3. Marketing Flashcards
Marketing objectives
-Market size
-Market share
-Market and Sales growth
-Sales volume and Sales value
-Brand loyalty
Market size
Total sales value or sales volume in a market
Market share
Proportion of total market sales
Market and Sales growth
Percentage increase in size of market by value or volume over period of time
Sales volume and Sales value
Amount of sales expressed as number of units
Brand loyalty
Customers keep returning to buy certain brand
Market research
Primary - surveys, interviews, questionnaires
Secondary - internet, newspapers, cheap
Qualitative - non-statistical data that informs firm about reasons for people’s behaviour
Quantitative - statistical data that informs firm about people’s behaviour
Sampling techniques
Random - sample selected from population chosen by chance, difficult to achieve
Quota - population segmented into subgroups before judgement is made
Stratified - population segmented into subgroups before respondents are randomly selected from within that subgroup
Marketing data
-Devises strategy
-Understanding the market
-Informs decision making
Confidence intervals
Reflect degree of certainty a business believes something will happen
Extrapolation
Identifies trends, past is not good indication of future
PED
-Measures how responsive demand is to price
-Price elastic when change in price causes more proportion in demand
-Price inelastic when change in price causes less proportion in demand
YED
-Measures how responsive demand is to income
-Income elastic when change in demand causes less proportion than income
-Income inelastic when change in demand causes more proportion than income
Market segmentation
Market split into subgroups of consumers with similar characteristics, identifies most profitable customers
-Demographic e.g. age, gender, race
-Geographic e.g. regions, cities
-Income
-Behavioural e.g. brand loyalty, method of purchase
Targeting and Positioning
Targeting - process of deciding which segment of market to focus on
Positioning - where product is placed in market relative to competitors
Marketing mix
Price
Place
Product
People
Process
Promotion
Physical environment
Boston matrix
Cash cow - high market share + low market growth
Problem child - low market share + high market growth
Rising star - high market share + high market growth
Dog - low market share + low market growth
Product life cycle
Research and Development
Introduction
Growth
Maturity
Decline
Extension
Pricing techniques
Price skimming - set high initial price
Dynamic pricing - prices change quickly in response to demand
Penetration pricing - set low initial price
Promotional mix
Combination of promotional activities a firm uses to create generate sales
-Branding - creation of identity for firm
-Public relations - communication with media
-Merchandising - way a firm promotes its products and the way it’s presented
-Advertising - firms pay for promotion of their product through main media
-Sponsorships - funds provided for sporting or social event in return for display of sponsor’s company
Distribution channels
Routes to market that product takes
-Manufacturer
-Wholesaler
-Retailer
-Consumer
Digital marketing
Any form of digital technology to improve communications with customers
E-commerce
When buyers and sellers meet to trade in virtual marketplace
M-commerce
Same as E-commerce but specific to mobile
Value of digital marketing and E-commerce
Access to global market
Greater communication
Greater word of mouth
