5.Marketing Flashcards
Marketing objectives
Sales volume and sales value
Sales growth
Market share
Market size and market growth
Internal factors influencing marketing objectives
Corporate objectives
Finance
Human resources - staff needed etc
External influences on marketing objectives
The market
Technology
Competitors
Ethics and environmental factors
Marketing laws
Predatory pricing is illegal
Trade descriptions act regulates promotion businesses can’t lie what advertised?
In what ways can a market be classified?
Location
Nature of the product
Seasonality
Development level
Product destination
Market Growth formula
Changing market size divided by old market size multiplied by 100
Market share formula
Sales divided by total market size multiplied by 100
Sales growth formula
Change in sales last year divided by sales last year multiplied by 100
What is market mapping?
Compose two features of products or brands such as quality and price
Why is market research done?
Sport opportunities
Help decide what to do next
See if plans are working
But can be expensive and bad
Extrapolation
Give to predict future sales
Trans and sales data from previous years can be continued into the future to forecast future sales. This allows manager to set target.
Confidence intervals
Modern of error for sample results
A confidence level of 95% means you are 95% certain that your confidence in the book contains the value for the population
Can be used to show uncertainty and predict and other figures
Price elasticity of demand
Shows how responsive demand is to change with price
Changing quantity demand divided by changing price percentages
Price elasticity of demand is always negative If it’s greater than one, the product is elastic if it’s less than one, it’s in elastic
Elastic product
Changing demand is greater than changing price
Inelastic product
Changing the amount to less than changing price
Income elasticity of demand
Measure of how responsible demand is to change of income
Percentages changing quantity demented over changing real income
Normal goods are less than one
Luxury goods are more than one
And inferior have a negative income elasticity of demand
Segment of the market
Divide the market into groups of similar characteristic or needs such as age groups and income groups
Target market
The side which market segment to focus on the product and the market appeal to this group
Concentrated market
Targeting one or two segments at a time and has growth potential
Differentiated market
Several segments are targeted and the product and marketing mixes adapt to each segment only feasible for large companies
Undifferentiated marketing
Segments are ignored and the company tries to reach the entire market of a single product and marketing mix
Influences on positioning of a product
State of the market such as if the economy in the recession
Companies current products
Attribute of the company
7 ps
People
Physical environment
Process
Product
Price
Place
Promotion
Different factors influence integrated marketing mix
Competitive
Market research
Position of market
Location
Type of product
Product life cycle
Three types of consumer product
Convenience product-inexpensive every day items
Shopping product -clothes, computers, et cetera
Speciality product -unique
Product portfolio
Combination of all product lines which consists of related products with similar characteristics uses or target customers
Boston matrix
To model that compares market growth with market share of a companies products
Size of each circle represents sales revenue of the product
New products are what in Boston matrix
They are question marks/problem children
Require heavy marketing to give them a chance they have small market share high market growth
Cash cows
Hi, market share but low market growth
They are in maturity phase and have already been promoted
Stars
Hi market Griffin high market share they’re in the profitable growth phase and have the most potential the future cash cows
Dogs
Low market share and low market Grove usually a failed product and no longer growing
Product life cycle
Development
Introduction
Growth
Maturity
Decline
Extension strategies keep a product going strong
Product development such as improving or redesigning a product
Market development such as finding new markets
Change price
Change the way they promote
Factors affecting pricing decisions
Cost of product
Price elasticity of demand
Competitors
Products, life cycle
Price skimming
New products are sold at higher prices when first in market and then later prices will drop when matured
Penetration pricing
Products are sold at a lower price which may attract customers and then later rises slowly
Pricing strategies
Predatory pricing
Competitive pricing
Psychological pricing
Loss leaders
Types of promotion
Merchandising
Direct mail
Personal salon
Sponsorship
Relationship marketing such as loyalty cards
PR/publications
Direct selling
Selling goods from manufacturer straight to customer
Indirect selling
Manufacturer retailer to customer
Direct selling for an agent
Manufacturer to agent to consumer
Indirect selling
Two level Channel
Manufacturer to wholesaler to retailer to consumer
Multi channel distribution
Businesses sell through more than one map method such as online and install it gives flexibility for customers and wide market coverage
Short distribution channels features
Industrial products
Few customers
Expensive complex goods
In frequent sales
Bulky products
Long distribution channels
Consumer products
Many customers
Inexpensive simple good
Frequent sales
Standard products
Small
Good
What does physical environment include?
Decor and cleanliness
Appearance of the website and staff
Layout
Safety
