3 Decision making to improve marketing performance Flashcards
1
Q
what is sales value
A
units sold x average selling price
2
Q
what is sales volume
A
no of units sold by a business
3
Q
market size volume
A
average no of units sold in market
4
Q
market size value
A
total units sold in market x average selling price of each unit
5
Q
what is market growth
A
(current - original / original) x 100
6
Q
market research is
A
the process of collecting data about customers and competitors to make informed decisions
7
Q
types of marketing decisions include
A
- effective promotion
- product development
- setting sales/performance targets
- budget allocations for r&d, promotions
8
Q
disadvantages of quantitative data
A
- doesn’t explain the ‘why’
- relies on honest answers
9
Q
advantages of quantitative data
A
- allows for numerical breakdowns such as graphs
- allows for patterns to be easily identified
- allows for large amounts of data to be analysed
10
Q
advantages of qualitative data
A
- allows for follow up questions to be asked
- reasons for consumer behaviour can be asked
11
Q
disadvantages of qualitative data
A
- relies on honesty
- time consuming
- difficult to breakdown
- small sample groups may not be representative of a large population
12
Q
market mapping is
A
a way of analysing the level of competition using the characteristics of the brands
13
Q
benefits of market mapping
A
- help identify competitors
- help identify customer perception of competitors
- help identify gaps in the market
14
Q
weaknesses of market mapping
A
- depends on opinions of creator of the map
- oversimplifies complex markets
- doesn’t consider consumer demand
15
Q
sampling is
A
a group of consumers representative of the entire market
16
Q
what is random sampling
A
where everyone has an equal chance of being chosen
17
Q
stratified sampling is when
A
the sample group has a key characteristic that the overall market has
18
Q
benefits of sampling
A
- time effective
-cost effective - can be used for both qualitative and quantitative data
- generalised conclusions can be reached quickly
19
Q
weaknesses of sampling
A
- is it truly representative of the whole market?
- bias if the sample isn’t random?
- does the sample even use your products?
20
Q
the effectiveness of sampling depends on
A
- size of sample
- budgets available
- skill of research team
- how quickly the information has been used
21
Q
correlation occurs when
A
there’s a relationship between two sets of data
22
Q
confidence intervals are
A
the level of confidence you have that the information you have gathered is accurate
23
Q
confidence intervals depend on
A
- size of sample
- budget
- skill of research team
- level of deviation
24
Q
benefits of extrapolation include
A
- allows to identify patterns
- quick
- cheap
25
weakness of extrapolation include
- relies on accuracy of past data
- future is unpredictable
- doesn't account for seasonal changes
26
how can you use technology in market research
- spreadsheets
- loyalty cards
- data storage software
- social media
27
benefits of using technology in market research
- relatively cheap
- collect large data samples
- effective analysis of data
28
drawback of using technology in market research
- loss of reliability on 'hunch'
29
ped is
% change in demand / % change in price
30
price inelasticity is when the value is .... than 1
less
31
price elasticity is when the value is .... than 1
more
32
influences on ped include
- no of substitutes
- habitual purchases
- consumer perception
33
inferior goods have a .... YED
negative
34
normal goods have a YED that is
between 0 and 1
35
luxury goods have a YED that is
more than 1
36
Segmentation is
dividing a mass market into subgroups w similar characteristics
37
markets can be segmented by
- demographics
- geographical
- income
- behavioural
38
benefits of segmentation
- used to identify gaps
- can target their specific target
- allows for specialised products can be created
39
drawbacks of segmentation
- difficult to accurately categorise consumers
- risk of not identifying target market correctly
40
targeting is the...
process of deciding the groups of customers a company will decide to sell their products too
41
a mass market is
as much of the market as possible
42
advantages of targeting a mass market
- economies of scale
- greater brand awareness
- lower advertising costs per unit
43
disadvantages of targeting a mass market
- high competition
- fewer premium products so less scope to add value
- low levels of consumer satisfaction
44
a niche market is
a small sub section of a mass market w similar needs
45
advantages of targeting a niche market
- usp and differentiation
- charge higher prices
- build brand loyalty
46
disadvantages of targeting a niche market
- lack of economies of scale
- what if the niche changes
47
positioning is
how you communicate w your target market
48
influences on stp
- core competencies and usp
- competitors usp
- budgets
- ability to reach target market
49
value of stp
- identify gaps in the market
- identify future trends
- differentiate from competition
50
marketing mix
how the business goes about achieving a specific brand identity using the elements of the marketing mix
51
an example of why an integrated marketing mix is important
if your promotion claims a product to be of high quality, the price should reflect that
52
price skimming is when you have a ____ which maximises _____ _____ _____.
Eventually prices should _____, in order to atttract a ______ _____.
high initial price
short term profits
drop
wider market
53
price skimming is often used in the
technology market
54
benefits of price skimming include
- attracting ‘early adopters’
- business gaining a premium price from customers who are prepared to buy it
- good for inelastic products
55
drawback of price skimming is that
the high initial price may put of many potential customers
56
price penetration is setting a _____ initial price in order to attract _____ and gain _____ _____. Eventually you will _____ prices.
low
attention
market share
increase
57
price penetration is usually used in
mass markets like the magazine market
elastic products
58
benefits of price penetration include
- gain interest and market share
59
drawback of price penetration is that
consumers may not be willing to pay the higher price later
60
ped is
the sensitivity of demand is compared to price
61
PED/YED below 1 is
inelastic
62
PED/YED above 1 is
elastic
63
PED is calculated
% change demand/% change price
64
price elastic means that change in
change in quantity demanded is greater than change in price
65
price inelastic means that change in
change is quantity demanded is less than change in price
66
why will the PED coefficient always be negative
inverse relationship
67
normal good has a ----- YED between ….
positive
0 and 1
68
inferior good has a ------ YED
negative
69
luxury goods have a ----- coefficient
+1
