The Finance Function's Relationship with Sales and Marketing Flashcards
5 steps in implementing a strategic marketing plan
1 - identify organisation’s objectives and the role marketing can play
2 - carry out audit of external environment
3 - carry out audit of the internal strengths and weaknesses of the organisation
4 - set out marketing objectives
5 - implement plan and communicate it to the workforce
6 - review regularly
Explain the six factors within a PESTEL analysis
Political - changes in govt, general stability, taxation
Economic - growth in recession, interest rates, levels of employment
Social - changing fashions, lifestyles, demographics
Technological - developments, transfer, take ups, speed of obsolescence
Environmental - CSR
Legal - laws on health and safety, completion, employment
PESTEL are the 6 factors which enable an organisation to examine the factors that influence it
What are the 4 Ps and give examples
Product
Place - zero distribution channel (directly with customer), one-level distribution (manufacturer, retailer, customer), two-level channel (several intermediaries)
Price - loss leaders, penetration pricing, discounts, price-skimming, psychological pricing, selective pricing, predatory pricing, dynamic pricing
Promotion - advertising, personal selling, sales promotion, publicity campaigns
Examples of different forms of market segmentation
Segmentation is the subdividing of the market into distinct customer groups. Must be measurable, accessible, substantial
Examples:
Income level
Nationality
Age
Gender
Geographical location
Benefit segmentation
What are the different forms of marketing
Guerrilla marketing
Viral marketing
Digital marketing
Relationship marketing
Postmodern marketing
Explain and give examples of guerrilla marketing
Actions designed to attract maximum attention and be talked about.
Surprise/shock value, attract publicity, facilitated by social media eg views on YouTube, likes on Facebook
Explain and give examples of viral marketing
Use of social network to target individuals with high social networking potential (SNP)
Email was main tool now replaced by Twitter and Facebook
Influencers
Explain and give examples of digital marketing
Website
Blog
Social media
Advertising on other sites
Explain and give examples of relationship marketing
Marketing facilitated by CRM and the vast data that companies can now hold about their customers
Examples:
Insider programs
Good customer service
Explain and give examples of postmodern marketing
Creating customised messages for customers. Aims to identify how individual customers prefer to receive marketing messages
Rejects mass marketing
Focus on customising the message
Flexible and interactive
What are the different stages in a product’s life cycle and explain the impact on marketing activity
Intro - product launch, high cost and marketing focused on informing customers of the product
Growth - competition arises as demand grows. Prices fall and brand loyalty develops. ‘shakeout’ occurs
Maturity - longest stage, demand reaches limit and organisation must manipulate marketing mix to maintain position
Decline - demand falls as the existence of substitute products and changing tastes means product becomes niche or obsolete
Ways finance may interact with sales and marketing
Budgeting for marketing and price considerations (in marketing mix)
Operational efficiency (in their APPLY role) by providing KPIs
Identify some key relevant KPIs for sales and marketing function
Marketing spend/sales *100%
Marketing spend/sales *100% per segment
Market shares and detailed segmented market share
Revenue at different price points
Define social marketing
Marketing which attempts to influence the behaviour of people to what is considered more desirable behaviours which would benefit society as a whole - eg drink driving campaign
Differentiated marketing definition
Company makes several products each aimed at a different segment
