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
