Marketing Flashcards
Role of marketing
- Strategic role of marketing goods and services
- Interdependence with other key business functions
- Production, selling, marketing approaches
- Types of markets: resource, industrial, intermediate, consumer, mass, niche.
What are the types of markets?
– resource, industrial, intermediate, consumer, mass, niche
Factors influencing consumer choice:
psychological, sociocultural, economic, government
Consumer laws:
deceptive and misleading advertising
– price discrimination
– implied conditions
– warranties
Ethical:
truth, accuracy and good taste in advertising
products that may damage health
engaging in fair competition
sugging
Influences on marketing:
- Factors influencing consumer choice
- Consumer laws
- Ethical
Marketing process:
- Situational analysis
- Market research
- Establishing market objectives
- Identifying target markets
- Developing marketing strategies
- Implementation, monitoring and controlling
Situational analysis:
SWOT, product life cycle.
Implementation, monitoring and controlling:
Developing a financial forecast; comparing actual and planned results, revising the marketing strategy.
Marketing strategies:
- market segmentation, product/service differentiation and positioning
- Products: Goods and/or services
- price including pricing methods
- Promotion
- Place/distribution
- People, processes and physical evidence
- e-marketing
- Global marketing
Products- goods and/or services:
- branding
- packaging
Price including pricing methods-
Cost, market, competition-based.
Price including pricing methods- Cost, market, competition-based:
- Pricing strategies
- Price and quality interaction
Pricing strategies:
Skimming, penetration, loss leaders, price points.
Promotion:
- elements of the promotion mix
- The communication process
Elements of the promotion mix:
advertising, personal selling and relationship marketing, sales promotions, publicity and public relations
The communication process:
Opinion leaders, word of mouth.
Place/distribution:
- Distribution channels
- Channel choice
- Physical distribution issues
Channel choice:
Intensive, selective, exclusive
Physical distribution issues:
Transport, warehousing, inventory
Global marketing
- Global branding
- Standardisation
- Customisation
- Global pricing
- Competitive positioning
What is the overarching goal of a business?
Profit maximisation
Define profit maximisation
Occurs when there is maximum difference between the total revenue coming into the business and total costs being paid out.
What is the strategic role of marketing?
The strategic role of marketing is to develop a combination of strategies that can be used to maximise sales, increase brand awareness and improve customer satisfaction s that the business can translate this goal of profit maximisation into reality.
Define market share
Percentage of total market sales.
What is the resource market?
Consists of those individuals or groups that are engaging in all forms of primary production including mining, agriculture, forestry and fishing.
What is the industrial market?
Included industries and businesses that purchase products to use in the production of other products in their daily operations.
What is the intermediate market?
Consists of wholesalers and retailers who purchase finished products and resell them to make a profit.
What is the consumer market?
Consists of individuals who plan to use or consume the products they buy.
What is the mass market?
When the seller mass-produces, mass-distributes and mass-promotes one product to all buyers.
What is a niche market?
A narrowly selected target market segment.
What are the types of psychological factors influencing customer choice?
Perception
Motives
Attitudes
Personality
Self image
What are the types of sociocultural factors influencing customer choice?
Family and roles
Peer group
Social class
Culture and subculture
What are psychological influences?
Influences within an individual that affect their buying behaviour.
What are sociocultural influences?
External forces exerted by other people and groups that affect an individual’s buying behaviour.
What is the economic influence on consumer choice?
Influence a business’ capacity to compete and a customer’s willingness and ability to spend.
What is a boom?
A period of low unemployment and rising incomes.
What is a recession?
A period of high unemployment and falling incomes.
What are the main government regulations affecting customer choice?
- Competition and consumer act 2010
- Sales of goods act 1923
- Fair trading act 1987
What are consumer guarantees?
Automatic guarantees that provide consumers with the right to certain remedies from retailers and manufacturers where goods purchased fail to comply with the consumer guarantee provisions in the ACL.
What is implied in acceptable quality?
products are safe, lasting, have no faults, look acceptable, do all the things someone would expect them to do, and are fit for purpose.
What is the purpose of the Competition and consumer act 2010?
- Protect consumers against undesirable practices.
- Regulate certain trade practices that restrict competition.
What are the types of deceptive and misleading advertising?
- Bait advertising
- Fine print and qualifications
- Comparative advertising
- Environmental claims
- Country of origin
- Premium claims
- Prize giveaways and competitions
- Dishonest advertising
What is dishonest advertising?
Advertisements must not use words that are deceptive or claim that a product has some specific quality when it does not. Such actions convey a false impression of the exact nature of the product.
Define price discrimination
The setting of different prices for a product in separate markets.
Define implied conditions
The unspoken and unwritten terms of a contract.
Define warranties
A promise made by a business that they will correct any defects in the goods they produce or the services they deliver.
When are refunds/exchanges required by law?
- If products are faulty
- If products do not math the description or a sample
- If products fail to do the job they were supposed to do
Define competitive positioning
Process of a business determining how to differentiate themselves from competitors and in doing so, develop strategies for the business to create value from those differences.
What are the global pricing strategies?
Customised pricing
Market-customised pricing
Standard worldwide price
Define customised pricing
Occurs whenever consumers in different countries are charged different prices for the same product.
Define market-customised pricing
Prices that are set according to local market conditions.
Define standard worldwide price
The practice of charging customers the same price for a product anywhere in the world.
Define global pricing
How businesses coordinate their pricing policy across different countries.
Define global branding
The worldwide use of a name, term, symbol or logo to identify the seller’s products.
What are the 7P’s?
Product
Promotion
Price
Place
People
Processes
Physical evidence
Define physical distribution
All those activities concerned with the efficient movement of the products from the producer to the customer.
What is transport?
Involves the efficient movement of a product from the manufacturer to the customer.
What is a warehouse?
A central organising point for storing goods that will be efficiently distributed later.
What should be considered in warehousing?
- A shelving system that offers maximum storage capacity and easy access
- Inventory control software that measure quantities and shows location of products
- Equipment that can move products
- Security to protect products
- Climate control systems for particular products
Define advertising
A paid, non-personal message communicated through a mass medium.
Define personal selling
The activities of a sales representative directed to a customer in an attempt to make a sale.
Define relationship marketing
The development of long-term and cost-effective relationships with individual customers
Define sales promotions
The use of activities or materials as direct inducements to customers.
Define publicity
Any free news story about a business’ products.
Define public relations
Those activities aimed at creating and maintaining favourable relations between a business and its customers.
Define price skimming
When a business charges the highest possible price for the product during the introduction stage of its life cycle.
Define price penetration
When a business charges the lowest price possible for a product or service so as to achieve a large market share.
Define loss leaders
A product sold at or below cost price
Define price points
Selling products only at a certain predetermined price.
What are the branding strategies?
Manufacturer’s brand
Private or house brand
Generic brand
What are the main segments a market can be segmented into?
Demographic
Geographic
Psychographic
Behavioural
What are the elements of revising the marketing strategy?
- Changes in the marketing mix
- New product development
- Product deletion
What KPIs are used to measure the success or the marketing plan or compare actual and planned results?
Sales analysis
Market share analysis
Marketing return on investment
What are the steps in developing a financial forecast?
- Cost estimate
- Revenue estimate
What are the approaches to identifying and selecting a target market?
Mass marketing approach
Market segmentation approach
Niche market approach
What are the market objectives?
Increasing market share
Expanding the product range/mix
Maximising customer service
What are the methods of collecting primary data?
The survey method
The observation method
The experiment method
What are the steps in market research?
- Determining information needs
- Collecting data from primary and secondary sources
- Analysing and interpreting data
What are the types of secondary data?
Internal data
External data
Define sugging
Selling under the guise of a survey; a sales technique disguised as market research.
What are the types of anti-competitive conduct prohibited by CCA 2010?
Cartel conduct
Anti-competitive agreements
Misuse of market power
Exclusive dealing
Resale price maintenance
Mergers and acquisitions
What are the main ethical issues in truth and accuracy in advertising?
Untruths due to concealed facts
Exaggerated claims
Vague statements
Define puffery
Exaggerated claims used for promotional purposes, that no reasonable person would take as factual.
Define marketing
The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.
How is marketing independent with operations?
A key part of the marketing plan for a business is to undertake market research to determine consumer needs and wants. This may include the way a product is designed, its features or tastes or preferences of consumers. The data, once analysed and interpreted, needs to be communicated to the operations function which will source the necessary inputs and transform them into an output (product) that is consistent with needs and wants of customers determined through market research.
How is marketing independent with finance?
Financial planning must connect with the marketing plan to ensure adequate funding for marketing initiatives. Marketing activities require significant financial resources, so finance must collaborate with marketing to allocate funds, manage budgets, and forecast expenses. This ensures marketing efforts are financially sustainable and align with the company’s financial goals.
How is marketing independent with human resources?
Marketing must connect with human resources to ensure the right staff are employed for creating desirable products or services. The marketing manager collaborates with the HR manager to hire and train employees with the skills needed to meet customer preferences identified through market research. This ensures that the workforce aligns with marketing objectives and contributes to the company’s success.
What years was the production approach?
1820s to 1920s
What years was the selling approach?
1920s to 1960s
What years was the marketing approach?
1960s to present
What is the production approach?
A marketing approach that focuses on the production of goods and services.
What is the selling approach?
A marketing approach that emphasises selling because of increased competition.
What is the marketing approach?
Focuses on finding out what customers want, through market research, and then satisfying that need.
What led to the beginning of the marketing approach?
Began with the economic boom after WWII.
What principles is the marketing approach based on?
It must be:
Customer-oriented
Aimed at satisfying customers
Integrated into the business plan so as to achieve the business’ goals
Aimed to develop long-term relationships with customers
Production approach = ______ - oriented
production-oriented
Selling approach = ______ - oriented
sales-oriented
Marketing approach = ______ - oriented
customer-oriented
Define customer orientation
The process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests.
When was the start of the societal marketing approach?
1970s
Define the societal marketing approach?
A marketing approach that emphasises social responsibilities as well as the importance of maintaining and improving the wellbeing of customers and society.
What is the most modern component of the marketing approach?
The societal marketing approach
The resource market accounts for more than __% of Australia’s ___
The resource market accounts for more than 60% of Australia’s exports.
Which type of market involves value adding?
Industrial
What is the assumption of the mass market?
that all customers in the market have similar needs and wants.
What are the benefits of the mass market?
- The scope and cost efficiency of doing business on such a large scale.
- Give a business the ability to achieve economies of scale.
- Appeal to a very large audience in a single showing.
What is the disadvantage of the mass market?
The advantages can only be achieved if the product is a commodity or is beneficial to people across a wide range of demographics.
What are other names for a niche market?
Micro market
Concentrated market
Define perception
The process through which people select, organise and interpret information to create meaning.
Define motives
An individual’s reason for doing something.
Define attitudes
A person’s overall feeling about an object or activity.
Define personality
The collection of all the behaviours and characteristics that make up an individual.
Define self image
How a person views themself.
Define peer group
A group of people with whom a person closely identifies, adopting their attitudes, values and beliefs.
Define social class
A person’s relative rank in society, based on their education, income or occupation.
What are the characteristics of an economic boom?
- High consumer confidence.
- Increase production, intensify promotional efforts.
- Customers willing to spend
- Large marketing potential
What are the characteristics of an economic recession?
- Low consumer confidence.
- Very low customer and business spending.
- Customers become price-conscious.
- Survival becomes main business goal.
Why are customers more willing to spend in an economic boom?
they feel security in jobs and source of income
How does a recession influence the marketing plan?
Marketing plans should stress the value and usefulness of a product and focus on maintaining existing market share.
Deceptive and misleading advertising is ______ under…
Deceptive and misleading advertising is illegal under The Competition and Consumer Act 2010.
What is bait advertising?
Advertising products that are not available, or only available in very limited quantities, at reduced prices to attract customers. When the advertised products quickly run out, customers are directed to higher priced items.
What are the requirements of acceptable quality?
- safe, lasting, no faults
- look acceptable
- do all the things someone would normally expect them to do
What are some of the implied conditions of products?
- match descriptions, models or samples
- not carry any hidden debts or extra charges
- meet any extra promises of performance, quality…
What are some of the implied conditions of services?
- provided with acceptable care and skill
- fit for purpose or give agreed results
- delivered within a reasonable time
What are the ethical criticisms of marketing?
- Creation of needs
- Use of stereotyping
- Use of sex to sell products -
- Product placement
- Invasion of privacy
What are the advantages of engaging in ethical marketing behaviour?
Can lead to significant marketing and business opportunities.
- regular publicity in media
- Positive image of business.
Attract customers to the business + increase customer loyalty.
- customers reward ethical business behaviour; buy more
Positive effect on employment relations
- Productivity, staff retention, absenteeism rates improve
- employees want to stay in business
- attract more talented employees
Attract more investors + more appealing to stakeholders.
Improve reputation
What are the disadvantages of engaging in ethical marketing behaviour?
Higher costs
- Investment in sustainable materials and fair labour practices.
Define ‘weasel’ words
deliberately misleading or ambiguous language.
What is the purpose of ‘weasel’ words?
Allow the marketer to deny any intention to mislead or deceive.
Define vague statements
Statements using words so ambiguous that the consumer will assume the advertiser’s intended message.
How can untruths due to concealed facts influence a business?
Harm the trust consumers have in a product or a business.
What is cartel conduct?
Businesses that would normally be in competition act together.
- These agreements increase profits of cartel members while putting other companies out of business.
What is exclusive dealing?
One person or business trades with another and then imposes restrictions on them.
What is resale price maintenance?
If a supplier sets the price at which retailers will sell the products they supply them.
What are anti-competitive agreements?
Contracts or arrangements containing provisions that substantially lessen competition in a market.
Define the product life cycle
the stages a product passes through: introduction, growth, maturity, decline.
Define market research
the process of systematically collecting, recording and analysing information concerning a specific marketing problem.
Define primary data
the facts and figures collected from original sources for the purpose of the specific research problem.
Define secondary data
information that has already been collected by some other person or organisation.
Define statistical interpretation analysis
the process of focusing on the data that represents average, typical or deviations from typical patterns.
What are the disadvantages of market research?
Costly & time consuming
Data can become quickly outdated in fast-moving markets.
- secondary data can be outdated.
Potential bias in survey designs or sample selection.
Define marketing objectives
the realistic and measurable goals to be achieved through the marketing plan.
Define product mix
the total range of products offered by a business.
Define customer service
how well a business meets and exceeds the expectations of customers in all aspects of its operations.
What are some strategies to maximise customer service?
- Training employees and rewarding them for excellent customer service
- Anticipating market trends by conducting research
- Finding out what competitors are offering then reviewing the product mix
- Establishing and maintaining long-term relationships with customers
- Encouraging employees to focus their attention on the customer’s needs and not just on making a sale.
Define target market
a group of present and potential customers to which a business intends to sell its product.
What is the primary target market?
The market segment at which most of the marketing resources are directed.
What is the secondary target market?
A smaller and less important market segment than the primary target market.
What is the mass marketing approach to selecting the target market?
A marketing approach that seeks a large range of customers.
What is the market segmentation approach to selecting the target market?
The total market is subdivided into groups of people who share one or more common characteristics.
Defne implementation
Process of putting marketing strategies into operation.
Define monitoring
The process of measuring actual performance against planned performance.
Define controlling
Involves the comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained.
Define financial forecast
the business’ predictions about the future.
Define product deletion
The elimination of some lines of products.
Define market segmentation
occurs when the total market is subdivided into groups of people who share one or more common characteristics.
Define Product/service differentiation
The process of developing and promoting differences between the business’s products or services and those of its competitors.
Define demographic segmentation
The process of dividing the total market according to articular features of a population, including the size of the population, age, sex, income, cultural background and family size.
Define geographic segmentation
The process of dividing the total market according to geographic locations.
Define psychographic segmentation
The process of dividing the total market according to personality, characteristics, motives, opinions, socioeconomic group and lifestyles.
Define behavioural segmentation
The process of dividing the total market according to the customers’ relationship to the product.
Define product/service positioning
The technique in which marketers try to create an image or identity for a product compared with the image of competing products. This image gives the product its position within the market.
What is repositioning of a product/service?
Changing what customers associate with the brand and sometimes competing brands.
Define products
Goods or services that can be offered in an exchange for the purpose of satisfying a need or want.
Define total product concept
The tangible and intangible benefits (attributes) a product possesses.
What is a brand?
a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition.
What is a trademark?
Signifies that the brand name or symbol is registered and the business has exclusive right of use.
What is a logo?
A graphic representation that identifies a business or product.
Define manufacturer’s brand
a brand owned by a manufacturer.
Define private or house brand
a brand that is owned by a retailer or wholesaler.
Define generic brands
products with no brand name at all.
Define packaging
the development of a container and the graphic design for a product.
Define labelling
The presentation of information on a product or its package.
Define price
The amount of money a customer is prepared to offer in exchange for a product.
Define promotion
The methods used by a business to inform, persuade and remind a target market about its products.
What are the advantages of promotion?
attract new customers by heightening awareness of a particular product
increase brand loyalty by reinforcing the image of the product
encourage existing customers to purchase more of the product
provide information so customers can make informed decisions
encourage new and existing customers to purchase new products.
What is the aim of relationship marketing?
to create customer loyalty by meeting the needs of customers on an individual basis.
What is an example of relationship marketing?
loyalty programs
- offer rewards to loyal customers
What are examples of sales promotions?
limited time offers, free gifts, refunds, sales, giveaways..
What is the benefit of using opinion leaders in marketing?
Consumers will create a link between the leader’s image and reputation and the product. They acts as information outlets for new products or to endorse an existing one.
What is the disadvantage of using opinion leaders in marketing?
If the person’s image becomes negative, hinder’s business’ reputation.
What are the advantages of word of mouth communication in promotion?
- Consumer places more trust in someone they know.
- No cost
- Potential to reach a wide audience and influence purchasing decisions.
- Encourages loyal customers to become brand advocates, promoting the brand voluntarily.
- Perceived as more authentic and genuine.
What are the disadvantages of word of mouth communication in promotion?
- Businesses have limited control.
- Negative experiences or opinions can spread rapidly and damage reputation.
- Messages vary in accuracy and consistency.
Define place/distribution
Activities that make the products available to customers when and where they want to purchase them.
Define distribution channels
The routes taken to get the product from the factory to the customer.
What are the most commonly used distribution channels?
Producer → customer
Producer → retailer → customer
Producer → wholesaler → retailer → customer
Producer → agent → wholesaler → retailer → customer
Define non-store retailing
Retailing activity conducted away from the traditional store.
What are examples of non-store retailing?
door-to-door selling, mail-order catalogues, vending machines, e-commerce, m-commerce…
What is m-commerce?
buying and selling of goods and services through wireless handheld devices
Define market coverage
Refers to the number of outlets a firm chooses for its product
What is an intensive channel choice?
Business saturates the market with its product.
What is a selective channel choice?
This involves using only a moderate proportion of all possible outlets.
What is a exclusive channel choice?
This is the use of only one retail outlet for a product in a large geographic area.
Define inventory control
A system that maintains quantities and varieties of products appropriate for the target market.
What is an inventory strategy as a physical distribution issue?
inventory control
Define people
Refers to the quality of interaction between the customer and those within the business who will deliver the service.
Define processes
Refers to the flow of activities that a business will follow in its delivery of a service.
Define physical evidence
Everything that the customer sees when interacting with a business.
What are the advantages of global branding?
It can be cost effective because one advertisement can be used in a number of locations.
It provides a uniform worldwide image.
The successful brand name can be linked to new products being introduced into the mark.
What are the disadvantages of global branding?
Differences in language, regulations, consumer preferences, and competitive landscapes.
If brand is tarnished in one country, it will affect the reputation in other countries.
Loss of local identity and connection
How can global branding result in a loss of local identity and connection?
Some customers prefer brands that reflect their unique cultural values and preferences.
Define a standardised approach to global marketing?
A global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over.
Define a customised approach to global marketing
A global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries.
What are the features of the production approach?
Take orders
Deliver goods / perform services
What are the features of the sales approach?
Advertise
Train sales force
Take orders
Deliver goods / perform services
What are the features of the marketing approach?
Customer orientation
Advertise
Train sales force
Take orders
Deliver goods / perform services
What are the features of the societal marketing approach?
Corporate social responsibility
Improve society’s wellbeing
Customer orientation
Advertise
Train sales force
Take orders
Deliver goods / perform services
How does perception influence marketing?
- Marketing managers are aware that they must create a positive/favourable perception about their product in the mind of the customer.
- Customers will not purchase a product they perceive as inferior.
How does motives influence marketing?
- The main motives that influence customer choice: comfort, health, safety, ambition, taste, pleasure, fear, amusement, cleanliness, the approval of others.
- Advertising attempts to influence motives (motivate customer to buy the product).
How does attitudes influence marketing?
- Influence the success or failure in the business’ marketing strategy.
- Negative attitudes to a business or its products force the business to change its strategies.
How does personality influence marketing?
- Influence the types and brands of products a person buys.
How does self image influence marketing?
- We reinforce the image of who we are in our purchases.
- Marketers will highlight the image value of their products.
- Use of opinion leaders and influencers: people want their self-image to be a reflection of those who they regard as important and influential.
How does social class influence marketing?
- Influence the type, quality and quantity of products a customer buys.
How does culture and subculture influence marketing?
- Infiltrates all that we do in our everyday life.
- Determines what people wear, what and how they eat, where and how they live.
Who enforces The Australian Consumer Law 2011?
Australian Competition and Consumer Commission
Who enforces the Competition and Consumer Act 2010?
Australian Competition and Consumer Commission and Australian Securities and Investments Commission
Why might a business do price discrimination?
- The markets are geographically separated
- There is product differentiation within the one market
What is the purpose of warranties?
Designed to offer a degree of protection to the customer if the good is faulty or if the service is not carried out with due care and skill.
What is an example of engaging in fair competition?
Businesses should be fair when referring to their competitors in their marketing and not insult/make false assertions.
Describe the introduction stage of the product life cycle
Sales plateau as market becomes saturated.
Describe the growth stage of the product life cycle
Pursuit of brand acceptance and market share.
What is the long term negative consequence of sugging?
Long term negative consequences for market research: ⅓ individuals refuse to participate in surveys, thinking it’s sugging.
Describe the introduction stage of the product life cycle
Business tries to increase consumer awareness and build market share for new product.
Describe the introduction stage of the product life cycle
Sales begin to decline as business faces several options.
Why do products decline?
Changing public perception of what is fashionable.
New technologies = new products replacing old ones.
Fluctuations in level of economic activity change consumer spending habits.
What are the disadvantages of the product life cycle?
Difficult to accurately predict each stage’s duration and transition.
Requires constant monitoring and adjustment, which can be resource-intensive.
Can oversimplify complex market dynamics and ignore external factors.
What makes information useful for market research?
→ results in marketing strategies that meet the needs of the business’ target market
→ assists the business to achieve its marketing objectives.
→ may be used to increase sales and profits
What is the survey method of collecting primary data?
Gathering data by asking or interviewing people.
What is the obervation method of collecting primary data?
Recording the behaviour of customers.
What is the experiment method of collecting primary data?
Gathering data by altering factors under tightly controlled conditions to evaluate cause and effect.
What does analysing and interpreting data in market research involve?
Putting data in tables
Involves a number of people to gain a wider perspective and avoid the error of personal bias.
What is the advantage of putting data in tables for market research?
allow comparisons to be made between individual categories.
How can market research minimise risk?
by collecting and assessing info about the needs and wants of customers, a more accurate and responsive marketing plan can be designed, reducing risk of market failure.
Advantages of market research
Provides data-driven insights for better marketing strategies.
Understand consumer needs, preferences and behaviour.
Minimise risk.
Identify and outline both marketing opportunities and problems, & evaluate implementation of marketing plan.
Establish whether it is worth launching/promoting a product at all.
What is the advantage of maximising customer service?
High levels of customer service will result in improved customer satisfaction
and a positive reaction from customers towards the products they purchase. This establishes a sound customer base with the possibility of repeat purchases.
What is a KPI?
a forecast level of performance against which actual performance can be compared.
What are the disadvantages of developing a financial forecast and why?
The results are always open to interpretation
→ Reliance on assumptions, estimates, and varying methodologies
What are the ways of comparing actual and planned results?
Sales analysis
Market share analysis/ratio
Marketing return on investment
What is sales analysis?
The comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy.
What is market share analysis/ratio?
The analysis of market share to determine the effectiveness of the marketing strategy.
What is marketing return on investment?
Measures how much revenue a marketing campaign is generating compared to the cost of running that campaign.
What is the advantage of demographic segmentation?
Easy to measure.
What is the disadvantage of psychographic segmentation?
Difficult to accurately measure.
What is the aim of points of differentiation?
Aim to persuade consumers to perceive the product or service as being superior to all similar products or services.
Define ethical consumerism
involves buying products that are not harmful to the environment, animals and society.
What is cost-based pricing?
A pricing method derived from the cost of producing or purchasing a product and then adding a mark-up.
What is market-based pricing?
A method of setting prices according to the interaction between the levels of supply and demand — whatever the market is prepared to pay.
What is competition-based pricing?
Where the price covers costs and is comparable to the competitor’s price.
What is the aim of price skimming?
Aim to recover the costs of research and development as quickly as possible, before competition enters the market.
What is the aim of price penetration?
Aim to sell a large number of products during the early stages of the life cycle and thus discourage competitors from entering the market or from taking market share from existing businesses.
What is the purpose of advertising?
Purpose to inform, persuade and remind.
What are examples of advertising media?
Mass marketing: TV, radio, print
Direct marketing catalogues
Telemarketing
e-marketing
Social media
billboards
What does personal selling involve?
Involves the human aspect of promotion.
What are the advantages of advertising?
- Result in increased sales and profit for a business.
- Provides businesses with the flexibility to reach an extremely large audience or to focus on a small, distinct target market segment.
- Increase brand visibility and awareness.
- Cost effective for reaching mass audiences.
What are the disadvantages of advertising?
- Some consumers may find ads intrusive or annoying, leading to negative perceptions of the brand.
- Measuring the direct impact of advertising on sales or brand metrics can be challenging.
What are the advantages of personal selling?
- The message can be modified to suit the individual customer’s circumstances.
- The individualised assistance to a customer can create a long-term relationship resulting in repeat sales.
- The sales consultant can provide after-sales customer service in relation to product features, installation, warranties and servicing.
- Increase customer satisfaction, repeat sales, good reputation.
Why might personal selling be more expensive?
Training, salaries
What are the disadvantages of personal selling?
- Expensive
- Time-consuming and can only reach a limited number of customers.
- Success is heavily reliant on the effectiveness and productivity of the sales team.
- Different people = inconsistency in brand representation.
What are the disadvantages of relationship marketing?
- Time-consuming.
- Requires investment in technology, training, and personnel.
What are the advantages of relationship marketing?
- Competitive advantage.
- Repeat purchases, increased loyalty.
- Word of mouth: recommend brand to others, increased brand awareness.
- Engages loyal customers as brand advocates who actively promote the brand to others, further enhancing its reputation and reach.
What are the advantages of sales promotions?
- Entice new customers
- Encourage trial purchase of a new product.
- Increase sales to existing customers and repeat purchases.
- Differentiates brand from competitors, attracts attention in saturated market.
- Increases brand visibility.
What are the disadvantages of sales promotions?
- Lower profit margins.
- Impact regular sales, customer rely on promotions.
- Emphasises short-term sales boosts over long-term brand building and customer loyalty.
What are the advantages of publicity and public relations?
- Promoting a positive image.
- Effective communication of messages
- Protecting a business’s reputation as a result of negative or unfavourable publicity.
- Low costs.
- Increase brand visibility and awareness.
- Build relationships with stakeholders.
What are the disadvantages of publicity and public relations?
-Limited control over how their messages are portrayed in the media.
- Negative publicity or PR crises damage reputation and brand image.
- Limited reach.
What is a wholesaler?
A wholesaler is an intermediary who buys in bulk, from the producer, then resells in smaller quantities to retailers.
What is the role of agents?
An agent distributes products to wholesalers but never owns the product. They are paid a commission by the producer.
What is a retailer?
A retailer is an intermediary who buys from producers and resells to customers.
What are the advantages of an intensive channel choice?
- Wider Market Coverage:
Made available to a larger audience, increasing market reach and potential sales. - Convenience for Customers
What are the disadvantages of an intensive channel choice?
- Complex and resource intensive, higher cost.
- Higher competition:
Multiple outlets selling same product, competition for shelf space & consumer attention.
What are the advantages of an selective channel choice?
- Targeted Distribution: Outlets that best align with target market, maximising exposure to potential customers.
- Brand Control:
Greater control over brand image and presentation, ensuring consistency and quality in the customer experience.
What are the disadvantages of a selective channel choice?
- Limited Market Coverage:
Limited market reach, missing out on some segments of the market. - Reduced sales potential
- Cost more than exclusive
What are the advantages of an exclusive channel choice?
- Enhanced Prestige and Superiority:
- Seen as luxury items, usually price skimming.
- Can choose specific locations. - Controlled brand image:
Outlets that align with the brand’s positioning. - Brand Exclusivity:
Products are only available in a limited number of carefully chosen outlets.
What are the disadvantages of an exclusive channel choice?
- Limited Market Reach:
Only targets a niche section of the market, limits market reach. - Reduced availability
What are the advantages of standardisation as a global marketing strategy?
Cost savings
Production runs can be longer → achieve economies of scale
Reduce R&D costs
Promotion strategies can be standardised
Any evaluation and modification of the plan is a much simpler task.
What are the disadvantages of standardisation as a global marketing strategy?
Loss of Local Relevance:
Brand appears disconnected from local consumer needs and preferences.
May not comply with local regulations or advertising standards, leading to legal issues.
Overstandardisation may dilute the brand’s uniqueness and differentiation, diminishing its appeal to consumers.
What are the advantages of customisation as a global marketing strategy?
Adaptation to diverse cultural preferences, enhancing resonance with local consumers.
Quicker responses to changing consumer needs and competitive dynamics.
Differentiate from competitors, stronger connections with consumers.
Ensures legal compliance.
What are the disadvantages of customisation as a global marketing strategy?
Higher cost
Inconsistencies in brand messaging or positioning.
Why would customisation as a global marketing strategy cost more?
Market research, adaptation of marketing materials, and implementation…
What began the production approach?
Industrial revolution = burst of industrial output
What has the mass market been replaced by and why?
Due to greater choice, higher personal incomes and customers seeking more individualised products, the mass market has been replaced by segmented or niche markets.
How does government policies influence the marketing plan?
Influence business activity and customer spending habits.
How does government regulations impact the marketing plan?
Direct and immediate impact on the marketing plan because the breaking of the laws or regulations may result in financial penalties.
What is an example of geographical price discrimination?
country and city prices
What is an example price discrimination within markets?
Different electricity prices for businesses and domestic use
When is price discrimination prohibited by the Competition and Consumer Act?
The Competition and Consumer Act prohibits price discrimination if the discrimination could substantially reduce competition.
What are advantages of warranties for a business?
- can be an aggressive marketing tool
- assures the customer that the business has confidence in the quality of its product and will repair or replace any faulty items.
Give a example of how warranties can be an aggressive marketing tool
Longer warranties = impression of superior quality or includes superior options to competitors.
When are mergers and acquisitions prohibited?
Prohibited if they result in a big reduction in competition.
What is an example of a merger that would be prohibited?
The ‘big’ banks:
Commbank, NAB, ANZ, Westpac.
What ethical issues does sugging raise?
Invasion of privacy, deception.
What are the disadvantages of a SWOT analysis?
Time-Consuming
- lengthy to conduct thoroughly, delaying decision-making.
Cost
- data collection, analysis, and expert consultation.
Describe product strategies used in the introduction stage of the product life cycle
Brand and reliability are established.
Describe promotion strategies used in the introduction stage of the product life cycle
- Directed at early buyers and users.
- Seek to educate potential customers of product.
Describe price strategies used in the introduction stage of the product life cycle
Loss leading
- Noticeably lower than competitors’ to gain a market foothold.
OR skimming
Describe place/distribution strategies used in the introduction stage of the product life cycle
Selective channel choice
- Consumers gradually form an acceptance of the product.
Describe product strategies used in the growth stage of the product life cycle
Quality is maintained and improved, support services may be added.
Describe promotion strategies used in the growth stage of the product life cycle
Seeks a wider audience.
Describe price strategies used in the growth stage of the product life cycle
Price maintained or increased as increased demand and growing market share.
Describe place/distribution strategies used in the growth stage of the product life cycle
Channels increased as product more popular.
Describe product strategies used in the maturity stage of the product life cycle
Features and packaging to differentiate from competitors.
Describe promotion strategies used in the maturity stage of the product life cycle
Continues to convince it’s best product.
Describe place/distribution strategies used in the maturity stage of the product life cycle
Incentives to encourage preference over rival products.
Describe price strategies used in the maturity stage of the product life cycle
Adjusted to hold off competitors and maintain market share.
Describe product strategies used in the decline stage of the product life cycle
Improvements or rejuvenation or selling to another business.
Describe price strategies used in the decline stage of the product life cycle
Reduced to sell remaining stock.
Describe promotion strategies used in the decline stage of the product life cycle
Discontinued
Describe place/distribution strategies used in the decline stage of the product life cycle
Channels reduced, product offered to loyal segment of market only.
What are the disadvantages of competition based pricing?
- May not adequately cover costs if competitors are pricing unsustainably low.
- Heavily reliant on competitors’ pricing strategies, reducing control over pricing decisions.
- Constantly matching competitors’ prices can undermine perceived value and brand positioning.
What are the advantages of price skimming?
- prestige, status
- Luxury aura
- Ensures high profit margins at launch
- High perceived value and premium brand image.
- Recovers research and development costs quickly.
- Provides funds for further product improvements.
- Acts as a barrier to entry for competitors.
- Reach a niche target market.
What are the advantages of price penetration?
- Discourage competitors from entering the market or from taking market share from existing businesses.
- Quickly attracts a large loyal customer base and brand recognition.
- High initial sales due to attractive low prices.
- Can lead to economies of scale and lower production costs.
What are the advantages of loss leaders?
- Attract customers with low enticing prices.
- Stimulates additional purchases of complementary or higher-margin products.
- Build a reputation of having low prices.
- Get rid of stock.
- Undercuts competitors, gaining market share and positioning as the preferred choice
What are the advantages of price points?
- Easier for customer to find the type of product they need.
- Easier for the business to encourage the customer to ‘trade up’ to a more expensive model.
- Simplifies purchasing decisions for customers.
What are the disadvantages of loss leaders?
- Can result in losses of money.
- Challenging to sell at higher prices in the future.
- Not a long term strategy: can lead to financial strain.
What are the disadvantages of price penetration?
- More difficult to raise prices significantly than it is to lower them.
- May be locked into a low sales revenue until it substantially modifies the product at a later stage.
- Low prices may lead to perceptions of low quality or compromise quality.
What are the disadvantages of price points?
Restricts pricing flexibility, potentially missing opportunities for dynamic pricing adjustments.
What are the disadvantages of price skimming?
- Difficult to increase the price.
- Exclude other market segments
- attract competitors seeking to undercut.
- Short-term strategy: May require frequent adjustments to maintain sales momentum.
- Higher prices can result in lower initial sales volumes.
- Limited initial market feedback due to smaller customer base.
What is culture and subculture?
All the learned values, beliefs, behaviours and traditions shared by society.
Give an example of a culture/subculture which influences marketing
Greater desire for nutritious and healthy foods.
Give examples of family/roles which influence marketing
Women: food, healthcare products, laundry supplies
Teens: influence how their parent’s spend
Define family and roles which influence marketing
Roles within the family and groups within the wider community.
How does a business avoid engaging in deceptive and misleading advertising?
When a business makes any representation, they must ensure it is not untrue or false and is not likely to mislead the type of consumers at which the advertisement is targeted.
Give examples of the survey method of collecting data
personal interviews, focus groups, electronic methods of collection, questionnaires.
What are focus groups?
groups who meet with researchers
What is the advantage of the survey method of collecting primary data?
Gathers first-hand information that provides details of customers’ opinions.
What is the disadvantage of the survey method of collecting primary data?
Respondent rates are declining.
What is the advantage of the observation method of collecting primary data?
electronics can be highly accurate.
What is the disadvantage of the observation method of collecting primary data?
ethical issues (privacy)
only explains what happens not why.
What is the purpose of the experiment method of collecting primary data?
Determine whether changing one of the factors will alter the behaviour of what is being studied.
What is internal secondary data?
Information that has already been collected from internal sources- from inside the business.
What is external secondary data?
Published data from sources outside the business.
Give examples of internal secondary data
customer feedback, sales and management reports…
Give examples of external secondary data
magazines, internet sources, reports form ABS…
What is the first step in the controlling process?
The first step in the controlling process requires the business to outline what is to be accomplished.
What is the second step in the controlling process?
The second step is to compare or evaluate actual performance against the KPI.
What is the advantage of a sales analysis in comparing actual and planned results?
Sales figures are inexpensive to collect and process.
How can product modifications be made in revising the marketing strategy?
Continually updating/rejuvenating products to maintain a competitive advantage.
What is the disadvantage of a sales analysis in comparing actual and planned results?
Data for sales revenue do not reveal the exact profit level.
What is the advantage of a market share analysis/ratio in comparing actual and planned results?
Evaluate marketing strategies compared to competitors’
Reveal whether changes in total sales , either increases or decreases, have resulted from the business’ marketing strategies or have been due to some uncontrollable external factor.
How can price modifications be made in revising the marketing strategy?
Revised in response to changes in the external business environment.
How can promotion modifications be made in revising the marketing strategy?
Change over time corresponding to the lifecycle of the product.
How can place modifications be made in revising the marketing strategy?
- As a product’s success increases, distribution channels will need to be expanded.
- Development of electronic communications = new distribution channels.
What are the disadvantages of customised global pricing?
- Additional costs for market research, analysis, and monitoring.
- Inconsistent Brand Image:
Can lead to perceptions of inconsistency and unfairness, damaging the brand’s global image.
What are the disadvantages of market-customised global pricing?
- Increased complexity:
Requires advanced systems, thorough market research, and constant monitoring. - Inconsistent Brand Perception
What are the disadvantages of standard worldwide pricing?
- A domestic business may undercut the standardised price.
- Changes in the exchange rate may negatively impact the exported price.
- May not reflect local economic conditions, purchasing power, or competitive environment
What happens if standard worldwide pricing does not reflect local economic conditions, purchasing power, or competitive environment?
Prices become too high, reducing affordability and sales, or too low, missing out on potential profit.
What are the advantages of standard worldwide pricing?
- Simplicity and Efficiency
- Consistent Brand Image: Perception of fairness, building trust and loyalty among consumers.
- Economies of Scale:
In production, distribution, and marketing. Can lead to cost savings, more efficient resource allocation and operational processes.
What are the advantages of market customised global pricing?
- Avoid competition from a domestic business.
- Enhanced Market Penetration:
Businesses can better penetrate markets, making products more accessible and appealing to a broader range of consumers. - Competitive Edge: Position themselves effectively against local competitors.
What are the advantages of customised global pricing?
- Competitive Positioning: Allows for strategic pricing to compete effectively with local competitors and capture market share.
- Ensures pricing strategies comply with local regulations and tax structures.
- Prices match purchasing power and economic conditions of each market, making products more affordable and attractive.
What are examples of poor inventory control as a physical distributions issue and their impacts of the business?
Constantly ‘out of stock’ products =
↓ sales & market share.
Too much stock = high storage costs
Too little stock = stock-out costs
Define warehousing
Receiving, storing and dispatching goods.
What is the advantages of the producer → customer distribution channel?
Simplest channel with no intermediaries.
What are the advantages of cost-based pricing?
- Easy to calculate
- Minimal market research
- Ensures all costs are covered
- Guaranteed profit margin
Why does cost-based pricing result in minimal market research?
Relies primarily on internal cost data, making it simpler and less time-consuming to set prices.
How does cost-based pricing ensure all costs are covered?
All expenses are accounted for, preventing losses if prices were set too low.
How does cost-based pricing guarantee a profit margin?
Mark-up ensures each sale contributes a predictable profit margin
Helps plan profitability
Avoid underpricing.
What are the advantages of market-based pricing?
- Maximise revenue
- Competitive advantage
- Flexibility
How does market-based pricing maximise revenue?
Capturing the highest price consumers are prepared to pay and capitalising on peak demand periods.
How does market-based pricing give a competitive advantage?
Quickly respond to market changes
Stay ahead of competitors
Set competitive prices
How does market-based pricing improve flexibility?
Responsive to fluctuations in supply and demand
Facilitates the use of promotions and discounts to stimulate demand during slow periods
What are the advantages of competition-based pricing?
- Competitive positioning
- Customer trust
- Covers costs while remaining competitive, ensuring that the business maintains profitability.
How does competition-based pricing improve competitive positioning?
Gauge pricing against competitors
Position products effectively within market
Product remains competitively priced
How does competition-based pricing improve customer trust?
Customers perceive prices as fair and reasonable when they align with competitors, enhancing trust and loyalty
Easier for customers to compare products
What are the disadvantages of cost-based pricing?
- Difficulty in accurately determining an appropriate mark-up percentage.
- The product is priced after production and associated costs are incurred without taking into account the other elements of the marketing mix or the state of the market.
What are the disadvantages of market-based pricing?
- Difficult to apply because the levels of supply and demand will constantly change.
- Requires continuous monitoring of market conditions
- Relies heavily on market trends, which can be unpredictable and beyond the business’s control.
- Frequent price changes can confuse or frustrate customers, potentially harming brand loyalty.
What is the advantages of private or house brand for consumers?
Cheaper because the retailer or wholesaler can buy at lower costs.
What is the advantage of manufacturer’s brand?
High appeal with customers because they are recognised across the country, are widely available and offer reliability with constant quality.
Give examples of demographic segmentation
Age
Gender
Education
Occupation
Religion
Ethnicity
Social class
Income
Give examples of geographic segmentation
Region
Urban
Rural
City size
Climate
Give examples of demographic segmentation
Purchase occasion
Benefits sought
Loyalty
Usage rate
Price sensitivity
What decision to business’ face in the decline stage of the product life cycle?
To either delete or redevelop the product.
Describe fine print and qualifications as a form of deceptive and misleading advertising
When important conditions are written in small-sized print. This information must not contradict the overall message of the advertisement.
Describe comparative advertising as a form of deceptive and misleading advertising
If an advertisement compares products or services to others on the market, advertising can be misleading if the comparison is inaccurate or does not appropriately compare products.
Describe country of origin as a form of deceptive and misleading advertising
It is illegal to make false or misleading claims about the country of origin or goods.
Describe environmental claims as a form of deceptive and misleading advertising
When businesses make environmental claims about products, they must be able to substantiate them.
Describe premium claims as a form of deceptive and misleading advertising
Claims that give the impression that a product has some kind of added benefit when compared to similar products, can only be made if the claims are not misleading and can be substantiated.
Describe prize giveaways and competitions as a form of deceptive and misleading advertising
If a business gives away free items or prizes, they must not mislead consumers about the items on offer or the chances of receiving these items.
What does the CCA 2010 prohibit regarding warranties?
CCA 2010 prohibits false or misleading statements concerning the existence, exclusion or certain conditions of the warranty.
What does the societal marketing approach emphasise?
CSR, sustainable development
What does the societal marketing approach balance?
Consumers’ wants, business profits, society’s long term interests
Who is liable for damages and loss caused by a safety defect in products?
The manufacturer
What can businesses with a substantial degree of market power not do?
- get rid of a competitor
- prevent anyone from competing
- prevent a competitor from entering a market
Define e-marketing
the practice of using the internet to perform marketing activities.
Advantages of e-marketing
Allows businesses to reach a global audience
Provides cost-effective marketing solutions compared to traditional methods
Real-time data and analytics help track and measure campaign performance
Enables personalised and targeted marketing efforts
Disadvantages of e-marketing
Consumers seeking the convenience of online shopping will purchase from overseas retailers and completely bypass local businesses
Can face issues with data privacy and security
Requires constant updates and maintenance to stay effective
May need to hire additional expert staff or training
Campaigns can struggle to stand out in a saturated digital space
What are some examples of e-marketing technologies?
Web pages
Podcasts
Electronic messages
Blogs
Social media advertising
Advantages of social media advertising
Inexpensive compared to traditional advertising methods
Easy to use and monitor
An effective method to gain exposure
Possible for markets to accurately measure the reach and frequency.
Define reach
no. of people exposed to the message/ advert
Define frequency
Avg no. of times someone is exposed to the message / advert
Disadvantages of social media advertising
Marketers do not have complete control over what online consumers write about the business / product
Managing multiple social media platforms can be time-consuming
The fast-paced nature of social media can make it difficult to keep up with trends and updates
What are some examples of the added costs which customised global pricing covers?
transportation, taxes, warehousing, tariffs
What points of differentiation can be made in product/service differentiation?
Customer service
Environmental concerns
Convenience
Social and ethical issues
What are the advantages of branding to the customer?
Identify the specific products that they like.
Evaluate the quality of products, especially when a consumer lacks the expertise to judge a product’s features.
Reduce their level of perceived risk of purchase. A respected and trusted brand will provide reassurance that the consumer is making the right choice.
Gain a psychological reward that comes from purchasing a brand that symbolises status and prestige.
What are the advantages of branding to the business?
Gain repeat sales because consumers recognise the business’s products
introduce new products onto the market because consumers are already familiar with the business’s existing brands
With their promotional activities because the promotion of one product indirectly promotes all other similarly branded products
Encourage customer loyalty. This has the added benefit to the business of being able to charge a higher price for the product.
What is the advantage of well-designed packaging?
Well-designed packaging will give a positive impression of the product and encourage first-time customers.
What are the benefits of packaging?
preserves the product
protects the product from damage or tampering
attracts consumers’ attention
divides the product into convenient units
assists with the display of the product
makes transportation and storage easier
Acts as a form of communication
How does a SWOT analysis identify strengths?
- Highlights unique selling points
- Shows areas where the marketing team excels
- Identifies competitive advantages + points of differentiation that can be leveraged in marketing campaigns.
How does a SWOT analysis reveal weaknesses?
- Pinpoints gaps in the current marketing strategy
- Identifies areas where competitors may have an edge.
- Helps understand internal limitations, like budget constraints or lack of marketing expertise.
Advantages of a SWOT analysis
Identify the things you have control over and can change.
Identify the things you can’t change
Identifies Strengths
Reveals Weaknesses
How can the product life cycle give a competitive advantage?
- time their promotional activities to maximise impact
- strategic product launches and retirements
How can the product life cycle manage risks?
- when to phase out products and introduce new ones to maintain market relevance and minimise losses
How can the product life cycle result in innovation and development?
- Encourages continuous improvement and innovation to extend the product’s lifecycle.
- Identifies opportunities for product updates or new product introductions.
How can the product life cycle help marketers plan and adjust strategies for each stage?
- predicting future sales trends and potential revenue.
- Inventory management by anticipating demand changes.
Advantages of a product life cycle?
Helps marketers plan and adjust strategies for each stage
Innovation and Development
Manage risks
Competitive advantage
What is involved in the first step of market research; determining information needs?
The problem is clearly and accurately stated to determine what needs to be measured and the issues involved.
What is the main advantage of collecting primary data?
collection is directed at solving a specific marketing problem.
Why is increasing market share an important marketing objective?
Small market gains often translate into large profits.
What is the propose of a secondary target market?
Provide an alternative in case there is a loss of customers from the primary target market.
What are the advantages of identifying and selecting a target market?
Better satisfy the news and wants of the targeted group.
Use marketing resources more effectively
Make promotion material more relevant to the customer’s needs
Better understand the consumer buying behaviour of the target market.
Collect data more effectively and make comparisons within the target market over time.
Refine the marketing strategies used to influence customer choice.
What is the main question asked in the cost estimate step of developing a financial forecast?
how much is the marketing plan expected to cost?
What is the main question asked in the revenue estimate step of developing a financial forecast?
how much revenue is the marketing plan expected to generate?
Why should products eventually be deleted?
Outdated products may create an unfavourable image and this negativity may rub off on other products sold by the business.
What are the advantages of physical evidence?
Can assist a business with positioning its brand and attracting its target market.
High-quality physical evidence = an image of value and excellence.
Give examples of physical evidence
environment of service
materials needed to carry out the service
Why is competitive positioning important?
Without differentiation, it takes more time, money and effort to encourage potential customers to purchase a business’s products.
What should a business strive to achieve in competitive positioning?
Product leadership, positive customer relationships and operational excellence.
What is operational excellence?
Ability of a business to be run efficiently as a low-cost operation
What is product leadership?
Refers to a business that continually enhances its brands through innovation and quality.
What is the ultimate aim of market segmentation?
Ultimate aim to increase sales, market share and profits by better understanding and responding to the desires of the different target customers.
Why is the ‘people’ element of the marketing mix important?
Consumers base their perceptions and make judgements about a business based on how the employees treat them.
Define marketing strategies
actions undertaken to achieve the business’s marketing objectives through the marketing mix.
What is customer intimacy?
When a business develops a personalised profile of its customers’ buyer behaviour so the business can develop a relationship with the customer in the long term.
Why is market research important?
Marketing strategies perform best when they are based on accurate, up-to-date, detailed and relevant information.
Being well-informed about all aspects of the market, especially the buying behaviour of existing and potential customers, places the business in a stronger position.
Minimise risk.
Identify and outline both marketing opportunities and problems, & evaluate implementation of marketing plan.
Establish whether it is worth launching/promoting a product at all.
