Chapter 10: Sales and marketing

• Marketing


  Identify, anticipate, and supply goods and services
• Strategic marketing


  • Long term corporate wide approach
• Tactical marketing


  • Altering price, promotion etc
• Consumer markets


  When an individual buys for personal use
• Business to business markets

  Involves personal selling, making the ads catered to the person purchasing
• Marketing orientation


  An organisation centres its activities on satisfying the needs and wants of its customers
• Production orientation


  Produce goods and services at an optimal quality as cost efficiently as possible
• Sales orientation


  Aggressive sales are the key to success
• Product orientation


  Create products so good that everyone wants it anyways
• Pull marketing


  Creating a want/need for the product
• Push marketing


  Trying to get the product on the shelves. Buy 1 get 1 free etc.
• Pull digital marketing


  Get viewers to click and turn them into viewers from websites
• Push digital marketing


  Pushing emails showing what you can purchase
• Levels of marketing environment

  • Macro environment uses PESTEL
  • Micro environment – Comprised of customers and suppliers
  • Internal organisation factors such as assets, employees and finance
• SWOT analysis


  • Strength
  • Weakness
  • Opportunities
  • Threats
• Marketing Mix (7Ps)


  • Product
  • Price
  • Place
  • Promotion
  • People
  • Processes
  • Physical evidence
• Product


  How attractive is the product
• Pricing strategies


  • Perceived quality pricing
  • New product pricing
  • Multiple products
  • Market penetration
  • Market skimming
  • Early cash recovery
  • Dynamic pricing
  • Target pricing
  • Price leadership
  • Captive product pricing
  • Psychological pricing
• Place


  How the product is distributed
• AIDA


  • Arouse attention
  • Generate interest
  • Inspire demand
  • Initiate action
• Processes


  Having an effective process can be a marketing advantage
• People


  All service staff are considered here
• Physical evidence


  Physical evidence of a service that can be viewed by customers, for example testimonials of customers of a service received posted on the company website
• Market research


  The process of gathering, recording, analysing and reporting data relating to the company's market, customer and competitors
• Qualitative data


  Not measurable
• Primary data


  Data that comes from specific data research and can be internal or external
• Secondary data


  Data that comes from internal or external but the main difference is, its use is not for specific research purposes
• Market segmentation


  Dividing market into distinct groups of buyers with similar needs or characteristics
• Family life cycle segmentation

  • Bachelor
  • Newly married couple
  • Full nest (i)
  • Full nest (ii)
  • Full nest (iii)
  • Empty nest (i)
  • Empty nest (ii)
• Segment validity


  • Can the segment be measured
  • Is the segment big enough
  • Can the segment be reached
  • Do segments respond differently
  • Can the segments be reached profitability
• Competitor analysis


  Consider level of competition before entering a market
• Marketing strategies


  • Mass marketing
  • Concentrated marketing
  • Differentiated marketing
• Market positioning


  How customers perceive a brand or product relative to other brands
• Ansoff matrix


  • Market penetration
  • Market development
  • Product development
  • Diversification
• Porters potential positioning strategies

  • Broad target/Low-cost Cost leadership
  • Narrow target/Low-cost Cost focus
  • Broad target/high cost differentiation
  • Narrow target/high cost differentiation focus
• Perceptual mapping


  Mapping peoples perception and any gaps is where there's a gap in the market
• Types of marketing


  • Direct marketing
  • Indirect marketing
  • Guerrilla marketing
  • Viral marketing
  • Interactive marketing
  • Experiential marketing
  • Search engine marketing
• Stages of product development

  • Customer needs
  • Screening
  • Design
  • Time to market
  • Testing
• Levels of products


  • Core/generic products
  • Augmented product
  • Expected products
  • Potential products
• BCG matrix


  • Star - TOP LEFT HIGH/HIGH
  • Cash cow - BOTTOM LEFT LOW/HIGH
  • Problem child - TOP RIGHT HIGH/LOW
  • Dog - BOTTOM RIGHT LOW/LOW