Decision making to improve marketing performance -3.2 Flashcards
What is the value of sampling?
Whole target population is not considered while providing an insight into the market. Although bad research means the sample may not be representative.
Value of sampling depends on:
- How people/items are selected (sample bias)
- How sampling is conducted (misleading questions)
- Sample size
What is quantitative data?
Numerical data often gathered through surveys.
What is qualitative data?
Descriptive data that can provide information on emotions and feelings. Gathered through open questions and interviews. Not easily measurable data.
What is market mapping?
Analysing market conditions to identify the position of a product or brand relative to others in the market. Usually involves rating with high and low prices on a grid.
What is the value of primary market research?
Data is first hand, interviews, questionnaires, surveys.
What is the value of secondary market research?
Existing data such as reading newspapers or studying information given from government. Already available and cheap but may be out of date.
How do you interpret marketing data?
Use various tools such as
- Correlation
-Extrapolation
-Confidence intervals
What is positive correlation?
When both factors are increasing. Increase in customer income can lead to increase in demand.
What is a negative correlation?
When one factor goes up, the other goes down. For example, an increase in price leads to fewer sales.
What is a confidence interval?
Possible range of outcomes for confidence levels. For example, having a 95% confidence level sales will be between 5,000 and 7,000.
What is extrapolation?
Looking at what has been happening in the past to continue this trend into the future. For example, sales growing by 2% a year can be assumed this will be the same for the future.
How can technology help gather and analyse data for marketing decisions?
Gather more data and analyse effectively and quickly. For example, a reward card allows the company to track your buys. This can influence customers spending patterns. Company’s can see how prices and products affects sales.
What is the price elasticity of demand?
Examines effect of price change on the quantity demanded. The size of the number shows how responsive demand is to 1% change in price.
What does it mean if the price elasticity of demand is less than one?
Price inelastic. % change in price leads to smaller change in quantity demanded. For example, a 0.5% increase in quantity demanded is inelastic because there is a 1% cut in price.
