M1-Topic 3 Marketing Processes part 1 : situational analysis, market research Flashcards
what does the situational analysis do
it provides the business with the opportunity to examine its current position in the market
what are the two key elements of the situational analysis
Swot analysis
product life cycle
what is the swot analysis comprised of (4)
strengths
weakness
opportunities
threats
what does a product life cycle do
it examines the current position of the goods and/or service that a business produces in a market place.
what are the four phases of the product life cycle
establishment
growth
maturity
post maturity
what are the characteristics of the establishment phase(4)
sales growth slow
cost are high to produce
lack of revenue
minimal product awareness
what are some marketing strategies that should be utilised during establishment period(3)
launch product with high price
limited promotional
price penetration
what are the characteristics of the growth phase(5)
product awareness
band/customer loyalty
profitability as sales expand
new competitors
promotional cost rise
what are some marketing strategies that should be used during the growth phase(2)
price lowered to compete with competitors
expand their distribution channels to reach more customers
what are the characteristics of the maturity phase(4)
sales begin to slow
steady income/limited growth
product now readily available
product needs differentiation to keep competitive advantage
what are the characteristics of the post maturity (4)
decisions made affect long term survival
product established in the market
changing customer preferences
increased competition
what are the 4 phases of post maturity
renewal
steady state
decline
cessation
how should you make business goals
use the SMART approach
What does smart stand for
Specific
Measurable
Achievable
Realistic
Time
why do goals have to be specific
the objective needs to be clear and precise and relate to specific element
why do goals need to be measurable
to develop controls that are effective in measuring the extent to which the goal has been achieved
why do goals need to be achievable
to be sure that the business have the finances and human resources to complete the goal
why do goals have to be realistic
so it’s possible for the business is able to complete the goal
why does time need to be monitored
so the business has an aim for when they want the goal to be finished so they are motivated to complete the objective
what are the three main marketing objectives
increase market share
expansion/growth into new geographic markets
expand product range
what is market share
it refers to the percentage of total sales a business has compared to its competitors
what does expanding into new geographic markets refer to
expanding the area where your goods and services are distributed.
what does expanding the product range mean
when the business is expanding there product range it allows them to enter different markets
what is market research
research done on a market to find trends and wants of people in that market
what types of marketing research are there (2)
primary
secondary
what are types of primary research(3)
observational research
surveys
experimental research
what types of secondary research are there (2)
Internal sources
External sources
what are some types of internal sources (2)
Data that the business has collected in the past
annual reports
what types of external sources are there (4)
commercial data
government publication (ABS)
research and trade publications
Industry trade groups (ACTU)
what is the order of the market research process(3)
determine information needs
collect data (primary and/or Secondary)
analyse + interpret (make sense of data eg. graphs and tables)
