Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.
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Successful marketing involves bringing the buyer and seller together and making a sale.
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The marketing concept is that a customer’s needs and wants are met while achieving the business’s goals.
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Marketers closely examine the behaviour of customers (consumers) to understand what influences customer choice.
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Customer choice is influenced by four main factors: Psychological, sociocultural; economic and government.
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Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem.
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Primary data: information from original sources. Example: interviews and surveys.
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Secondary data: information collected by other organisations. Example: industry reports and Australian Bureau of Statistics.
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A situational analysis (feasibility) provides a precise understanding of the business’s current position and where it is heading.
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The product life cycle consists of the stages a product passes through: introduction, growth, maturity and decline.
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At each stage of the product’s life cycle a different marketing strategy is necessary.
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A SWOT (strengths, weaknesses, opportunities and threats) analysis provides the information needed to complete the situational analysis and assesses the business’s position compared with its competitors.
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A target market refers to the group of customers to which a business intends to sell its product.
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Three broad approaches can be adopted when selecting a target market: the mass marketing approach, the market segmentation approach or the niche market approach.
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Market segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristic– demographic — features of a population
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Market segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristic – geographic — urban, regional and rural locations
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Market segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristic – psychographic — personality characteristics
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Market segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristic – behavioural — customers’ relationship to the product.
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A business controls four basic marketing strategies to reach its target market: product, price, promotion and place (the four Ps of the marketing mix).
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A product is a good or service that can be exchanged for money.
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The price is the amount of money a customer is prepared to offer in exchange for a product.
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Promotion describes the methods used to inform, persuade and remind customers about a business’s products.
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Place is the element of the marketing mix that deals with the channels of distribution: the ways of getting the product to the customer.
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Product positioning is the development of a product image compared with the image of the competing products.
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Product branding is the brand and associated brand logo.
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A business must select the most appropriate pricing method suitable to its product and market conditions.
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Pricing method:–Cost-based (mark-up)
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Pricing method:– Market-based pricing.
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Pricing method:- Competition-based pricing
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Pricing strategy – price skimming,
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Pricing strategy– price penetration,
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Pricing strategy– loss leader,
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Promotion refers to the methods used by a business to inform, persuade and remind customers about its products.
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Promotion mix is the various promotion methods — advertising, personal selling and relationship marketing, sales promotions, and publicity and public relations.
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Social media advertising (SMA) is a form of online advertising, using social media platforms such as Facebook, YouTube, and Twitter to deliver targeted commercial messages to potential customers.
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Place or distribution are activities that make the products available to customers when and where they want to purchase them. Includes an online presence
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