Marketing - Processes Flashcards
what are the 6 mktg processes?
SMEIDI
- situational analysis
- market research
- establishing marketing objectives
- identifying target markets
- developing marketing strategies
- implementation, monitoring, controlling
what is a situational analysis and what are the 2 parts of a SA
a situational analysis consists of a swot analysis and product life cycle analysis - it is needed to help understand the businesses current position and provided a clear picture of where the business is heading
what is a SWOT analysis
an analysis that involves the identification and analysis of the internal strengths and weaknesses of the business and the opportunities in and threats from the external environment
- includes strengths, weaknesses (internal), opportunities and threats (external)
what is the product life cycle
intro, growth, maturity and decline
characteristics of the introduction stage of the product life cycle
- business tries to increase consumer awareness and build a new market share for the new product
- lower price than competitors to gain market foothold
- directed at early buyers
- more marketing since the product is new
characteristics of the growth stage of the product life cycle
- brand acceptance and market share are actively pursued by the producers of the product
- quality is maintained and improved and support services may be added
- production is maintained as market share and consumer demand grows
- promotion now seeks a wider audience
- distribution channels are increased
characteristics of the maturity stage of the product life cycle
- sales plateau as the market becomes saturated
- features and packaging try to differentiate the product from those of competitors
- price may need to adjusted downwards to hold off competitors and maintain market share
- promotion continues to suggest the product is tried and true
- incentives may be offered to encourage preference over rival products
characteristics of the decline stage of the product life cycle
sales begin to decline as the business faces several options
- product is maintained with some improvement or rejuvenation
- price is reduced to sell remaining stock
- promotion is discontinued
- distribution channels are reduced and product is offered to a loyal segment of the market only
what are some reasons for product decline
- changing public perceptions of what is fashionable at certain times
- new technologies
- fluctuations in economic activity
define market research and why it is importance
= the process of systematically collecting, recording and analysing information concerning a specific marketing problem
differentiate between primary and secondary data (with examples)
primary data = the facts and figures collected from original sources for the purpose of the specific research problem eg. surveys and focus groups
- the main ways of collecting primary data include: the survey method, the observation method and the experiment method
secondary data = facts and figures already collected by some other person or organisation eg. research reports and Australian Bureau of Statistics
- two types of secondary data include external and internal
what are the three steps of the market research process
- determining info needs
- data collection (primary and secondary (internal and external))
- data analysis and interpretation
differentiate between internal and external data (with example)
Internal data = information that has already been collection from internal sources eg. customer feedback, sales and management reports and research reports
External Data = published data from sources outside the business eg. ABS reports, magazines, industry associated newsletters, private data collection agencies
define marketing objectives
= the realistic and measurable goals to be achieved through the marketing plan
define market share
= the businesses share of the total industry sales for a particular product or service
- all mktg plans aim to achieve a specified market share - businesses often develop an extensive product range, using many different brand names to gain an extra few percentage points of market share
why would a business expand their product mix
- increase profits in the long term - the same product mix will not remain effective for long as customer tastes and preferences change over time and demand for a particular product may decrease
define product mix
the total range of products offered by a business
define customer service
the total range of products offered by a business
define target market and differentiate between primary and secondary target market
= a group of present and potential customers to which a business intends to sell its products → customers within the target market share similar characteristics such as age, income, lifestyle, location and spending habits
- primary target market = the target market segment at which most of the marketing resources are directed at
- secondary target market = a smaller and less important market segment than the primary target market
why would a business identify a target market
- allows a business to use mktg resources efficiently - allows mktg campaigns to be more cost effective and time efficient
- makes promotional material more relevant to customer needs and therefore, more likely to be noticed
- allows businesses to refine the marketing strategies used to influence consumer choice
what is a mass market approach
- an approach that seeks a large range of customers
- a mass mktg approach assumes that all individuals in the mkt have similar needs - therefore, the business develops a single mktg mix and directs it at the entire mkt for the product
- One type of product with little to no variation, one promotional program aimed at everyone, one price and one distribution system used to reach all customers
what is a market segmentation approach
- occurs when the total market is subdivided into groups of people who share one or more common characteristics
- Once the market is segmented, the business selects one of these segments to become the target market
- Segmenting a market enables a business to design a mktg plan that meets the needs of relatively uniform group
what is a niche market approach
= an extension of the market segmentation approach is that of the niche market
- Also known as a ‘micro market ‘
what are marketing strategies (more in next chapter)
actions undertaken by the businesses mktg objectives through the mktg mix and include: product, price, place, promotion
