Marketing Strategies Flashcards
Ansoff’s Matrix
A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies
Average
A term for various measures of central tendency, including the mean, mode and median
Competitive advantage
Skills, competences, resources and other advantages that enable a business to out-perform its competition
Correlation
A measure of how close the relationship it (positive or negative) between an independent variable and a dependent variable
Customer relationship management (CRM)
The process of building a long-term, profitable relationship between a business and its customers
Diversification
The relatively risky strategy of trying to enter new markets with new products (from Ansoff matrix)
Extrapolation
The use of trends established by historical data to make predictions about future values
Growth rate
The percentage growth over a particular period. Market growth rates are typically quoted in terms of percentage growth per year
Market analysis
The process of analysing the size, structure and growth of a market in order to support marketing decisions
Market development
A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix)
Market penetration
A relatively low-risk growth strategy where a business focuses on selling existing products into existing markets (from Ansoff matrix)
Market share
The proportion of a market revenue or sales volume that is captured by a business or brand
Marketing budget
Specific amounts that are allocated to activities in the marketing plan
Marketing plan
The actions that management intend to take via the marketing mix in order to achieve marketing objectives
Moving average
A calculation that takes a data series and “smoothes” the fluctuations in data to show a trend average
Product development
A growth strategy where a business aims to introduce new products into existing markets (from Ansoff matrix)
Product positioning
The way in which the marketing function tries to create an image or identity in the minds of the target market
Repositioning
Changing the marketing mix for a product to appeal to a different market segment
Sales forecasting
Techniques for estimating the likely demand (revenue and volume) for a product in future periods
Target market
The market segment or segments which a business is attempting to enter with the chosen marketing mix
Test marketing
Launching a new product or service in a limited part of the target market in order to gauge the viability of the product and assess the most appropriate marketing mix
Trend
A general direction in which something tends to move
