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topic 3- marketing Flashcards

1
Q

what is marketing ?

A
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2
Q

what are the marketing objectives ?

A

sales volume and value
market size
market and sales growth
market share
brand loyalty

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3
Q

what are marketing objectives ?

A

targets that a company marketing department set itself
valuable in helping the company to achieve its overall objectives

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4
Q

what is sales volume ?

A

amount of sales expressed as a number as a number of units sold
sold over a certain period of time
- easy to visualise but it doesn’t tell you anything about the amount of money coming in from sales

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5
Q

what are sales value ?

A

amount of sales expressed as the total sum of money spent by consumers
- used when business sell a lot of differently priced items usually base objectives on salves value instead of volume

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6
Q

what is sales growth or market growth ?

A

business might aim for a growth in SALES or the MARKET
in VOLUME
or in VALUE

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7
Q

what is market share ?

A

is the proportion of total market sales that a firm has
- commonly want to increase there market share

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8
Q

how do u increase market share ?

A
  • entice customers away from competitors
  • attract brand new customers in a brand new market
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9
Q

why is market share useful ?

A

tells a business how well it is doing compared to its competitors

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10
Q

how can market share be calculated ?

A

business sales / market share x 100

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11
Q

what is market size ?

A

total size of …
the market
sales value
sales volume
- is increasing them growing in the market

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12
Q

how do you calculate market size ?

A

number units sold x price

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13
Q

how do u calculate market growth or sales growth ?

A

chnage in size of market or sales/ original size x 100

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14
Q

what is a good example of brand loyalty ?

A

social media
as allows customers and business to interact

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15
Q

why is brand loyalty important ?

A
  • keeping customers is easier than finding new ones
  • measured in terms of how many customers return
  • bean’s and r an intangible asset and can be sold
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16
Q

what is brand loyalty ?

A

the tendency of some consumers to continue buying the same brand of goods rather than competing brands.

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17
Q

what are the 3 things that influence marketing objectives ?

A
  • internal factors
  • external factors
  • laa
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18
Q

what are the internal factors that influence marketing factors ?

A

-corporate objectives
-finance
-human resources

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19
Q

what are the external factors that influence marketing objectives ?

A

-market
- technology
- competitors
- ethics and environmental factors

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20
Q

what are corporate objectives factors ?

A

objectives need to be aligned with the company’s overall goal

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21
Q

what are finance factors ?

A

is allocated a marketing budget
- affects what the marketing department are able to do
- if cut then objectives need to be scaled down

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22
Q

what arehuman resources factors ?

A

identifies how many staff the company needs
- if reduced or increased they will need to adjust there objectives for what is achievable for staff levels

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23
Q

what are market factors ?

A

state of economy has a big impact

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24
Q

what to do if an economic boom ?

A

economic boom is a good time to try increase sales volume as income levels have risen

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25
Q

what to do if economic recession ?

A

more likely to have objectives of maintaining market share

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26
Q

what are technology factors ?

A

if tech changes rapidly in that market then objectives tend to be on sales and price as new tech causes prises to fall and rise fast

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27
Q

what are competitors factors ?

A

actions of competitors affect marketing objectives especially in a high competitive market

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28
Q

what are the ethics and environmental factors ?

A

awareness is increasing for consumers
if behave in a harmful way can damage brand image
so need to be ethical and environmental conscious

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29
Q

how does the law directly affect market objectives ?

A

as government regulations have direct impact
eg)
-predatory pricing
- trade descriptions act
- advertisement of some product

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30
Q

what is predatory pricing ?

A

cutting prices to force competitors out of business
is illegal in EU and US

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31
Q

what is the trade description act ?

A

regulates promotion
cant lie about products

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32
Q

what can’t u advertise ?

A

tobacco
alcoholic drinks
prescription medicines

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33
Q

what is the importance of market research ?

A
  • reduce risk of making marketing decisions
  • analyse the existing positions of the business
  • decide on possible marketing objectives or actions
  • asses the effectiveness of marketing decisions
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34
Q

what is market research ?

A

the collection and analyse of data and information to inform a business about it market

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35
Q

what is primary research ?

A

field research
involves the collection to be first hand data and it didn’t exist before

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36
Q

what is secondary research ?

A

desk research
research that already been undertaken by another organisation and therefore already exists

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37
Q

what are the different types of primary research ?

A
  • focus groups
  • surveys
  • reviews
  • door to door
  • customers feedback
  • supplier feedback
  • observations
  • in depth interview
  • telephone call
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38
Q

what are examples of secondary research ?

A
  • textbooks
  • national and local government
    -newspapers
  • professional bodies
  • trade unions
  • academic organizations
  • magazines
  • international bodies
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39
Q

what is qualitative research ?

A

the gatherings of non-statistical data that gives a company an in depth insight into the reasons for human behaviours

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40
Q

what is quantitive research ?

A

the gathering of statistical data to inform the company about peoples behaviour but doesn’t identify the reasons

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41
Q

why is sampling carried out for primary research ?

A
  • cant interview everyone so have to split it into similar groups
  • need a sample that represents there whole market
  • too expensive to ask everyone
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42
Q

what will affect how big the sample is ?

A
  • accuracy
  • how big the population you picking from it ( size of target )
    -budget
  • degree of confidence in the results
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43
Q

what size of the sample have a better time of being representative ?

A

a big sample
but also still wont be 100% accurate as margin errors

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44
Q

what will affect the value of the sample ?

A
  • technique used
    -how carried out
  • size of sample
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45
Q

why is a representative sample used ?

A

as cant ask for the opinions of all potential consumers

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46
Q

what is a sample ?

A

a group of subjects that has been chosen from a larger group, the population for the sample

47
Q

what are the 3 sampling types ?

A

random
quota
stratified

48
Q

what is random sampling ?

A

sample is selected for the study from a population where each individual is chosen entirely by chance and has an equal chance of being selected

49
Q

what is quota sampling ?

A

the population is first segmented into sub groups before a judgement is made in selecting a certain number of respondents that are representatives of that subgroup

50
Q

what is stratified sampling ?

A

the population is first segmented into subgroups before respondents are randomly selected from within that subgroup

51
Q

why not doing market research is a risk ?

A

as more chance of a fail as it may not be what the market wants

52
Q

why does marketing data need to be interpreted ?

A
  • informed decision making
  • devising strategies
  • understanding market
  • identify sales patterns
  • realistic target
  • keeping up to date with market changes
  • review competitors actions
  • evaluation of post actions
53
Q

what are the tools for interpretation data ?

A

correlation
confidence levels
extrapolation
time series
value of tech
IT
sales forecasts

54
Q

what is correlation ?

A

identifying a relationship between 2 variables

55
Q

what is positive correlation ?

A

the 2 variables move in the same direction

56
Q

what is negative correlation ?

A

the 2 variables move in opposite directions

57
Q

what is zero correlation ?

A

there is no relationship between the factors ?

58
Q

what are the numbers of each correlation ?

A

strong negative- is -1
zero is 0
strong positive is +1

59
Q

what may managers assume if there is a correlation ?

A

that the trend will carry on
so extrapolate graph and draw a line of best fit and keep the line going

60
Q

what do managers need to be careful about with there assumptions for correlation ?

A

cautious about extrapolating too far beyond the unknown data as the trend may not continue

61
Q

what are confidence levels ?

A

the probability that the research findings are accurate

62
Q

what factors affect confidence levels ?

A

sampling technique
research methods
expertise of the person carrying out and analysing the research

63
Q

what are confidence intervals ?

A
  • a margin of error for sample results
    -the possible range of outcomes for a given confidence level
    -it means the range of values within which the business is confident that the research results will be true
64
Q

when do u use confidence intervals ?

A

to make the estimate which has been taken from the results of the sample more useful to use

65
Q

what do you do if u want to be confident that you interval contains the value of the population ?

A

can increase the interval level
so it gives you a wider confidence level

66
Q

why can be wider confidence levels be bad ?

A

as it is too vague to be helpful

67
Q

what is extrapolation ?

A

it uses data to extend and identify trends that will be in the future
-about predicting the future

68
Q

when is extrapolation useful ?

A

when trends can clearly be identified and the market is relatively stable so it barley changes

69
Q

how long in the future is it best to use extrapolation to predict for ?

A

a few months
- as customers desires and technology constantly change

70
Q

why is extrapolation bad ?

A
  • things can easily change
  • doesn’t tend to take everything into account
    -past doesn’t always indicate the future
71
Q

what can 3 things can change to affect extrapolation ?

A

-competitors actions
- consumer tastes
- market conditions

72
Q

why is technology used ?

A

to gather info about lifestyles of customers and products that they may buy
- so targeting and promoting to right people

73
Q

why is technology valuable ?

A

-gather and analyse large volumes of data quickly and accurately
- track and interpret consumer spending habits
- collect consumer opinions from around the world
- encourage consumer feedback through social media review sites
- enable 2 way communication

74
Q

what are ways technology can get customer information ?

A
  • social media websites
    -loyalty cards
    -google showing relevant ads
  • WIFI signals from customers phone and track there movements
75
Q

what is sales forecast ?

A

allow the finance department to produce cash flow forecasts so can predict sales so predict how much gonna come in and how much gonna spend
-also allow production and HR to prepare for expected levels of sales so can have right amount of machinery and stock and staff
- it helps other departments

76
Q

what does time series analysis look at ?

A

data over time
- used to reveal underlying patterns by recording and plotting data iver time

77
Q

what can time series analysis be used for ?

A

look for link between sales and marketing activity

78
Q

what are trends ?

A

long term movement of a variable

79
Q

what are seasonal fluctuations ?

A

they repeat on a regular basis

80
Q

what are random fluctuations ?

A

have no pattern to them
- also include
major disturbances
changes in government
natural disasters
sudden unpredictable events

81
Q

what can software be used for ?

A
  • what ifs scenarios
    -point-of scale
82
Q

what is the problem with ‘Big data’ ?

A

so much data
streams so fast
so normal computers aren’t sufficient to handle it

83
Q

why is ‘big data’ good ?

A

can draw useful correlations
so large companies investing in ways to analyse it

84
Q

what is the downsides of software ?

A
  • expensive especially if need to upgrade
  • need to train staff- time consuming and expensive
    -can lead to the business valuing quantity over quality- need to know what the trends mean
  • computer systems might not be up to handle it all and can loose info and analysation
85
Q

what is price elasticity ?

A

measures the responsive of demand to a change in price
- it is always a negative value

86
Q

what is inelastic Ped ?

A

change in demand is less than change in price
if a Ped is between 0 and 1

87
Q

what is elastic Ped ?

A

change in demand is greater than change in price
>1
it is very responsive

88
Q

what is the formula for Ped ?

A

% change in quantity of demand / % change in price

89
Q

what happens when there is a positive change in price ?

A

negative change in demand

90
Q

what happens when there is a negative change in price ?

A

positive change in demand

91
Q

what are the factors that affect Ped ?

A
  • branding
  • income
  • nature of the good
  • the availability of substitutes
  • tine
92
Q

how does branding affect Ped ?

A
  • firms spend time and money building up their brand image
  • by creating brand loyalty firms know there customers
  • know they will be willing to pay more for the product and they ca raise the prices
  • Ped is lower
93
Q

how does income affect Ped ?

A
  • if consumer income higher then the issue prices become less important to consumer
  • so easier for firms to raise price as the Ped is lower
94
Q

how does nature of the good affect Ped ?

A
  • a luxury good will be price elastic as demand will be more sensitive to changes in price
  • necessity goods will be price inelastic as demand will be less sensitive to changes in price
95
Q

how does the availability of substitutes affect Ped ?

A

the closer the substitutes and the more that are available the higher the Ped

96
Q

how does time affect Ped ?

A

-longer the time period the higher the Ped
-given more time other firms have the ability to produce similar products
- customers have more chance of adapting their buying habits

97
Q

what happens to revenue when you raise the selling price ?

A

price elastic product = sales revenue will decrease
price inelastic product = sales revenue increase

98
Q

what happens to revenue when you lower the selling price ?

A

price elastic product =
sales revenue will increase
price inelastic product =
sales revenue will decrease

99
Q

what are the problems with forecasting Ped ?

A
  • Ped for a product is constantly changing
    -very difficult to measure
  • competitors don’t stand still
100
Q

why is is it difficult to measure Ped ?

A
  • difficult to find info
  • Ped changes over different price ranges
    -change over period of economic cycle
    -tastes and fashion are constantly changing
101
Q

what are competitors constantly trying to do ?

A

to improve existing products
bringing out new products
trying to promote their products

102
Q

why do we want a product to be inelastic ?

A

so changes in price wont be as responsive

103
Q

what is income elasticity of demand (Yed) ?

A

how demand changes with income
- the more income then there’s more demand for some products and less demand for others

104
Q

what is the formula for Yed ?

A

% change in quantity demanded / % change in income

105
Q

what Yed does normal goods (more of a need) have ?

A

a positive Yed
less than 1
- means that as income rises the demand rises but at a slower rate than the increase in income

106
Q

what Yed does luxury products have ?

A

positive Yed
more than 1
- means that the demand for luxury goods grows faster than the increase in income

107
Q

what Yed do inferior goods have ?

A

negative Yed
- meaning demand falls when income rises
- demand rises when income falls

108
Q

how does price elasticity help manufactures ?

A

helps decide wether to raise or lower the price of a product
- can see what might happen to sales

109
Q

how does income elasticity help manufactures ?

A

see what happens to sales if the economy grows or shrinks

110
Q

what is market segmentation ?

A

occurs when the market is split into subgroups of consumers with similar characteristics
- helps to identify different types of consumed and there different wants and needs

111
Q

what are the 4 market segment methods ?

A

demographic
geographic
income
behavioural

112
Q

what is demographic segmentation ?

A

identifies subgroups of the population based on their demographic profile or characteristics
- look at social and economic characteristics of individuals and households

113
Q

what are the different profiles or characteristics of the population ?

A

age
gender
level of education
religion
race
family size
stages of life

114
Q
A

business (10 decks)

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