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 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 primary 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 for access to their latest reports on market trends. Is this primary or secondary data?
Secondary
How can a business analyse its market research data?
Put it into tables or graphs
Why should a business set marketing objectives?
- Helps inform which strategies are most appropriate
- Helps assess whether the marketing plan has been successful
What does establishing Market objectives involve?
Establishing marketing objectives involves setting realistic and measurable goals to be achieved through the marketing plan. These objectives should align closely with the business’s overall goals.
What are the main marketing objectives?
- Increasing Market Share: This means increasing the portion of total industry sales made by the business.
- Expanding Product Range: This could involve adding new products or services to attract a broader customer base and increase profitability.
- Maximising Customer Service: Ensuring high levels of customer satisfaction to encourage repeat business and positive word-of-mouth.
What is a target market?
The group of customers the product is aimed at
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 does developing market stategies involve?
Developing marketing strategies involves creating plans related to product, promotion, pricing, and distribution that reflect the individual characteristics of the business and its current resources.
Additionally, branding is a key aspect of developing marketing strategies as it helps position the brand in consumers’ minds and sustain long-term product leadership.
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 does Developing a financial forecast involve?
Developing a financial forecast involves predicting future profit levels and the success of marketing strategies. It includes comparing actual sales with forecast sales to determine the effectiveness of the marketing strategy, analysing market share changes due to marketing strategies or external forces, and breaking down total marketing costs into specific activities
After conducting a financial analysis, managers assess unmet objectives and take corrective actions such as modifying products, prices, promotions, places, developing new products for long-term growth, or deleting outdated products to maintain reputation.
What is monitoring in marketing?
Measure how well the marketing campaign is performing (e.g. sales, market share, costs)
What does Comparing actual and planned results involve?
- Sales Analysis: This compares actual sales with forecast sales to determine the effectiveness of the marketing strategy.
- Market Share Analysis: This compares changes in total sales due to the marketing strategy or external forces such as competitors.
- Marketing Profitability Analysis: This breaks down total marketing costs into specific marketing activities to assess their profitability.
What is controlling in marketing?
1) Comparing actual and planned results
2) Revising the marketing plan
What does revising the market strategy involve?
Revising the marketing strategy involves assessing which objectives are not being met and taking corrective action if needed. Changes in the marketing mix could include product modification, price modification, promotion modification, place modification, new product development, and product deletion.
What is the marketing mix (4P’s)
Product, Price, Promotion, Place
Define SMEIDI
Situational analysis
Market Reseatch
Establish Marketing Objectives
Identify Traget Markets
Develop Marketing Strategies
Implement, Monitor and Control Strategies
