Marketing Strategies - created from Mind Map


Business Studies (Marketing) Note on Marketing Strategies - created from Mind Map, created by shaycrystal4 on 10/11/2013.
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Market segmentation: By segmenting the market and knowing when, where and how to promote your product/service will mean the business uses less on advertising and will be more accurate with its advertising. Product/service differentiation: When products/services that are the same are made to appear different from their competitors'. By doing this the marketer can gain more control in the marketplace. E.g. Jeans with a lower price than other are more likely to attract people wanted to save money and therefore get sales over the other business' jeans.Four important points of differentiation:-Customer service (including pre-sales and after pre-sales) e.g. car dealers and presentation of premises eg Macca's-Environmental concerns (businesses that adapt a 'green' philosophy) e.g. body shop-Social and ethical issues products or brands that don't exploit workers, producers or the environment e.g. fair trade movement-Convenience in response to today's busy consumers e.g. quick to cook meals Positioning: How the marketer positions the product in your mind and in the market with the use of the four P's.-Closely tied to product differentiation. -Marketers create a physical and mental image of the product in customer's minds to differentiate their product to their competitors. -Brands like Ferrari, No Frills and Rexona immediately evoke an image of quality in people's minds.-When introducing a new product, managers must have a clear image of the product's positioning and must make this clear by the name, price, packaging, styling, promotion and channels of distribution. E.g. Prada uses the elements of the marketing mix to portray an image of sophistication and luxury. 

Products -goods and/or servicesProducts definition: goods or services that can be offered in an exchange for the purpose of satisfying a need or want. A total product concept refers to the tangible and intangible benefits (attributes) of a product. -Branding: a name, term or symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition. -A brand name is the part of the brand that can be spoken. -A trademark signifies that the brand name or symbol is registered and the business has exclusive right of use. -A brand symbol or logo- a graphic representation that identifies a business/product. -The benefits of branding for consumers:   -ability to identify quality and reliability of products   -ability to determine what product would be proffered over similar products.   -reduces level of perceived risk   -can gain a psychological reward (buying a brand that signifies prestige) -Benefits for business:   -gains repeat sales because consumers recognise product   -can introduce products easier due to positive reputation   -encourages customer loyalty. -Packaging: The graphic design and container for a product.Packaging can:   -encourage first0time use and give a positive first impression   -act as a form of communication. E.g. a red soft drink bottle represents coca cola   -become part of the product itself. E.g. coca cola has trademarked a 'pinched waste' in their bottles-Labelling:  -D: the presentation of information on a product or its packaging.  -marketers use this to provide information about the product, how to use it and to promote other products.   -Some things must be provided on the product by law to protect the consumer against unsafe use and deceptive and misleading conduct + makes it easier to compare with other products.

Price including pricing methods -cost, market, competition-based Pricing methods:-Cost based (mark up): cost + (cost x mark-up%) = pricee.g. shirt costs $50, store applies 80% mark-up on cost ($50 + 80% [$40]) = $90-market based: whatever market is prepared to paye.g. bananas are cheaper in summer months when there are more available-Competition based: price covers cost and is competitive e.g. standard products such as eggs -Pricing strategies -skimming: when a business charges the highest possible price for the product during intro stage of life cycle  -penetration: when a business charges lowest possible price, in the hope of achieving large market share -loss leaders: a product sold at or below cost price -price points: (price lining) is selling products only at certain predetermined prices-Price and quality interactionWhere a high price is charged to give the product an aura of quality and status.

PromotionMethods used by a business to inform, persuade and remind a target market about its products.-elements of the promotion mix   -advertising: a paid, non-personal message communicated through a mass medium to persuade, inform and remind.  -personal selling: e.g. retail. A sales person outlines the advantages of a product directly to a potential customer.  -relationship marketing: the development of long-term and cost-effective relationships with individual customers. e.g. through loyalty cards  -sales promotion: e.g. free samples. The use of activities or materials as direct inducements to customers.  -publicity: e.g. Miley Cyrus. Any news story about a business' product.   -public relations: (PR) activities aimed at creating and maintaining a positive image to its consumers. e.g. Maccas providing food to the 9/11 victims and putting this on their website.-the communication processCommunication must be clear so the message is properly delivered and sales are made.Channel: any method for carrying a message. Noise: any interference or distraction that affects any or all stages in the communication process. (faulty printing) -opinion leaders: a person who influences others. Used to: gain interest in the product, give the product a sense or prestige etc. -word of mouth: when people influence each other via conversation. Effective due to more trust from that person's opinion. Can be done via Facebook.

Place/distributionD: activities that make the products available to consumers where and when they want to purchase them-distributing channels (marketing channels): routes taken to get the product from the factory to the customer. The four most common channels of distribution are:  -producer to customer  -producer to retailer to customer  -producer to wholesaler to retailer to customer  -producer to agent to wholesaler to retailer to customerNon-store retailing: retailing activity conducted away from the traditional store, including telemarketing and internet marketing.-channel choice; the number of outlets a firm chooses for its product.  -intensive: when the business saturates the market with its product. -selective: using only a moderate proportion of all possible outlets. -exclusive: only one retail outlet for a product in a large geographical area.-physical distribution issues:Physical distribution: all those activities concerned with the efficient movement of the products from the producer to the customer.   -transport: the type depends on the type of product and the degree of service that the business wishes for the consumers. The four methods used are sea, air, rail, road.  -warehousing: activities for receiving, storing and dispatching goods.  -inventory: business lose sales and marketshare if they 'run out of stock'. An inventory control system prevents this. A balance of having enough stock but not too much is desired as too much costs for storage. 

E-marketing: (D) using the internet to perform marketing activities With a rapid increase of use of the internet, marketers are beginning to exploit all types of e-marketing. Provides an immediate and effective way of marketing.Web pages, podcasts, SMS, blogs and Web2.0 are used.Web pages: a display of information accessible on the web through a web browser.Podcasts: the distribution of digital audio or video files over the internet (mainly used for advertisements).SMS: text messages are used to alert regular customers of special deals.External blogs may be created for communication between consumers.Webs2.0: the web being more about a creative/interactive platform for sharing rather than just retrieving info. e.g. Social networksSocial media advertising (SMA): Using social media for advertising to deliver targeted commercial messages to potential customers. SMA enables businesses to constantly build relationships with their customers.

Global marketing: business' marketing plan must be modified to better suit overseas markets. Some transnational corporations take a standardised approach and other customise their marketing plan to better suit differences among countries' tastes, religions etc. Market research must be applied (to culture, economy etc) to understand the complexities of the global market environment before a marketing approach is made. The marketing mix can then be developed. -Global branding: the worldwide use of a name, term, symbol or logo to identify the seller's products. Is: cost effective when advertising, worldwide image, easier to introduce new products due to success of brand. e.g. McDonalds doesn't have a language barrier. -Standardisation (approach): a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same globally. "One marketing plan fits all". e.g. electrical equipment, mobile phones, soft drinks.This saves cost when marketing, with a much simpler marketing process. -Customisation (approach) (/local approach): a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries. It is modified due to sociocultural, political and economic characteristics. Both approaches may be used. e.g. Maccas uses both approaches as it serves noodles in the Philippines, but standardises a lot. -Global pricing: how businesses coordinate their pricing policy across various countries. Is important because price determines profit. The three global pricing strategies:   -customised pricing: when consumers in different countries are charged different prices for the same product. The cost-plus method is used to ensure a set profit.   -market-customised pricing: sets prices according to local market conditions. This allows for more flexibility than 'customised' and allows a business to remain competitive with domestic businesses. The exchange rate largely affects global businesses. Standard worldwide pricing: the practice of charging customers the same price for a product anywhere in the world. The two risks of doing this are; a domestic business can may undercut the standardised price + changes in the exchange rate can negatively affect the exported price. -Competitive positioning: how a business will differentiate its products. This strategy centres around gaining marketshare against competitors. 

People, processes and physical evidenceThese three P's have been added to the marketing mix as they better suit 'services'. People: the quality of interaction between the customer and those delivering the service. This develops opinions from the consumers about the 'human face' of the business (how employees represent the business through care, effort, people skills and level of training).Processes: the flow of activities that a business will follow in its delivery of a service. Must be highly efficient to ensure customer satisfaction. e.g. pizza deliveries must be on time.Physical evidence: the environment in which the service is delivered and the materials needed to carry out the service e.g. brochures, website, utensils. These must be maintained for a positive reputation. 





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