3.3 Flashcards

1
Q

internal factors influencing market objectives

A

corporate objectives
finance
human resources

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2
Q

finance

A

finance department allocates the marketing departments budget - affects what the department is able to do

if the budget is cut then marketing objectives may need to be scaled down

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3
Q

Human Resources

A

HR planning identifies how many staff the company needs.

if decided to reduce/increase staffing levels marketing will have to adjust its objectives to match what is achievable

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4
Q

corporate objectives

A

marketing department has to make sure all objectives are aligned with company’s overall goals.

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5
Q

external factors influencing market objectives

A

market
technology
competitors
ethics and environmental factors

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6
Q

market

A

state of the economy has a big impact on marketing objectives.

economic boom is a good time to try to increase sales volumes since income levels are higher.

recession - set an objective of maintaining market share.

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7
Q

technology

A

markets where technology changes rapidly, marketing objectives focus on sales and price - new technology causes prices to rise or fall very fast.

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8
Q

competitors

A

actions of competitors affect marketing objectives - particularly in a highly competitive market.

if a competitor is focused on low prices, then they may alter objectives so customers seem them as price competitive.

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9
Q

ethics and environmental factors

A

behaving in a harmful way can damage a company’s brand image

consumers ethical awareness is increasing

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10
Q

the law directly affects the marketing objective

A

PREDATORY PRICING (cutting prices to force a competitor out of business) is illegal in EU & US

TRADE DESCRIPTIONS ACT regulates promotion (bus cant lie about product)

advertising of some products is restricted (prescription medicine, alcohol, tabacco)

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11
Q

different ways a market can be classified

A

geography
nature
seasonality
development level
product destination

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12
Q

market growth (%)

A

new market size - old market size
————————————————– x 100
old market size

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13
Q

market share (%)

A

. sales
—————————- x 100
total market share

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14
Q

sales growth (%)

A

sales this year - sales last year
——————————————- x 100
sales last year

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15
Q

market analysis gives firms information about market size and growth

A

in a growing market several firms can grow easily
in a shrinking market, competition can be heavy - few customers to go around.

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16
Q

market analysis tells firms about their market share

A

MS is the % of sales in a market that is made by one firm, or by one brand.

MS going down isn’t good - means comp are gaining an advantage over u

17
Q

sales growth can be used to analyse market trends

A

if sales growth is + company is gaining sales
sales growth is - then company is losing sales

marketing department combines its analysis of these figures in order to see if they are meeting objectives

18
Q

market mapping compares 2 features of products or brands

A

shows extremes for 2 measures that are important to customers (low v high quality)

laid out as a matrix - products are positioned according to where they lie between each pair of extremes

19
Q

information from analysing market maps

A

spot a gap in the market

who its closest competitors are

if product sales are declining

how much customers expect to pay

20
Q

STP

A

segment, target, position

aims to focus marketing efforts where they’ll be most effective

21
Q

segment

A

divide the market into groups with similar characteristics or needs (age)

22
Q

target

A

decide which market segment to focus on and adapt the product and the marketing mix to appeal to this group.

23
Q

positon

A

position the product in the target customers minds so they see it as better than the competition

24
Q

different ways to segment a market

A

demographic
geographic
income
behaviour (amount of use)

25
Q

segmentation advantages

A

useful for identifying new customers, markets and products

identify the best way to market a product.

26
Q

segmentation disadvantages

A

can cause companies to ignore the needs of potential customers

difficult to break the market into obvious segments - more difficult to find ways of marketing to specific demographics

27
Q

(target) concentrated marketing

A

targeting 1 or 2 segments.