Processes

Question 1

List the Marketing Processes: Dimise

Answer 1

• Situational Analysis - SWOT, Product Life Cycle
• Market research
• establishing market objectives
• identifying target markets
• Developing marketing strategies
• implementation, monitoring and controlling (Developing a financial forecast, comparing actual and planned results, revising the marketing strategy)

Question 2

What is a Situational analysis

Answer 2

Provides businesses with the opportunity to examine the current positition of the business

• Swot Analysis - Examines strengths, weaknesses, opportunities and threats
• Product Lifestyle - Examines current position of the good / service (Identify need for renewal / inovation)

Question 3

Identify features of each stage of the product lifecycle and identify strategies for each.

Answer 3

Establishment:

• Cost to produce high
• Sales growth slow
• Pricing strategies utilised (price penetration, price skimming)

Growth:

• Promotional costs rise
• Increased competitors
• Brand / Customer loyality
• Expand distribution channels to reach more customers
• Price lowered to compete with competitors

Maturity:

• Sales slowing
• Steady income
• Product Differentiation needed to keep comp. adv.

Post Maturity:

• Changing customer preferences
• Increased competition
• Renewal (rebranding product)

Question 4

What is market research and what is the process.

Answer 4

The collection and analysis of information to identify what the customer wants and to make marketing decisions based on those wants.

–> Maintaining Customer Satisfaction

1. Determining information needs
2. Data collection (Primary / Secondary)
3. Analysing + interpeting Data

Question 5

What is Primary Data Collection, and what are the different types

Answer 5

Gathering original data direct from the customers and target market.

–> Time consuming and costly

• Oberservational –> How people respond to advertising
• Surveys –> Collecting data to identify needs + wants
• Experimental –> Protoypes / samples and recording consumer reaction.

Question 6

What is secondary Data Collection, give some examples.

Answer 6

Information that has already been research and published. May be internal or External.

• Internal- Annual Reports, Data previously collected by bus.
• External - Commercial data, Government publications, Australian Beauru of Statistics (ABS)

Question 7

Why are establishing marketing objective important and how should businesses do this?

Answer 7

Sets out objectives to provide direction and track, montior and evaluate successfulness of marketing strategies in achieving these objectives.

Objectives should be S M A R T

S pecific
M easureable
A chieveable
R ealistic
T imely (time frame)

Question 8

Explain why businesses have target markets

Answer 8

A Bus. has a tarket market so it can cater its marketing strategies towards that group of people. This allows the bus. to better satisfy the needs + wants of the targted group and achieve greater profitability / customer loyalty.

Question 9

List the Types of Markets

Answer 9

Resource
Industrial
Intermediate
Consumer:—

Mass Marketing
Market Segmentation
Niche Market

Question 10

What is mass Marketing?

Answer 10

An atempt to appeal to the entire market by using intensive distribution and advertising to as many people as possible

e.g. Electricity, Milk, Water.

Question 11

How are Markets Segmented?

Answer 11

Market is divided into segments then the bus. chooses one of these segments to become its target market

• Demographic
• Age, Gender, Occupation, Income
• Geographic
• Reigion (Urban, Rural)
• Climate
• Psychographic
• Lifestyle
• Personality
• Socio-economic groups
• Behavioural
• Loyality
• Usage rates
• Price sensitivity

Question 12

Give pros and Cons of the niche market

Answer 12

Pros:

• Relationship marketing (customer loyalty)
• Specialisation (Expert in their field - repuation / increased customer service)
• High quality product - can be sold at high price

Cons:

• Changing social trends –> Threat
• Very small customer base - Rely on loyalty
• Minimal product mix - usually promoted through word of mouth.

Question 13

What are marketing strategies.

Answer 13

marketing strategies are the actions undertaken in order to help the bus. achieve its goals.

Developed from the marketing mix (4 p’s)

• Price
• Promotion
• Product
• Place / Distribution

Question 14

How is Comparing actual and planned results, part of Implentation, monitoring and controlling?

Answer 14

Key step in the I,M,C Process.

The Effectiveness of the markeing strategies are measured through Key Performance indicators (KPI’s)

• Sales Analysis
• Market Share Analysis
• Profitability Analysis

Question 15

How is a sales analysis a KPI?

Answer 15

Compares forecasted sales with Actual sales - determines effectiveness of strategies

Shows:

• Which products sell to particular customers
• Which products are performing strongly

Question 16

How is a Market Share Analysis a KPI?

Answer 16

Examines the Sales performance of a bus. and compares it against that of its direct competitors.

-Useful in examining strengths + weaknesses of a business’s marketing plan compared to its competitors.

Question 17

How is a profitability analysis a KPI?

Answer 17

Compares whether the financial and non-financial benefits were worth the cost of implementing strategies to achieve these benefits. Identifies areas to improve.

Question 18

How is a Financial Forecast beneficial to a bus.?

Answer 18

A financial forecast is a budget of expected revenues and costs over a set period of time.

• Used to compare actual and planned results to indicate the marketing strategies that are providing the most sales revenue at the least cost and areas where improvements are needed.