CIM Revision Cards 05/06: Marketing Fundamentals (Official CIM Revision Cards)

The aim is to work on a break-even basis in order to stay in business Strategic Pricing Price Skimming Price Penetration Charging high prices to gain early return on investment Charging a low price to ensure market penetration Price skimming features include: Price penetration features include: Differential pricing Characteristics of tactical pricing strategies include: High fixed costs 1.

Quantity discounting Economies of scale Money is received quickly Removing chances for the competition to penetrate the market, by offering bulk buys 68 Benefit both the producer and consumer 4. Pitching the price at the right level may be the difference between success and failure n Go to www. The list is extensive. This can be contracted out to a specialist or can be developed as a specialist function within the organization. Key factors influencing push strategies might include: Ensure that the key concepts of intermediaries, channels, and channel selection criteria are clear in your mind n Be prepared to make a decision on channel options, based upon clear justifications of choice n There is increasing evidence of mergers and acquisitions closely related to distribution economies n Ensure that you are confident with the broader complexities of distribution, the challenges, costs, logistical arrangements and how they must be managed to meet different channel stakeholders n Channel management and channel selection is a key marketing activity and it is important to ensure that you can find new and innovative ways of meeting customer needs and wants n Be confident in your ability to discuss new emerging alternatives to distribution, in particular various e-technologies that support and underpin the distribution process n Go to www.

Six reasons why long-term customers are profitable n Providing technical support and technical expertise — this can be a USP and add value to the proposition n They place frequent and consistent orders and therefore cost less to serve n Provision or resource support — ensuring that a range of versatile resources are available to support the relationship. In December , the question was on relationship marketing related to not-for-profit organizations n Be prepared to develop a marketing mix that is relationship focused as opposed to transactional focused — look at ways of using the mix for customer retention n Understand the importance of customer retention and the basis on which relationships are established, i.

Other Key Indicators include: For example, you may be asked to answer a marketing planning question in the context of an international business n Try and select two countries that you have a good general knowledge of to use as examples in international marketing examinations n Be prepared to adapt the marketing mix to international markets or discuss differences in culture and practices n Standardization vs. The following factors will distinguish organizational decision-making units in comparison to consumers.

Size of DMU 1. Nature of products purchased 4. Size of purchase 3. Buyer behaviour — organizational and not individual motivations 5. Frequency of purchase 6. Negotation of contacts 7. Lead-time between order and delivery 4. Customer relationships — closer and more sustainable 5.

Industry type — looking to serve markets with similar or common characteristics Size of company — segmenting by turnover, number of employees, output or capital employed Types of product or service required — segmenting on customer needs Type of buyer — centralized or decentralized organizations — level of devolved authority Geographic location — focusing on particular geographic regions Note: Everyone — the church has a mass market approach — the aim is to be all inclusive of society n Political influence Marketing Planning and Control Marketing Audit n Accountability The audit should focus upon: The amount of money generated vs.

Physical evidence of how money is used Ability to collect funds — i. Collect data and review the plan as a whole 2. Decide on the plan content 3. Plan and design the layout 4.

Write it up clearly and simply 5. Assemble the finalized information for your marketing plan 6. Include competitor comparison tables 7.

Prepare a SWOT analysis 8. Include sales forecasts State the marketing strategy Provide the detailed plan of action Include a time table for implementation Put in key controls in order to monitor plan Always ensure you have some good example to hand to support your answers and develop your thinking n Ensure that you are familiar with the advantages and disadvantages of virtual sectors vs. Good luck — we wish you every success with your CIM qualification!

To explain the nature of the marketing environment and its relevance for organizations and marketing practice The firm is a creature of its environment. Its resources, its income, its problems, its opportunities and its very survival are generated and conditioned by the environment.

IT developments or a catalyst, e. Do you review your own goals, how have they changed, by what forces?

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They have a two-way operational relationship with the business and may be influenced by it to some degree. Primary stakeholders make a direct and often continuous contribution to core activities. The impact on or by secondary stakeholders is more intermittent and normally of less significance.

Tying in outlets may provide competitive edge Employees n Retention of skilled preferred to new recruitment n Critical factor in productivity and customer interface n Central to coordination and achievement of goals n Potentially costly, e. Microenvironment importance Operational context for day-to-day tactical responses Stakeholder Pressures 2.

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Environmentalists Those groups and organizations who exert legal, moral and economic pressure on business to account for the interests of consumers over profit Groups and organizations who seek to apply political, economic and moral pressures on business to adopt sustainable operations. Impact on marketing Significance for marketer 3 Customers no longer suffer in silence 3 Encouraged proactive businesses to adopt a customer orientation 3 Consumer rights enshrined in fair trading laws Wide-ranging causes: Fraud, small print, misleading promotion, unsolicited junk mail l Right to choice: Characteristics Competitive behavior involves actions and reactions of businesses to improve their profitability and market position at the expense of rivals.

OPEC Three generic strategies provide the means of achieving a sustainable advantage and above average profitability: Cartels tend to weaken due to internal dissension, a tendency for substitutes to be offered outside the cartel, and the difficulty of internal policing to prevent cheating Broad cost leadership — emphasis on efficient scale, tight cost control, entry barriers and proximity in product Broad differentiation — proximity in cost but focus on unique and highly promoted product Collaboration short of cartels can be achieved via: Collecting Information and its Interpretation and Presentation are key marketing skills Awareness of information on the marketing environment provides: EuroTunnel, Coca Cola Dasani , McDonalds, Enron On a moving conveyor of changing tastes, technology and competitive forces, organizations must move fast to stand still!

Society — Main economic indicators, e. Pollution arises when waste is in excess of the natural assimilative powers of the environment Environmental consequences Arise from the interdependence of: Implications for marketing l Aggregate demand for goods and services Important demand condition in forecasting sales l The size of different market segments Family life cycle to match product offerings to needs l The availability of labour l The mix and composition of social services Organizations must market themselves to target groups l The scale of support infrastructure Structural changes drive changing demand patterns l The tax burden of the dependent population l The regional distribution of demand Marketers must respond to demographic consequences, e.

Welsh 3 Demographic, e. Continuously influences values and buying decisions: It is the average of a multitude of individual industry cycles. Interdependent open economies in a global economy are particularly sensitive to fluctuations elsewhere Turning points represent a sea-change in economic conditions, e.

High and rising among the overs. The majority rule but minorities are protected Remember exam questions may require political and economic understanding, e.