marketing

• • Psychological → buying behaviour influenced by personal endeavours of perception, motives, attitude, personality and self-image. 
• • Sociocultural → influenced by others that affect an individual’s buying behaviour including social class, culture/subculture, family role and friends. 
• • Economic → economic influences that force a business to compete challenging the consumer’s willingness to spend, the boom and recession also affecting buying behaviour
• Government → policies that indirectly or directly affect the business and consumer spending including Competition and Consumer Act (2010)
• • In 2011, a single law called the Australian Consumer Law was made. 
• Competition and Consumer Act 2010 protects consumers against undesirable or unfair practices made by businesses. It allows marketing activities to occur consistently with clarity.
• The Competition and Consumer Act is administered by the Australian Competition and Consumer Commission (ACCC), it was introduced to regulate marketing practices that occur in a business.
• Main restrictive trade practices:

  • deceptive and misleading advertising
  • price discrimination
  • implied condition
  • warranties
• • Deceptive And Misleading Advertising → creating a false impression to influence the consumers to buy the product
• • Price Discrimination → setting different prices in the market for different markets 
• • Implied Conditions → unspoken terms of a contract that is ‘implied’ to already be there/part of it
• • Warranties → a time frame in a which a business promises to repair or replace faulty products
• 5 criticisms of ethical marketing:

  • materialism
  • gender stereotypes
  • using sex to sell
  • products that may damage health
  • invasion of privacy
• Materialism → when a business creates a need in order for the consumer to purchase a product
• Gender Stereotypes → when businesses advertise in the widely held characterisations of women and men
• Use of sex to sell products → inappropriate or incorporating sexual imagery in advertising that encourage consumer purchase
• Product Placement → where a product is located can occur in media as a form of promotional marketing
• Invasion of Privacy → the intrusion upon an individual’s right to privacy, eg. while accessing website a business may ask upon recording your information for their business to collect data
• 4 ethical considerations a business should follow

  • truth and accuracy in advertising
  • good taste in advertising
  • engaging in fair competition
  • sugging
• Truth And Accuracy → when a business should avoid exaggerated claims, untruths due to concealed facts, vague statements and invasion of privacy
• Good Taste → what society as a whole believes as acceptable
• Products That May Damage Health → avoiding selling good and services that may be health detriments to consumers
• Engaging In Fair Competition → when referring to competitors in the marketing and advertising they must not talk poorly or make fake assertions towards competitors.
• Sugging → to avoid the act of selling under the guise of market which may lead to losing trust in consumers.
• SWOT Analysis includes the following (strengths, weaknesses, opportunities, and threats). These aspects allow a business to get a better understanding of its current standing position. It allows the business to know the positives (strengths and opportunities that they can take and enhance their business) and the negatives (threats and weaknesses that will allow them to avert possible danger and improve their performance as a business).
• Product Life Cycle → The product life cycle are the stages that a product goes through including introduction, growth, maturity and decline.
• Marketing Process --> the series of steps that a business follows to promote its products or services to potential customers.
• Market Research --> It is a vital section of the marketing process that a business must undergo to better understand consumer needs and how their products allow them to best meet these needs.
• various forms of market research:

  • primary market research --> information collected through “first-hand” means such as surveys, questionnaires
  • secondary market research --> information collected from already published or available sources including the internet, information reports etc.
• A business establishes market objectives in an effort to set out what the business wants to achieve with their marketing plans. Market objectives must usually be established in a SMART way.
• SMART objectives

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• • The marketing objectives that businesses develop can be related to the business’s performance, market share etc. 
• Identifying Target Markets --> This is the process in which a business identifies the market segments that it wants to target to allow it to better promote its product.
• Mass Market --> products that are intended to appeal to all customers despite gender, age, income, and not a specific group of individuals.
• Market Segments --> when a business targets a particular section or segment of the market
• Niche Markets --> A business that targets a specific sections of the market that have a small and narrow consumer base and very little competition.
• • Developing marketing strategies --> After the business has finished establishing marketing objectives and identifying its target market. The business must develop marketing strategies as a plan to achieve the business's goals.
• Marketing mix of the marketing strategies: Price, Promotion, Place, Product
• • Price → The amount of money that a business sets for a good/service that a consumer invests in.
• • Promotion → The act of creating and maintaining consumer awareness upon the activities of the business most importantly the product. This can be done through various methods including advertisements, radio, TV, publicity, personal selling etc.