Marketing Principles MP - 13-

nguyp035's version from 2016-05-09 22:32

Section 1

Question Answer
Marketing is best defined as...

Section 2

Question Answer
Demographic segmentationdividing the market into segments such as age, life-cycle stages, gender, household composition, ethnicity e.g. TopShop 18-30 Evans 30+ shoppers e.g. Dependent child purchases snacks based on packaging. e.g. larger pack sizes for large families based on household structure
Socio-economic segmentationdividing the market in terms of class differences such as income and occupation (social class alone is too imprecise) - 6 classes of occupation adds to simplicity
Psychographic segmentationdividing the market in terms of unique personality factors e.g. values (standards, rules, norms used to make judgements), attitudes, lifestyle, loyalty, benefits sought. (e.g. watch bought as timepiece, gift, fashion item
Behavioural segmentationdivides markets into groups based on their knowledge, attitudes, uses and response to a product (benefits sought, usage, occasion)
Geodemographic segmentationclassifying neighbourhoods based on principal that residents near are likely to have similar demographic, socioeconomic and lifestyle characteristics e.g. analysing sales data of people in a certain postcode
discretionary incomedisposable income - expenditures on necessity of life e.g. mortgage payments
disposable income income available to spend after taxation
Geographic segmentationsplitting market in terms of regions, different customers may have different preferences based on location
Highlighting product attributes as being environmentally friendly is an example of?

Section 3

Question Answer
A perceptual map is used to..develop a market position strategy for a product/service. it is based on the perception of the buyer
identifies existing products and gaps in the market. Need to ensure that what is plotted is accurate due to it being based on buyer perception which may not be the same for all

Section 4

Question Answer
What is branding?The process of creating a distinctive identity for a product that differentiates it from its competitors (e.g. memorable logo, All the combined impressions and experiences associated with a particular company, good or service, relate to on an emotional level
What is the purpose of branding?Add value, differentiation, reduce risks,
Brand IdentityThe following elements work together to project a consistent image and are instantly recognizable. (name, words, letters, symbols, logo

Section 5

Question Answer
Characteristics of have value, a brand must have consistency, reduce buyers level of perceived risk, offer a range of functional and emotional attributes that they value.
Consistencyconsumers must come to learn that a brand stands for the same set of attribute on all purchases. i.e. the taste stays the same described by the brand name and remains same throughout.
Risk ReductionBranding simplifies decision making processes by providing a sense of security and consistency for buyers which may be absent outside of a relationship with supplier. (addresses physical, psychological, performance and financial risk)
Functional attributes...when a product provides the customer with functional utility e.g. warmth, capability of iPhone.
Emotional attributeswhen a product provides a positive feeling when customers purchase or use a particular brand (feel-good factor of buying fair trade)

Section 6

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Integrated Marketing Communication

Section 7

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Product Life CycleThe different stages though which a product develops overtime, reflecting different needs, sales levels and profitability
Introductionslow sales, high cost, lots of promotion, early adopters
Growthrapid rate of growth, falling cost, rising revenue, initial problems ironed out
Maturityrate of growth slows down, competitors attracted to market leads to downward pressure on prices
Saturationmarket has ceased to grow (sales stabilised), replacement demand rather than new demand, total sales fall.
Declinefalling sales due to changes in preferences or technology

Section 8

Question Answer
Consumer adoption processes
Innovators (introduction)are those who purchase products that are untested and expensive (like owning something new and untried e.g. new camera/phone)
Early Adopters (introduction)are those who start to show an interest and innovators inform them about the benefits of the product (influential in groups they interact with - seen as experts)
Early Majority (growth)are those who purchase during the growth stage
Late Majority (maturity/saturation)those who consider purchasing during the maturity stage as prices fall
Laggards (decline/death)those who purchase products at the end of their life cycle

Section 9

Question Answer
Planned obsolescence is...planning or designing a product with an artificially limited useful life, so it will become obsolete, that is, unfashionable or no longer functional after a certain period of time. e.g. a Lightbulb
Marketing communication is used to...