3.3

Question 1

5 marketing objectives

Answer 1

sales volume and value
sales growth
market share
market growth
brand loyalty+awareness

Question 2

Internal vs external influences on marketing objectives

Answer 2

Internal
-Corp. obj
-Finance
-HR
External
-Market
-Tech
-Competitors
-Ethics

Question 3

Primary vs Secondary research

Answer 3

primary- done by the company
-interviews, sampling, surveys, focus groups
Secondary- pre-existing data
-[internal-loyalty cards and sales reports], gov publications

Question 4

Quantitative vs Qualitative

Answer 4

Quan- numerical data
Qual- opinions

Question 5

Market Maps

Answer 5

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)

Question 6

Trends

Answer 6

Upward trend /
Downward trend \
Constant trend -
Seasonal fluctuations /\/\/\/\/
Random fluctuation -^-

Question 7

Extrapolation

Answer 7

Extending a trend into the future (straight line)- used for predicting sales ect

Question 8

Correlation

Answer 8

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)

Question 9

confidence level
confidence interval

Answer 9

sample = 84%
confidence level of 95%
=interval of 82 to 86

Question 10

tech used in marketing and research

Answer 10

loyalty cards
social networking
search engine advertising
Analyse market data, run scenarios, point of sale data

Question 11

Price elasticity of demand

Answer 11

PED= % change in demand/ % change in price
>1 price elastic
<1 price inelastic

Question 12

Income elasticity of demand

Answer 12

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

Question 13

STP

Answer 13

Segment
Target
Position

Question 14

Segment

Answer 14

demographic, geographic, income, behaviour
to work out the best way to market a product but can ignore other potential customer’s needs

Question 15

Target

Answer 15

niche or mass market
Niche- concentrated and differentiated

Question 16

Position

Answer 16

Create brand or products in the mind of consumers in relation to others based on price and quality

Question 17

Marketing mix

Answer 17

combining different ways of marketing- emails, tv, radio ect
changing dynamic

Question 18

The 7 P’s

Answer 18

Product, Price, Place, Promotion, People, Process, Physical Environment

Question 19

Product life cycle

Answer 19

Development, Introduction, Growth, Maturity, Decline

Question 20

Boston Matrix

Answer 20

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

Question 21

Pricing strategy

Answer 21

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

Question 22

Price skimming

Answer 22

high price for new & innovative product. Price drops considerably when product been on market for a while.

Question 23

Price penetration

Answer 23

low price charged to attract customers & gain market share. Benefits company that can benefit from economies of scale. Can be used as extension strategy

Question 24

Distribution

Answer 24

Direct selling Manufacture to consumer
Indirect selling Manufacture to retailer to consumer
Direct through agent
Indirect Manufacture to Wholesaler to retailer to consumer

Question 25

multi channel distribution

Answer 25

Internet and in store

Question 26

Factors that affect marketing mix

Answer 26

Research findngs
Competitors
Target market
Brand development
Location
Type of product
Selling goods or a service
Position on product lifecycle
Resources
Marketing objectives