Marketing Flashcards
marketing
the process of identifying, anticipating and satisfying customer needs profitably
market size
the number of sales by value or volume in a market as a whole
market growth equation
(new market - old market size) / old market size x100
market share equation
sales/total market share x100
sales growth equation
(sales this year - sales last year)/ sales last year x100
market
place where people buy and sell things
market research
the process of gathering information about the market
primary research
research the business conducts themselves
secondary research
research conducted by other businesses
sample
a sample is a group of subjects that has been chosen from a larger group, the population for investigation
what are the 3 types of sampling?
random
quota
stratified
random sampling
names picked randomly from a list
quota sampling
people that fit into a specific category are picked (eg. women)
stratified sampling
the population is first segmented into subgroups before respondents are randomly selected from within that subgroup
confidence interval
used to assess the reliability of sampled data
“A common confidence interval acceptable to management is 95%. This means that 19 out of 20 samples taken (95%) will give results that are representative of the overall population.”
confidence level
the degree to which statistics are a reliable predictor of actual events
what are 3 factors that influence confidence intervals?
sample size
population size
percentage of sample choosing a particular option
correlation
a link between two factors
time series analysis
looking at data over time
extrapolation
using past data to extend an identified trend into the future
price elasticity of demand
(PED)
a measure of how responsiveness demand is to a change in price
when PED is greater than 1 then what is the product?
elastic
when PED is less than 1 then what is the product?
inelastic
price elastic
a change in price will cause a change in demand
price inelastic
a change in price will not cause a change in demand (for example insulin)
income elasticity of demand (YED)
where the responsiveness of demand to a change in income
when YED is greater than 1 then what is the product? (ignoring - +)
elastic
when YED is less than 1 then what is the product? (ignoring - +)
inelastic
what does it mean if YED is negative?
the product is an inferior good
what does it mean if YED is positive?
the product is a normal good
normal good
where an increase in income results in an increase in demand (usually luxury and branded goods)
eg. walkers crisps
inferior goods
where an increase in income results in a decrease in demand
eg. Aldi, shop’s own products
list some technology which can be used to gather data on customers
loyalty schemes
social networking sites
search engines
wifi signals
targeting
the process of deciding which segment of the market to focus on
seasonal fluctuations
fluctuations that repeat on a seasonal basis (eg. Easter egg sales being high around Easter)
product portfolio
the range of products a business sells
what does STP stand for?
segmentation, targeting and positioning
what are the pros and cons of segmentation?
+allows for specific advertising
+helps know needs and wants of customers
+helps to build a strong brand image
-difficult to know who to target
-may be too specific
-companies may ignore lucrative segments
Market segmentation
Dividing a market into parts that reflect different customer needs and wants
What are the parts of the product life cycle?
Development
Introduction
Growth
Maturity
Decline
Product life cycle
A technique used to track the stages of a product goes through during its life
What are on the axis of a Boston matrix?
Y axis- market growth
X axis- market share
On the Boston matrix what category is a product if it has high market growth and high market share?
Star
On the Boston matrix what category is a product if it has high market growth and low market share?
Question mark
On the Boston matrix what category is a product if it has low market growth and high market share?
Cash cow
On the Boston matrix what category is a product if it has low market growth and low market share?
Dog
Price
The money charged for a product or service
Price skimming
Involves setting a high initial price for a new product in order to recoup costs
