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Business Management > Marketing Management Slide 9 > Flashcards

Marketing Management Slide 9 Flashcards

1
Q

What is marketing management

A

Involves managing the total process of identifying customer needs, developing products and services to meet those needs establishing promotional programs and pricing policies and designing a system of distributing products and services to customers.

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2
Q

What does anticipating future needs involve

A

having the right goods and services available when the customer is ready to buy them.
May take the form of anticipating the quantity, the quality or the new features that may be required.

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3
Q

What does the target market identify

A

that different customers have different needs

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4
Q

What does market segments come up with

A

a specific market strategy for each market segment.

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5
Q

What is the starting point for any marketing program

A

Identifying customer needs

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6
Q

What is the primary focus for any marketing program

A

Satisfying the customer needs

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7
Q

Describe a product-driven marketing approach

A

based on offering a unique product that satisfies a specific customer need.

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8
Q

Describe a sales driven marketing approch

A

based on intensifying the sales effort and/or reducing prices in order to improve sales.

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9
Q

Describe a market driven marketing approach

A

based on a true understanding of customer needs; focus on customer needs drives all decisions and activities in the organisation.

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10
Q

What is a strategic marketing plan

A

a set of activities intended to help a firm anticipate the needs of targeted customers and find ways to meet those needs profitably.

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11
Q

What are the 5 sets of marketing activities involved in a strategic marketing plan

A

Conduct a SWOT analysis
Choose a target market
Choose a position
Develop the appropriate marketing mix
Evaluate and refine the marketing plan

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12
Q

What does SWOT stand for

A

Strengths , weaknesses , opportunities and threats

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13
Q

What is the objective of SWOT analysis

A

identify opportunities & threats out there in the market and the sustainable, and relative/distinctive core competencies of your own business.

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14
Q

Strengths and weaknesses do they focus what is going on within or outside the firm

A

Within the firm

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15
Q

Opportunities and threats do they focus what is going on within or outside the firm

A

Outside the firm

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16
Q

What is market segmentation

A

The process of classifying customers into categories that have members who will react in a common way to a firm’s marketing decisions.
•For example customers who will react in the same way to a promotional offer.

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17
Q

Why might a firm choose to segment it’s market

A

Primary motive is to increase profit
Can help to identify growth opportunists and ways to expand product lines
Many companies are not in a position to compete across all markets so by segmenting markets they can can identify the markets which they might be able to compete most effectively

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18
Q

What is geographic segmentation an example of

A

Market segmentation

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19
Q

What is geographic segmentation

A

Is a means of classifying or categorising customers or potential customers by their geographic location.

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20
Q

What markets is geographic segmentation often used for

A

Food markets where tastes and preferences may vary geographically
Eg: lamb consumption is higher in France and Mediterranean countries than in many Northern or Eastern European countries

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21
Q

What is demographic segmentation an example of

A

Market segmentation

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22
Q

What is demographic segmentation

A

approach which groups customers based on demographics such as age, income, size of household, education, number of children, type of employment, etc.

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23
Q

What industry is demographic segmentation often used in

A

Food industry

Age - Substantial growth in the production of food products targeted at younger consumers and specific advertising and promotions targeted at these consumers e.g. National Dairy Council “Obey your body” advert.
Size of household – Growth in the number and variety of ready made meals for one, but also family meal products.
Number employed – Growth in the availability of convenience foods such as ready made meals, bagged salad etc.

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24
Q

What is operating characteristics segmentation an example of

A

Market segmentation

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25
Q

What is operating characteristics segmentation

A

approach based on characteristics such as type of operation, size of operation, production technology used and form of ownership.

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26
Q

Describe operating characteristics segmentation

A

Type of operation – Fertiliser company may have different marketing strategies for tillage and livestock farmers as they purchase different fertiliser products and at different times of the year.
Size of operation – larger customers may get preferred treatment such as bulk discounts, longer credit, etc.
Production Technology used may determine the inputs that you market to a particular customer products.
Form of ownership – If a farmer or firm are only renting the land or premises then they are unlikely to invest in any significant capital improvements as they may not retain the benefit.

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27
Q

What is geo demographic segmentation an example of

A

Market segmentation

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28
Q

What is geodemographic segmentation

A

approach based on grouping households into geographic clusters based upon such information as type of accommodation, occupation, number and age of children, ethnic background, etc.

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29
Q

Describe geo demographic segmentation

A

◦For example a firm marketing agricultural inputs may have different marketing strategies for:
◦The north-west and south-east
◦Young farmers versus old farmers
◦Cattle farmers versus dairy farmers
•Information such as census data can be used to group.

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30
Q

What is psychographic or behavioural segmentation an example of

A

Market segmentation

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31
Q

What is psychographic or behavioural segmentation

A

approach based on classifying or categorising customers or potential customers by a combination of their psychological profiles and demographic data.

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32
Q

Describe where psychographic or behavioural segmentation may be used

A

where firms believe that purchasing decisions are linked to the personality or lifestyle of consumers.
◦For example companies may market products aimed at the “healthy lifestyle” segment or the “gourmet” segment.

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33
Q

What is benefit segmentation an example of

A

Market segmentation

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34
Q

What is benefit segmentation

A

approach based on the grouping of people according to the different benefits they seek from a product.

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35
Q

Describe where benefit segmentation may be used

A

For example a food product may be broken down into sub products according to different benefits from the product low fat, low salt, etc.
•Rather than just marketing yoghurt you may have full fat, low fat, 0% fat, no added sugar, etc.
•Different benefits may appeal to different customers

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36
Q

What is purchase behaviour segmentation an example of

A

Market segmentation

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37
Q

What is purchase behaviour segmentation

A

approach based on customers purchasing behaviour or purchasing decisions.

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38
Q

Describe where purchase behaviour segmentation may be used

A

For example some customers have a high level of brand loyalty
•Other customers will look for value, switching brands according to price or promotional offers
•Other customers are variety seekers, they like to buy different brands each time.
•Supermarkets now collect a vast amount of data through loyalty schemes that can be used to profile customers.

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39
Q

What is usage segmentation an example of

A

Market segmentation

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40
Q

What is usage segmentation

A

approach that segments customers based on their level of usage of a particular product category.

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41
Q

What criteria should well defined market segments pass

A

Measurable
Substantive
Actionable
Competition
Growth potential
Profitability

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42
Q

Name the four target market strategies

A

Undifferentiated
Differentiated
Focused
Customised

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43
Q

When does undifferentiated marketing occur

A

a)market analysis identifies no pronounced differences in customer characteristics
b)the cost of developing a separate market mix for different segments would outweigh the benefits.

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44
Q

When does differentiated marketing occurs

A

Where specific marketing mixes are developed to appeal to all or some segments of the market.
•This approach can be more expensive.

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45
Q

When does focused marketing occur

A

Is where a company develops a single marketing mix aimed at one target (niche) market.

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46
Q

When does customised marketing occur

A

This is where an individual customer has unique requirements and their purchasing power is sufficient to make the design of a customised marketing mix viable.

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47
Q

Define position

A

The specific market space, image, set of activities, and/or products and services that a firm wants to be known for among its target customers.

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48
Q

What is positioning

A

the process of creating the desired image or position in the customers mind.
•Emphasis should not be on the product but rather the customers perception of the product.

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49
Q

Define competitive advantage

A

the set of firm competencies that are important to customers where the firm has a clear and distinct advantage over the competition.

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50
Q

How to establish competitive advantage

A

Provide customers with unique products and services
Be a low cost leader

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51
Q

What is differential advantage

A

involves offering buyers unique products and services which add value for the buyer but are unavailable from other firms.

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52
Q

Name the potential criteria for differentiation

A

Product performance
Delivery
Product quality
Taste
Packaging

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53
Q

What is cost leadership

A

involves meeting competitors product offerings with an offering of comparable quality and features, but beating the competitor on price.

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54
Q

What is clarity in regards to successful positioning

A

The idea must be perfectly clear, both in terms of target market and differential advantage.
Positioning statements should have a clear message.

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55
Q

What is consistency in regards to successful positioning

A

Firms should be consistent in how they try to position their product.
Confusion may arise if you try to change your marketing message from one year to the next.

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56
Q

What is credibility in regards to successful positioning

A

The selected differential advantage must be credible in the minds of your target customers.
•There is no point in trying to promote your product as a high quality product or a healthy product if customers don’t perceive it that way
•E.g. you wouldn’t promote chocolate bars on health grounds

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57
Q

What is competitiveness in regards to successful positioning

A

The chosen differential advantage must possess a competitive advantage.
•It should offer something of value to the customer that the competition is not providing.

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58
Q

What is INTANGIBLE REPOSITIONING

A

where you don’t change the product but change the target market.

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59
Q

What is TANGIBLE REPOSITIONING

A

involves changing both the product and the target market.

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60
Q

Give an example of intangible repositioning

A

Lucozade was re-positioned as a drink for healthy vigorous athletes to get away from its previous position as a drink aimed only at sick people and invalids

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61
Q

Give an example of tangible repositioning

A

Ryanair repositioned itself from a focus on business customers and offering a full service to an airline focussed on low cost fares and occasional travellers.

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62
Q

Define marketing mix

A

the combination of product, price, promotion and place strategies developed and implemented by a firm to support a specific position in the market.

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63
Q

Another name for the marketing mix

A

The four P’s of marketing

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64
Q

Name the four P’s of marketing

A

Product
Price
Promotion
Place

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65
Q

What must the firms decide for product

A

◦The mix of different products and services offered.
◦The extent of each product line.
◦The specific characteristic of each product sold.
◦The level and type of information provided in the bundle

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66
Q

What is the value bundle

A

the set of tangible and intangible benefits customers receive from the products, services and information a firm provides.

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67
Q

What is value for a customer

A

the ratio between what they perceive as the benefits of consuming a product and the costs of purchasing it

68
Q

What can be used to understand customers perceptions of intangible benefits

A

Focus groups
Surveys
Input from sales staff

69
Q

What is branding

A

the process by which companies distinguish their product offerings from those of the competition.

70
Q

What is a brand

A

a distinctive product offering created by the use of a name, symbol, design, packaging or some combination of these intended to differentiate it from its competitors.

71
Q

The difference between your product and other products is this tangible or intangible

A

Intangible

72
Q

What does a brand involve

A

Developing a distinct packaging and design

73
Q

Describe the six factors that the strength of a brands position in the marketplace is built on

A

◦Brand Domain: the brands target market i.e. where it competes
◦Brand Heritage: the background to the brand and its culture
◦Brand Value: the core values and characteristics of the brand
◦Brand Assets: what makes the brand distinctive from other competing brands
◦Brand Personality: the character of the brand described in terms of other entities such as people, animals or objects.
◦Brand Reflection: how the customer perceives him or herself as a result of buying the brand.

74
Q

Name the six factors that the strength of a brands position in the marketplace is built on

A

Brand domain
Brand heritage
Brand value
Brand assets
Brand personality
Brand reflection

75
Q

Example of family brand name

A

Heinz
Cadbury
Del Monte

76
Q

What is the danger of family brand name

A

If one product receives negative publicity then all products will be affected

77
Q

What is an individual brand name

A

a brand name that does not identify a brand with a particular company.

78
Q

Example of individual brand name

A

Procter & Gamble
Unilever

79
Q

What is own label brands or retail brands

A

created and owned by distributors e.g. supermarkets.

80
Q

Describe Rogers 1995 systematic stages that ideas are diffused through the market

A

1.Awareness: people have heard about the product but don’t have enough information to make a purchasing decision.
2.Interest: people become interested enough to learn more about the product.
3.Evaluation: people decide whether or not to try the product.
4.Trial: the customer trials the product.
5.Adoption: the customer starts to use the product on a regular basis.

81
Q

Describe the five groups Rodger’s 1995 classified users of a new product or technology into

A

1.Innovators: The first group of buyers to try a new idea, product or service, tend to be venturesome people who like to try new ideas.
2.Early Adopters: The second group of people to try a new idea, product or service; tend to be progressive well respected people.
◦Tend to act after they have observed the experience of innovators.
3.Early Majority: The third group of buyers to try a new idea, product or service; tend to be deliberate people who see themselves as fairly progressive but not as leaders.
◦Tend to be a large and important part of the market.

4.Late Majority: The fourth group of buyers to try a new idea, product or service; tend to be sceptical people who adopt new ideas only after considerable evidence has been accumulated.
5.Laggards: The final group of buyers to try a new idea, product or service; tend to be tradition-bound people who take so long to adopt new ideas that by the time they are adopted they are no longer new

82
Q

Name Rogers 1995 systematic stages that ideas are diffused through the market

A

Awareness
Interest
Evaluation
Trial
Adoption

83
Q

Name the five groups Rodger’s 1995 classified users of a new product or technology into

A

Innovators
Early Adopters
Early Majority
Late Majority
Laggards

84
Q

When Agribusiness firms introduce a new product which groups will they initially focus their marketing program on

A

Innovators and early adopters then gradually change their marketing strategy to target other groups

85
Q

What is the Product Life Cycle (PLC)

A

the predictable way in which sales and profits of a product unfold as a product is introduced, grows rapidly, the market matures, and the product ultimately declines in the market place.

86
Q

What does the Product Life Cycle emphasis

A

that some products need to be terminated and new products developed.

87
Q

How many stages in the evolution of sales or profit levels or Product life Cycle

A

5 stages

88
Q

Name the 5 stages of the product life cycle

A

Development
Introductory
Growth
Maturity
Decline

89
Q

Describe the development stage of the Product Life Cycle

A

where you analyse the market and develop your product and marketing strategy.
◦During this stage there is no sales and therefore no revenue but research and development costs may be high.
◦As a result the product will earn a loss.

90
Q

Describe the Introductory stage of the Product Life Cycle

A

the time when the new product first appears on the market.
◦This stage involves high costs associated with product promotion.
◦Growth in sales volume is quite low.
◦Company should monitor the speed of product adoption and if it is disappointing they may terminate the product.
◦Trying to build brand awareness, through promotions, advertising.
◦Initially the price may be high due to high development costs.
◦As sales volume starts to grow you may start to make a profit.

91
Q

Describe the Growth Stage of the Product Life Cycle

A

is a period of rapid expansion when sales levels increase.
◦Prices are kept fairly constant as you try to develop customer loyalty.
◦The product becomes more widely available.
◦Sales growth becomes more rapid as the product becomes more widely accepted.
◦This growth may encourage new entrants to the market and lead to greater competition
◦Profits may increase rapidly but costs also start to rise as you increase sales volume.
◦At this point the objective is to build sales and market share and may involve some product redesign to further differentiate it.

92
Q

Describe the Maturity Stage of the Product Life Cycle

A

is characterised by slow growth and possibly some decline in sales as the market becomes saturated.
◦Sales will eventually peak and may stabilise as saturation occurs.
◦At this point sales largely consist of late majority, laggards and replacement sales to the established customers.
◦The remaining companies are now competing for market share on the basis of product improvement, advertising, sales promotional offers, price cutting and so on.
◦This stage often lasts longer than the others.
◦A lot of the marketing activity focuses on prolonging this stage leading to increased costs and reduced profits.

93
Q

Describe the Decline Stage of the Product Life Cycle

A

sees sales levels declining more rapidly.
◦Changing consumer preferences and/or new substitute products impact negatively on the product.
◦Sales volume is declining and as a result profits decline and may even start to see a loss being earned.
◦Often results in the product being discontinued.

94
Q

What type of products have a Product Life Cycle that may be very short

A

Fad type

95
Q

What is the formula for revenue

A

Price X quantity sold

96
Q

When determining the price what to firms typically take into account

A

the type of product, customer demand, the competitive environment, product life-cycle stage, the product mix, the cost of the product or service and the pricing strategy of competitors.

97
Q

What do some firms use to set their price for a product or service

A

Economic principles

setting price at that point where Marginal Revenue equals Marginal Cost.

98
Q

Describe Cost-based pricing or Cost-plus pricing method

A

is a pricing method based on adding a constant margin to the basic cost of the individual product or service.

•This margin should cover the overhead and handling costs and leave some profit margin for the firm.
•Often it can be as simple as a percentage mark-up.
•For example a product that costs €1.00 to produce with a 30% mark-up is therefore sold for €1.30.

99
Q

Advantages of Cost-based pricing or Cost-plus pricing method

A

◦Can be relatively simple to implement especially where you have a lot of goods can just apply the same margin to all goods.
◦If done correctly ensures you cover your production costs.

100
Q

Disadvantages of Cost-based pricing or Cost-plus pricing method

A

◦Often a firm may not know what its costs are or may have difficulty in allocating its overhead costs.
◦As shown in example adjustment in sales forecasts can impact the price substantially.
◦It’s naïve to prepare sales forecasts before you have set the price.
◦It focuses on what your costs are rather than what customers are willing to pay.

101
Q

Describe Competitive pricing method

A

is a pricing method based on competitors prices where prices are set at the going rate.

•This may involve firms following the prices charged by leading competitors.
•Where producers take the going-rate price
•Sometimes price may be held a little lower or higher than the competitor.
•This is quite common practice for commodity products which are not very distinctive and therefore establishing a price premium can be difficult.

102
Q

Advantages of Competitive Pricing method

A

◦It is simple and easy to use.
◦It works well so long as your cost structure is similar to the larger firm.

103
Q

Disadvantages of Competitive Pricing method

A

It does not take into account any differential advantage you may have which may justify charging a higher price than the competition.
◦A firm can get into difficult if their costs are higher and they are continuously trying to match the market leader.
◦Lower cost producers may reduce the price to try to increase market share.

104
Q

Describe CTO (Contribution-to-overhead Pricing) or Marginal Cost Pricing method

A

is a pricing method based on encouraging extra sales by selling additional product above and beyond some base sales projection at a price slightly greater than the additional out-of-pocket costs of handling the product.
•In other words you are charging a price that will cover the incremental cost of making the sales and assumes that overhead costs are covered by the sales projected.
•Therefore any additional sales are making a contribution to total profit.
•This is common in the airline and hotel industries
◦E.g. Ryanair tickets for €1 plus taxes and charges.

105
Q

What is value based pricing

A

a strategy that prices at or slightly below the estimated perceived value of the product
•Can result in increased sales.
•Challenge is knowing what that perceived value of the product is.

106
Q

How to calculate the perceived value of a product

A

by identifying the reference value and the differentiation value.

107
Q

What is Differentiation value

A

•Differentiation value is the perceived value of the products unique attributes.

108
Q

What is Reference value

A

•Reference value is the price of a competing product

109
Q

What is Penetration Pricing

A

a pricing method where the product is initially offered at a low price to build up a market acceptance.
•Typically used when introducing a new product into a market.
•More common with price responsive products e.g. a small price reduction will give a big sales increase.
•Sometimes the first entrant into a market may also use this to build up customer loyalty.

110
Q

Describe what Skimming the Market is

A

strategy is virtually the opposite to penetration pricing.
•Introducing a product at a very high price making high profits from the sales.
•Then as the market becomes saturated you gradually lower the price making the product affordable to more customers.
•It allows you maximise profits early on.

111
Q

What type of products work best for Skimming the Market strategy

A

new, unique, fairly expensive, hard to duplicate quickly and sold by firms with a good reputation.

112
Q

What is Discount Pricing

A

offers a reduction on the published or listed price for some reason.
•An example would be volume discounts.
•This encourages larger sales volumes as customers avail of lower per unit costs.

113
Q

Example of Discount pricing

A

◦Customer loyalty programmes
◦Cash discounts to encourage prompt payment
◦Early-order discounts

114
Q

What is Loss-Leader Pricing

A

involves offering one or more products in a product mix at a specially reduced price for a limited time.
•Products may be sold at cost price.
•This might be to encourage long-term adoption of the product.

115
Q

What is Psychological Pricing

A

involves establishing prices that are emotionally satisfying because they sound lower than something that is virtually the same.

116
Q

Example of Psychological Pricing

A

products that are priced at €.99 can appear to the customer to be better value than products priced at more than €1.00.
•Often food products, soft drinks etc. might be advertised as 3 for €4.50 when the price for 1 is €1.50 but psychologically it appears like a better deal.

117
Q

What is Prestige Pricing

A

is the reverse and involves pricing products to convey a high-quality or elite image.
•For many customers they equate price with quality “you get what you pay for”.

118
Q

What is Promotion

A

An element of the marketing mix and includes all activities related to communicating the firms offering to the market

119
Q

What is promotion mix typically a combination of

A

◦advertising,
◦personal selling efforts,
◦general public relations activities
◦sales support programs.

120
Q

State what the promotion mix involves

A

Identifying the target audience
Determining the communications objective
Design the message
Select the communications channel
Manage the implementation of the programme

121
Q

Functions of advertising

A

1.It creates product awareness and therefore facilitates selling.
2.Public exposure can lend a degree of credibility to the product.
3.It can motivate customers to seek out the product.
4.It can educate the customer about the particular product, the company or its potential uses.
5.Advertising can reinforce the value of a purchase that has already been made.

122
Q

What is Institutional or Generic Advertising

A

a form of advertising aimed at promoting a class of products or an industry, not a specific company or brand.
◦For example the National Dairy Council adverts.

123
Q

What is Product Advertising

A

refers to advertising designed to promote a specific product, service or idea.
◦For example Wexford Creamery cheese ads, Kilmeadan cheese ads

124
Q

What is Cooperative Advertising

A

refers to local advertising that is sponsored and usually funded jointly by the manufacturer and the local dealer or distributor.
◦For example an advertising campaign that might be jointly coordinated by a tractor dealer and John Deere.

125
Q

Examples of means of advertising

A

•Mass Media Television, Radio, Newspapers
•Specialist Industry papers/magazines/books
•Internet and social media
•Coupons and inserts in the newspapers
•Direct mail or email
•Cell phones and text messaging

126
Q

What is Sales Promotion

A

a form of promotion strategy that includes programs and special offers designed to motivate interested customers to purchase a product or service.

127
Q

Examples of Sales Promotion

A

◦Free samples, buy one get one free, coupons, loyalty programmes
◦Educational sales meetings, demonstrations, open days etc. may be offered to farmers
◦Trade shows can also be a very effective way of communicating with a large audience

128
Q

What is Public Relations

A

A promotional strategy can be used to create a favourable image of the company or product for example
◦Sponsoring events, clubs, charities

129
Q

What is Personal Selling

A

refers to the individual relationship between the salesperson and customer that is used in promoting the product.
•This is very common practice in the Agribusiness sector.

130
Q

Advantages of Personal Selling

A

◦For example input suppliers, food companies etc. will have sales reps who have client list
◦It allows the firm to build up long-term relationships with customers.
◦Can tailor the communication and even the product to meet the needs of customers.
◦Can be a means of gaining feedback from customers on products.

131
Q

Disadvantages of Personal Selling

A

Can be expensive

132
Q

What are marketing channels

A

systematic ways of transferring both the physical product and the ownership to the customer as efficiently as possible.

133
Q

What are Physical Distribution Systems

A

are the series of channels through which parts, products and finished inventory are stored and moved from suppliers, between outlets and ultimately to consumers.

134
Q

What are some challenges present to physical distribution systems

A

Bulky nature
Seasonality
Biological characteristics

135
Q

What may occur during peak periods in physical distribution systems

A

Bottlenecks

136
Q

What is Channel Management

A

are a set of decisions concerned with who owns and controls the product on its journey from manufacturer or producer to the customer, and the roles the different entities will play on this journey

137
Q

What are the three basic systems in channel management

A

Manufacturer-direct Channel
Dealer Channel
Distributor Channel

138
Q

Describe Manufacturer-direct channel

A

the manufacturer sells directly to the customer.
•The original manufacturer owns and controls the product up to the point where the final user purchases it.

139
Q

Describe Dealer-distribution system / Distribution Channel

A

the manufacturer sells to a dealer who in turn sells to their local customers.
•Now you have a link between the manufacturer and the customer and they take ownership of the product before the customer buys it

140
Q

Example of Dealer-Distribution system

A

Supermarkets
Agri-merchants

141
Q

Describe Distributor Channel/System

A

both distributors or wholesalers and dealers to market products.
•Distributors may already have a well established network of transportation, salespeople and customers and can often add a new product quite easily.
•Merchant Distributors buy products from manufacturers and then sell it on to retailers.
•Agent Distributors help move product through the channel but do not take ownership of the product and do not physically handle the product, e.g. brokers.
◦They bring buyers and sellers together and take a commission.

142
Q

Name the different roles in the buying group

A

Initiator
Influencer
Decider
Buyer
User

143
Q

What is the role of the initiator in the buying group

A

the person who begins the process of considering a purchase. Information may be gathered by this person to help the decision

144
Q

What is the role of the influencer in the buying group

A

the person who attempts to persuade others in the group concerning the outcome of the decision. Influencers typically gather information and attempt to impose their choice criteria on the decision

145
Q

What is the role of the decider in the buying group

A

the individual with the power and/or financial authority to make the ultimate choice regarding which product to buy.

146
Q

What is the role of the buyer in the buying group

A

the person who conducts the transaction. The buyer calls the supplier, visits the store, makes the payment and effects delivery.

147
Q

What is the role of the user in the buying group

A

the actual consumer/user of the product.

148
Q

What is General Economic Forecasts

A

forecast of conditions in the general economy for a specific future time period
•Focuses on broader issues that will affect the whole economy, such as:
◦Inflation
◦Interest rates
◦Exchange rates
◦International and domestic policy

149
Q

What is Market Forecasts

A

are a forecast for a specific industry or type of products.
•They are based on the general economic forecasts and industry specific information such as:
◦Technology, weather, disease, yield trends etc. to forecast supply.
◦Demographic data, consumer trends, regionality, seasonality, etc. to forecast demand.
◦Derived demand, i.e. the demand for inputs is a function of the demand for outputs.

150
Q

What is Specific Product Forecasts

A

are a forecast for a specific product.
•They are based on the general economic forecasts and market forecasts.
•But must also consider the actions of competitors and this can be quite difficult,

151
Q

What is Trend Forecast

A

is a forecasting method which involves projecting sales objectively based on past trends, and then adjusting these projections subjectively to take into account the expected economic, market and competitive pressures.

152
Q

What is Build-up Forecast

A

a sales forecast developed from data collected by the sales force or other employees with considerable customer interaction.
•Each sales person will be asked to prepare a sales forecast for their main accounts and these will then be compiled.
•The forecasts are only as good as the individual forecasts that go into compiling it

153
Q

What is Deli Approach

A

an approach for developing forecasts in which a panel of experts is asked to develop a forecast for an area of interest, the estimates are pooled, reviewed and the differences are noted; and the process is repeated until a consensus forecast is achieved.

154
Q

What is Test Market

A

a market research technique which involves an experiment designed to test consumer behaviour under actual buying conditions;
◦a test city or area with characteristics similar to the target market is selected,
◦a product (typically a new product) is introduced into the test area,
◦sales results are measured and evaluated
◦these results are then generalised to the target market of interest.

155
Q

What are the two ways we analyse the customer

A

Quantitative
Qualitative

156
Q

What is Quantitative analysis

A

is about understanding the market.

157
Q

What is Qualitative analysis

A

is about profiling customers and understanding their motivations/needs.

158
Q

What are the 4 concepts to consider for quantitative analysis

A

Market Definition
Market Size
Market Trend
Market Share

159
Q

What is Market Definition

A

What market are we in
Are we in beef market, meat market, the food protein market

160
Q

What is Market size

A

May be measured in physical terms (tonnes) or value terms(euros)

◦Physical has implications for e.g. capacity of machinery.
◦Value has implications for staffing, cash flow

161
Q

What is Market Trend

A

the annual growth rate in total market sales.
◦Gives you an idea of where your product is in the product life cycle.

162
Q

What is Market Share

A

a vital measure of competitiveness and can be an early warning indicator.

163
Q

What type of data does quantitative analysis typically involve working with

A

Secondary data
Official trade statistics - quantities produced / sold
Supermarket data - scanner data records prices and quantities sold

164
Q

How do we profile existing customers for qualitative analysis

A

Profile existing customers by demographic characteristics such as age, sex, socio-economic groups, location, and by marketing/usage factors such as level of consumption, time of consumption, place of purchase, time of purchase, nature of purchase (staple, specialty, impulse), structure of purchase (who is involved in the decision to buy and what are their roles), satisfaction with purchase.

165
Q

How do we profile non customer for qualitative analysis

A

profile non-customers also by demographic characteristics and understand their reasons for not buying/consuming.

166
Q

Methods of qualitative analysis

A

◦Focus groups with consumer panels – may involve discussing the product, comparing it with other products, factors that influence their purchasing decision, etc.
◦In-store intercepts - speaking with consumers in store about the product
◦Elite interviews – with industry experts such as wholesalers, store managers, etc.
◦Observation – just watching consumers and their purchasing behavior
◦Product comparisons in store – comparing prices, shelf placement, packaging, displays, etc.
◦Supermarket walk throughs observing the path that people take in the store

Business Management (7 decks)

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