Marketing Flashcards
what is marketing?
researching what the market want and need
What does STP stand for?
segmenting, positioning, targeting
what are the 3 marketing objectives?
- sales targets
- brand awareness
- market share
What are the 3 internal influences on marketing objectives?
operations
HR
finance
What are the external influences on marketing objectives?
PESTEL
when analysing the market what should you look for?
- the size of the market
- the competitions market share
- the costs and difficulties entering the market
- patterns and trends of sales
- substitute products available
Why should you analyse markets? ( 5 points)
- because relying on gut feeling is risky
- you know where you are and where you’re going
- reduces risks
- you can then set a feasible objective or plan
- you can predict future market conditions
what are 3 ways in which you can analyse trends
moving averages
correlation
extrapolation
what are moving averages
taking the average sales for three months and plotting that on a graph because sales change so much from month to month
what is extrapolation
using previous trends to predict the future
what are 2 ways of estimating future sales
using market research
using your best guess
What is forecasting
- estimating the volume or value of sales in the future
- moving averages, conciliation and extrapolation are ways of forecasting
advantages of forecasting (3 points)
+ makes managers think ahead
+ gives insight into what direction sales are going
+ can be updated
Why might forecasts be wrong?(4 points)
- customers buying behaviours change suddenly
- market research is bad
- the experts were wrong
- you were looking too far ahead where it is hard to predict
what are the problems with analysing markets? (3 points)
- data will relate to the past
- data might not be in the form you want
- it takes time to gather and analyse data
How can you analyse markets?
using the ansoff matrix
describe the ansoff matrix
market development - new market existing product
market penetration - existing product existing market
new product development - new product existing market
diversification - new market new product
what is market penetration
selling more existing products to existing customers
who came up with the low cost vs differentiation strategy?
Porter (1985)
what is a low cost strategy?
providing similar benefits to the competition but at a low price
What is a differentiation strategy?
offering more benefits than the competition at a high price
why would you change a marketing strategy? (5 points)
- competitiors actions
- marketing objectives might have changes
- market conditions might have changed
- poor performance
- changes in the firms strengths
why would you expand overseas? (4 points)
- domestic market is saturated
- increased competition at home
- spreading the risk
- market opportunities overseas
what are the 5 stages of entering an overseas market?
1) export
2) export via an overseas agent
3) set up a franchise overseas
4) joint venture/partnership with someone local
5) direct investment
once you have expanded overseas what is globalisation and localisation?
globalisation - offer the same product
localisation - adapt the product to fit local needs w
what does a marketing plan set out?
- objectives
- strategy
- budget
- activities
the 4 advantages of a marketing plan
- helps coordinate the business
- progress can be reviewed
- forces managers to think ahead
- plan provides a sense of direction
3 disadvantages of a marketing plan
- can become out of date
- time consuming to make
- some mangers become married to the plan
what does the size of the marketing budget depend on ?
- the firms overall financial position
- the marketing objectives and strategy
- the amount of profit the firm expects to make
- the competitors
