M1-Topic 3 part 3: developing market strategies, implementation, monitoring and controlling Flashcards
what are marketing strategies
actions undertaken business achieve marketing objectives through marketing mix
what does the marketing mix refer to
the four P’s – product, price, promotion, place
what does creating a product entail (4)
Considering:
- quality
- packaging
- design
- brand
why is the product important
Customers will buy products that satisfies their needs/wants + provides intangible benefits
what does pricing entail
considering the amount, customers will pay for the product
why is pricing important (3)
Effects:
- Market Positioning
- Production cost
- Demand
what does promotion entail (7)
Using methods
- Advertising
- Personal selling
- Relationship Marketing
- Sales promotion
- Publicity
- Public relations
why are promotion strategies important
inform, persuade and remind the target market about the products
what does place entail (2)
Organising:
- Distribution Channels
- intermediaries
why is considering place important (2)
it decides:
- how the product will get to the consumer
- the availability of the product
what are the phases of the marketing plan (3)
Implementation
Monitoring
Controlling
what happens during the implementation phase
the market plan is put into action
what happens during the monitoring phase (2)
The observing marketing plan progress
Problems and opportunities are reported
what happens during the controlling phase (2)
- Planned performance compared against actual
performance by using key performance indicators (KPI) - Corrective action is taken when required to ensure
objectives attained
what is a financial forecast
The addition of a business’s predicted future costs and revenue, to calculate projected profits
how is cost estimated (4)
by using data from:
- market research costs
- operations costs
- promotion costs
- distribution costs
how is revenue estimated
based on consumer demand
what are KPI’s
Indicators used to measure the efficiency and effectiveness of the business’s performance
what indicators are analised for KPI’s (3)
sales
market share
profitability
how is sales analysis done
by comparing forecast sales to actual sales
how is market share analysis done (2)
Compare change in market share over time
Compare marketing strategies to competitors
why is market share analysis done
by determining if the change in sales, is due to marketing strategies or external factors
how is profitability analysis done (2)
Breaking down total marketing costs into specific marketing activities
Comparing planned to actual performance of each activity
why is profitability analysis done (2)
To determine effectiveness of each activity
Assist allocation of future marketing resources
why are product modifications done
to upgrade product to maintain competitive advantage
why are price modifications done
upgrade product to maintain competitive advantage
why are Promotion modifications done
less need for promotion during late stages of the product life cycle
why are place modifications done
increase distribution channels as product success increases
why is a continual introduction of new products necessary
ensures long term growth
why is product deletion necessary
outdated products don’t align with trends which can effect the image of other products
