marketing decisions Flashcards
what are the different kinds of marketing objectives
-sales volume and sales size
-sales growth
-market share
-market size and market growth
-market share
-brand loyalty
what is the calculation to find market growth
market size -old market size / old market size x 100
what is the calculation for market share
sales / total market size x 100
what is the calculation for sales growth
sales this year - sales last year / saes last year x100
what is market mapping
market mapping compares two features of brands.
how expensive they are and how much quality they have
why is market mapping useful
market mapping can help a business spot a gap in the market
shows who the closest competitors are
why is market research conducted ?
market research helps a business to spot opportunities -such as customer buying patterns
helps them see if business plans are working
what is quantitative market research
-quantitative means numerical statistics -facts and figures
what is qualitative market research
qualitative research looks into the feelings and motivations of customers
what is primary market research
primary market research is a unique study eg data gathered using things like questionars or interviews
what is secondary market research
secondary market research means gathering data that already exists -easier faster and cheaper
what is time series analysis
time series analysis is used to reveal underlying patterns by recording and plotting data over time e.g recording sales over the course of a year
what are trends
a trend is a long term movement of a variable
what is extrapolation
extrapolation means using previous trends in order to forecast future trends
how could a business use technology to gather information about customers
through the use of loyalty cards
entering information on websites
what is price elasticity of demand
the price elasticity of demand shows how sensitive demand is to changes in price
the price elasticity is more than 1 is it price elastic or price inelastic
if the coifent is more than 1 then the product is price elastic
if the product is less than 1 e.g 0.5 then is it price elastic or price inelastic
inelastic
how is price elasticity calculated
change in quantity demanded/ change in price
how is income elasticity calculated
change in quantity demanded/ change in real income
what does STP stand for in relation in marketing decisions
segment, target, position
what does it mean to segment a market
to divide a market into different groups of buyers, each group will have different wants and needs and characteristics
what is a target market
decide which market segment to focus upon
how is positioning done with relation to a target market
positioning the product to best appeal to the target market
what are the seven Ps of the marketing mix?
product, price, place, promotion, people, process and physical environment
what are the three types of consumer product
convenience products - inexpensive everyday products bought regularly by lots of people
shopping product- things like cloths and computers, more expensive and are sold in fewer places than convenience products
speciality products- these are things consumers believe hold more value or are unique in some way and these customers would be willing to travel to buy from this specific brand
describe the different points on the Boston matrix
stars - high market share high growth
question marks - high growth low share
cash cows - high share low growth
dogs - low growth low share
list the stages of the product life cycle
development - research and development
introduction - product in launched
growth - product is growing fast lots of new customer
maturity - sales reach a peak and profitability increases fewer new customers
decline - the product doesnt appeal to customers any more sales fall rapidly
extension strategies could be used e.g improving or changing the product so it doesnt go into matury or decline
what is price skimming
when a product is released it initially has higher prices and over time the prices decrease
penetration pricing
pentration pricing is the opposite of price skimming where prices start of low and increase incrementally over time
what is predatory pricing
predatory pricing is when large market leaders lower their prices to a point where smaller competition cannot compete on prices so these smaller companies are forced out of the market
what is dynamic prices
dynamic pricing is when prices are changed depending on external factors and dont stay fixed
what are the alternate types of pomortion
-advertisement
-PR good publicity in the media
