Flashcards in Chapter 10 - Managing the marketing function Deck (27)
What is marketing?
Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.
What is the marketing concept?
The marketing concept is a philosophy that all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s objectives.
What are the 4 p's? (marketing mix)
What is market research?
Market research attempts to identify and outline both marketing opportunities and problems, as well as evaluating the implementation of the marketing plan.
What are the 3 steps of market research?
1. Determining information needs
2. Collecting data from primary and secondary sources
3. Analysing and interpreting sources
What is marketing data?
Marketing data comprise the information — usually facts and figures — relevant to the defined marketing problem. Normally, market researchers use a combination of two types of data: primary and secondary data.
Definition of primary data?
Primary data refers to the information collected from original sources for the purpose of the specific research problem.
What are the 3 main methods used to collect primary data?
Definition of secondary data
Secondary data: refers to information that some other person or organisation has already collected.
What are the 2 types of secondary data?
The two types of secondary data are:
- internal data, which is information that internal sources (that is, from inside the business) have already collected. Such data include financial statistics, annual management reports, research reports, customer feedback and sales reports.
- external data, which is published data from sources outside the business. Probably the best known are the numerous reports produced by the Australian Bureau of Statistics (ABS).
What is statistical interpretation analysis?
Statistical interpretation analysis: is the process of focusing on the data that represent average, typical or deviations from typical patterns.
Definition of market segmentation
Market segmentation: occurs when the total market is subdivided into groups who share one or more common characteristic.
4 categories of Market Segmentation
Demographic — age, gender, occupation, education, religion, family size, ethnicity
Geographic — urban, suburban, rural, regional, climate, landform
Psychographic — lifestyle, socioeconomic group, motives, personality, consumer opinions and interests
Behavioural — regular user, first-time user, brand loyalty, benefits sought, usage rate.
What is a target market?
A target market: is a group of customers with similar characteristics who currently purchase the product or may do so in the future.
What is a niche market?
A niche market: is a narrowly selected target market segment.
What is a primary target market?
The primary target market: is the market segment at which most of the marketing resources are directed.
What is a secondary target market?
A secondary target market: is usually a smaller and less important market segment.
What are the factors affecting consumer behaviour?
Four main factors influence consumer purchasing decisions: psychological influences, sociocultural influences, economic influences and government influences.
Four main psychological factors influence customer choice:
Four main sociocultural influences that affect customer choice:
1. Family and Roles
2. Peer Groups
3. Social Class
4. Culture and subculture
What is a market description?
The market description section of the marketing plan provides a description of the current state of the market in which the business operates. The main purpose of preparing a market description is that it determines a clear direction for the marketing efforts.
What is the product mix?
Product mix: is the total range of products offered by a business.
Definition of Market Share?
Market share: refers to the business’s share of the total industry sales for a particular market.
Definition of Product Positioning
Product positioning: is the development of a product image compared with the image of competing products.
What is market coverage?
Market coverage: refers to the number of outlets a business chooses for its product. Three market coverage choices:
1. Intensive Distribution
2. Selective Distribution
3. Exclusive Distribution
Product Life Cycle Definition
A product’s life cycle: consists of the stages a product passes through: innovation, introduction, growth, maturity and decline.