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Business > 3. Decision making to improve marketing performance > Flashcards

3. Decision making to improve marketing performance Flashcards

1
Q

Advantages and disadvantages of niche marketing 4 + 3

A

Advantages:

  • May benefit from price skimming
  • enables differentiation and specialisation
  • often less competition
  • Customer loyalty

Disadvantages:

  • If profitable, could attract competition
  • May be difficult to generate acceptable profit
  • Higher costs due to small scale
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2
Q

What is market segmentation?

A

Dividing the market into identifiable sub-markets, each with its own customer characteristics

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3
Q

What is market targeting?

A

Deciding which market segment a business wants to operate in

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4
Q

What is market positioning?

A

Where a particular brand stands in relation to other brands in the market

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5
Q

The effect of changes in price - elastic and inelastic

A

elastic demand:
price rise - revenue falls
price fall - revenue rises

inelastic demand:
price rise - revenue rises
price fall - revenue falls

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6
Q

What is elasticity?

A

The measure of the responsiveness of demand to a change in a variable, e.g. price or income

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7
Q

What is a confidence interval or margin of error?

A

The plus or minus figure used to show the accuracy of results arising from sampling

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8
Q

What is a confidence level?

A

the probability that research findings are correct

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9
Q

What is extrapolation?

A

Analyses the past performance of a variable, such as sales, and extends the trend into the future.

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10
Q

What is correlation?

A

used to establish the extent of a relationship between two variables

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11
Q

What is sampling?

A

The selection of a representative group of consumers from a larger population

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12
Q

What is random sampling?

A

when each member of the population has an equal chance of being included

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13
Q

What is stratified random sampling?

A

Seperates the population into segments or strata

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14
Q

What is quota sampling?

A

Splits the population into a number of groups, each sharing common characteristics

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15
Q

What are the five external factors influencing marketing objectives and decisions?

A

market and competition: objectives will vary according to the state of the market and the actions of competitors.

economic factors: factors such as an economic cycle and interest rates affect consumer spending

social factors: consumer tastes and fashion change over time

ethics: consumers have become more aware of environmental issues, e.g. the amount of packaging
technology: this affects the way businesses both produce and sell goods, e.g. mass customization and online sales

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16
Q

What are four internal factors influencing marketing objectives and decisions?

A

finance: The marketing function needs to operate within the budget allocated

production capacity: It must be physically possible to achieve growth targets

human resources: market growth may be dependent on the skills of the workforce and the availability of labour

nature of product: innovative products have more scope for growth than staples such as bread and fuel

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17
Q

3 key marketing objectives (4 sub)

A
  • Sales growth% (sales volume, sales value, launching new products, entering new markets)
  • market share increase
  • brand loyalty increase
18
Q

what is primary data

A

data collected first-hand for business

19
Q

what is secondary data

A

data that already exists and which has been collected for a different purpose

20
Q

4 methods of primary research

A

surveys/questionnaires
observations
focus groups
test marketing

21
Q

5 secondary research methods

A 
pulished reports by industry publications
newspapers
internet
government
market research reports
22
Q

2 strengths of primary research + 3 weaknesses

A

s:

  • specific to the business/product
  • up to date

w:

  • expensive, time consuming
  • sample size may be too small
  • poor validity of research
23
Q

3 strengths 3 weaknesses of secondary research

A

s:

  • can be cheaper
  • immediately available
  • looks at the whole market

w:

  • not specific to the business/product
  • can be out of date
  • accessible to competitors
24
Q

4 criteria to segment market

A

demographic (age, gender etc)
geographic (location, urban or rural)
income (disposable income, level of earnings)
behaviour (specific needs, frequency, interests, hobbies etc)

25
Q

pros of segmentation

A
  • helps understand the need of a specific group of customers
  • helps design a tailored product or service
  • helps differentiate a product or service
  • makes marketing more targeted and efficient
26
Q

cons of segmentation

A
  • segment size may be too small to be profitable (not enough customers and revenue)
27
Q

cons of segmentation

A
  • segment size may be too small to be profitable (not enough customers and revenue)
28
Q

pros of mass market

A
  • large target market - high revenue + market share
  • economies of scale
  • helps brand awareness
29
Q

cons of mass market

A
  • more competition - price competition
  • high levels of inital investment
  • higher costs (product adaptation to segments)
  • generic products may not meet customers needs
30
Q

internal influences on new product development 5

A
  • availability of a budget for r&d
  • talent
  • past success/failure
  • need to increase sales
  • how old current products are
31
Q

external influences on new product development

A
  • new gap in the market
  • customers expectations
  • new technology
  • competitors actions
  • government policies
32
Q

pros of multichannel distribution 4

A
  • open 24/7
  • different prices for different channels
  • increased brand awareness
  • access to customer feedback
33
Q

cons of multichannel distribution 2

A
  • costs may be increased (shop+website)

- lack of consistency of customer service

34
Q

pros of e-commerce 4

A
  • less expensive costs
  • open 24/7 / 365 days
  • access to larger inter/national market
  • revenue up & costs down = profit up
35
Q

cons of ecommerce 8

A
  • lacks personal touch
  • delays
  • doesnt allow experience
  • packaging and delivery costs
  • subcontracting delivery
  • returns
    security issues
    high competition
35
Q

cons of ecommerce 8

A
  • lacks personal touch
  • delays
  • doesnt allow experience
  • packaging and delivery costs
  • subcontracting delivery
  • returns
  • security issues
  • high competition
36
Q

what is digital marketing

A

any online methods of marketing e.g. email, social media, blogging etc

37
Q

pros of digital marketing

A
  • allows global reach
  • cheaper
  • allows personalisation
  • can suggest similar products
38
Q

pros of digital marketing

A
  • misses out customers not online
  • can annoy customers
  • customers can opt out of receiving it
39
Q

6 factors affecting the choice of promotional mix

A
  • target market/audience
  • type of product
  • stage in product life cycle
  • budget
  • competitors choice
  • technology available
40
Q

what are consumer products

A

bought by final customers for personal comsumption

41
Q

what are industrial products

A

bought by other businesses not consumers for further processing or for use

Business (14 decks)

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