marketing performance Flashcards
UNIT 3
what is relationship marketing
approach to build long term relationships with customers by providing consistent satisfaction
what is market analysis
examining market size and market growth
what is the marketing process
set marketing objective
analyse marketing data
make marketing decisions
implement marketing decisions
review marketing decisions
what are business ethics
are the actions morally right or wrong
describe some marketing objectives
sales volume
sales value
sales growth
market share
brand loyalty
internal influences on marketing decisions
finance
HR
operations
overall business strategy
existing market position
external influences on marketing decisions
PESTLE-C
what are the 6 W’s of marketing research
who buys
what product
what influences
where (distribution)
when (seasonal)
why
why does a business do market research
to understand the customer
what is primary research
done first hand
what is secondary research
gathered from pre-existing data
two types of data:
qualitative and quantitative
what is extrapolation
a method of forecasting sales based on previous data
what are confidence levels
probability the research is correct
what are confidence intervals
possible range of outcomes for a confidence level
what is PED
price elasticity of demand - the correlation between price of a product and the quantity demanded
how to calculate PED
% change in quantity demanded / % change in price
What is a price inelastic product
a change in price has little effect on quantity demanded e.g fuel/necessity goods
what is a price elastic product
a change in price has a large effect on quantity demanded e.g luxury goods
A product is price elastic and the price increases, what happens to the quantity demanded
large % decrease in quantity demanded
revenue falls
A product is price inelastic and the price increases, what happens to the quantity demanded
demand stays relatively the same
rev rises
A product is price inelastic and the price decreases, what happens to the quantity demanded
demand stays relatively the same
rev falls
A product is price elastic and the price decreases, what happens to the quantity demanded
rev rises as quantity demanded increases
Calculate YED
Income elasticity of demand:
% change in quantity demanded/
% change in income
what does a + YED mean
increase in income
increase in quantity demanded
normal good e.g flour sugar
what does a - YED mean
increase in income
decrease in quantity demanded
inferior good e.g value beans
how does market research affect areas of a business
cashflow forecasting
production levels
marketing budgets
staffing levels
what is STP
segmentation
targeting
positioning
how can a market be segmented
demographic
geographic
income
behavioural
what is targeting
choosing which markets to focus on
niche vs mass marketing
focused on a specific market
smaller market but more specific needs
broader market
less specialised/individual
define market positioning
identifies the benefit and price combination of a product in relation to competitors
7 p’s of the marketing mix
price
product
promotion
physical evidence
process
people
place
what are the elements of the promotional mix
advertising
PR
sales promotion
sponsorship
branding
what does the product life cycle do
shows the stages of sales of a product over its life
what are the stages in the product life cycle
R&D
growth
maturity
stagnation
decline/extension strategies
how to analyse a product portfolio
with the Boston Matrix
what are the axis of the boston matrix
market growth and market share
elements of the boston matrix
cash cow
dog
star
?
6 influences on pricing
costs
stage of the products life cycle
PED
positioning
elements of the marketing mix
competitiveness of the market
types of pricing decisions
price skimming
penetration pricing
dynamic pricing
define price skimming
starting at a high price and skimming off money as new products are released
define penetration pricing
starting cheap and increasing prices as popularity grows
define dynamic pricing
when pricing changes in relation to quantity demanded
what is e-commerce
the buying and selling of products through an electronic medium such as the internet
