Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business > 3 Decision making to improve marketing performance > Flashcards

3 Decision making to improve marketing performance Flashcards

1
Q

What is the definition of marketing?

A

The process responsible for identifying anticipating and satisfying customer requirements profitably

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

(3.1 setting marketing objectives). What is the link between a business and its customers?

A

The business - marketing - the customer
Business makes profit - marketing is mutually benificial - customer experiences good value for money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

(3.1 setting marketing objectives). What does market share mean?

A

The percentage of a markets total sales that is earned by a particular company over a specified time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

(3.1 setting marketing objectives). What for things are included in marketing objectives?

A

Sales volume and sales value targets
Market and sales growth targets
Market share targets
Market size - knowing this enables realistic targets to be set

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

(3.1 setting marketing objectives). What might the value setting of objectives include? (3 things)

A

Target setting - gives focus and sence of direction
Motivation - can be motivation for those responsible
Evaluating performance - can be used to judge performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

(3.1 setting marketing objectives). How do you claculate market share?

A

Sales of firm
———————- x 100
total market sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

(3.1 setting marketing objectives). How to calculate sales growth?

A

difference in sales
————————– x 100
earliest year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

(3.1 setting marketing objectives). How to calculate market growth?

A

difference in sales
————————– x 100
earliest year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

(3.1 setting marketing objectives). How to calculate market size?

A

sales
——————- x 100
market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

(3.1 setting marketing objectives). What are five external influences on marketing objectives and decisions?

A

Market and competition
Economic factors
Ethics
Social factors
Ethics
Technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

(3.1 setting marketing objectives). What are four internal influences on marketing objectives and decisions?

A

Finance available
Production capacity
Human resources
Nature of product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

(3.2 understanding markets and customers). What is amrket research?

A

The process of gathering data on potential customers in order to reduce risk in decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

(3.2 understanding markets and customers). What is primary research?

A

The collection of information for the first time for specific purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

(3.2 understanding markets and customers). What is secondary research?

A

The collection of data that already exist and have been used for other purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

(3.2 understanding markets and customers). What 5 ways does market research help a business fully understand the market it operates in?

A

Studying market trends and characteristics
Establishing consumner profiles
Analysing market shares and potential of existing products
Forecasting sales for procucts
Analysing and forecasting sales of new products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

(3.2 understanding markets and customers). What is the process of market research?

A

define problem/objectives
develop research plan
implement plan : collect and analyse data
interpret data and report findings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

(3.2 understanding markets and customers). What are four key points of primary research?

A

Also known as field research
collects first hand information
answers specific issues or questions
can be expensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

(3.2 understanding markets and customers). What are four key points of secondary research?

A

second hand research
uses data that already exists
is cheap to collect
may not be directly related to the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

(3.2 understanding markets and customers). What are the 4 sources of primary research?

A

surveys/questionaries
observation
focus groups
test marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

(3.2 understanding markets and customers). What are the three sources of secondary research?

A

published reports
government/agency data
internet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

(3.2 understanding markets and customers). What is qualitive research?

A

Reserach into the attitudes and opinions of customers that influence their purchasing behaviour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

(3.2 understanding markets and customers). What is quantitive research?

A

The collection of information on consumer views and behaviour that can be analysed statistically

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

(3.2 understanding markets and customers). What is market mapping?

A

A diagram that identifies all the products in the market using two key features eg price and quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

(3.2 understanding markets and customers) What is sampling?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

(3.2 understanding markets and customers) What is correlation?

A

A statistical technique used to establish the extent of relationship between two variables such as the level of sales and advertising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

(3.2 understanding markets and customers) What is extrapolation?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

(3.2 understanding markets and customers) What is trend?

A

An underlying pattern of growth or decline in a series of data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

(3.2 understanding markets and customers) Why is sampling taken?

A

It is impossible to interview everyone
It reduces the cost of research

29
Q

(3.2 understanding markets and customers) Whata re the three methods of sampling?

A

Random sampling
Stratified sampling
Quota sampling

30
Q

(3.2 understanding markets and customers) What might be some factors effecting the choice of smapling?

A

budget available
target market
size of market and business

31
Q

(3.2 understanding markets and customers) The larger the smaple… what other factors are there?

A

more information colleceted
more reliable it should be
but the greater cost to the firm it will be

32
Q

(3.2 understanding markets and customers) What various statistical tools can be uused to interpret marketing data?

A

Correlation
extrapolation
confidence intervals
confidence level

33
Q

(3.2 understanding markets and customers) During marketing interpretation when does correlation occur?

A

When there is a direct relationship between one factor and another eg customer income and sales, or weather and sales

34
Q

(3.2 understanding markets and customers) During marketing interpretation what relationship can correlation include?

A

Positive or negative

35
Q

(3.2 understanding markets and customers) During marketing interpretation what does correlation enable?

A

A more accurate forrcasting

36
Q

(3.2 understanding markets and customers) During marketing interpretation what does extrapolation use?

A

Known data to predict future data eg by looking at past sales figures it may be possible to predict future sales

37
Q

(3.2 understanding markets and customers) During marketing interpretation how is extrapolation achieved?

A

By extending a trend line on a chart or graph

38
Q

(3.2 understanding markets and customers) During marketing interpretation how does extrapolation need to be treated?

A

With caution as it is assumed the future will be similar to the past

39
Q

(3.2 understanding markets and customers) During marketing interpretation what might extrapolation not be suitable for?

A

Industries subject to rapid change eg fashion and technology

40
Q

(3.2 understanding markets and customers) During marketing interpretation what are 4 features of confidence intervals?

A

a business cannot be 100% certain of market research fidnings
the confidence interval allows a margin of error
an interval of 5% indicated that researchers are sure the results are correct +/-5%
the interval used is liekly to be affected by sample size, the bigger the smaple the lower the interval

41
Q

(3.2 understanding markets and customers) During marketing interpretation what are three features of confidence levels?

A

this is an expression of how confident researchers are in the data collected
it is expressed as a percentage
the most commonly used confidence level is 95%

42
Q

(3.2 understanding markets and customers) What does confidence interval or margin of error mean?

A

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

43
Q

(3.2 understanding markets and customers) What does confidence level mean?

A

The probability that that researchers findings are correct

44
Q

(3.2 understanding markets and customers) What does using technology mean?

A

vast amounts of information can be collected, stored and analysed

45
Q

(3.2 understanding markets and customers) What are four features of the value of technology in gathering and analysing data for marketing decision making?

A

provides faster communication
makes forcasting easier
enables targets sales messages
but relies on a business having the right data in the first place

46
Q

(3.2 understanding markets and customers) What does elasticity mean?

A

A measure of the responsiveness of demand to a change in a variable eg price or income

47
Q

(3.2 understanding markets and customers) How to work out elasticity?

A

percentage change in variable

48
Q

(3.2 understanding markets and customers) How to work out price elasticity of demand?

A

% change in price

49
Q

(3.2 understanding markets and customers) How to work out income elasticity of demand?

A

% change in income

50
Q

(3.2 understanding markets and customers) How to know if the answer is elastic or inelastic?

A

an answer greater than 1=elastic
an answer less than 1=inelastic
ignore minus signs

51
Q

(3.2 understanding markets and customers) What are three points about price and income elasticity?

A

can be used to evaluate the impact of chnages in prices and imcomes on sales
might be volume or value
will vary according to the type of product - luxury vs necessity

52
Q

(3.2 understanding markets and customers) What are the likely effetcs of price change?

A

price rise price fall
elastic demand ——- total revenue falls ——- total revenue rises
inelastic demand —- total revenue rises —— total revenue falls

53
Q

(3.2 understanding markets and customers) Besides elasticity what other factors are concidered in decision making?

A

brand loyalty
competitor actions
consumer tastes and fashion
availability of substitutes

54
Q

(3.2 understanding markets and customers) What can data help reduce the risk and create a better understanding of?

A

the market
the environment
consumers

55
Q

(3 decision making to improve marketing performance) What is market segmentation?

A

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

56
Q

(3 decision making to improve marketing performance) what is market targeting?

A

deciding which segment a business wants to operate in
when a business targets its marketing at a specific market segmentation

57
Q

(3 decision making to improve marketing performance) what is market positioning?

A

where a particular brand stands in relation to other brands on the market
refers to how a customer views an indevidual brand relative to other brands

58
Q

(3 decision making to improve marketing performance) what may market segmentation be by?

A

age
sex
income

59
Q

(3 decision making to improve marketing performance) what are 4 examples of market positioning?

A

price
product
services
image

60
Q

(3 decision making to improve marketing performance) how are segmentation, targeting and positioning linked?

A

segmentation — targeting — positioning
segmentation breaks the market into clearly definable groups
the group(s) to aim the product or service at will then be determined
finally the positioning of the product will be concidered

61
Q

(3 decision making to improve marketing performance) what are the benefits of the segmentation, targeting and positioning process?

A

more effective marketing
recources will be used more effectively
sales and market share may increase

62
Q

(3 decision making to improve marketing performance) what are the drawbacks of the segmentation, targeting and positioning process?

A

may overlook a potentially profitable segment
changes in taste and fashion couls be overlooked

63
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) what is niche marketing?

A

when businesses identify and satisfy the demands of small segments of a larger market

64
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) what is mass marketing?

A

when businesses aim their products at most of the available market

65
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) what are the influences on choosing a target market and positioning?

A

the nature of the product
competition
the consumer

66
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) What are the benefits of niche marketing?

A

may benefit from price skimming
customer loyalty
niche markets can be highly profitable

67
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) what are the drawbacks of niche marketing?

A

may be difficult to generate sufficient profit
if profitable could attract new competition

68
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) what are the benefits of mass marketing?

A

produce on a larger scale
capital intensive
minimise unit costs

69
Q

(3.3 making marketing decisions: segmentation, targeting, positioning) what are the drawbacks of mass marketing?

A

more competitive

business (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions