Topic 3-decision Making To Improve Marketing Performance Flashcards
what is marketing
the process of identifying, anticipating (predicting) and satisfying customer needs profitably.
what is a marketing objective
-a marketing target or goal that an organisation hopes to achieve
why set marketing objectives (4)
- helps to coordinate business activity
- motivates workers to reach goals
- measures how far you have reached and measures your success.
- decision making is more focused
where do marketing objectives come from
marketing objectives must be compatible with the overall objectives of the company
what are functional areas
little sections of the business e.g. finance
internal influences on marketing objectives and decisions (3)
1) new corporate objectives
2) a new innovative product
3) new financial objectives
why might internal influences lead to the wrong marketing objective being adopted
-pressure for short-term profits leading to a short-termism approach
examples of external influences on marketing objectives (4)
- changes in consumer taste
- changing competitive pressure
- changing economic pressure
- changing natural environment
what are the 3 aspects to marketing
- marketing research
- marketing mix
- the way you sell something and how
what is a market
a place where buyers and sellers meet
name the different types of market (4)
- local market
- national market
- physical market
- digital market
key features of digital markets (4)
- fiercely price competitive
- don’t rely on physical location (saves money)
- the market is cheap and easy to set up
- they provide a ‘long tail’ of a competitive profitable small businesses
what is demand
-within a market demand is the desire of consumers to buy a product or service, when backed by the ability to pay
what are the factors that determine the demand for a product or service (5)
- price
- incomes
- actions of competitors
- the firms own marketing activities
- seasonal factors
what is market size
the measurement of all of the sales of all companies in a market place
what 2 ways can market size be measures by
- volume
- value
what is market share
-the proportion of the total market held by one company or product
what is the advantage of having the top selling brand
-the brand leader is often able to offer discount terms to retailers. Meaning higher revenues and profit margins per unit sold
what is the advantage of having the top selling brand for the COMPANY who is selling the product
the strength of a brand- leading name makes it much easier to obtain distribution and trails for new products (customers are more likely to try a new product from a well known brand)
what is market research
it gathers info about consumers, competitors and distributors within a firms target market - it is a way of identifying consumers’ buying habits and attitudes to current and future products
why do businesses need accurate and up-to-date information (4)
- changes in technology
- changing gin consumer tastes
- changes in product ranges of competitors
- changes in economic conditions
what is the purpose of marketing research (3)
- gain a more detailed understanding of consumers’ needs
- reduce the risk of product/business failure
- forecast future trends
what do new businesses need to know (2)
- how big the market is (market size)
- what brands/ companies are leading the market (market share)
what is secondary research (3)
- collecting and analysing data that already exists
- it is external information
- it can be internal info from the business itself
methods of secondary research:
-internal data from the business (3)
- every department has its own records
- e.g. past sales figures or financial info
methods of secondary research:
-examples of external data (5)
- commercial market research organisation
- government
- competitors
- trade publications
- media/ internet
advantages of secondary research (3)
- often obtained without cost
- can gain a good ‘overview’ of a market
- usually based on actual sales figures, or research on large samples
disadvantages of secondary research (3)
- outdated data
- data may not be tailored to your own needs
- can be expensive to buy reports
what is primary research
-the process of gathering first hand, new data directly from people within your target
disadvantages of primary research
- time consuming
- expensive- especially if you are going to hire someone to do your research
what type of primary research may a small business carry out (2)
- retailer research
- observation
what type of primary research may a large business carry out (2)
- qualitative research
- quantitative research
what is qualitative research
in depth research into the motivations behind the attitudes and buying habits of consumers
what information does qualitative research provide or what does it show (2)
- it doesn’t provide statistics
- it gives clues at to why people like things (or not)
who is qualitative usually carried out by
psychologists- they interpret the way people say things as well as what they say
what is the most common form of qualitative research
focus groups
what is quantitative research
-this asks pre-set questions of a large enough sample of people to provide statistically valid data
what are the 3 aspects of quantitative research
1) sampling- ensuring results of a certain group of people show what the whole market wants
2) writing a questionnaire that is unbiased and meets the research objectives
3) assessing the validity of the results
what is sampling
-getting the opinions from a number of people, chosen from a specific group, in order to find out about the whole group
what are the 2 main concerns when sampling
1) choose the right people for interview (sampling method)
2) decide how large a group to interview (sample size)
give a common example of the a type of sampling method
quota sampling- selecting interviewees in proportion to the consumer profile within the target market
