3.3 Marketing Management Flashcards
why is setting marketing objectives important?
sets a clear direction for marketing and what audience they want to target
examples of marketing objectives
- market size
- market and sales growth
- market share
- brand loyalty.
why is it important to collect primary and secondary research?
primary is going to be relevant to current business activities.
secondary is easier to collect and use.
examples of primary research
- focus groups
- business past records
- surveys
examples of secondary research
- competitors records or activities
- gov publications
- media
what is random sampling
where you collect a sample group from a large population with everyone having the equal chance of being picked.
what is stratified sampling
where researchers divide people into subgroups based on characteristics they share like race, gender.
what is quota sampling
splitting the population into groups and sampling a given number of people from each group. non probabilstic unlike random sampling
whats price elasticity of demand
The price elasticity of demand shows how much quantity demanded changes when price changes
whats income elasticity of demand
measures the relationship between the consumer’s income and the demand for a certain good
what is segmentation
the process of dividing a group of things into smaller, more distinct groups
examples of segmentation methods
- demographic
- geographic
- income
what is niche marketing
the business of promoting and selling a product or service to a specialized segment of a market. like shampoo for curly haired people
what is mass marketing
promoting and selling a product or service to a mass market like toilet paper
what is market mapping
involves collecting information about competitors, such as revenue, growth rate and industry sectors, and then using that information to plot those companies on a graph or plot.
advantages and disadvantages of market mapping
+ visual representation, helps with finding the gap in the market
- limited context, generalised
7ps of the marketing mix
- product
- place
- price
- promotion
- people
- process
- physical evidence
what are some factors that affect the marketing mix
- customers needs and expectations
- competitor actions
- economic conditions
what is the boston matrix
a tool that a business can use to analyse the performance of its product line
name the features of the boston matrix
- high market growth, low market share - q mark or problem child
- low market growth, low market share - dog
- high market growth, high market share - star
- low market growth, high market share - cash cow
what is the product life cycle
development
introduction
growth
maturity
decline
extension strategies
what are extension strategies
ways that businesses extend the life cycle of their product as an effort to generate sales
examples of extension strategies
- update to a previously existing product
- discounts
what is price penetration
when a business tries to gain a high market share by introducing products at a low price initially and then raising it accordingly later
what is price skimming
where a business prices high for their new product at first
