marketing Flashcards
Whats a moving average?
a technique for identifying an underlying trend by smoothing out fluctuations in data
Whats extrapolation?
a prediction of future trends based on an identified current trend
Whats a trend?
A general direction in which something tends to move
strengths and limitations of extrapolation?
- helps budget setting and production planning
- helps with promotional strategies
- but relies on what happened in the past to continue happening
Whats a correlation?
a relationship between two factors
Whats a test market?
A full scale launch on a representative sample of the target market i.e. geographically
goal is to achieve results that represent the response of the whole market
How can a company achieve low prices?
- reduce their own costs
- economies of scale
- lowest cost suppliers
- low cost location
How can a company achieve differentiation?
- appear diff or superior
- involves all elements of marketing mix
- new invention, USP, strong brand image
What is the trend between cost of marketing and sales?
positive
the more spent of marketing/ promotion the greater the sales
Whats market penetration?
current product to existing customers
Whats product development?
new products to existing customers
Whats market development?
new customers/markets to existing products
Whats diversification?
new markets with new products
Two types of diversification?
related - involved in actvities of its customers,suppliers or competitors
unrelated - business has no experience
