Marketing management Flashcards
What are the key marketing objectives?
Sales volume and sales size
Market size
Market and sales growth
Market share Brand loyalty
What is the definition of marketing?
Gaining an understanding of what product/service is needed to match customer requirements.
What are marketing objectives and their purpose?
Marketing target/goals that an organisation hopes to achieve
steer the direction of the business
probability of success is likely to increase as the business is more focussed
What is sales volume?
Number of products/services sold and is expressed in whole numbers
What is sales size?
£ revenue earned from selling products/services and is expressed as a value
What is market size?
The total sales revenue made from selling all the products/services that a business has to offer over a year
What is the formula for market growth?
Market size year 2 - Market size year 1/ Market size year 1 x100
What is the formula for sales growth?
Sales year 2 - Sales year 1/ Sales year1 x100
What is the formula for market share?
Sales of business/ Total market sales x100
What is market share and what does it measure?
It measures the amount of sales as a % of the total sales that a business has in a market.
Explains how the overall market is split between the existing competitors.
Why is setting marketing objectives important?
Ensures functional activities consistent with corporate objectives.
Provide a focus for marketing decision-making and effort.
Provide incentives for the marketing team and a measure of success/failure.
Establish priorities for marketing resources and effort.
What is the definition of brand?
Identifying symbol, mark, logo, or name that businesses use to distinguish one company from another.
What are the benefits of brand loyalty?
Increase repeat business from the customer
What are the internal influences that impacts marketing objectives set by businesses?
Cost
Corporate objectives
Human resources
Business culture
What are the external influences that impacts marketing objectives set by businesses?
Economic environment
Market dynamics
Competitor actions
Social and political change
Technological change
What is market research?
Process of identifying, gathering, and analysing information and data to be more informed about competitors and customers.
What is the purpose of market research?
Gain a more detailed understanding of consumers’ needs
Reduce the risk of product/ business failure
Forecasts future trends
What is sampling?
When researchers question a portion or “sample” of a larger group and use the results to make conclusions about the whole group.
What is market mapping?
Useful framework for identifying the market positioning of a business, brand, or product relative to others in the market using simple criteria.
What are the advantages of market mapping?
Easy to put together
Helps spot gaps in the market
Useful for analysing competitors
Is part of the process of conducting market research
What are the disadvantages of market mapping?
Just because there is a “gap” doesn’t mean there is demand for the product.
Not a guarantee of success
How reliable is the market research that maps the position of existing products based on chosen dimensions?
What is a correlation?
A relationship between 2 variables
What is extrapolation?
Trend line has been extended
Researchers use quantitative data to predict future sales
What happens if PED<1?
The price is inelastic so consumers will continue to buy continue to buy if the price rises.