Marketing 2

• Marketing

  On-going activities of the business to reach the Living Standards Measure (LSM) / target market and methods the business utilises to connect and engage with its target market
• Factors influencing the buying decision

  • Psychological
  • Socio-cultural
  • Economic
• Branding

  • Advantages of a strong brand
  • Understanding how brand extension and brand stretching can be used to achieve business success
  • Factors that are important in creating brand value
  • Understanding the buyers purchasing decision by looking at the stimulus-response model of buyer behaviour
• Service marketing

  • People
  • Process
  • Physical evidence
• Ethical marketing

  Marketing that adheres to moral principles
• Unethical marketing

  Marketing that does not adhere to moral principles
• Pricing strategies

  • Market penetration pricing
  • Loss Leader pricing
  • Promotional pricing
  • Bulk discount
  • Prestige pricing
• Product

  Any item offered for sale
• Product types

  • Convenience goods
  • Select goods
  • Speciality goods
• Price


  Monetary value of a product or service that consumer is willing to pay
• 7Ps of marketing

  • Product
  • Price
  • Place
  • Promotion
  • People
  • Process
  • Physical evidence
• Selective Distribution

  Distributing products to selected locations
• Exclusive Distribution

  Products available only at specific locations
• Promotion

  Marketing communication
• Elements of a successful brand

  • Quality
  • Positioning
  • Repositioning/Rebranding
• Brand extension

  Using leverage to launch a new product in a different category
• Brand stretching

  Using established brand names to launch products in an unrelated category
• The CPA regulates all forms of direct marketing
• The POPI Act is limited to direct marketing by electronic communication
• Businesses must ask for consent from customers before processing their personal information
• A unique character such as a name, term or logo all combined to form a set which is intended to identify the goods/services of a seller is branding
• Research has shown that consumers do not separate the product/service from the employee that serves it
• Provision of aftersales support adds value to the product/service bought by the customer
• Marketing strategy coordinates and considers all aspects needed to reach the consumer
• Market audit is when a business must pinpoint their position in the market
• Market mapping is a visual representation of market conditions/trends
• The impact of the CPA on marketing is significant
• The impact of the POPI Act on businesses requires consent from customers
• Elements of a successful brand include quality, positioning, and rebranding
• Brand extension refers to launching a new product in a different category
• Brand stretching refers to launching products in an unrelated category
• Mr. Price's retail division had gained market share for five consecutive months
• Sales growth was strong across all departments
• Mr. Price's kids-wear division delivered a standout performance
• Product policy

  Ensures the franchise has a competitive advantage in the clothing sector
• Factors that influence a buyer’s decision

  1. Stimulus response model of buyer’s behaviour

  2. Buyer characteristics

  3. Decision-making process
• Stimulus response model

  Helps us understand behaviour of customers
• Marketing management must try and figure out what goes on in the mind of the customer, which is the black box
• Buyer’s characteristics

  Influence how they perceive the stimuli
• Decision-making process

  Determines what buying behaviour is undertaken