Decision Making to Improve Marketing Performance Flashcards
Marketing objectives
Smart objectives
Sales volume Sales value Sales growth Market share Brand loyalty
Internal influences on marketing objectives
Finance Human resources Operations Existing position Overall strategy and business objectives
External Influences on marketing objectives
Political Economic Social Technological Competitive
Marketing research
Gathering and analysing data relevant to marketing process
Primary market research
Involves gathering data for the first time
Eg shop cctv, surveys, questionnaires
Secondary market research
Uses data that already exists
Quantitative data
Provides data in a numerical form
Often gathered though surveys.
May not explain why changes have happened
Qualitative data
Not numerical often descriptive, cam describe why things have happened . Emotions, feelings conveyed
Often gathered through interviews, open questions.
Often not statistically reliable. Open ended, not easily measurable
Market mapping
Analyses market conditions to identify the position of one product or brand relative to others in the market in terms of given criteria
Extrapolation
Look at what has happened in the past and continue into future to predict future data
A confidence level
Probability that the research findings are correct
A confidence interval
Possible range of outcomes for a given confidence level
Price elasticity of demand
Measures how responsive demand is to the changes in the price,all other factors constant
Answer usually negative
Influences of price elasticity of demand
- how easy is it for customers to change to another product of the price of this one increases
- the time period - customers search for alternatives eventually elastic
- how expensive the product is
- who is paying for the product
Income elasticity of demand
Measures how responsive demand is to changes in income, all other factors constant.
It can allow businesses to plan for changes in income if they understand income elasticity, therefore demand if certain products
Why can marketing research go wrong?
- changes in the market - Information gathered out of date? Eg technology
- the way the information is gathered - secondary data not in format required? Samples unrepresentative of population
- lack of information - making decision too fast without research, think they know
Relationship marketing
An approach to marketing in which a company seeks to build long term relationships with its customers by providing consistent satisfaction
Segmentation
Occurs when similar customer needs and wants are grouped within a market.
Targeting
Occurs when a business decides which segments it wants to operate in
Ways of segmenting a market
Demographic
Geographic
Income
Behavioural
Niche marketing
Focuses on a particular segment of the market
Eg clothes - goths, tall people
They have clearly identifiable needs and wants
Mass marketing
Approach aims to provide products that meet some of the needs of a large proportion of the market
Elements of the marketing mix (7 P’s)
Price Product Place - distribution of product Promotion - advertising, sponsors People Physical environment Process. - how you buy the product
The marketing mix
Combination of marketing choices that can be used by a business to influence consumers to buy products
