sport manager seeks to obtain what sporting organisations need and want through creating and exchanging products and value with others"

The use of large amounts of data is called...

'big data' - is part of a data-driven approach to marketing.

The Net Promoter Score is...

(NPS) - How likely you are to recommend the product or service to your family and friends - More recently, the link between customer satisfaction, loyalty and profitability has been further demonstrated and popularised in the Net Promoter Score (NPS), a customer loyalty metric created by Fred Reicheld, Bain & Company and Satmetrix in 2003. The NPS has become a favoured metric of customer loyalty and satisfaction and is widely used across service, retail and B2B sectors. It can be used to measure businesses' overall customer satisfaction and also the customer service performance of individual employees, especially in B2B organisations. It is based on the proposition that there are three types of customers: 'promoters', 'passives' and 'detractors'.

the fifth and final stage of the PLC is...

- Decline. The decline stage of a product's life cycle sees sales and profits fall. New products may be entering, and there may be little interest in the current product. In the decline stage, the marketer must decide whether to reduce its investment in the product, drop the product from its product mix, or change the product and hope that it will enter a new growth stage. For products that the market perceives as old or of little interest, changes in the marketing mix, such as cuts in the price, will have little effect in increasing its sales. Eventually, a product left in the decline stage will be withdrawn from the market.

The process element of the marketing mix is characterised by...

- Element of the services MM - All of the systems and procedures used to create, communicate, deliver and exchange a service/offering. E.g. manual or computerised o These define the manner in which the service is coordinated and delivered. o It is generally advisable to be 'efficient first and friendly second'. Service providers should therefore rightly focus their attention primarily on the delivery of effective and efficient service.

The people element of the marketing mix is characterised by...

- Element of the services MM - Those coming into contact with customers who can affect value for customers: o staff o customer or client being served o other customers or clients either directly or indirectly involved.

The Physical Evidence element of the marketing mix is characterised by...

- Element of the services marketing mix - The intangibility of services makes it difficult for customers to evaluate the quality and suitability of services. Customers look to tangible cues (logos, staff uniforms, architecture and décor) and other physical evidence as a way of evaluating the service prior to purchase. Important in services because tis hard as customer to evaluate a service, important to communicate and contribute to the overall satisfaction with the service.

The third stage of the PLC is...

- Growth. The growth stage sees increasing popularity, sales and profits. It depends, of course, on the product being welcomed by the marketplace and potential customers deciding to actually purchase the product. This is an exciting period for the organisation. At some point during this period, competitors enter the market with similar products, so while sales overall continue to increase, the rate of growth of a particular organisation's profits is likely to slow.

The second stage of the PLC is the...

- Introduction. This stage marks the first appearance of the product in the marketplace. The market is likely to know little or nothing about the product, and so the organisation must often make a considerable investment in promotional activities in order to build awareness of, and interest in, the product — in turn to trigger potential customers to evaluate, trial and purchase the new product. Even with a successfully launched product, there is often a lag between introduction and the building of substantial sales. Sales start at zero in the introduction stage and must offset promotional costs associated with the product launch and recoup the research and development costs incurred in the new product development stage. Only then does the product begin to generate profits.

The fourth stage of the PLC is...

- Maturity As competitors enter the market with similar products, the novelty of the product wears off, alternative — potentially superior — products become available, and the product's sales and profitability peak and start to fall. This occurs during the maturity stage of the product life cycle. In the maturity stage, the organisation must determine its future approach to the product. Organisations that want to continue in the market will often make some change to the marketing mix with the expectation that this will increase profits and move the product into a growth stage again. New strategies could be to change the product, lower the price, expand the distribution or differ the promotional activities. Alternatively, a marketer may decide to leave the market and allow the product to enter the decline stage.

The first stage of the PLC is...

- New product development. The first stage of a product's life cycle occurs when the organisation develops the idea, undertakes research, prepares prototypes, pre‐tests the product, and makes modifications before the product launch. All of this, of course, occurs before the product becomes available to the market. During new product development, faults and problems can be eliminated and positive features can be refined and improved. New product development can involve substantial costs for a business and these are not offset by sales until later in the product life cycle. New production development will be discussed in greater detail in the following section.

What are the characteristics of digital marketing?

- Profiling - Interaction and Community - Control - Accessibility and compatibility - Digitalisation

Online advertising marketing metrics encompass...

- cost per thousand views - click through rate - cost per click - conversion rate - customer acquisition cost - unique visitors

What are the issues involved with standardisation?

- similarities between different countries/convergence - economies in research and development - economies of scale in production - economies in marketing - uniformity and ease of control in marketing approach

what the issues involved with customisation?

- social, cultural, economic, political and legal differences between countries - creation of competitive advantage - competition from local marketers in the foreign market - facilitation of innovation in the foreign market

What is the total product concept?

- the totality of value and benefits it provides to the customer. o The core product: the essence of the product, what it does - e.g. a car is meant to get you from a-b o The Expected product: includes things like feature, design brand name etc. things you expect but are distinguishing o Augmented product: Things that support the product, e.g. warranty, finance etc. o Potential product: how the product can be developed further

What is the two stage approach to researching international markets?

1) Screening - screening research should consider broad market selection criteria such as; population, income, demographic information, the business environment, competitors in the market, government stability, market access - more specific criteria include sales potential, market growth rates, gross margins potential, forecast market development expenditure. 2) In-depth research - short-listed international markets need to match business strengths. the second phase involves detailing market research to assess; requires product positioning, required marketing mix, including service support to enable cost implications and appropriates mode of entry to be identified.

What are the two key objectives of communication?

1) get people to trial the product (entice new consumers) 2) get consumers to rebuy the product (bring back repeat consumers)

What are the two current issues in marketing?

1) the failure of companies not to apply marketing principles, the marketing principle is one way of doing business - understanding the customers E.g. the Banks in Australia focusing on sales rather than customer relationships and retention 2) not only focus on marketing but also on branding - branding is becoming a discipline in its own right - opportunities as brand manager

The product adoption process involves...

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

External environmental factors affect the ability of an organisation to implement the marketing concept, what are these factors?

1. The increasing saturation of the market in terms of all aspects of the marketing mix. [more and more difficult for marketing organisations to create and sustain a competitive advantage or indeed to differentiate their offerings at all in the midst of extensive competition]. 2. The fragmentation of the market. The market increasingly comprises smaller and smaller niches with specific needs.

A Business that is 'Born Global' refers to a business that...

A ___________ __________ business is one that views the whole world as its market from day one. o The emergence of e‐commerce has been an important facilitator of born global business and most born global marketing organisations are internet‐based. Online auction site eBay is a prime example. Companies that are global from day 1, their strategy is to be global company, often do not have a physical store e.g. eBay, ASOS etc.

Ambush Marketing is...

A brand's attempt to associate itself with a team or event without buying the rights to do so - The presentation of marketing messages at an event that is sponsored by an unrelated business or even a competitor. Ambush marketing is legal and can be extremely successful, although major events are becoming more sensitive to ambush marketing and taking steps to reduce its impact and protect sponsors. o Ambush marketing is usually related to an event and official sponsors, while guerilla marketing is more about getting the attention of customers.

Strategic alliances and joint ventures as a method if international market entry entails...

A business that does not wish to or cannot make a direct investment in a foreign market may choose instead to form an international strategic alliance with a business based in that country.

What is a brand?

A collection of symbols, such as the name, logo, slogan and design, intended to create an image in the customer's mind that differentiates a product from competitors' products. E.g. Apple, Samsung, Ford, Holden, Ikea, Nordstrom - sometimes we buy the brand rather than the product - part of the expected or actual product (same thing) - brand and meaning can be managed and measured through brand personality research o To identify and differentiate o A brand can identify one item, a family of items, or all the items of a seller.

Lack of strong leadership as an internal barrier to marketing objective implementation refers to...

A market orientation requires strong leadership. Given many people's general resistance to change, any blurring of messages, mixed signals or signs of uncertainty from those leading the change will reinforce this resistance to change. --> PLOC; Planning, Leadership, Organising and Controlling

Define pull strategy

A marketing approach that involves creating demand from the ultimate consumers so that they "pull" your products through the distribution channels by actively seeking them - An approach in which the producer promotes its product to consumers, usually through advertising and sales promotion, which then generates demand upward through the marketing distribution channel. For example, the consumer becomes interested in a product through the producer's television advertisement and then enquires at a retailer. The retailer asks its suppliers about the product and the suppliers seek out the producer. This approach often reflects the business‐to‐consumer (B2C) relationship, as the main promotional effort goes directly from the producer to the potential consumer.

Within product relationships the product item is...

A particular version of a product that can be differentiated from the organisations other product items by characteristics such as brand, ingredients, style or price. For Bonds, a product item in their men's underwear range is Bond's Boxers

Digital marketing in the form of APPs is...

A phenomenon that has coincided with the increased availability, affordability and consumer uptake of smartphones has been the development of application software (or 'apps') to run on these mobile devices. o With an abundance of special features, apps have the capability to: o Turn on auto‐location to find nearby events o Integrate with Facebook and twitter o Access artist and venue info, including seat maps o Know what's coming up with in‐app alerts.

Define product

A product is defined as a good, service or idea offered to the market for exchange. o Goods are physical, tangible offerings that are capable of being delivered to a customer. E.g. can of coke o Services are intangible offerings. - mainstream marketing e.g. getting a hair cut, a uni lecture o An idea - a concept, issue or philosophy. - social marketing and cause related marketing o Most goods have a service component as well - e.g. buying a good there is a service component as well - customer service in providing goods

Structured data is...

A relational format in tables that are composed of rows and columns - data in the form of rows and columns

define push strategy

A sales promotion strategy in which marketers devise incentives to encourage purchases by members of the trade to help push a product into the distribution channel - an approach in which the product is promoted to the next organisation down the marketing distribution channel. For example, a producer promotes its product to a wholesaler, which in turn promotes the product to a retailer, who finally promotes the product to consumers. Of course, many products are promoted via both techniques. Additionally, producers and retailers may undertake a cooperative advertising campaign where both the producer and the retailer are promoting the product to its target market. This approach emphasises a business‐to‐business (B2B) relationship as the promotional effort moves down the channel of distribution.

Within product relationships the product line is...

A set of closely related product items. The close relationship is usually in terms of end use, target market, technology or raw materials. Using the Bonds example, the product line for Bonds men's underwear includes trunks, Y-fronts, boxers and t-shirts

The internet and mobile telecommunication technology represent...

A technological shift. The internet usage in a standard household, is divided across multiple screens and platforms.

search engine marketing (SEM)

A type of web advertising whereby companies pay for keywords that are used to catch consumers' attention while browsing a search engine - Many search engines now seek paid advertising to place on search results pages. o The advertisements that appear at the top of search results are known as sponsored links or 'ads'. o Sponsored links are appealing to businesses because they are only returned for searches that are relevant to the advertised product, effectively ensuring the link is placed more prominently than links that are returned purely due to SEO efforts.

Digital marketing in the form of portals is...

A website that is designed to act as a gateway to other related sites. e.g. directing you to areas of the website that you may require such as FAQ's, ability to gain information or book a service, purchase a product etc. o The portal itself either carries advertising or is intended to serve as an advertising tool for the portal business itself. o The popularity of the portal has declined as search engines have become more powerful and as users have realised they can often better find content themselves. o Most portals now feature a search engine.

The fifth and final stage of the product adoption process is...

Adoption - The consumer decides to purchase the product. The consumer evaluates the product and determines whether they will re-purchase it in the future.

Within consumer products, what are convenience products?

Also known as fast‐moving consumer goods , are inexpensive, frequently purchased consumer products that are bought with little engagement in the decision‐making process. Convenience products are usually available from a wide range of retailers, including supermarkets, corner stores and petrol stations. Being cheap, they usually depend on a high volume of sales to generate a reasonable profit. They are often self‐service products and so packaging plays a major role in grabbing consumers' attention. Convenience products can be further broken down into three main categories. 1. Staple products — products that are bought and used by consumers regularly, such as milk, bread, rice and soap. Usually, there is not much promotion for branded staple products. 2. Impulse products — products that are bought with little planning, often purchased only after seeing the item at the retail store. Impulse products include magazines, chocolate and chewing gum. They are often positioned immediately next to the cash register in a store. 3. Emergency products — products that are bought when the product is needed in an 'emergency'; for example, an umbrella when you are caught in the rain or the services of an electrician if the power goes off.

What is the nature of Big Data?

Although big data was initially touted as a great way to improve business performance, it now has a negative connotation. Data is big when size becomes part of the problem, the proper use of information from big data is what creates value for a company. Gartner - the three (now 4) Vs for describing big data are: Validity (Does the data measure what it is meant to), Veracity (was the data entered correctly), Value and Visualisation

Obtaining customer data for analytics involves...

Although there are many sources of data for marketers, customers are becoming more hesitant to share their data with a company. If data cannot be reliability anonymised, it will not be made available. Customers will provide information, if they feel they get something in return - it is imperative that internal and external clients who use the reports are aware of these shortcomings.

What is the Australian perspective on international marketing?

An Australia perspective: We will 'Fosterise the World' - didn't work, historically what's happened is that there's been lots of successful Australian companies, might draw on Ansoff's matrix - international marketing might be involved in taking into new markets - E.g. Bunnings in the UK are not so successful as in Australia - Australian companies might be big fish in a small bowl - but very little fish in a very large bowl, haven't got the resources to compete with some big international companies, may not have applied marketing theory correctly

The marketing strategies that may be implemented in the marketing cycle comprise of...

Ansoff's matrix four ways of entering the marketing 1) Market penetration - encourage more use of existing products in exisiting markets 2) product development - introduce new products for existing markets 3) market development - find new markets for existing products 4) diversification - introduce new products to new markets

The 7 Ps comprise...

The elements of the Marketing Mix: (For goods): Product Price Promotion Place (for services): People Physical evidence Process

Data driven results can incur issues such as...

The empowerment that comes with transformative knowledge of customer, guest, product, patient, or fan information, as well as ongoing access to relevant, real-time data in an easy to understand format. Over-reliance on data-driven results in modelling customer behaviour can also be an issue, because sometimes there are statistical reasons to assume why people act the way they do, which are outside the realm of available data.

What are the benefits of using distribution channel intermediaries?

The existence of distribution channel intermediaries reduces the number of interactions from 32 to 8 in figure 10.1, as the consumer can go to the one intermediary (e.g. a supermarket) to purchase the products for breakfast. This shows that the existence of an intermediary can make the whole process more efficient for both the producer and the consumer, which can lead to cost savings. It is clear then that intermediaries can add considerable value to a producer's offering. In choosing a distribution channel, the producer needs to first consider the way in which its product can best be marketed, so that the supply chain from producer to consumer effectively becomes a value chain. The market coverage decision takes into account the nature of the product and its target market. Generally, marketers will choose from: •• intensive distribution , which distributes products via every suitable intermediary •• exclusive distribution , which distributes products through a single intermediary for any given geographic region •• selective distribution , which distributes products through intermediaries chosen for some specific reason. Intensive distribution is an obvious strategy for everyday purchases such as milk. The consumer invests little time in deciding where, when or how much to buy or how much to pay.

What are the new product classifications?

The first stage of the product life cycle involves new product development , commonly abbreviated to 'NPD'. This is a crucial time for the product as it is the stage at which the product benefits can be maximised and faults and problems minimised. There are also several ways that a new product can be viewed depending on the organisation and the technology. What may be classified as a new product includes: 1. new to the market — a new technology that has never been seen before 2. new to the company — a product already in the marketplace but this is the first time it has been produced by a certain company 3. new to the product line — a product that is an extension of whatever the company currently produces 4. new to the product — modifications, enhancements and improvements to a specific product that will revitalise it and move it into a growth stage in the product life cycle. No product or brand remains the same. Markets are in a perpetual state of change, and organisations find it necessary to enhance the product characteristics or product mix to meet the changing needs of their customers.

What does the acronym RATER refer to?

The five dimensions of service quality: Reliability Assurance Tangibles Empathy Responsiveness

Heterogenity is the characteristic of service that describes...

The inevitable variations in the service provided give services the characteristic of heterogeneity. E.g. varying rapport with clients, more switched on some days than others etc.

How to we deliver consistent service quality?

The intangible nature of services makes it difficult for customers to evaluate some of the services they receive. o The quality of most services are most likely to be evaluated during and after service delivery. o Depending on the type of procedure, the patient may never really know the quality of the service provided. o Legal and investment advice are other examples, in which customers commonly know little about the service provided and are limited in their ability to assess the quality of the advice. o Where the systems and people are so important - the way that staff are trained has to be consistent, no surprises for the customer

Evaluating marketing performance involves...

The marketing cycle is best considered as an ongoing loop where marketing programs are constantly revised and refined. o Only with clearly defined and understood objectives can the marketing organisation: o Properly plan and implement an effective marketing campaign o Evaluate the extent to which the objectives have been achieved.

The marketing cycle is comprised of...

The marketing cycle- Effective marketing planning in achieving organisational and marketing objectives - The implementation of a marketing strategy - Marketing metrics and the ongoing evaluation of marketing performance in the marketing cycle - From the top 1) corporate mission; at the company level - sometimes just a bit of tokenism - these are important; require soul searching on the part of the senior ex. Why does this company exist? What it's the purpose? - can be corporate values as well - Example of Coca-Cola; 'Coke's goals are to refresh the world, to inspire moments of optimism and happiness, to crate value and make a difference' 2) Analyse the market - PESTEL Analysis or a SWOT analysis 3) Set objectives - what is that you want to achieve? Where are we now? Where do we want to go? Start looking at objectives 4) Strategies - might have realised that the strategies relate to how do we get there? Considerations? 5) Evaluate - did we get there? Review plans?

How can data be driven by decision making?

The marketing insights and decisions that arise from the analysis of data about or from consumers - The key to insightful data and analytics is: transforming the data into meaningful objects for the business. - Data-driven marketing approaches to analytics must use the SMART Model, just as in any other marketing campaign.

What is the dilemma of marketing...

The most recent formal definition of marketing is; the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. - we know that marketing is about satisfying the wants and needs of customers more efficiently and effectively than competitors - society at large presents a problem because is it our job as marketers to consider society at large? Consider companies who sell alcohol or promote gambling? Who are we to judge to what's good for society? - what's going on in our world, companies are in a global fish bowl, if they ignore what society wants it might come back to haunt them?

Sponsorship refers to...

The paid association of a brand with an event or person. A company develops a sponsorship relationship with a particular event, providing financial support in return for the right to display a brand name, logo or advertising. Sponsorship can be used in cause‐related marketing, positively associating an organisation with the sentimental feelings aroused by certain causes, including charities or other worthwhile endeavours.

The digital marketing characteristic 'profiling' is defined as...

The process of getting to know about potential customers before they make a purchase and to find out more about existing customers. E.g. gather information about the person, about the data e.g. registering to go onto a website or joining a loyalty club

profiling is...

The process of getting to know about potential customers before they make a purchase and to find out more about existing customers. Marketing organisations can gather information about their customers in digital environment through the following methods; requiring registration, the use of cookie son websites, competitions; may raise ethical considerations because the main purpose is to gain customer information rather than a competition genuinely

market segmentation is...

The process of identifying a specific set of characteristics that differentiates one group of consumers from the rest - the different ways to segment - geographically, demographically, Psychographically, behaviourally - however there is no one best way to segment a market

What is brand loyalty?

The tendency of some consumers to continue buying the same brand of goods rather than competing brands. -The underlying factor in brand equity is brand loyalty. Brand loyalty exists when the customer: •• shows a highly favourable attitude towards a specific brand •• would prefer to buy a specific brand over any other brand in the market. Brand‐loyal customers are highly valued by organisations.

What is the theory of diffusion of innovation?

The theory describes how innovations are adopted by the market over time and suggests that the influence of social groups on the decisions made by individuals determines the way in which new products and ideas are adopted. Focusing on the demand side - depending on the type of product - the way it is diffused throughout the market - so the people who are the first to buy are referred to as the innovators, then the early adopters, then the early majority, then the late majority, then laggards

Viral Marketing refers to...

The use of electronic social networks to spread a marketing message. Viral marketing gets its name from the idea that the marketing message, once introduced, spreads from one person to another via contact, much the way a virus (such as the flu virus) spreads. Viral marketing campaigns can also be hijacked.

Digital marketing in the form of viral marketing refers to...

The use of social networks to rapidly spread a marketing message via earned media. o One of the most successful viral marketing efforts of all time in recent times was the 'Best job in the world' campaign created by Tourism Queensland. Viral marketing online is very much controlled by the online community and some businesses have paid a heavy price for trying to manipulate online word‐of‐mouth or use social networking sites for commercial purposes.

Data visualisation is...

The way that you present the data is crucial - can make a huge difference to how data turns out - Microsoft excel, SPSS, Spotfire, Tableau

legal enforcement regarding Digital media refers to...

There can be significant legal consequences for organisations and individuals that breach laws related to their conduct online. o The matter of jurisdiction has also led to some complex international business arrangements in the online gambling industry, as well as some inconsistencies of approach. o By contrast, gambling on sport events is legal with high-profile sports gambling operations Centrebet and Sportsbet licensed by the government.

Within an organisation is there a marketing person?

There may not be a person who is charge of the full marketing mix, by necessity and reality in a small business there is one person, but in larger organisations there are split marketing roles which opens opportunities for graduates o Marketing roles are being split and becoming more specialised. A person's role could be specialised in one component of the marketing mix but also be cross-disciplinary. For instance, Pricing or People - pricing might be done by someone who's done marketing but also microeconomics - People marketer and HR person

societal marketing objectives refer to...

These have been developed out of a sense of obligation to the society in which the business operates and the increasing importance placed on social responsibility by growing numbers of potential customers.

What are brand metrics?

To measure the value of brands is extremely useful to organisations. Brand equity metrics include: •• brand assets (e.g. trade marks and patents) •• stock price analysis •• replacement cost •• brand attributes •• brand loyalty •• willingness‐to‐pay analysis. High brand equity can be a valuable asset for a company and provide a strong competitive advantage.

what is the need for information?

To understand existing and potential customers as well as our competitors we need information. We need the right information. Not information (data) overload! E.g. Sydney Kidman who controlled 1/16th of Australian land area - he was so successful was that he knew the value of information, he had a business model o Big data provides us the opportunity to get access to different types of data - big data can be problematic as well as great opportunity

The fourth stage of the product adoption process is...

Trial - The consumer examines and tries out the product. The consumer decides whether the new product can satisfy a need or a want.

Within consumer products, what are unsought products?

Unsought products are those goods or services that a consumer either: (a) knows about but doesn't normally consider purchasing (b) doesn't even know about. A fundamental challenge for marketers with any product is to make consumers aware of the product's features and benefits, and the needs it satisfies. This is especially the case for unsought products, and marketing communication efforts are crucial. For unsought products in category (a), a sudden, unexpected need may arise for consumers. For example, although most consumers will know that various home security products exist, it may take a spate of burglaries in their neighbourhood to prompt the consideration of purchasing such products. An actual break‐in, of course, would prompt the engagement of police services. In such situations where unexpected needs arise, prior marketing communication efforts are likely to be crucial in order for a particular product or brand to be 'top of mind' for the consumer. For example, the consumer may be aware that Crimsafe is a popular brand of home security products, due to concerted marketing communications efforts by the company over a number of years. For unsought products in category (b), marketing communication is again crucial in terms of making consumers aware that the product is available, and that its features and benefits satisfy needs. Only then will demand for the product potentially be generated, in order for it to move out of the less desirable 'unsought' category and into one of the other consumer product classification categories (shopping, convenience or specialty).

Digital Marketing

Uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers - All of the activities involved in planning and implementing marketing in the electronic environment, including the internet and web on computers, tablets and smartphones, and other information and telecommunications technologies.

Provide an overview of the product life cycle

Very few products remain the same from their introduction through to their eventual removal from the marketplace. Products, are not simply classified based on the number of years they have been in the market. For example, despite being around for thousands of years, bread would not be classed as being in the final stage of its life cycle. **Rather, the stages in the product life cycle reflect the product's current place in the market and its sales and profitability.

VR in digital marketing is...

Virtual reality (VR) is not new, indeed, it has been experimented with since the 50s and 60s. o VR has now expanded into retailing. o Retailing giants eBay and Myer teamed up in May 2016 to launch the first virtual reality department store, where people shop for items just by holding their gaze at the item in a virtual reality space, then moving it to their shopping cart, which can then be paid for at the checkout through the customer's PayPal account.

Where can product differentiation occur within the total product concept?

We remember from segmentation, targeting and positioning - when we are positioning the product in the minds of the consumers we can do that by adjusting those components of the MM that the research is suggesting we do - you don't adjust the core product, where you can adjust is the expected product (brand name, features etc. differentiate their product based on slightly different features), and augmented product (offering finance, e.g. 7yr warranted) and even the potential product (innovation, where you can differentiate by building new features into the product

E-commerce in digital marketing refers to...

When the marketing exchange occurs via the internet, mobile phone or other telecommunications technology, it is known as e‐commerce. o E‐commerce is particularly attractive to small, niche businesses. o The web enables them to reach consumers across the globe, potentially making viable a business that would not be able to generate adequate turnover just through local customers. - music is a good example

Digital marketing in the form of Email, SMS, MMS is...

While spam is an unwelcome and illegal approach to marketing, legitimate email and SMS marketing can be an effective way to build customer relationships. o The chances are that an SMS will be read (and perhaps responded to) within minutes of receipt. o The capabilities of contemporary smartphones also provide additional opportunities for marketers via multimedia message services (MMS).

What are services marketing challenges?

While there are numerous challenges in the successful marketing of services, there are three key issues which, arguably, make the marketing of intangible services more difficult to manage than the marketing of tangible goods. These are: o achieving a sustainable differential advantage in marketing services o managing profitable customer relationships o delivering consistently high levels of customer service.

Within business products, parts and materials refers to...

________ and ___________ are business‐to‐business products that form part of the purchasing business's products. They include the following: Raw materials — unprocessed natural materials that are used in the production process to form part of the business's products. Raw materials can be farm products (e.g. fleece, used in the production of woollen yarn) or natural products (e.g. iron ore, used in the production of steel). Components — processed items that form part of a business's product. Components are usually incorporated into the business's product through an assembly process. Components may be materials (e.g. yarn, used in the production of jackets) or parts (e.g. brakes, used in the production of bicycles).

Brokers are...

________ are engaged on a short‐term or one‐off basis to negotiate on behalf of buyers or sellers. o Insurance brokers work to find the most suitable insurance for individuals and organisations and provide expert advice about insurance contracts. o Mortgage brokers often take responsibility for almost all aspects of the loan application. o The business of many brokers has changed over the past decade as e‐commerce has taken over many of the functions of processing transactions. Are engaged on a short-term or one-off basis to negotiate on benefit of buyers.

Agents are...

_________ are engaged by buyers or sellers on an ongoing basis to represent them in negotiations with other marketing channel participants. o The main types of agents are as follows: o manufacturers' agents o selling agents o buying agents o commission merchants.

Within business products, services and supplies refers to...

____________ and _________ are business‐to‐business products that are essential to business operations, but that do not directly form part of the production process. Services and supplies include: •• business services — specialised services, such as financial, legal, market research and office cleaning services, that support the company's operations and are often provided by external suppliers, such as banks and solicitors •• maintenance, repair and operating (MRO) supplies — items that assist in the company's production and operations but do not form part of the product, including engine oil (for maintenance), rivets (for repair) and paper (for operations).

Within Ansoff's Matrix, Diversification is...

_____________ is when a business introduces new products into new markets. This is the most risky strategy in the matrix, as the business is moving away from what it has done in the past and into new areas where it has little or no experience. There is a lot of uncertainty — but if it is undertaken successfully, it can be very profitable.

Within business products, equipment refers to...

_____________ refers to those business‐to‐business products that are used in the production of the business's products. Equipment may be: •• capital equipment — installations such as buildings (e.g. offices, factories and warehouses) and machinery (e.g. generators, furnaces and conveyor belts) •• accessory equipment — smaller items that support the production of a product but that do not form part of the product (e.g. forklifts, drills, computers and filing cabinets).

Regarding pricing, what is marginal analysis?

______________ is concerned with understanding the effect on costs and revenue when a company produces and sells one more unit of product. o Marginal analysis can be useful in pricing individual units of output or to individual buyers. o When you are selling one more product to one more customer (?) o Airlines have high fixed costs, as do hotels etc.

Experience Qualities refer to?

_______________ are most likely to be evaluated during and after service delivery and include a theatre performance, a sporting event, hairstyling or restaurant service.

Within Ansoff's Matrix, Market development is...

_______________ is when a business finds new markets for its existing products. This strategy can involve market research and segmentation of potential markets to identify new customers. This can be from new geographical markets, different priced markets, and new distribution channels such as expanding from retail to online. It is more risky than market penetration, as there is uncertainty regarding how the new market will react to the product.

Within Ansoff's Matrix, product development involves...

__________________ involves developing new products for the current markets. This can mean the development of new capabilities, modifications or an entirely new product. Such a strategy requires the business to emphasise research and development, innovation and customer insights, and be first in the marketplace. It is a risk that the new product may not be accepted by the market.

Within Ansoff's Matrix, Market penetration refers to...

______________________ occurs when a business increases market share within the existing marketplace. This involves selling more of the current product/service to the existing customers, or finding new customers within the current markets. In many ways, this can be a less risky option.

Data is...

a collection of neutral facts.

Evaluation is used by social marketers to identify

activities that could increase the effectiveness of the intervention. o The use of a control group permits confounding factors to be examined, ensuring that a comprehensive understanding of what caused the behaviour change is gained.

Exporting as a method if international market entry entails...

an approach to international marketing involving the sale of products into foreign markets while remaining based in the home market. - agents, wholesalers, retailers etc. internationally - Exporting can occur directly or indirectly.

Understanding and obtaining data involves...

an organisation must know the context in which the data was gathered and entered into the database and make sure the data measured what it was supposed to (validty). The help make sense of the data, marketers must often use a specialised analysed called a data scientist. o If the data is in an internal MIS system, the IT department can help the marketing team obtain the data using Structured Query Language (SQL). No exam question on this

Standardisation refers to...

applying a uniform marketing mix across international markets, with only minor modifications to meet local conditions.

Behaviour change is considered the...

bottom line for social marketers. o Behaviour change can be found in most social marketing frameworks as it is fundamental to intervention success. - social marketing campaigns are an intervention to change behaviour

Customisation refers to...

carefully tailoring the marketing mix to the specific characteristics and wants of each market.

What the issues with data use?

correlation and causation - The link between advertising and sales for example - certainly there is a correlation between the amount spent of advertising and sales o Correlation does not equal causation o Missing data and messy data - particularly the case with big data e.g. not in the order we planned, missing data

A crucial component of data analytics is research, this encompasses...

determining - what's a population; important to identify the population of interest/consumers - take a sample of that population to be representative of the population - with the objective being able to infer that what you fin relates to the population - data in real time; maybe can do a census - sometimes a sample can still be more accurate and less costly

Predictive analytics...

forecasts what might happen in the future. This is becoming more prevalent, in developing a marketing strategy and objectives - Analytics can be used for customer insight, segmentation and targeting, as well as automating menial tasks. A good analytics model will provide the answers in the most understandable and parsimonious way possible.

The pricing strategy Price Skimming involves...

involves charging the highest price the customers who most desire the product are willing to pay. Over time, the price is lowered to bring in larger numbers of buyers, again at the highest prices that these buyers are willing to pay. Price skimming allows an organisation to generate cash flow quickly to offset product development and launch costs. Price Skimming also serves to temporarily limit demand, enabling the organisation to better balance demand with limited supply capacity. Both apple and Samsung adopt price Skimming strategies when they respectively launch their next generation phones.

Within consumer products what are shopping products?

irregularly purchased items that involve moderate to high engagement with the decision‐making process: consumers will often visit a number of stores, looking at the range and comparing items based on features, quality and price. Shopping products exhibit the following characteristics: •• they are expected to last a long time •• they are purchased relatively infrequently •• they are stocked by a small number of retail outlets •• they sell in low volumes •• they have reasonably large profit margins. Examples of shopping products include electrical appliances, furniture, cameras and clothing.

What considerations regarding the methods of market entry should be taken into account?

looking at the political and legal framework you need to decide how you are going to go in this country, in terms of competition etc. --> Once the decision has been made to enter one or more international markets, the marketing organisation must choose from among the available entry modes. o The mode of international market entry depends on a wide array of environmental and organisational factors. o Factors such as risk, government control, local infrastructure, competition, organisational objectives, need for control, flexibility and organisational resources, assets and capabilities impact the way products are marketed

Segmentation Criteria are...

measurable, accessible, sustainable, practical, (compatible) o Once identified segments you determine positioning for each segment - analysing current positioning - competitive positioning and repositioning

By what means can we evaluate the effectiveness of digital marketing?

metrics, measureable outcomes of what you're trying to achieve - Practitioners actively engaged in digital marketing know that it is difficult to measure the effectiveness of digital marketing campaigns. o Online advertising is one area that offers further potential for marketers to assess effectiveness. o Deciding on a particular metric that quantifies an aspect of marketing performance can be invaluable information for the online marketer to know how successful a marketing activity is.

Managing the product life cycle

modifying the product, modifying the market, and repositioning the product. o The product life cycle concept can also be used to analyse a brand in the marketplace. o Sometimes a variation or derivative of an existing product can be added to the product line, rather than superseding the original product. o Modifying a product or creating a line extension can breathe new life into an existing product. o Repositioning o Product obsolescence o In terms of managing products and developing products we can modify products to reposition in the market place, or we can innovate the product - be aware of where the product is on the life cycle

The marketing cycle runs in a way that is...

non-linear, shorter volatile cycles. To understand, once you understand you create the value, then you communicate it, then you deliver it o non-linear - can go back and forth in different directions - due to modern world, marketing cycle is shorter than it used to be - more volatility in the cycle; more cycles required, intense competitors etc. more cycles required in a financial year - living document, always changing due to environment, market

Exchange in social marketing is...

not always present in social marketing campaigns. - not always easy to work out if there is an exchange of value o Exchange describes something that a person has to give up in order to get the proposed benefit. o Exchange can be difficult to detect when analysing social marketing campaigns. o Exchange can be also difficult when the desired behaviour is less pleasurable than the current behaviour.

Unstructured data is...

not organised in any manner i.e. can be numeric or in text

Integrated Marketing Communications (IMC) refers to...

o (IMC) is the term given to the coordination of promotional efforts to maximise the communication effect to the target market. (this is important) o The four main components of IMC are: advertising, public relations, sales promotion and personal selling. (The promotional mix) o [evaluating marketing efforts and demonstrating the return achieved on the investment in promotion]. o The word integrated is important - the message you deliver needs, to be short, sharp and consistent

Explain the concept of Price

o A revenue item - component of difference from other marketing mix items; they are all costs o The marketing mix and price. o Part of the exchange of value. - an exchange takes place between the product that is supplied and the money that is given in exchange

Define advertising...

o Advertising is the paid promotion of a business, product or brand to a mass audience although... it should be directed to our target market o Advertising can be designed to promote either a product or an organisation. o Product advertising usually aims to demonstrate the features and benefits of the product and to promote the product or group of products above competitors' products. o [In the case of governments, advertising is sometimes used to persuade the public to act in a particular way]. o Corporate identity and branding

Describe the concept of retailing

o Any exchange in which the buyer is the ultimate consumer of the product. o Retailing excludes transactions in which the buyer intends to resell the product or use it in the making of another product. o Other businesses may undertake retailing, but their primary focus is on something else. o The concept of retailing is not necessarily straightforward. o Online retailing or bricks and mortar retailing

communication strategies in political marketing include...

o Campaign Launch o Newspaper advertising - Advertiser o Press releases o Social media - becoming increasingly important in political campaigns o Business Cards o Posters o Balloons o How to Vote

And then there were 7... What are the 7 marketing mix principles?

o Combined with the traditional '4 Ps' of the marketing mix, there is: o People o Processes o Physical evidence. o The '7 Ps' marketing framework, (the extended services marketing mix). o Important: the principles of adjusting the marketing mix still apply o Consider how this can be used to satisfy customers and create a competitive edge against competition

Monetary marketing objectives refers to...

o Commercial organisations exist ultimately to generate wealth for the business owners. o Not‐for‐profit organisations do not always have profit as an objective, but they will usually have some financial objectives.

What competition consideration based pricing?

o Competition‐based pricing involves setting prices based on the prices charged by competitors or on the likely response of competitors to the organisation's prices. o Competition‐based pricing serves to ensure that an organisation maintains its sales volumes and market share, but it does not guarantee profitability.

What are the unique characteristics of sport?

o Consumer Involvement o Unpredictability o Competition and Cooperation o Sponsorship - increasingly important - marketing through sport o Publicity - media releases to main stream and social media o Distribution o Self-identity and social identity

The psychology of pricing involves...

o Consumer purchasing behaviour is usually based on a rational evaluation of value. o The relative importance of price varies between individual consumers, however: o An important indicator of the importance of price in consumers' purchasing decisions is the perceived uniqueness or differentiation of the product.

Provide a list of sales promotions...

o Consumer sales promotions o Sales promotion methods aimed at the consumer include: o Free samples o Premium offers o Loyalty programs o Contests o Coupons o Discounts o Rebates o Point of purchase promotions o Event sponsorships. o About getting people to trail a product o Loyalty programs about getting people to rebuy

Pricing based on costs contains what types of pricing?

o Cost‐plus pricing is often used when it is difficult or impossible to determine the costs of the product until it has been made or completed. - People employed to just do pricing o Mark-up pricing is used by wholesalers and retailers and involves adding a percentage of their purchase cost to determine the resale price.

Public relations refers to...

o Describes promotional efforts designed to build and sustain good relations between an organisation and its stakeholders. o Stakeholders include customers, employees, neighbours, shareholders, regulators, governments, competitors, the media and society in general. o Public relations is also used reactively to counter poor publicity or as a part of crisis management. o [PR within IMC and marketing generally and PR as a specialist field]. o Public relations can be used about a product or even an entire corporation o can be a specialised area in itself

Maximising marketing success involves empowerment. This refers to...

o Enabling employees to make the decisions they need to make to properly do their job — is crucial to enabling the organisation to respond to customer needs and wants.

Within Digital marketing strategies, target marketing refers to...

o Identifying target markets is an important step. Organisations should generally avoid assuming that all online users are their target market. o The pull nature of online marketing means some of the target market will actively seek out the marketing organisation, but this is not a sufficient plan in itself. o The organisation must generate awareness of its existence and its offerings. o You don't just market to everyone online --> have to identify the market and segment the market based on demographic and other variables

Customer relationship management in digital marketing refers to...

o In digital marketing, customer relationship management (CRM) focuses on using information about customers to produce digital marketing experiences that create, build and sustain long‐term relationships. o But: o Many CRM software packages suffer from clumsy interfaces and numerous screens. o Another pitfall of CRM tools is the tendency for organisations to over‐rely on them. o Profiling customers - we can have regular communication to our customers, brand loyal consumers

What are branding strategies?

o Individual branding - uses a different brand on each product, giving each its own specific identity. o Family branding - uses the same brand on several of the organisation's products. o Brand extension - gives an existing brand name to new product in a different category.

the unique characteristics of services are...

o Intangibility o The characteristic of services that most fundamentally distinguishes them from goods is their intangibility. o Inseparability o For most services, it is impossible to separate the production of the service and the consumption of the service. o Heterogeneity o The inevitable variations in the service provided give services the characteristic of heterogeneity. o Perishability o Perishability refers to the inability to store services for use at a later date — they are 'time bound'.

Explain Inventory Management

o Inventory management involves managing stocks of products to ensure availability to customers while minimising holding costs. o Most businesses have an inventory management system based on: o order lead time — the usual time between placing an order and receiving the stock o usage rate — how much stock is sold during a particular period of time o safety stock — a quantity of stock held to cover unexpectedly high sales and/or unexpectedly long order lead times. - how long does it take to get the stock in? place order relative to time

What is the relationship between the marketing mix and social marketing?

o It is increasingly being recognised in social marketing that the '4 Ps' framework does not always apply. o Social marketing efforts should extend beyond communications, and a full marketing mix should be directed at initiating new behaviour and encouraging repeat behaviours. Social marketers need to adopt a full marketing mix of techniques that include (but are not limited to): o pricing o sensory appeal o product bundling o promotions o packaging o retail displays.

Explain the difference between intranets and extranets

o Just as the web offers consumers many opportunities to access information, it can be used to provide information to members of the marketing organisation. o Intranet is inside the organisation e.g. organisational employees can click on intranet for forms etc. o Extranets are a shared platform e.g. Woolworths and their partners might share an extranet, not available to public

Explain the concept of labelling

o Labelling usually forms part of the package and provides identifying, promotional, legal and other information. o At its most basic level, the label would identify the product and display the brand name. o Labels can, however, provide a lot more useful information to the potential purchaser. o Some of the information provided on labels is compulsory.

Explain the concept of packaging

o Most products are sold in packaging — a bag, wrapper or container for the product. o Many products need some kind of packaging to make them more convenient to store and use, and to protect them from waste, damage or spoilage. o Packaging can also provide extra functionality to a product. o Packaging can become an important recognisable way for customers to identify a particular product, much like a brand. o Also: packaging can be a source of differentiation o The way that its presented to us might make us more likely to buy it e.g. spill proof packing or environmental friendly packaging - the type of packaging is a way of differentiating the product from competitors

The ethical/legal issue of privacy within digital marketing is...

o One of the main focuses of digital marketing has been gathering information about customers and potential customers for profiling to use in formulating marketing strategy and in delivering optimum marketing experiences to help build and sustain relationships. o In particular, privacy laws and privacy policies differ across national boundaries. o Among the recommendations is a steep increase in fines for organisations found to be breaching the privacy of individuals. o E.g. The Cambridge analytical scandal in the Trump campaign - tailoring personal messages

How is distribution of goods achieved?

o Physical products need to be moved from producers to consumers via a number of activities that are collectively known as physical distribution. o Physical distribution involves order processing, inventory management, warehousing and transportation. - Physical distribution activities can be performed by any member of the distribution channel.

What is place? define distribution

o Placing products in the hands of the ultimate consumer is the marketing function known as 'distribution' or 'place'. - Most products are moved as close as possible to the consumer o Distribution requires a chain or network of organisations and individuals. o The key organisations that make up the distribution channel are called intermediaries. o Distribution channel intermediaries themselves often rely on a host of specialist service providers. - getting into distribution channels is quite difficult - products pay to be placed at eye level on supermarket shelves etc.

What is different about price compared to other elements of the marketing mix?

o Price sensitivity. - how responsive are consumers to price? o Price is a constant, fundamental concern in both consumer and business markets. o Price is a measure of value to both buyers and sellers. o Price also serves as a means for buyers to allocate their scarce financial resources between purchases. o Sellers need prices to cover their costs and provide sufficient profit margin to justify the risk they take by engaging in business activities

What are pricing objectives?

o Pricing objectives should be specific, measurable, actionable, reasonable and timetabled. (SMART) o Profitability o Long‐term prosperity o Market share o Positioning in the market place and in consumer minds o A demand curve showing that if the price drops people will demand more e.g. if jet skis dropped their price demand would go up because they are more affordable

Why is the PLC important/relevant to marketers?

o Products go through a life cycle, where the product refers to the product more generally not just the individual product e.g. the life cycle of the car has a long-life cycle from development/ invention of the motor car ? to electric cars today ? o There are different marketing strategies required at each stage of the life cycle

Describe approaches to public relations...

o Publicity is the exposure a marketing organisation receives when it obtains free coverage in the media. o Positive coverage is preferred, but many marketers adhere to the old idea that 'any publicity is good publicity'. o Organisations can generate publicity by promoting something newsworthy to news media. o A further public relations tool is the involvement of the company in charitable donations or acts.

Marketing organisations can gather information about their customers in the digital environment through the following methods:

o Requiring registration o The use of cookies on websites - monitors your internet usage o Competitions. - signing up for competitions

Positioning in relation to retailing describes what?

o Retail positioning refers to the practice of identifying a gap in the market and targeting it by creating some distinguishing feature in the mind of customers. o Selling electronics or furniture - e.g. smart move setting up near Harvey Norman and then try to differentiate yourself

the target marketing process involves...

o Segmentation o Targeting o Positioning

Define social marketing...

o Social marketing was first defined by Kotler and Zaltman as: o The design, implementation and control of programs calculated to influence the acceptability of social ideas and involving considerations of product planning, pricing, communication, distribution, and marketing research. - but who decides what's good for society? - e.g. effective social campaign about drink driving (Plan B)

Digital marketing in the form of social media refers to...

o Social networking, podcasting, video and photo sharing sites, and apps — as well as those that facilitate blogs, wikis and question‐answer databases — are all examples of social media. o Social media forms part of the earned media strategy a marketer may engage for the business. o Social networking provides an interactive platform where people can add friends, comment on profiles, join groups and have discussions.

What is the delivery infrastructure of services ?

o Some services are distributed via a physical infrastructure. o Some service providers bring the service to you. For example, the electricity supply to your home is delivered via an extensive network of above‐ground, underground and undersea cables. o The web has expanded the range of services available in this format, e.g. internet banking. o Brings the service to you - also online distribution - no physical distribution, now its all online (music example)

Sport an experience, in marketing this means...

o Sport is a high-involvement activity (for the consumer) o Can be consumed live or via media o The consumption experience differs for each o Live consumption is like a holiday - the consumer is THERE in the 'factory' o Broadcast consumption is a more narrow focus (e.g. entertainment, interviews, stories, the game/sport action)

The digital marketing characteristic 'Digitialisation' is defined as...

o The ability to deliver a product as information or to present information about a product digitally. o Some products can be completely digitalised, e.g. music - Spotify, streaming music etc. tracking parcels online o While not all products can be completely digitalised, many retailers are finding that their services can be, e.g. online grocery shopping.

What is promotion?

o The creation and maintenance of communication with target markets. o In marketing, promotion is usually thought of as comprising a strategic mix of advertising, public relations, sales promotions and personal selling. o As promotion is basically about communicating a message to the marketplace, a term for promotion that is growing in popularity is 'marketing communication'. o Promotion is about communication

What is the Just In Time approach to inventory management?

o The just-in-time (JIT) approach minimises inventory holding costs, but only works when order lead times and usage rates are predictable and when the supply chain is reliable. o How much stock you buy relative to demand, what terms you hold stock on, have to be careful how much stock you hold; companies can go broke

Maximising marketing success involves structure for cooperation and coordination. This refers to...

o The main options for structuring the marketing department are as follows: o Customer structure, Product structure, Functional structure, Regional structure. o Based on customers, product, functional, regional, brand managers

Integration Promotion Mix elements refers to...

o The most effective choice and mix of promotion elements will vary with the specific goals of the marketing effort, individual product characteristics, individual target market characteristics, the nature of the marketing organisation itself, and the resources and budget available to the marketer. o The appropriate promotion mix is likely to change over time as each of those characteristics changes and as the effectiveness or otherwise of the current promotional mix is evaluated. [Remember the PLC, Diffusion of Innovation Framework and Ansoff's Matrix] o The most effective choice and the mix of promotional elements - depends on your objectives e.g. trial or rebuy o Sales promotion is about immediacy, trying to get people to buy without trial

Location in relation to retailing describes what?

o The natural geographic area from which customers will be drawn. o Proximity to competitors. E.g. jewellery stores all clumped together in the shopping centre o Proximity to complementary retailers. o Customer access to public transport and public parking. o Where you actually locate - need to have some distinguishing feature

The New Product Development (NPD) involves...

o The new product development process sets out eight phases for introducing products: 1) Idea generation.- what we can we do to our existing range? Focus groups etc. 2) Screening. - screening ideas and data and selection 3) Concept evaluation. 4) Marketing strategy. 5) Business analysis. 6) Product development. 7) Test marketing. 8) Commercialisation. 9) This formal structure is not always the case

Explain distribution channels...

o The path from the manufacturer or service provider to the end user marketing channel. o Marketing intermediaries are useful and necessary when they can more efficiently connect producers with their customers than can the producers themselves. o Even if a producer can manage to get their product directly to end users, they are often better off to concentrate on their core abilities (production) and rely on specialist intermediaries who can more efficiently move the product closer to customers.

What is price elasticity of demand?

o The sensitivity of the quantity demanded to changes in price is known as the price elasticity of demand. o In numerical terms, it is the percentage change in quantity demanded relative to a given percentage change in price: o Price elasticity of demand varies from product to product and industry to industry. o Knowledge of the price elasticity of demand is potentially invaluable in managing prices.

What is services marketing?

o The strong growth of the services sector over the past few decades in many ways has been the result of external macro‐environmental forces, such as economic, social and technological changes. o Services now account for the major share of total economic activity in developed economies, and the services sector provides the most jobs, by far, of all sectors of the economies of developed countries.

How has technology enabled great advances in the efficiency of physical distribution?

o The term e‐distribution is often used to describe the full implementation of advanced telecommunications technologies in the physical distribution process. o E‐distribution offers efficiencies internally and externally. o Large firms in B2B can track the delivery of goods - share software so the supplier can do automatic ordering and tracking of orders o There is a term - economic order quantity - e.g. Coles and woollies, how much inventory they need to hold - they know how much stock they are holding and selling - until it gets to a point that they know they've got enough to last that week - automatic ordering

The digital marketing characteristic 'Accessibility and comparability' is defined as...

o The web provides individuals with more ability than ever before to research products, compare products and seek the opinions of others about products. Some online services actually prepare detailed comparisons for customers. o The online environment also offers them the choice of completing a transaction online, which opens them up to a choice of many more retailers than they can access in the real world. o E.g., buying holidays, cars phones etc.

What are the types of retail marketing?

o There are many different forms of retailer, each offering relative strengths and weaknesses for the customer and the producer or wholesaler. o Specialty retailers o General‐merchandise retail stores o Online retailing o Other forms of retailing (direct marketing, telemarketing, catalogue marketing, etc.)

Define trade sales promotions

o To present products to business customers. o Major examples are conventions and trade shows. E.g. a builders convention where the developer of new products or systems can introduce the trade to their new offerings o Sales contests offer rewards to marketing intermediaries that sell a certain level or sell the most of a particular product in a particular timeframe. - firms or people who get the most sales get a reward o Trade sales promotions aim to persuade wholesalers and retailers to stock and market particular products.

The key steps in creating and advertisement campaign are...

o Understand the market environment o Know the target market (audience) o Set specific objectives - generate sales, market share, a new product etc. o Create the message strategy - underpinned by theory o Allocate resources - which channel do you use? TV advertisement etc. o Select media - o Produce the advertisement - o Place the advertisement - o Evaluate the campaign -

Explain warehousing

o Warehousing is the use of facilities to store and move goods. o Warehousing is an important tool in the inventory management approach of many businesses. o A variation on the warehouse is the distribution centre, a type of warehouse that focuses on moving rather than storing goods. o Distribution centres are designed to efficiently receive goods, assemble them into orders and ship them to customers with a minimum of handling. o Distribute the goods for Aldi, Woolworths and Coles

A model of communication illustrates...

o We live in a world of noise - we are bombarded with messages - in the context of our world - our brain only has so much capacity o There is a sender of a message, there is also a receiver - there is encoding and decoding - is the intent of the message decoded correctly? When we talk about promotion we have to keep this communication in mind

Digital marketing in the form of brochure sites is...

o Websites that are essentially an online advertisement for the organisation. o These types of sites were popular in the early era of website design, when the main purpose of having a website was to maintain a 'footprint' on the web. But what about a business model? o The advantage of a brochure website is that it often suits the limited budget of a small business, or one that offers a highly customised service or bespoke products.

Define the nature of creating an advertising campaign...

o Within the IMC strategy, the overall advertising plan is known as the advertising campaign. o Any decisions about advertising should be made in the context of an IMC approach. o The more complex and ambitious the campaign, the more likely it is the marketing organisation will engage the services of a specialist advertising agency to assist in the creation, production or placement of an advertising campaign. [Theory + creativity] for example KFC and Macca's advertisements.

Define personal selling

personal customer interactions by the firm's sales force for the purpose of making sales and building customer relationships o The use of personal communication with consumers to persuade them to buy products. Can be one-to-one personal selling- for every 100 calls they make 25 sales etc. o Personal selling is the most expensive form of promotion as it requires the full dedication of a salesperson, or sales representative, to a customer. - It does, however, have strong advantages over the impersonal forms of promotion — in particular that the salesperson can tailor the promotion to the customer's needs, adjusting the promotion as they receive feedback from the consumer

Within the four V's describing big data, Visualisation refers to...

presenting the data in a manner that is in a state of being able to see or be seen. data from many different sources may need to be joined together, so the ability to visualise this becomes important.

Why is the application of marketing principles to sport becoming so important?

so many sports being played, most of us like sports, attract attention to a team or sport etc. to create customers of sport o The AFL provide examples of market segments; B2B market, relationship to team, low level of team switching, high levels of brand loyalty, family unit as all following the same team

A key decision faced by international marketers is whether to...

standardise or customise

Within the four V's describing big data, Veracity refers to...

the accuracy of the data. Was the data entered correctly? A person's age being entered as 13 instead of 31 would be a data entry mistake that would counter accuracy.

What is brand equity?

the added value a brand name gives to a product beyond the functional benefits provided - well‐known brand can be very valuable to an organisation in both financial and non‐financial terms. - The added value that a brand gives a product is known as brand equity. - Brand equity is therefore a consumer‐based concept. E.g. paying more for the coca cola brand name rather than buying cheaper alternatives

Within the four V's describing big data, Value refers to...

the importance, worth or usefulness of the data to those consuming it. This is probably the most relevant to organisations as data is just neutral, and in and of itself has no value.

Within the four V's describing big data, Validity refers to...

the interpreted data having a sound basis in logic or fact. Does the price of the product match with the quality level of the product? data matching can be used where a known correct match is compared to the present database.

Analytics is...

the organisation of these facts into meaningful information.

Maximising marketing success involves organisational culture. this refers to...

the organisation's shared values, norms and behaviours. - responsibility of senior managers and marketers to contribute to the organisation, what is important to the organisation?

Product placement refers to...

the paid inclusion of products in movies, television shows, video games, songs and books. The product is portrayed or mentioned in context as part of the story line of the show, usually in a positive or at least neutral way. Product placement of one product or brand often also involves the exclusion of competitors' products and brands.

What is the brand image?

the perception of your product or your brand by the consumer - is the set of beliefs that a consumer has regarding a particular brand. When marketers make decisions about products, the decisions must relate to the product's brand and brand image. o Brand helps to position the meaning of the product in the mind of the consumer

Any organisation wishing to participate in digital marketing must be aware of...

the relevant legal and ethical issues.

Within product relationships the product mix is...

the set of all products that an organisation makes available to customers. For Bonds, it is underwear, singlets, shorts tracksuits, hoodie jackets, socks and t-shirts, as part of their Men's, Women's and Children's wear. The product mix can be described by its width and depth. Product width refers to the number of product lines offered by a company. Product depth is the number of different products available to each product line.

Descriptive analytics is...

the simplest type, and is typically used to explain what has happened.

What is Machine Learning?

the study of algorithms that can extract information automatically. Machine learning is all about predictions, supervised learning and unsupervised learning, while statistics is about sample, population and hypotheses. Some examples of popular learning algorithms are Linear Regression, K‐means, Decision Trees, Random Forest, PCA, SVM and Artificial Neural Networks (ANN).

What are the stages of the product life cycle?

there are 5 stages of the product life cycle: 1) New product development 2) Introduction 3) Growth 4) Maturity 5) Decline

the right tools for data analytics include...

those that easily help the marketing team obtain and cleanse the data, analyse the data, and present the data o Data sharing across organisations - less common; data as an asset o Marketing analytics must be flexible - what works for one company may not work for another. o Extranet - a data sharing software that allows sharing between organisations

Why and how do organisations go global?

through Ansoff's Matrix - Expanding markets in various ways by going international is one way of - Internationalising can: be a profitable way of expanding a business, help businesses to become more efficient, gain new knowledge, diversify risk, creating jobs and wealth.

Not all Not-For-Profit organisations have...

universal community support - Some not‐for‐profit organisations promote potentially controversial causes and may attract as many opponents as supporters, particularly in local areas. o While the use of commercial marketing practices by not‐for-profit organisations may not always be possible or appropriate, the fundamental marketing principles still provide important guidance. o The McGrath foundation aligning themselves with cricket and as a result have been highly successful

The pricing strategy Penetration pricing involves...

uses a low launch price in order to gain maximum sales volumes, rapid market share and turnover of a new product. the low price also encourages consumers to at least trial the product. penetration pricing is commonly used in grocery product launches. The low-price, high-volume strategy may also serve to deter competitors from launching similar products.

As a consequence of intranets and extranets...

virtual organisations can come together easily and cheaply. E.g. people working on a job without actually having to be there e.g. movie production from all over the world

What is the product?

what the marketer takes to the market in an attempt to get consumers to buy or engage in some type of exchange, in order to achieve the organisation's objectives. o A product can be relatively simple, or extremely complex. o Research might show that people respond to certain types of packaging

Digital marketing in them form of paid media is...

Any digital advertising that a business pays for.

Digital marketing in the form of owned media is...

Any digital channel owned by a business in which content is controlled and governed by the organisation.

The product relationship can be described how?

As the relationship between the organisations products, Many organisations produce multiple products or several different styles of a product. - different types of products from an organisational perspective e.g. Bonds boxers as a product item, where as a product line of men's underwear is briefs, boxers, hipsters, wide fit etc. the product mix is the broad arrangement of products e.g. singlets, t-shirts, hoodies etc. The product relationship can be described as: 1) the product item 2) the product line 3) the product mix

The A in RATER refers to?

Assurance - trust and confidence in the service provider - criteria include; - demonstrated knowledge and skills - reputation - personal manner of service provider

Audience research entails...

Audience research provides an opportunity for the social marketer to learn about the target audience and to understand how to best design an intervention for that specific audience. o A qualitative approach could include focus groups, interviews and/or literature reviews. o Quantitative methods used for formative research may consist of surveys, observations and/or analysis of previously collected data.

The first stage of the product adoption process is...

Awareness - The consumer becomes aware of the new product. Created by promotional activities, word-of-mouth, incidental exposure to the product. At this stage, the consumer knows little about the product, how it works or how it can benefit them.

How can we manage differentiation in services?

Because services are produced by people and not machines, and because it is difficult to protect service innovation from immediate copying by competitors, it is difficult to achieve lasting product differentiation in service industries. o The expected service is those attributes that deliver the benefit. o For service organisations, the sources of sustainable differentiation are relatively few.

What are the legal and ethical issues in data analytics?

Big data - sometimes there is too much data to go through and analyse - sometimes it is not ethical to analyse data. o Data snooping is a serious issue in analytics. This is when an analyst picks a model to confirm what they want to prove. The ethical issue related to data snooping is that of confirmation bias. Data-driven and data-intensive companies can also become a focus for hackers.

The fifth step in the New Product Development (NPD) process is...

Business analysis . Once the marketing strategy has been planned, the organisation should undertake a business analysis to determine whether the strategy will be a good fit with the company's current offerings and its overall business objectives. A business analysis reviews how the new product will affect the organisation's costs, sales and profit projections.

Packaging strategies (in political marketing) involve...

Colour Symbol Photograph Logo

The eighth and final step in the New Product Development (NPD) Process is....

Commercialisation . If all has gone well for the previous phases, it is time to launch the new product into the market. Costs will be high at this stage, but, if the new product development process has been thorough, there is a solid chance that the new product will succeed.

The ethical/legal issue of misleading or deceptive conduct refers to...

Companies must be honest and truthful in all their business dealings and, if they are not, they are liable to be punished by the law. o Unfortunately, the internet is used by some people to fraudulently obtain money from others. o In a report into 'scam' activity, the Australian Competition and Consumer Commission (ACCC) revealed that fraudsters currently swindle a reported $93 million from Australians each year, much of it online. o E.g. Winning a lottery and being told you've got to give $200 to have it processed etc.

Data-driven marketing for companies encompasses...

Companies need to be aware of and using data analytics e.g. in their SWOT and PESTLE analysis A marketer must augment their intuition with facts; the goal of marketing! To get the data! Organisations- the right people and the right tools. That is: those who are trained in using statistical software as well as understanding business processes and how the data was obtained.

The third step in the New Product Development (NPD) process is...

Concept evaluation. Once a new product idea has passed the screening phase, it should be more thoroughly tested. The idea should be developed into a product concept that customers, management and other stakeholders can evaluate. The product concept is usually presented to potential customers as a description or drawing of various options for the product. This process is designed to determine whether the product could satisfy a customer need or want and to identify those attributes that could provide the most value to potential customers.

Distinguish between the service product classifications

Consumer services, are those services purchased by individual consumers or households for their own private consumption. Business‐to‐business services are those services purchased by individuals and organisations for use in the production of other products or for use in their daily business operations. Business‐to‐business services are also often known as 'professional services'.

Digital marketing allows...

Consumers to interact deeply with the marketing organisation without the need for dealing with an actual person. E.g. even in services one of the characteristics, inseparability, is now changing (not required to have a seller and an customer present)

customer retention marketing objectives refer to...

Customer relationship management refers to the processes and practices put in place to identify, track and use customer information and preferences to provide superior customer service and sustain long‐term relationships.

Market Orientation in the marketing cycle refers to...

Decisions are made to maximise customer value, based on knowledge of the market and the marketing environment. The marketing cycle commences with understanding the market in order to create, communicate and deliver value to customers. This process of creating, communicating and delivering is then evaluated by marketers to understand the impact made, if any. It is evaluation, throughout and after marketing efforts, that makes the marketing process cyclical in nature. Need to have desire to create, communicate and deliver satisfaction/ offerings to customers.

How can we deliver consistent customer quality?

Delivering such high standards of service is the responsibility of the entire organisation and requires total commitment from senior management, extending all the way through the 'back office' to frontline customer service staff. o In delivering high levels of customer service, organisations need to consider four key issues: o understand customers' expectations o establish service quality standards o manage customers' service expectations o measure employee performance. o Do research - what are the expectations of the customer, what are the standards?

What is the internet of things (IoT)?

Describes the fact that almost all products and services collect data as part of their everyday operation - IoT data can be gathered from physical objects such as toasters and refrigerators. It also includes; scanner data, web data, mobile data i.e. from smart homes to smart cities. E.g. the smart refrigeration that can tell you when you need bread, milk etc. - can see the benefits and legal issues of the smart cities - you have to a mobile phone to live in Dubai

The ethical/legal issue within digital marketing of customer protection refers to...

Despite some relatively clear ethical guidelines for businesses and, increasingly, laws aimed at regulating online behaviour, consumers are well served by taking their own steps to manage their online experience. o The simplest yet most effective methods consumers can take to protect themselves online include: o Install a firewall o Use email filters to automatically delete spam o Never respond to unsolicited email messages.

the stages of the marketing cycle encompass what activities?

Develop a detailed understanding of the market o Plan how to achieve the organisation's goals o Implement the plan o Continuously evaluate marketing performance. o Clearly understand the market- through primary and secondary research.

How can the Marketing Mix be applied to digital marketing?

Developing a marketing mix for the online environment is based on the same principles as developing the overall marketing mix, but the specific details and approaches can be quite different. o Product - can it be delivered? o Pricing - can make comparisons about pricing e.g. use of cookies, can increase the price after second and third visits to the site o Promotion - online, going to certain websites, linking advertising message with target market o Distribution (place) - physical distribution via post, but can online track delivery

Direct investment as a method if international market entry entails...

Direct ownership involves a long‐term commitment, considerable investment and acceptance of risk, and would usually only be pursued by an international marketer who was highly confident of success. - highest risk, full risk yourself, buying constructing, your own businesses, hiring staff etc.

Relationship marketing encompasses...

E.g. Royal Commission into Banking; something that appears not to have been done effectively, are they working on building and maintaining relationships? - customer retention, maintain existing customers, particularly the case in B2B marketing, personal relationships between the buyer and the seller - relationship marketing is important

The E in RATER refers to?

Empathy - care and attentiveness - criteria include; - listened to needs - cared about customers interests provided personalised service

The ethical/legal issue in Digital marketing of spam is...

Estimated at more than 14.5 million spam messages sent per day, advertising‐related email spam currently represents the most popular spam topic. o In Australia, the relevant legislation is the Spam Act 2003. o In New Zealand, it is the Unsolicited Electronic Messages Act 2007, which applies to email, instant messaging, SMS and MMS, but does not apply to fax, pop‐up advertising on websites or telephone telemarketing.

What are the issues in analytics?

Ethical issues for customers fearing their personal data is being misused e.g. option to opt out of the Myhealth records scheme. Being relatively new - still some issues related to the field of analytics. However, as organisations become obsessed with data and the potential cost savings, there may be too much overreliance on data. Another issue is that customers may fear their personal data is being misused. Organisations must realise that in marketing analytics, there are opportunity costs.

The third stage of the product adoption process is...

Evaluation - The consumer evaluates the information. The consumer decides whether or not they should try the product.

Even if an organisation does not attempt international marketing outside Australia, they may...

Even those businesses that do not choose to actively participate in international marketing may find themselves competing with businesses and products from overseas.

What are the four main methods of international market entry?

Exporting Contractual arrangements Strategic alliances and joint ventures Direct investment

Inseparability is the characteristic of service that describes...

For most services, it is impossible to separate the production of the service and the consumption of the service. E.g. you need to be there to get a hair cut

Analytic skills for decision makers encompass...

For quantitative marketers, the best skill set to have is: to understand marketing promotions as well as being a quantitatively oriented person. o The role offers a great work/life balance, and according to a recent Gartner report, there are 4.4 million jobs for data scientists worldwide. Lack of knowledge of statistics can lead to serious errors in analytics interpretation.

The first step in the New Product Development (NPD) process is...

Idea generation. Idea generation is the phase in which ideas for new products are created. Most new product ideas are the result of a planned approach to generating innovations. The approach should be open to ideas from internal sources (employed scientists, engineers, marketers and so on) and external sources (customers, competitors and partners). Of increasing interest is the area of consumer co‐creation, where consumers play a great role in the value creation process, thereby playing a greater role in new product development. 6 Techniques specifically aimed at generating ideas, such as brainstorming and focus groups, are also a worthwhile investment. Of course, only a very small proportion of new product ideas become part of the organisation's product mix.

What are the four unique characteristics of services?

Intangibility, Inseparability, Heterogeneity, Perishability

the ethical/legal issue within digital marketing of intellectual property refers to...

Intellectual property theft has long been a crime in most Western countries. o Of broader relevance to business is the potential theft of intellectual property assets such as trade marks or the misuse of trade marks. o Online, it is quite simple to copy logos, designs and other corporate branding materials and essentially recreate an online facsimile of a real business. o Things like brand names and logos are easily copied and used to scam people e.g. bank scams

the second stage of the product adoption process is...

Interest - The consumer experiences interest in the product. The consumer seeks information to learn more about the product.

what is the future of data analytics in marketing?

It is important that analytics is valued at all levels of an organisation. o According to Ankit Jain, the future of analytics is delivering the 'right data to the right person at the right time'. o A 'real time' business is about being able to make a decision at the 'real time' it matters. o However, real‐time analytics requires more decentralised decision making on the front line.

What are the levels of product? which levels can be used to position (even differentiate a product)?

It is not normally possible to differentiate (position) a product by way of the core product. For instance the core product of a car is to get you from Point A to Point B. All cars should do that (hopefully). Differentiation and position can be done at the outer levels of product. For instance different types of functionality or even symbolism in the expected product (referred to as actual product in other texts). Differentiation and position can be done at the augmented product. With a car for instance, aftersales service and warranty. Some cars offer fixed price servicing and/or a 5 year warranty.

What is Ansoff's Matrix used for?

It presents four options to help managment develop strategic alternatives: market penetration, market development, product development, and diversification. Quadrants looking at different types of strategies you might have to do e.g. decisions about where you go in the future. - Market penetration is taking current products in current markets, trying to sell more, ramping up advertising to try to sell more, get existing customers to buy more - Market development; current products taking them into new markets/segments, got existing suit of products but finding new markets for those products - Product development: got current markets but develop new products, taking new products into current markets - diversification; taking new products into new markets

Credence qualities refer to?

Legal and investment advice are other examples, in which customers commonly know little about the service provided and are limited in their ability to assess the quality of the advice. Such services must be evaluated in terms of their credence qualities, which are based on an evaluation of the service providers trustworthiness, integrity and professionalism.

Contractual arrangements as a method if international market entry entails...

Licensing is an arrangement in which a business in a foreign country undertakes to manufacture and sell the products of the home country company (the licensor) and pays a commission on the sales it makes.

Computing resources can be a...

Major issue when using analytics in marketing. Particularly, given that big data can overwhelm the capacities of a standard desktop computer. There are two issues related to computing resources; 1. Having the physical hardware capacity to store and distribute the data. 2. Having the software to analyse the data o E.g. of computing resources Presto and Spark - making the distinction between knowledge, storing and processing - give more power than is possibly available to one human being.

Data governance involves...

Many companies now have a chief data officer who is in charge of data governance and security. The CDO can oversee the way data is accessed in the company and ensures that the data warehouses and data marts are designed to be used for analytics.

A short term outlook as an internal barrier to marketing objective implementation refers to...

Many people working in organisations are most concerned with dealing with immediate challenges and completing the work at hand, but ongoing business success is dependent on long‐term planning and actions based on sustainable competitive advantage.

Search engine marketing refers to...

Many search engines now seek paid advertising to place on search results pages. The advertisements that appear at the top of the search results are known as sponsored links or ads.

Inertia as an internal barrier to marketing objective implementation refers to...

Marketers seeking to change the way their company does business can encounter resistance from those uncomfortable with change and those with vested interests in preserving the status quo.

data analytics in marketing involves...

Marketing analytics - the practice of measuring, managing and analysing marketing performance - data analytics allows marketers to use large volumes of data to see insights we did not previously know existed.

The marketing cycle is...

Marketing is an ongoing and interrelated process of understanding, creating, communicating and delivering offerings. o The marketing cycle emphasises that: o Understanding the customer results in the ability to create, communicate and deliver value o Evaluation of marketing performance builds further understanding that enables the marketing program to be refined to improve future performance.

measuring marketing performance is done through...

Marketing metrics enable marketers to refine their marketing approach based on performance achieved and they also help marketers to demonstrate the important, central contribution that marketing makes to the overall success of the organisation.

What is political marketing?

Marketing needs to be undertaken in politics - the voters are the market, they can be segmented based on Age, Incomes, Sport, Issues, Culture/nationality, Opinion leaders.

Describe Place Marketing...

Marketing of places, the role of places, marketing and branding of governments - some governments are spending millions on marketing their places - often employ marketers to help attract and retain people from the markets in the circle - attract and retain skilled labour such as university students e.g. lose Doctors, nurses, teachers etc. o marketing has a role in attracting corporate headquarters, tourism etc. o creative agencies - create ads such as 'the best job in the world' Island caretaker in Queensland

What is the relationship between marketing and sport?

Marketing of sport, sport needs marketers to apply marketing to retain customers - need to promote the sport through advertising - what's the return? - celebrity endorsement may bring returns etc. - all underpinned by theory, based on research o Marketing through - using sports people as spokespersons to emphasise socially important issues

The fourth step in the New Product Development (NPD) process is...

Marketing strategy . A positive concept evaluation would suggest there is a market for the product. On this basis, management can start planning a marketing strategy. This includes describing the projected sales and profits, market positioning, potential target market, marketing mix strategies and long‐term goals.

How can marketing objectives vary?

Most commercial marketing organisations share the goals of profit, market share growth and customer retention. o Social marketers vary from commercial marketers, with behaviour change as their main objective. E.g. influence behaviour for the greater good, e.g. not drink driving, or driving and texting

Marketing needs to be...

Needs to be led by senior management - to be customer focused - not just the marketing department, organisation wide philosophy - A marketing culture throughout the organisation - o not 'just' the marketing department.

Define a Not-For-Profit Organisation

Not‐for‐profit marketing refers to the marketing activities of organisations or individuals intended to achieve objectives other than conventional business goals such as profits. o Many not‐for‐profit organisations practise marketing in much the same way as commercial organisations and so their methods, objectives and tools are similar. E.g. Salvation Army, Red Cross, WWF, McGrath Foundation, Cancer Council

Maximising marketing success involves motivation and incentives. This refers to...

Organisations can use these various motivations to encourage marketing implementation. It is important that incentives align well with overall organisational objectives.

Marketing planning involves...

Organisations that operate with a marketing philosophy put customers at the centre of their thinking. o Organisations state their purpose using mission statements, values and organisational goals. o Organisation goals, missions and values vary considerably and can serve to distinguish one organisation from another. - E.g. could make a statement about environmental issues, everything we do is environmentally friendly, considerate etc. o While top management establishes mission statements and overarching organisational goals, it is up to senior and middle managers to plan and implement respectively to achieve those goals. o Marketing must be led from the top, the CEO, the board must believe in the marketing of the organisation - marketing is a philosophy - driven from the top right through to the people who serve the customers o Strategies for each functional area within each business unit would then be developed to assist the business unit to achieve its objectives. o Functional area strategies are then translated into functional area objectives. o All areas of an organisation should be working to meet the same organisational goals. o It is important to understand the relationship between marketing and other organisational functions. o E.g. Hierarchy of strategic planning --> HR in particular looking at recruitment, then you need to recruit the right people.

Guerilla marketing is...

Originally coined to refer to highly creative, low‐budget marketing efforts, guerilla marketing is now used to describe any aggressive and unconventional marketing approach. o Its aim is simply to grab the attention of consumers when they are unaware, and create some goodwill and publicity in both traditional and social media. The use of 'flash mobs' has been a successful guerilla tactic.

Digital marketing in the form of earned media is...

Other forms of online advertising include brochure sites and search engine marketing.

The digital marketing characteristic 'Interaction and community' is defined as...

Other than an in‐person interaction with a salesperson or other customer service officer, digital marketing offers the most opportunity for interaction between the marketer and the customer. o Interactivity can occur in many ways, including the following: - a virtual customer service officer - a real customer service officer - email newsletters and RSS feeds - survey participation - online communities. - can be communities of consumers, brand loyal communities create interaction between customers

International marketing environment is comprised of...

PESTEL analysis for international marketing - need to understand the aspects of PESTEL in regard to the specific culture e.g. inflation of various countries - how companies are structured etc. Politics Economics Socicultral Technological Environment Legal

The types of business products, classification system involves...

Parts and Materials Equipment Services and Supplies

Measuring performance is done through...

Performance is measured by comparing the performance achieved against the objectives that were set. o There are several ways to measure the effectiveness of a marketing campaign, including: o Plan the campaign, and how you want to measure its success. o Determine the online and offline channels used for campaign delivery. o Identify key marketing metrics that you want to measure.

Marketing success involves...

Planning - Marketing plans typically contain action plans to be implemented by departmental and line managers. o Contingency planning requires managers and others to think ahead to things that might not go to plan and to have strategies in place to deal with them.

Poor coordination and cooperation as an internal barrier to marketing objective implementation refers to...

Politics, the quest for power, self‐interest and professional ego can result in a lack of coordination and cooperation between different functional areas.

What is positioning in political marketing?

Positioning of [candidate] - To differentiate from competitor - "Voter promise" - Residency, competency and integrity. - has to do with impression management; marketing application relevant to political campaign - differentiate from other candidates

Marketing analytics encompasses...

Predictive modelling, clustering, association rules and visual data analytics are examples of different types of analyses that might be used depending on the specific business case. A popular method for implementing an analytics project is still the cross‐industry process for data mining (CRISP DM) format that was conceived more than 18 years ago. Another use of CRISP marketing analytics is in the areas of compliance and internal auditing.

Pricing through the product life cycle can be explained as...

Pricing decisions should be systematic and rigorous, following a methodical and logical process that ensures all relevant issues and options are considered. o With an understanding of customer perceptions of value, demand, costs and competition, the organisation must identify its preferred pricing tactics in order to implement pricing.

The sixth step in the New Product Development (NPD) Process is...

Product development . If the business analysis finds the new product to be a good fit with the business's overall objectives, the next stage is to convert the product concept into an actual product. This often means developing a working prototype, along with additional investment in research and development to ensure the design, materials and so on will result in the optimum product.

Technology burnout refers to...

Professionals seeking to 'switch off' or 'unplug'. People are working far beyond the traditional 9 to 5 because they are constantly connected to work - An interesting counter‐trend has emerged in the aftermath of the technological revolution in recent times — o The incredible business and personal adoption of technologies such as laptop computers, mobile phones, smart devices (tablets) and mobile internet has led to a situation in which many people feel they cannot have time to themselves. o Reflect on how you use technology - how you manage your technology? E.g. emails

Two of the most important considerations in choosing media are...

Reach- measures what proportion of the target audience is exposed to the advertisement at least once (how many). Frequency - measures how many times each target market member is exposed to the advertisement (how often). reach and frequency should be considered in terms of each media option as well as combination of media chosen. However, there can be a trade-off between reach and frequency as both cost money to increase. Therefore, in you increase the reach of your advertising, you have to decrease the frequency, and vice versa.

how is competition considered in social marketing?

Recognising and addressing the competition of the behaviour targeted by an intervention remains a key ingredient to success for social marketers. o Social marketers have to understand what other behaviours are competing for the chosen target audience's time and attention in order to develop strategies that minimise the impact of the competition.

Perishability is the characteristic of service that describes...

Refers to the inability to store services for use at a later date — they are 'time bound'. Cannot store services, e.g. cannot sell plane tickets once the plane has taken off

The first R in RATER refers to?

Reliability - consistency and dependability of service quality - criteria include: - begins on time - finishes on time - billed correctly

The last R in RATER refers to?

Responsiveness - willing and able to provide the service - criteria include; - enquiries responded to - service provided promptly - accommodated urgent needs

Search engine optimisation refers to...

SEO - tailoring certain features of a website to try to achieve the best possible ranking in search results returned by a search engine. o An enormous industry has developed around SEO and numerous businesses exist that specialise in providing SEO services to other businesses. o The effectiveness of SEO has also declined as users have become knowledgeable and cynical about how businesses work to appear among the top hits on search engines.

Regarding personal selling, managing a sales force refers to?

Salespeople are the public face of a business. They are crucial — at times defining — to the customer's experience of interacting with the business, and determine not only whether the customer makes a purchase, but whether they will repurchase in the future and initiate positive or negative word of mouth about their experiences. As such, retailers and/or sales managers need to both choose salespeople carefully and manage them effectively.

The second step in the New Product Development (NPD) process is...

Screening. No organisation has sufficient resources to pursue every product idea. Even if it was possible, it would not be a good approach to business. Instead, the organisation must undertake a screening process to eliminate those ideas that are not feasible, and to help identify the most promising of those that are. Screening may involve analysing the organisation's ability to produce the product, the target market's potential interest, the market size, the product cost, the break‐even point and so on. Any product idea that does not do well at this stage should be rejected. Screening is also an appropriate time for market researchers to look for what can best differentiate the product.

Product evaluation occurs through which three means...

Search criteria experience criteria credence criteria

How can products be evaluated?

Search qualities - Some products can be objectively evaluated prior to purchase through their search qualities, which include colour, size and smell. Experience qualities -Experience qualities are most likely to be evaluated during and after service delivery and include a theatre performance, a sporting event, hairstyling or restaurant service. Credence qualities - Legal and investment advice are other examples, in which customers commonly know little about the service provided and are limited in their ability to assess the quality of the advice. Such services must be evaluated in terms of their credence qualities, which are based on an evaluation of the service providers trustworthiness, integrity and professionalism.

How is segmentation used in social marketing campaigns?

Segmentation can be based on one or more of demographic, psychographic, geographic, behavioural and epidemiological factors. o Following principles used in commercial marketing, and outlined in the markets chapter, social marketers can choose different targeting strategies to reach the market.

What are service dominant economies?

Service industries generate about 70 per cent of the national incomes of Australia and New Zealand, and accordingly employ the majority of the workforces of both countries. o The most rapidly growing service industries are communications, education and health, and these areas are expected to provide many opportunities for marketers in the coming decades.

How may services be distinguished from goods?

Services are products, distinguished from goods by a number of unique characteristics: o they are deeds, activities or performances. o Service is the act of delivering a product. o Services involve a service component. (doing something for the customer) o Marketers need to be concerned with offering a competitive range of services and ensuring those services are delivered with the highest standards of customer service. o There is an element of service in most goods - e.g. going to a restaurant (service is the wait staff, good is the food).

What are the types of consumer products - classification systems?

Shopping products specialty products convenience products specialty products unsought products

How can social media data be used?

Social media groups can be thought of as online focus groups - which can be informative even though they are secondary data o Raw social media data can include the amount of shares, impressions, URL, browser type, operating system or key words used. An advantage of social media data for marketing - the ability to find influencers and content that's performing well under different keywords and phrases, and to see what terms and memes are trending

Search qualities refer to?

Some products can be objectively evaluated prior to purchase through their search qualities, which include colour, size and smell.

Within consumer products, what are speciality products?

Specialty products have unique characteristics that are highly desired by their buyers. The purchaser of a specialty product usually knows exactly what they want — they are not interested in comparing brands or considering alternatives. As such, consumers are willing to expend considerable effort to obtain specialty products. If someone is interested in purchasing a BMW car they will go to a BMW dealer and they will be prepared to travel some distance to get there if necessary. The main characteristics of specialty products are: •• they are pre‐selected by the consumer •• there are no close substitutes or alternatives •• they are available in a limited number of outlets •• they are purchased infrequently •• they sell in low volumes •• they have high profit margins.

According to the SMART model objectives must be...

Specific, Measurable, Actionable, Realistic and Time bound. o Objectives and marketing metrics o The Australian Marketing Institute offers a framework for marketing metrics: o Return on investment o Customer satisfaction o Market share o Brand equity.

market share growth marketing objectives refer to...

Successful business organisations are long‐term entities and operate with a view to sustainable operation.

Search engine optimisation refers to...

Tailoring certain features of a website to try to achieve the best possible ranking in search results returned by a search engine - key words that prompt your businesses website to show up in the first page

The T in RATER refers to?

Tangibles - Physical evidence - criteria include: - condition of premises - presentation service provider - condition of equipment

how is electronic business involved in supply chain management?

Technology plays a crucial role in managing the supply chain. E.g. inventory in Woolworths and Coles, as soon as you buy a certain product it is automatically deducted from their inventory, when the inventory gets low enough a new order is automatically placed.

The seventh step in the New Product Development (NPD) process is...

Test marketing . Once a prototype has been produced, the product should be tested in a market setting. Test marketing activities enable a 'real world' assessment of the entire marketing mix that supports the product. This is an important step before proceeding with full commercialisation. It is better to work out any problems with the marketing mix in a smaller test market than to need to take corrective action nationwide.

The digital marketing characteristic 'Control' is defined as...

The ability of the customer to determine how they interact with the marketing message and to influence the presentation and content of the marketing message. E.g. advertisements coming up when you log into a website and your ability to simply delete out of them and continue browsing the website o Individuals exercise varying degrees of control over their interaction with marketing. o Push advertising refers to advertising sent from the marketer to the customer. o Pull advertising refers to advertising that the customer actively seeks out. - this push and pull advertising is different to those looked at previously

digitalisation refers to...

The ability to deliver a product as information or to present information about a product digitally. Some products can be completely digitalised e.g. music

The aims of the International Marketing Mix are...

The aim of the international marketer is to gather the knowledge and skills necessary to develop, implement and evaluate marketing strategies in their target international markets. o Tourism Australia's various campaigns to promote the country as an attractive destination for international tourists provides an example of the complexities of adjusting the promotional message in the marketing mix to cater to different international markets. - tourism Australia, has to get tourists to visit the country, requires the consumer to travel, don't have one marketing mix for all tourists coming into Australia - different priorities, demands etc. o The reason that we believe in marketing is that we apply the marketing principles

International marketing may be described as...

The application of marketing principles beyond the home country — has over the past couple of decades, presented both huge opportunities and threats for organisations. - need to be aware of other global businesses opening up in Australia and causing competition with Australian home brands e.g. Coles and woollies with Aldi or Costco opening up

Data analytics is...

The art and science of turning large quantities of data into meaningful and commercially valuable information. o Data and analytics would not exist today without technology.

Permission marketing refers to...

The broad term given to activities that are centred around obtaining customer consent to receive information and marketing material from a company. Can utilise traditional media, such as direct marketers sending newsletters or catalogues, as well as e‐marketing facilities to send emails and provide relevant links to prospective customers who have agreed to the communication.

What are the categories of product adopters within the diffusion of innovation?

The categories of product adopters are defined both by their product adoption behaviour and the characteristics that lead them to that behaviour. •• Innovators . Innovators are the first adopters of new products. People in this group are usually adventurous, interested in new technology and ideas, and willing to take risks. •• Early adopters . Early adopters are the next group to adopt. They are likely to be careful choosers of new products and are often opinion leaders, respected by peers and people in the other categories. •• Early majority . The early majority tend to be more deliberate in their choice of new product and try to avoid taking risks. However, they usually adopt the new products before the average person. •• Late majority . The late majority are more cautious and sceptical about new products and technologies but will eventually adopt the new product after most people have purchased it, and due to economic necessity or social pressure. •• Laggards . Laggards are the last adopters. They are often wary of new products and ideas, and generally prefer products that are familiar.

Intangibility is the characteristic of service that describes...

The characteristic of services that most fundamentally distinguishes them from goods is their intangibility. Intangibility of services is derived from the fact that you cannot see or touch a service. A service is made and delivered on spot and hence it cannot be measured as easily as a tangible product.