3.3 Flashcards
5 marketing objectives
sales volume and value
sales growth
market share
market growth
brand loyalty+awareness
Internal vs external influences on marketing objectives
Internal
-Corp. obj
-Finance
-HR
External
-Market
-Tech
-Competitors
-Ethics
Primary vs Secondary research
primary- done by the company
-interviews, sampling, surveys, focus groups
Secondary- pre-existing data
-[internal-loyalty cards and sales reports], gov publications
Quantitative vs Qualitative
Quan- numerical data
Qual- opinions
Market Maps
compares 2 factors in a market eg price on the y axis and quality on the x axis
allows gaps in the market to be found (may be a reason for these gaps though - little demand)
Trends
Upward trend /
Downward trend \
Constant trend -
Seasonal fluctuations /\/\/\/\/
Random fluctuation -^-
Extrapolation
Extending a trend into the future (straight line)- used for predicting sales ect
Correlation
positive goes up negative goes down
is all close to a straight line then strong if not then weak or no correlation at all
help show how closely two variables are related (sometimes coincidental and other contextual factors make the impact though)
confidence level
confidence interval
sample = 84%
confidence level of 95%
=interval of 82 to 86
tech used in marketing and research
loyalty cards
social networking
search engine advertising
Analyse market data, run scenarios, point of sale data
Price elasticity of demand
PED= % change in demand/ % change in price
>1 price elastic
<1 price inelastic
Income elasticity of demand
YED= %change in demand/ % change in income
income increase by 10% and makes a 5% increase in demand then YED i +0.5
luxury goods are over 1
inferior goods are -1
STP
Segment
Target
Position
Segment
demographic, geographic, income, behaviour
to work out the best way to market a product but can ignore other potential customer’s needs
Target
niche or mass market
Niche- concentrated and differentiated
Position
Create brand or products in the mind of consumers in relation to others based on price and quality
Marketing mix
combining different ways of marketing- emails, tv, radio ect
changing dynamic
The 7 P’s
Product, Price, Place, Promotion, People, Process, Physical Environment
Product life cycle
Development, Introduction, Growth, Maturity, Decline
Boston Matrix
Market growth vs market share
Question mark- could become star but investment could be too expensive
Stars- profitable and growing, likely become cash cow
Dogs- not profitable, generally a lost and will be discontinued, reinvested into or sold
Cash Cows- not growing but low cost high sales
Pricing strategy
Skimming
Penetration
Predatory- deliberately lowering prices, forces competitors out
Competitive- match or lower prices
Loss leaders- Sold at or below cost
Price discrimination- different prices for different groups of customers
Dynamic- change based on demand
Price skimming
high price for new & innovative product. Price drops considerably when product been on market for a while.
Price penetration
low price charged to attract customers & gain market share. Benefits company that can benefit from economies of scale. Can be used as extension strategy
Distribution
Direct selling Manufacture to consumer
Indirect selling Manufacture to retailer to consumer
Direct through agent
Indirect Manufacture to Wholesaler to retailer to consumer
multi channel distribution
Internet and in store
Factors that affect marketing mix
Research findngs
Competitors
Target market
Brand development
Location
Type of product
Selling goods or a service
Position on product lifecycle
Resources
Marketing objectives
