decision making to improve marketing performance Flashcards
what are the main types of marketing objectives
sales volume sales value (revenues) sales growth market share brand loyalty brand awareness
What are the internal influences on marketing
corporate objectives- should not conflict
finance- does the business have the funding
HR- can the employees achieve the goals
operational influence: efficiency/ productivity
organisation culture: marketing orientated culture (constantly thinking about the needs and wants of customers)
or production orientatated.
What are the internal influences on marketing
corporate objectives- should not conflict
finance- does the business have the funding
HR- can the employees achieve the goals
operational influence: efficiency/ productivity
organisation culture: marketing orientated culture (constantly thinking about the needs and wants of customers)
or production orientatated.
External influences on marketing objectives
economic environment- demand, exchange rates
Competitor actions-
market size growth and segmentation- markets whose growth slows is less likely to support an objective of significant rev growth
tech change-
sociala and political change
what is primary market research
A business carrying out its own research for its specified needs. FIRST HAND - focus groups - interviews -surveys - mystery shoppers
adv and disadvantage of primary research
\+Suited to the needs of the business \+tends to be up-to-date \+more detailed insight - time consuming - risk of survey bias
what is secondary market research
Data that already exists which has been collected for a different purpose
- market reports
- analytics
adv and disadvantage of secondary research
\+often free/cheap \+good source of market insights \+quick access and use - out of date - less focused on the business needs - specialists reports can be expensive
what is quantitative data
Data revolving the numbers
(QUANTITY)
often larger samples and so more statistically valid
What is qualitative research
Based on opinions beliefs and intention
QUALITY
what is Market mapping
A market map illustrates the range of position that a product can take in a market on tow dimensions that are important to customers
Examples of dimesions of market map
- price
- quality
- weight
- necessity
adv and disadv of market mapping
+helps spot gaps in the market
+ useful for analysing competitors
- how reliable is the market research
- why is there no other businesses in that market sector
What is sampling
Taking a small group of a targeted demographic of which is used to be a general representation of the entire group and asking for their opinions/ research with them
What is sampling
Taking a small group of a targeted demographic of which is used to be a general representation of the entire group and asking for their opinions/ research with them
benefits and drawbacks of sampling
+ can provide useful inights
+ reduce costs
+ flexible and relatively quick
- biggest risk - the sample may be unrepresentative of the population
- risk of bias
- less useful in market segments where customer tastes/ preferences are changing frequently
what is a confidence interval
gives the percentage probability of what your trying to estimate is correct (the sample is 80% accurate)
what is a confidence interval
gives the percentage probability of what your trying to estimate is correct (the sample is 80% accurate)
examples of confidence intervals
quality management- percentage reliability of machines, change that quality control samples will detect issues
Market research- reliability of date from customer surveys
risk management and contingency planning - risks of sales forecasts not being achieved
budgeting- likely range of revenues and costs based on key assumptions,
examples of confidence intervals
quality management- percentage reliability of machines, change that quality control samples will detect issues
Market research- reliability of date from customer surveys
risk management and contingency planning - risks of sales forecasts not being achieved
budgeting- likely range of revenues and costs based on key assumptions,
PED
Price elasticity of demand is a measurement of the responsiveness of the quantity demanded of a product in relation to the changes in the price.
PED: Percentage change in quantity demanded/ percentage change in price
YED
This is a measurement that allows a business to see how much the sale of their products are impacted as society’s incomes increase and decrease.
YED = % change in quantity demanded / % change in income
market segmentation
involves dividing a market into parts that reflect different customer needs and wants
- demographic
- geographic
- income
- behavioural
benefits of market segmentation
- focuses resources on parts of a market where the business can success
- allows a business to grow share in markets of fast growing segments
- helps with new product development
benefits of market segmentation
- focuses resources on parts of a market where the business can success
- allows a business to grow share in markets of fast growing segments
- helps with new product development
drawbacks of segmentations
- markets are increasingly dynamic
- data is not always avlaibel or up to date
what is market targeting and the strategies
Mass marketing - targeting the whole market, ignoring segments, common needs and wants (few businesses can achieve successfully)
Segmented - business target several market segments within the same market (requires different marketing plan and mix for each segment)
Niche marketing- focussing on a small segment
What is market positioning
businesses need to decide how to compete in those segment
use of market map
what is a niche market
a smaller segment of s larger market where customers have more specific needs and wants
what is mass market
the largest part of the market where there are many similar products offered by competitors and customers are less specific about their needs and wants
