Question 1-6 Flashcards
What is a marketing macro environment
The forces/environment that shape opportunities and pose threats to the company.
What are the 6 marketing macroenvironments. Bonus point for explaining each
Demographic, economic, natural, technological, political/ social and cultural.
Why is it important for companies to monitor the marketing macroenvironment
The marketing macroenvironment effects the companies ability to transact with their target market.
What is market segmentation
The process of analysing a market with the aim of directing marketing focus towards smaller segments of buyers with distinct characteristics or behaviors which might require a different marketing strategy or mix
What is targeting
Evaluating each market segmentations attractiveness and selecting on or more segments to enter
What is positioning
Arranging for a market offering to occupy a clear and distinctive place relative to competing products in the mind of the target consumer. In terms of price/quality.
How is market segmentation important?
Segmenting the market means that it can be divided into manageable sections which can therefore be reached more effectively and efficiently. There is little point in targeting a market that will not be interested in buying your product
Why is targeting important?
It is important that a company selects the right segment after analysis which is the right size and growth. It needs to be a profitable market. It is also important to identify the markets which are being aggressively marketed by other companies
Why is positioning important?
It is important to decide how the beer will be placed in the consumers mind compared to other products. Planning the products position will give them a greater advantage in selected target market as the right features are being sold to the right people.
What are the segmentation variables?
Geographical, demographics, psychographic, behavioural.
Why might cost based pricing not be suitable for a jewelry business?
May make the jewelry be perceived as cheap and no legit. May make the brand seem lower quality and not as luxery as other brands.
What are the four quadrants of the product expansion grid?
Market penetration= existing market + existing product
Market development= new market + existing product
Product development= existing market + new product
Diversification= new market + new product
What are the 4 steps of market research
Defining the problem and research objectives –> developing a research plan –> implement plan amd collect results –> interpret results and report findings
What are the 3 types of research objectives
Exploratory (gather preliminary info that will help define problem and suggest hypothese) casual (test cause and effect) and descriptive (describes market potential, demographics and the attitudes of people who use the product)
Name 3 datat collection methods
Mail, telephone and personal selling
