topic 3 (decision making to improve marketing performance) Flashcards
marketing objectives
These are specific goals/targets of the marketing department. They must be in line with the firms overall corporate objectives.
marketing objectives can include
- Sales volume and sales value
- Market share
- Market and sales growth
- Market size
- Brand loyalty vb
market share =
actual sales a business has/ total sales in market x 100
primary market research
information that is gathered first hand for its own specific purpose.
types of primary research
surveys
focus groups
observing and experimentation
loyalty card data on buying habits
test marketing
secondary market research
Data that has been gathered/collected by another organisation research is not carried out by firms so may be inaccurate/ irrelevant
qualitative research
Information gathered through research methods about people’s views, opinions and beliefs
quantitative research
Numerical and statistical data gathered through varied research methods
market mapping
This is a technique that analysis markets by looking at the key features that distinguish products or brands. Its useful for firms to identify groups in the market
types of sampleing
random
quota
stratified
random sampling
everyone in the population has an equal chance of being chosen
quota sampling
respondents are selected in proportion to the consumer profile within the target market
stratified sampling
select respondents respondents with a particular characteristics then chosen at random within that group.
correlation
Correlation looks at strength of a relationship between variables
independent variable
the factor that causes the dependant variable to change
dependent variable
the variable that is influenced by the independent variable.
positive correlation
a positive relationship exists where the independent value increases in value as well as the dependant value
negative correlation
a negative relationship exists where the independent value increases and the dependant value falls
confidence intervals
This gives the % probability that an estimate range of possible values, includes the actual value being estimated. This helps businesses understand how reliable an estimate is
extrapolation
using historical figures to predict future sales
advantages of using technology to gather data
Data can be analysed quickly and in greater depth An construct customer data base, which can be used as part of an effective direct marketing scheme.
disadvantages of using technology to gather data
To much info can be hard to analyse trends can be misunderstood can be costly to acquire
income elasticity of demand
percentage change in quantity demand/percentage change in income
market segments
groups who share similar characteristics
demographic segmentation
segments grouped together by:
age
gender
occupation
socio-economic groups
geographical segmentation
Firms can look at where a particular consumer types live, what the income levels are like, whether its rural or inner city.
income segmentation
Certain goods/services are aimed at individuals with a certain levels of disposable income
Behavioral segmentation
Customers can be divided into groups based on the way they respond to a product these include:
Lifestyle
Level of brand loyalty
Benefits sought by consumers
Purchases occasion
Frequency of use
mass marketing
business try to sell to all the customers in a large market
advantage of mass marketing
Generate high sales
Can gain economies of scale
disadvantage of mass marketing
High sales don’t always mean high profits
Fierce competition
niche marketing
Businesses target small groups inside larger markets
advantages of niche marketing
Large competitors may not be attracted to these small niches
By providing high quality products to a small market can attract customers willing to pay high prices
disadvantages of niche marketing
Little chance of achieving economies of scale, so costs will be higher
Small market limits the scope for making high profits
Small firms are vulnerable if demand increases, the larger players may enter the market
marketing mix
people, process, product, price,promotion,place
People (marketing mix)
This includes staff a company has who come in contact with customers
Major impact on a firms quality, customer service and brand loyalty
It is impacted by the firms HR policies
process (marketing mix)
how the company deals with its customers and deliveries of the products/service
It covers areas such as communication
how the customer is dealt with,
How quickly/effectively needs are satisfied
product (marketing mix)
product life cycle - development, introduction, growth, maturity, decline
boston matrix
high growth low sales = question mark
low growth, low sales = dog
low growth high sales = cash cow
high growth high sales = star
where is the question mark on the boston matrix
high growth low sales
where is the dog on the Boston matrix
low growth low sales
where is the star on the Boston matrix
high growth, high sales
where is the cash cow on the Boston matrix
low growth, high sales
price (marketing mix
price is important because
Prices to high – low sales, failed business
Prices to low – struggle to cover cost, low profit
penetration pricing
low prices are charged to help attract customers, to gain a foothold in the market
price skimming
high prices are charged to gain a high profit margin from early adaptors
promotion (marketing mix)
Promotion is the process of communicating with customers or potential customer to increase sales through various methods
place (Marketing mix)
Place Is a important part to get right. As if business are located close to where there product is produced and sold it can be easier to manage and control.
Distribution (pathways/methods)
there a different pathways of distribution e.g
producer - wholesaler - retailer - consumer
producer - retailer - consumer
producer - consumer
