3.3 Marketing Flashcards
What are the marketing objectives
-Sales volume and value
-market share
-market growth and sales growth
-marker size
-brand loyalty
What is secondary market research
Uses data that already exists and has been collected from someone else
(Online websites/books)
Pro and con of secondary research
+quick easy and cheap
- could be out of date
What is random sampling
When each individual has an equal chance of being selected for the sample
Pro and con of random sampling
+simple and easy
-samples could be from same place
What is stratified sampling
Divided into segments then randomly selected from the segments
Pro and con of stratified sampling
+precise
-time consuming
What is quota sampling
Divide into segments then segments are deliberately chosen
Pro and con of quota sampling
+can control sample for certain characteristics
-prone to bias from researches
What is confidence level
Indication of how certain/ probability the research is correct
What is confidence intervals
Possible range of outcomes for a given confidence level
What is extrapolation
Method of forecasting sales by looking at previous trends and continuing them into the future
What are positive correlation
Increase in sales
Promotion of product
What are negative correlations
As customer satisfaction goes up customer complaints decrease
What does PED show
If the number is 1 or greater the product it Elastic meaning change in price significantly affects demand
What does IED show
Of the number is less than 1 the product is Inelastic meaning price does not significantly affect demand
What is segmentation
Process of dividing a broad target market into smaller groups that have specific needs/wants
What is targeting
The process of selecting specific market segments to focus on when developing marketing strategies
What are the methods of segmentation
-demographic
-geographic
-income
-behavioural
What is demographic
Age,gender,income,education,family size (cars)
What is geographic
Location,climate (clothing brands)
What is income
Consumer income (luxury brands target high earners)
What is Behavioural
Purchasing habits,brand loyalty,product usage (online streaming based on viewing)
What are some extension strategies
-adapting products
-increase promotion
-change/reduce prices
-appeal to other segments
These are used in the decline phase
