Business Topic 3 Flashcards
Why are corporate objectives a key internal influence on marketing objectives?
A marketing objective should not conflict with corporate objectives, as they are the most important internal influence.
How does the financial position of a business influence its marketing objectives?
The financial position (profitability, cash flow, liquidity) directly affects the scope and scale of marketing activities.
Why is the quality and capacity of the workforce critical for a services business in terms of marketing objectives?
A motivated and well-trained workforce can deliver superior customer service and productivity, creating a competitive marketing advantage.
What role does the operations function play in influencing marketing objectives?
Operations enable competition on cost and quality, and effective capacity management helps achieve revenue objectives.
How does business culture influence marketing objectives?
A marketing-oriented culture focuses on meeting customer needs, while a production-oriented culture may set unrealistic or irrelevant objectives.
How does the economic environment act as an external influence on marketing objectives?
It determines demand; for example, recessions or changes in exchange rates can thwart or alter marketing objectives, especially in international markets.
Why must marketing objectives account for competitor actions?
Achieving objectives like increasing market share requires anticipating and overcoming competitor responses.
What market dynamics influence marketing objectives?
Market size, growth, and segmentation; for instance, slowing market growth may limit revenue or new product development objectives.
How does technological change influence marketing objectives?
Rapid technological advancements shorten product life cycles and create opportunities for innovation, which must be reflected in marketing objectives.
How do social and political changes impact marketing objectives?
Changes in legislation or societal attitudes can create or hinder marketing opportunities, affecting strategies and objectives.
Why do businesses need accurate and up-to-date information about changes in technology?
Changes in technology enable new products and production processes, such as digital study tools reducing demand for printed textbooks.
How do changes in consumer tastes influence market demand?
Consumer tastes shift demand; for example, there’s increased demand for activity-related holidays instead of mass-market beach holidays.
Why is it important for businesses to monitor competitors’ product ranges?
New rival products or pricing changes can significantly affect demand, as seen with the Microsoft X-Box challenging Sony’s PlayStation 2.
How do changes in economic conditions impact market demand?
Economic changes affect incomes, influencing demand differently for luxuries versus necessities.
What is one purpose of marketing research related to consumer needs?
Marketing research helps businesses gain a detailed understanding of consumer needs, including opinions on product prices, packaging, and advertising.
How does marketing research help reduce the risk of product or business failure?
By providing accurate and up-to-date market information, it helps businesses make informed decisions, increasing the likelihood of commercial success.
What role does marketing research play in forecasting future trends?
It anticipates future customer needs, allowing businesses to adjust product portfolios and output levels to maintain success.
What is primary market research?
Primary market research is data collected first-hand for a specific research purpose.
Name five common methods of primary market research.
1.Focus groups
2. Interviews (online & in-person)
3. Surveys & questionnaires
4. Mystery shoppers
5. Product testing and product trials
What is one advantage of primary market research related to research objectives?
It is directly focused on research objectives, making it fit for purpose.
Why is primary market research often more reliable than secondary research?
It tends to be more up-to-date and provides detailed insights, especially into customer views.
What is a drawback of primary market research related to time and cost?
It can be time-consuming and often costly to obtain.
Why might primary market research suffer from survey bias?
Research samples may not be representative of the entire population.
What is secondary market research?
Secondary market research uses data that already exists and has been collected by someone else for a different purpose.