3.1 decision making to improve marketing performance

Question 1

what is a market?

Answer 1

A mutually beneficial transaction involving buyers and sellers.

Marketing connects the business to the customer

Question 2

what are the 4 functions of business?

Answer 2

1. Operations - Production and distribution
2. Human resources- managing employees
3. Finance- managing money
4. Marketing- convincing customers to buy the product

Question 3

what is marketing?

Answer 3

• > Aims to satisfy or ideally delight customers so they want to come back and more.
• > Marketing is about building a relationship with customers so they are loyal to your organisation
• > They will return for more and be more willing to try other products offered rather than a one off transaction.
• > This type of marketing is known as ‘relationship marketing’ which attempts to build a long term partnership with customers, it aims to retain customers and build the connection with the business.

Question 4

what is the marketing process (see diagram)

Answer 4

• set marketing objectives
• analyse marketing data
• make marketing decisions
• implement decisions
• review

may have to go ‘back+forth’ when things work/ don’t work

Question 5

How can a business ensure their marketing is ethical?

Answer 5

• > Ensure the product is as advertised
• > Avoid spamming customers
• > Avoid using people as sex symbols
• > Avoid using religion or political
• > Ensure all information is factual
• > Avoid advertising for harmful products
• > Avoid aiming products at vulnerable people / children
• > Make all fees / prices clear
• > Avoid false advertising
• > Avoid misleading sales

Question 6

marketing objectives:

Answer 6

• sales volume
• sales value
• sales growth
• market share
• brand loyalty

Question 7

what is sales volume?

Answer 7

The number of units sold.

For example, 5,000 kg or 5,000,000 cans.

Question 8

what is sales value?

Answer 8

The monetary worth of the sales made.

For example, £30,000.

Question 9

what is sales growth target?

Answer 9

The increase in the volume or value of sales

example: increase by 2.5% over the next year - this will depend on rate of overall sales in a market

Question 10

what is the market share formula?

Answer 10

Sales of product / total market sales x 100

Question 11

what is brand loyalty?

Answer 11

Measuring how many customers use the business again

Question 12

Why would a business want a high market share?

Answer 12

• > Relatively high sales and therefore possibly profit
• > Relatively high outputs - may give the business power over suppliers
• > Relatively high prominence in the market - raise the profile, strengthen the brand and make launching new products easier

Question 13

internal influences on marketing objectives:

Answer 13

• > Overall strategy of the business - focused on growth might target a level of sales
• > The ambitions of the manager - may set high and demanding objectives to push the business forward
• > The existing position of the business - if brand reputation is strong then customer satisfaction target of 97% may be realistic
• > Finance
• > The amount the business can produce - productive capacity
• > The employees of the business - skill set

Question 14

external influences on marketing objectives:

Answer 14

• > Competitive environment - degree of competition
• > Technological change - how business communicate and track customers behaviour
• > Social change - customer views of what is acceptable and expected of a product
• > Political and legal environment - what is allowed by law, the increased market via the EU
• > Economic change