Topic 3 Flashcards by Charly Barnett

name 3 possible marketing objectives?

Maintain/increase market share
Target new market segment
Develop new product

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what are 4 internal influences on marketing objectives?

finance (amount available from budgets - overall financial position and expected returns)
Human resources
Operational issues
Business culture

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What are 5 external influences on marketing objectives?

Competitors actions
Technological changes
Market factors (economic climate / social change / legislation / consumer needs)
Social and political change
Economic environment

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What is market analysis?

Examining market features such as market size and sales to predict future trends, understand consumers and enables to assess situation and identify opportunities and threats to be overcome

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What are 2 main reasons for analysing markets?

Gather evidence to devise a new strategy

Identify patterns in sales - use for decision making

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What 4 reasons would you need to gather evidence for a new strategy?

changed corporate objectives
changes in competitive behaviour
technological developments
market conditions

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What are 3 main ways of analysing a market?

Moving averages
Extrapolation
Correlation

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What are moving averages?

Finds underlying trends by smoothing out fluctuations in data

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What is correlation?

The relationship between 2 factors which influence demand for a product

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What is extrapolation?

a prediction of future trends based on current trend and historical data
Assumes the trend will continue into the future

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Give 3 advantages of extrapolation

Aids distribution and promotion
More informed budgets, workforce and production planning
Simple, quick and cheap

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Give 3 disadvantages of extrapolation

Reliant on continuing trends - not happen in fast moving markets and unpredictable events
Ignores qualitative factors
Unreliable if significant fluctuations in data

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Examining markets makes it easier to understand which 3 things?

Available opportunities
Potential future market changes
Influences on demand in market

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In what 4 ways can IT be used to analyse markets?

gain information from store cards
Market research online questionnaires
Software processes and presents data
Blogs collect feedback

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Give 2 advantages of using IT in analysing markets

Processed quickly and used for sales forecasting
Build electronic database of consumer buying habits and customer profiles to target future products and promotions more effectively

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Give 2 disadvantages of using IT in analysing markets

Information overload slows down decision making - could miss opportunity which is exploited by competitors
Data available quickly - overreact and misinterpret - causing unfortunate decisions

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Businesses also have to analyse data collected on own marketing activities, which 2 ways is this mainly done?

Test marketing

Primary market research

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What is a test market?

Small scale product launch in one geographical location or demographic group to judge viability of product in the market

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Give 4 advantages of a test market

Data from actual consumer spending
Reduces risk of full launch
Able to adjust marketing mix before full launch
Creates promotional buzz

Give 5 disadvantages of test market

Competitors may respond before full launch
Test market may not be representative 
Delays in full launch reduce revenue
Costly and time consuming 
Reactions affected by external factors

Give 3 reasons why market data might be incorrect/misleading

Historical data may not reflect change in consumer habits - unrealistic trends
Data may be biased - firms portray favourable information to secure contracts
Forecasts too far into the future, reduced accuracy

What is Ansoff’s Matrix?

Helps to select what sort of marketing strategy to use depending on type of product and type of market they wish to work in

What is market penetration?

Increasing sales of existing products in existing markets - entice customers away from competitors

Low risk due to experience and knowledge of characteristics in larger market - bad to assume all customers share characteristics and respond in the same ways

Gives 3 ways to achieve market penetration

Increase market share - competitive pricing, promotion and personal selling
Dominance of growth markets
Drive out competition

What is product development?

This involves introducing new products into existing markets Will require market research May introduce new models of existing products with modifications, new functions or services Higher risk

Give 5 benefits of product development

Allows to utilise excess production capacity Response to new products from competitors Maintain reputation for being innovative Protect market share Exploit new technology

What is market development?

Involves attracting new customers (new market) to existing products Risky as no knowledge of new market Marketing costs could be high Helps spread risk

Give 4 strategies for market development

Targeting new geographical areas Develop new sales channels New product dimensions/packaging Different pricing policies

What is diversification?

Entering a new market with new products Most risky Spreads risk Can gain first move advantage in emerging markets

In what 5 circumstances is moving to international markets appealing?

``` UK market is saturated UK market is very competitive Opportunities for economies of scale Firm has excess capacity Additional costs are small ```

Give 5 advantages of exporting from UK

``` Cheap Not complicated Easy to withdraw if fails Use existing resources Retained control of marketing ```

Give 4 disadvantages of exporting from UK

Distance makes it difficult to identify opportunity Bureaucracy may be complicated Risks with payment can cause cash flow problems Language barriers

Give 4 strategies for moving to international markets

Exporting from the UK Open overseas operation Overseas sales agent A distributor

to open overseas operations means to open new branches, managed by a local partner, give 5 advantages

``` Identify opportunities in target market Control operations/potential to expand Develop relationship with clients Provide good after sales services Local partner provides experience and knowledge ```

Give 3 disadvantages of overseas operations

More expensive Local legislation may be difficult to understand, require specialists Brand name may not be appropriate in target market

Give 3 advantages of using an overseas sales agent

Agents have knowledge of local area - should identify opportunities Recruitment, training, relocation costs avoided Agent should have local contacts

give 2 disadvantages of using an overseas sales agent

UK company is still responsible for costs and documentation | Difficult to maintain customer service

Give 3 advantages of using a distributor

They become responsible Greater chances of successful launch if distributor has established reputation and contact Marketing costs fall on them

Give 4 disadvantages of using a distributor

Distributor may expect discounts and credit Control of marketing mix passed over Hard to give incentives to sell more May demand exclusive rights - reduce sales

A marketing plan is the details of activities to be used to carry out a marketing strategy, what 3 things are included?

Description of all activities Time frame Reasons justifying each action

What are the 6 steps in a marketing plan?

1) Marketing objectives 2) SWOT analysis 3) Situational analysis 4) Budgets 5) Sale forecasts 6) Marketing strategies

What is SWOT analysis?

Strengths - what good at and why Weaknesses - what can hold back strategies Opportunities - whats happening in the market Threats - what may constrain business activities

What is situational analysis?

An assessment of business, customers, competitors and market environment - using SWOT and market research

What are marketing tactics?

Marketing mix activities to achieve marketing strategies

What are 3 internal influences on marketing plans?

Operational issues Finance Human Resources

What are 3 external influences on marketing plans?

Competitors actions Market conditions Technological change

What are 4 issues with influencing marketing plans?

Scheduling key tasks Resources required Cost Control