3.1/3.2/3.3/3.4 Objectives Flashcards
What is a market?
Where buyers and sellers are willing to make an exchange
What is relationship marketing?
It wants to satisfy customers so that they return again.
It is about building relationships with customers so that they are loyal
What is marketing?
the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value
What is the marketing process?
- Set marketing objectives
- Analyse marketing data
- Marketing decisions
- Implement decisions
- Review
What are the main marketing objectives?
Sales Volume Sales Value Sales Growth Market Share Brand Loyalty
What are internal influences on marketing objectives?
Finance Human Resources Operations Existing Position Overall strategy of business objectives
What are external influences on marketing objectives?
PEST C Political Economic Social Technological Competitive
What is market research?
Gathering and analysing data relevant to the marketing process
How can market research be used by managers?
- Know existing position of business
- Decide on possible objectives
- Identify possible actions to be taken
- How effective marketing decisions have been
What does the research process look like?
Define problem/objective
Develop research plan
Implement plan
Interpret data
What is the PED formula?
% change in qd / % change in price
What affects PED?
Time How expensive it currently is Who is paying - company Branding of a product USP Patent or trademark Expensive or difficult to switch to another supplier Amount of available substitutes
What is sales forecasting?
Sales forecasting is the process of estimating future sales.
- HR - what are the staffing requirements
- Finance - estimate future inflows and profits
- Operations - expected level of sales and produce to match
When can market research go wrong?
There changes in markets
The way information is gathered
Lack of information from not spending enough
What is segmentation?
The process of identifying different groups of similar needs
What are market segments?
The different groups of needs and wants
What is demographic segmentation?
Characteristics of the people in the target population e.g age
What is geographic segmentation?
Areas where the customers are based
What is income segmentation?
Split into high and low income
What is socioeconomic segmentation?
On income or professions
A: Higher managerial, administrative or professionals
B: Intermediate managerial administrative or professional
C1: Supervisors, clerical and junior managerial, administrative or professional
C2: Skilled manual workers
D: Semi and unskilled manual workers
E: Casual labour
What is behavioural segmentation?
The behaviours of customers
- What they buy
- When they buy
- How they buy
Why is segmentation useful?
- Understand not all customers are the same
- More focused and efficient marketing
- More satisfied customers
What is a niche market?
Small specific market
What is a mass market?
The whole of the market, aims to meet the wants and needs of most people
Benefits of a niche market?
- Can compete with larger firms, without being a direct threat
- Limited competition
Negatives of niche markets?
- Vulnerable to losing customers
- Low profits
- As business grows it attracts larger businesses attentions
What is good and bad about mass markets?
+ More customers, more potential returns
- Large investment needed
- Competition
- Can lose demand to niche markets
What is needed to be successful in mass markets?
- Larger volumes (to fulfill orders)
- Promotional techniques to attract customers
- Positioning in the market
How can the position of a business be shown?
Market Mapping
What factors affect the positioning of a product relevant to its competitors?
Services
Image
Price
Product
What affects the positioning of a product?
- The strengths of the business
- Innovative business
- Competitors
- Market conditions - PEST- C factors
What is the marketing mix?
Price Product Promotion Place Process Physical Environment People
What is meant by Price? (MM)
What the price is
Payment terms
What is meant by product? (MM)
What the product looks like
What is meant by place? (MM)
The distribution of the product
How it gets to the customer
What is meant by people? (MM)
e.g the people who serve you in the shop
What is meant by process? (MM)
How you buy the product
What is meant by physical environment? (MM)
How the business looks
What are some internal influences of the marketing mix?
Changes in financial position
Changes to staff
Changes to operations
Changes to objectives
What are external influences?
PEST-C
What are the different types of consumer products?
Convenience items - customers will not travel very far to get these
Shopping goods - customers compare features before buying
Speciality products - thought about buying them for some time and will travel far to get it
What is the product life cycle?
Development Introduction Growth Maturity Decline
What is the boston matrix?
Stars - top left- are products that are in fast growth markets that are doing well in terms of market share.
Question mark - top right - are in fast growth (appealing) markets, however they are not established and only have a relatively small market share. They are problem children because they may turn out to do well but equally may not.
Cash cows - bottom left- well established and so have a relatively high market share, however the market they are in is growings slowly, perhaps because it is mature and therefore not growing fast any more. These products do not need promoting as heavy as some others because they are well known
Dogs - bottom right - a relatively low share of a slow growth market. Marketing managers must either invest to revitalise these products or let them decline and eventually remove them.
Influences on pricing decisions:
Costs Price elasticity Competitiveness of the environment Stage in products life cycle Positioning
What are the different pricing strategies?
Skimming Penetration Competitive Cost plus Dynamic Premium Psychological
