3.3 Marketing Flashcards
What are the five key tasks of marketing?
Identify target markets, market research, product development, devise a marketing mix and market monitoring
What is marketing?
The management process responsible for identifying, anticipating and satisfying consumer requirements profitability
What are the marketing objectives?
Sales volume and sales vaue, market size, market and sales growth, market shareand brand loyalty
What are the different orietations?
Sales orientated business, product orientated business, production orientated business, marketing orientated business, asset based marketing
The hierachy of marketing objectives
Corporate objectives, marketing objectives, marketing strategies and marketing tactics
Name 4 internal infuences on marketing objectives?
Corporate objectives, finance, human resources, operational issues
Name 5 external influences on marketing objectives?
Economic environment, competitior actions, market dynamics, technological change and social and political change
What are the benefits of increased market share?
Increase in volume sales, economies of scales, increased revenue, increase in profits and profitability, advantage in terms of buying inputs, increased market power, greater brand awareness and higher return on investment
What is sales volume?
Sales volume equals the amount of times a business sells during a given period.
What is sales value?
Sales revenue equals the amount in pound a company makes during the period under review.
What’s the market share equation?
Sales of one product or brand or business/ Total sales in market x 100
What is brand loyalty?
When a customer repeatedly returns back to the same business
3 sources of primary data
Experiments, observations and surveys
3 sources of internalseceondary data
Cost data, customer reports and MIS (management information system) reports
What is market mapping?
A model to plot the features of competitors against 2 variables to see where there is a gap in the market
What is a confidence interval?
A Confidence Interval is a range of values we are fairly sure our true value lies in
How does extrapolation work?
Establish the trend and then predict the future values based on the past trend
What is the difference between a positive and negative correlation?
A positive relationship exists if as the independent variable increases in value, so does the dependent variable while a negative correlation the dependent variable decreases with the increase of the independent variable
Give 4 ways a business segment its market
income, demographic, behavioural, geographic
Define niche market
Niche markets are smaller parts of the overall markets where the product or service has been adapted to meet specific needs within the market
Define mass market
Mass markets are the largest part of the market where there is a general/wide need between customers
Describe the Boston Matrix
Market share and market growth (high and low). Star, Cow, Question mark, dog
Describe the Product Life Cycle
Introduction, growth, maturity and decline. Sales, competition and profit builds through each stage
Name the 3 types of consumer goods
convenience, shopping, speciality
Name 3 pricing strategies
skimming, penetration and competitive
Name the 7 Ps
Product, price, place, promotion, people, physcial environment and process
Give 3 extension strategies to the product life cycle
repackaging the product, reducing the price, find new markets
What is the difference between an industrial and consumer good?
Scale of purchase - Industrial is sold business to business, consumer is sold business to consumer
What is multichannel distribution?
offering customers multiple ways of buying a product eg Apple store, Apple website, Apple products in Carphone warehouse
Describe the 3 types in income elasticity
normal, luxury, inferior
What effects the price elasticity of demand?
Substitutes, brand loyalty, Cost of switching eg mobile contract tie-ins
Describe an inferior good
Income elasticity of demand is negative so a rise in income results in a fall in demand
What range of numbers are used to describe elastic and inelastic Price elasticity?
-0.1>-1 are inelastic while -1, -1.1, -2 etc are elastic numbers between 0 and -1 are inelastic while numbers less than -1 are elastic
Describe a normal good
Income elasticity of demand is between 0 and 1 so a rise in income results in a rise in demand that is relatively less than the % change in income
Describe a luxury good
Income elasticity is greater than 1 so a rise in income has a relatively greater change in demand relative to the % change in income
