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Business A-Level > 3.3 Decision Making To Improve Marketing Performance > Flashcards

3.3 Decision Making To Improve Marketing Performance Flashcards

1
Q

What are the five types of segmentation?

A

Geographic
Demographic
Income Behavioural
Socioeconomic

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2
Q

What is segmentation?

A

The identification of similar groups with similar needs and wants

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3
Q

What is demographic segmentation?

A

Characteristics of the people in the target population - age, gender etc

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4
Q

What is geographic segmentation?

A

Areas where the customers are based, differing tastes and preferences

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5
Q

What is income segmentation?

A

Split into high and low income, high income may be more interested in saving and investing whereas low income borrowing

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6
Q

What is socioeconomic segmentation?

A

Segmentation on income and professions and can be split into the following categories:
Higher managerial, administrative or professionals
Intermediate managerial administrative or professional
Supervisors, clerical and junior managerial, administrative or professional
Skilled manual workers
Semi and unskilled manual workers
Casual labour

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7
Q

What is behavioural segmentation?

A

Focuses on what consumers actually do- When they buy, how much they buy, brand loyalty, the benefit they want from the product

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8
Q

Why is segmentation useful?

A

Understand what different groups want rather than treat all customers the same
More focussed and efficient marketing - more segments focussed on the more complexed this would get
Adapting products to meet the needs of different customers may mean that customers are more satisfied but could be making the potential market smaller

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9
Q

What determines which segments businesses target?

A

There is sufficient demand and potential profit to justify the investment
It has the ability to be competitive and gain sales

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10
Q

What is a niche market?

A

Niche market is a smaller specific segment of the market with clearly identifiable needs and wants such as tall people

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11
Q

What is a mass market?

A

A mass market is the whole of the market, where a business doesn’t try and match the needs of a specific segment precisely but aims to provide products that will meet some of the needs of most of the people

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12
Q

What are the positives of a niche market?

A

Can compete in a bigger market, without directly challenging the bigger businesses and not be seen as a threat by them
Not perceived as such a threat by larger competitors
Gap in the market with limited competition

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13
Q

What are the negatives of a niche market?

A

Small market which may be vulnerable to losing a few customers
Profits may be relatively low
If the business grows it will attract the attention of larger businesses

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14
Q

What are the positives of mass marketing?

A

More customers and more potential revenue and returns

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15
Q

What are the negatives of mass marketing

A

Large amount of investment needed
Competition
Can lose demand to niche markets

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16
Q

What is needed to be a successful mass market?

A

Larger volumes (therefore investment and capacity) to fulfill orders
Promotional techniques to reach more customers
Positioning in the market

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17
Q

The positioning of a business can be shown using what?

A

A market map

E.g. Expensive + Cheap
Classic + Modern

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18
Q

The positioning of a product relative to competitors depends on which factors?

A

Product
Image
Price
Sevices

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19
Q

What influences the positioning of a product?

A

The strengths of the business - an efficient business may aim to be a low price provider
Innovative business - providing greater benefits than rivals
Competitors - what are established firms already offering
Market conditions - PEST- C factors

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20
Q

What are confidence intervals?

A

A confidence interval gives the percentage probability that an estimated range of possible values in fact includes the actual value being estimated

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21
Q

Why are confidence intervals useful?

A

Businesses benefit from the use of statistics in estimating or predicting future events
A confidence interval helps a business evaluate the reliability of a particular estimate
Because no estimate can be 100% reliable, businesses need to know how confident they should be in their estimates and whether or not to act on them

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22
Q

What are marketing objectives?

A

Marketing objectives set out what a business wants to achieve from its marketing activities. They need to be consistent with overall aims and objectives of the business. They also provide an important focus for the marketing team

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23
Q

What are SMART objectives?

A 
Specific
Measurable 
Achievable 
Realistic 
Timed
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24
Q

What are the benefits of market objectives?

A

Ensure functional activities consistent with corporate objectives
Provide a focus for marketing decision-making and effort
Provide incentives for marketing team and a measure of success / failure
Establish priorities for marketing resources and effort

25
Q

What are some internal influences on market objectives?

A 
Corporate objectives 
Finance 
HR 
Operational issues 
Business culture
26
Q

What are some external influences on market objectives?

A 
Economic environment 
Competitor actions 
Market dynamics 
Technological change 
Social and political change
27
Q

What is sampling?

A

Getting opinions from a number of people

28
Q

How do you work out market size?

A

Units sold in market / Average selling price in market
OR
Firm revenue / Market share

29
Q

How do you work out market growth?

A

(Year 1 - Year 2) / Year 1

30
Q

How do you work out market share?

A

Individual sale / Total market sales

31
Q

What is a positive correlation?

A

Upwards sloping

32
Q

What is a negative correlation?

A

Downwards sloping

33
Q

What is a strong correlation?

A

All points are close together

34
Q

What is a weak correlation?

A

Points are spread out

35
Q

What is extrapolation?

A

Use of past data to establish a trend which is then projected into the future

36
Q

How do you work out PED?

A

Percentage change in quantity / Percentage change in price

37
Q

What is it classed as if PED is between 1-0?

A

Inelastic

38
Q

What is it classed as if PED is greater than 1?

A

Elastic

39
Q

What is it classed as if PED is less than 1?

A

Inelastic

40
Q

How do you work out YED?

A

Percentage change in quantity / Percentage change in income

41
Q

What are luxury and inferior goods?

A

Income elastic

42
Q

What are normal goods?

A

Income inelastic

43
Q

What are normal goods between?

A

1-0

44
Q

What are luxury goods?

A

Greater than 1

45
Q

What are inferior goods?

A

Less than 0 (minus figure)

46
Q

What are the factors that determine the use of technology in marketing?

A

Price
Ease of use- For the person using it
Compatibility- With other business systems
Scalability- Will the technology grow with the business
Compliance

47
Q

What are the 7 P’s?

A 
Price 
Product 
People 
Place
Promotion 
Process 
Physical Environment
48
Q

What are industrial goods?

A

Industrial goods are bought and used for industrial and business use

49
Q

What are consumer goods?

A

Ready for consumption

50
Q

Why is product development important?

A

New value for customers
Improved society
Continued existence of the company

51
Q

Why is branding important?

A

Gives customers and impression, and what they would expect from the business

52
Q

What will branding do?

A

Clearly deliver a message
Confirm the brand’s credibility in the marketplace
Emotionally connect target prospects with a product or service
Motivate the buyer to make a purchase
Create user loyalty

53
Q

What are promotional methods?

A 
Advertising
Public relations & sponsorship
Personal selling
Direct marketing
Sales promotion
54
Q

What do businesses promote based upon?

A 
Stage in the life cycle
Nature of the product
Competition
Marketing budget
Marketing strategy
Target market
55
Q

What are the three distribution routes?

A

1 Producer - Wholesaler - Retailer - Consumer
2 Retailer - Consumer
3 Producer - Consumer

56
Q

What is multinational distribution?

A

Multi-channel distribution involves a business using more than one type of distribution channel

57
Q

What are the benefits on multinational distribution?

A

Allows more target market segments to be reached
Customers increasingly expect products to be available via more than one channel
Enables higher revenues – e.g. if retail outlets have no stock, but customer can buy online

58
Q

What are the negatives of multinational distribution?

A

Potential for channel “conflict” –e.g. competing with retailers by also selling direct
Can be complex to manage
Danger that pricing strategy becomes confused (in the eyes of customers)

Business A-Level (18 decks)

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