3 marketing Flashcards
marketing objectives
-sales volume and value
-market size
-market sales and growth
-market share
-brand loyalty
primary research
positives:
-customisable: to find specific results and area
-Up to date
-Confidential data
-Relevance of data (questions set by themselves, more suitable)
negatives:
-More expensive (depends)
-Time consuming(both analysing and collecting)
-Invalid sampling (different interpretation)
secondary research
positives:
-Reliable (research experts)
-Ease of access
-Generally cheaper
negatives:
-Time consuming(not able to find the needed resources)
-Data might be out of date
-Irrelevant
-unreliable(false data)
correlation
positive and negative correlation
dependent and independent variable
confidence interval
possibility of accuracy
extrapolation
Trends established from historical data to forecast the future , usually for sales forecast
sampling
-quota
-stratified
-random
use of segmentation, targeting and positioning
understanding the behaviour of customers
segmentation
segmentation : process of grouping potential customers together by common characteristics
demographic, geographic, income, behavioural
targeting
deciding which segment of market to focus on
niche market
smaller segment of a larger market (specific needs and wants)
mass market
sells into largest part of market (similar products offered by competitors)
positioning
where the product is placed in the market → marketing mapping (in quality and price)
market mapping
two dimensions can be chosen: e.g. price, quality, health…
Advantages of positioning maps:
-spot gaps in the market
-analysing competitors
-encourages use of market research
Disadvantages of positioning maps:
-a “gap” doesn’t mean there is demand for the product
-Not a guarantee of success
-How reliable is the market research that maps the position of existing products based on the chosen dimensions?
marketing mix
Each element of the marketing mix is related to each other. They work together to achieve the desired effect.
It is dynamic : changes overtime
influences to the changes of marketing mix
-The market (target audience)
-The nature of market (what the market wants) -> -affects the price and quality
-Market research findings
-Positioning to competitors
-Internal constraints ( finance and talents)
-External influences
-Technological changes
product portfolio
It is the range of product a business provides
Boston Matrix
It is a model that helps to analyse the product portfolio of the business.
-market share and growth
Star
Cash cow
Question mark
Dogs
product life cycle
Introduction
Growth
Maturity
Decline
-> extension strategy
extension strategy
a method for a business to increase sales when in a saturated market (maturity stage in the product life cycle)
types of extension strategy (SPAM):
- segments
- price
- advertising
- markets
difference of Boston Matrix and Product life cycle
Product life cycle: individual products; concerned for sales over time
Boston matrix: firm’s portfolio; focus on cash flow of product
pricing methods
price penetration: using a low price to break into the market
price skimming: starts from very high price, then slowly lower it by time
predatory pricing: using a ridiculously low price to drive competitors out of the competition
place (distribution channel)
-traditional
-modern
-direct
promotional mix
-branding
-social media
-viral marketing
-advertising
-merchandising
informative vs persuasive promotion
- informative: deliver a benefit/fact → raise awareness
- persuasive: encourage the want of buying the product
