Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > 3.3 Decision making to improve marketing performance > Flashcards

3.3 Decision making to improve marketing performance Flashcards

1
Q

Sales growth

A

Sales this year - Sales last year / sales last year X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Market research

A

The process of gathering information about the market
To spot opportunities
Decide what to do next
To see if plans are working

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Quantitative data

A

Concerned with data/stats

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Qualitative data

A

Opinions, attitudes, beliefs + intentions

To understand customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Primary research

A

Need data conducted by the business

Questionnaires, interviews, surveys + focus groups

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Secondary research

A

Analysing older data you’ve found

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sampling

A

The process of creating a small unbiased population to be used in a test/experiment
Companies can analyse data to determine future strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Types of sampling

A

Simplified random
Stratified
Quota

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Correlation

A

A method of sales forecasting
Shows the strength of a relationship
Always a predictable relationship between sales and factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Making sense of the marketing data

A 
Line of best fit
Positive correlation = Increase
Negative correlation = Decrease
No correlation = No pattern
Strong = Close to line of best fit
Weak = Points aren't close to line of best fit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Time series analysis

A

A method of interpreting market data
Reveals underlying patterns by recording and plotting data over time
To make decisions on future ideas
Links between sales and marketing activity
Efficient and clear to look at
To identify if marketing campaigns /activities are working or not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Extrapolation

A

Using past data to extend an identified trend into the future
Useful when trends can be clearly identified and the market is stable
However the market can change in an instant (a market crash) making it unusable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Trends

A

Longterm movement of a variable

Can be upward, downward or constant, usually with fluctuations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Marketing

A

The process of identifying, anticipating and satisfying the customer needs profitably

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Marketing objectives

A 
3 Basics:
To determine, develop and deliver
Sales volume and growth
Market share increase
Market size + growth
Brand loyalty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Internal factors

A

Corporate objectives - To align its objectives with the companies goals
Finance - Allocates the budget
HR - Amount of staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

External factors

A

Market - State of the economy
Technology - New tech can cause fast fluctuations
Competitors - Actions of competitors will impact objectives especially in highly competitive markets
Ethics and environmental factors
Government regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Predatory pricing

A

When a dominant firm deliberately drops prices of a product/service to loss making levels in the short term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Trade description act

A

Prevents manufacturers, retailers or service providers from misleading consumers as to what they are spending their money on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Market analysis

A

Businesses get ahead of competitors by analysing markets that can affect them
To understand the market
How can a market be classified
Carrying out analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Market growth

A

New market size - Old market size / Old market size X100

22
Q

Market share

A

Sales / Total market size X100

23
Q

Market mapping

A

Diagram technique that displays customer perception
Compares different variables
Analyses customer buying habits and preferences
Identifies a gap in the market

24
Q

Marketing data

A 
Involves research specifically related to your marketing
Customer preferences
When and where your product is bought
How they react to promotions/adverts
New area's/channels they might like
25
Q

Expressing correlation

A

Presented as a scatter diagram
Independent variable on the X axis
Dependant on the Y axis

26
Q

The value of technology

A

Gather and analyse large volumes of data quickly and accurately
Track and interpret consumer spending habits
Collect consumer opinions from around the world
Encourage consumer feedback through social media and review sites
Enable two way communication

27
Q

Price elasticity of demand

A

Also known as PED
The responsiveness of QD to a change in P
%change in QD / %change in P

28
Q

Price elastic

A

Seen as a want not a need
Has many alternatives and substitutes
Price falls sales increase, vice versa

29
Q

Price inelastic

A

Seen as a need not a want, is essential
Has few/no alternatives or substitutes
Prices rise and so does revenue
Prices fall and so does revenue but theirs a slight sales increase

30
Q

Confidence interval

A

A range of values that you are fairly sure the value of population lie within

31
Q

Confidence levels

A

Reflect the degree of certainty with which a business believes a stated outcome will happen
Affected by factors such as the sampling technique, research method and expertise of someone carrying out and analysing the research
Commonly 95% is accepted

32
Q

How businesses benefit from confidence

A

Businesses benefit from the use of stats in estimating or predicting future events so the level helps a business evaluate the reliability of a particular estimate

33
Q

How is tech used to gather information about customers

A

Search engines
Shops wifi - sees what your using
Social media - adverts from cookies
Loyalty cards - How much and how often you spend

34
Q

Income elasticity of demand

A

YED
The responsiveness of QD to a change in Y
%change QD / %change Y

35
Q

Normal goods in YED

A

Y increases D increases, vice versa
Should always be positive
YED>1 = income elastic at a faster rate (luxury)
YED<1 = income elastic at a slower rate (necessity)

36
Q

Inferior goods in YED

A

Y increases D decreases, vice versa
Should always be negative
Example of an inferior good is own brand

37
Q

The 7 p’s

A

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

38
Q

Boston Matrix

A

A scale that puts a product into one of the 4 categories; Cash cow, Dog, Rising star and question mark.
the 4 sections are categorised by market share and growth.

39
Q

Cash Cow

A

High market share, Low market growth
Established products
Profits used to finance other products

40
Q

Rising Star

A

High market share, high market growth

High growth = new competition = more advertising

41
Q

Question Mark

A

Low market share, High market growth
Also known as a ‘Problem Child’
Can be successful if it gets the right amount of attention (marketing)/ if there’s enough demand

42
Q

Dog

A

Low market share, Low market growth
Little scope for future profits, can still be profitable if there is a market
Unlikely to be kept on

43
Q

3 types of consumer products

A

Convenience, Shopping and Speciality

44
Q

Product Portfolio

A

A businesses product range

45
Q

Product Life Cycle

A

A graph to show what time stage a product is in
These sections are; Development, Introduction, Growth, Maturity and Decline
A 6th stage is product extension

46
Q

Product Extension

A

Used to extend a products maturity

This is done by; Advertising, price reduction, adding value, exploring new markets and new packaging

47
Q

Price Skimming

A

High initial price to recoup costs
Targets a market known as early adopters
Firms try to create a must have mentality
Price lowered once the market has been skimmed off

48
Q

Penetration Pricing

A

Low initial price for a foothold in the market and to gain market share
Works for products in a mass market
Aims to gain an early customer base
Firm raises price when there’s a built up customer base

49
Q

Pricing Strategies

A

Loss Leaders, Dynamic Pricing, Psychological Pricing, Predatory Pricing, Price Discrimination and Competitive Pricing

50
Q

Promotion

A

Designed to inform and persuade customers to buy goods and services

51
Q

Promotion Strategies

A

Advertising, Personal Selling, Sales Promotion, Merchandising, Public Relations, Sponsorship and Direct Marketing

Business (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions