Marketing Processes Flashcards
What is a situational analysis?
Assessing the business’ current position to decide what to do next
How do you do situational analysis?
- SWOT analysis
- Product life cycle analysis
What is a SWOT analysis?
Look at the businesses internal strengths and weaknesses, and external opportunities and threats
What are some internal factors on a SWOT? (i.e. things that could be either strengths or weaknesses)
- Quality of the product
- Reputation
- Costs and prices
- Customer service
- Defects
- Environmental impact
What are some external factors on a SWOT? (i.e. things that could be either an opportunity or threat)
- Competitors
- Government policies
- Economic fluctuations
- Technological changes
What are the stages of the product life cycle?
1) Introductory
2) Growth
3) Maturity
4) Decline
How does the product strategy change across the product life cycle?
Growth: refine product based on feedback
Maturity: change the packaging
Decline: Change or replace the product
How does the pricing strategy change across the product life cycle?
Introduction: use price skimming or penetration
Maturity: reduce prices due to competition
Decline: reduce further to sell off remaining stock
How does the place strategy change across the product life cycle?
Gradually increase distribution to more outlets over time, until you get to decline and then reduce to only where remaining customers are
How does the promotion strategy change across the product life cycle?
Introduction: inform what the product does
Growth: advertise to a wider audience
Maturity: Emphasise the product’s reputation (against new rivals)
Decline: Stop promoting
What is the case study for situational analysis?
H&M - expanding into Australia and launching online store
What is market research?
Finding out about your customers and what their preferences are
Why is it important to conduct market research?
To design the product and marketing strategies to best appeal to them
How do you conduct market research?
1) Identify what information you want to find out
2) Collect data
3) Analyse the data
What type of information might a business want to find out in market research?
- Demographics of customers (income, age, gender, ethnicity)
- Preferences and interests of customers
- How customers view your product
What is primary data?
Collecting new data
What is secondary data?
Data that has already been collected
How can you get primary data?
- Focus groups
- Observation method
- Experiment method
What are focus groups?
Interviewing / surveying groups of individuals
What is the observation method?
Watching customers and how they interact with your product
What is the experiment method?
Trying a marketing strategy in one place to see how successful it is
How can you get secondary data?
- Use internal data you’ve already collected
- Access or buy external data from another organisation
What are examples of internal secondary data?
- Loyalty program data
- Warranty claims
- Previous market research
What are examples of external secondary data?
- ABS data
- Buying data from social media platforms (e.g. Google, Facebook)
A business conducts a focus group. Is this primary or secondary data?
Primary
A business pays a market research company to conduct a focus group for them. Is this primary or secondary data?
Primary
A business pays a market research company for access to their latest reports on market trends. Is this primary or secondary data?
Secondary
A business uses its sales data for different products to make a report on market trends. Is this primary or secondary data?
Secondary data
How can a business analyse its market research data?
Put it into tables or graphs
What is the case study for market research?
H&M - Google Analytics, Curalate and social media
Why should a business set marketing objectives?
- Helps inform which strategies are most appropriate
- Helps assess whether the marketing plan has been successful
What are the main marketing objectives?
- Increase market share
- Increase product range
- Improve customer service
What is market share?
The business’ sales as a percentage of total industry sales
What is the case study for marketing objectives?
H&M - double sales from 2020 to 2030, and launch an ethical product range
What is a target market?
The group of customers the product is aimed at
Why is it important to identify the target market?
So the business can design the product and marketing strategies to best appeal to them
What are the main types of target market?
- Mass
- Segment
- Niche
What is the difference between a market segment and a niche market?
A market segment is a group within society (e.g teenage boys), whereas a niche market is a very specific group (e.g. people with an obscure allergy)
What is the case study for identifying the target market?
H&M - people aged 15-35
What is implementation in marketing?
1) Make a financial forecast of how much the marketing plan should cost and increase sales by
2) Launch the marketing campaign (e.g. start using the new packaging, put the ad on TV)
What is monitoring in marketing?
Measure how well the marketing campaign is performing (e.g. sales, market share, costs)
What is controlling in marketing?
1) Comparing actual and planned results
2) Revising the marketing plan
How do you compare actual and planned results in marketing?
- Sales analysis (are sales increasing enough?)
- Market share analysis (is market share analysis increasing enough?)
How do you revise the marketing strategy?
Change some of the 4Ps, or change the product itself
What is the case study for implementing, monitoring and controlling in marketing?
H&M - quickly revising the ‘Coolest Monkey in the Jungle’ product launch
