Unit 2 Flashcards
What is a good?
A good is anything that might satisfy a want or a need- they are physically used
Examples of goods
They are mainly physical - Clothing, automobiles, computers, and food
Marketing objectives of goods
Marketing objectives that focus on the tangible factors of goods. Such as making decisions about product attributes, packaging, branding, labelling
What are services?
Services are intangible such as banking, hotels, or home repair services (more like action for money)
Marketing objectives of services
Tailored towards competitive differentiation, high quality services, and finding ways to increase service productivity
Marketing in For-profit organisations
They use marketing to let potential customers know about their services and their benefits, with the objective of increasing sales, profits, and/or increasing market share
Marketing in Non-profit organisations
They use it to purely raise awareness of an issue and to raise financial public support for a cause
Commercial marketing
Focuses on a customer’s needs or wants
Social marketing
Focuses on SOCIETY’S needs and wants
The two ways in which a new product can be developed:
Product orientation or market orientation unit
What is product orientation based on?
The assumption that there will always be a market for the product that the firm makes
Product orientation is driven by
Technological innovation rather than a customer’s needs - it rests on the belief that if an innovative products is produced to a good quality - people will buy it
Examples of product orientation
Pharmaceuticals, electronic industries
What is market orientation based on?
The satisfaction through market research and market analysis - they male their decisions based on what customers need and want
The more common orientation method in the 21swt centenary:
Market orientation because more and more companies are becoming more accomodating to customer preferences
Mass marketing
When a company tries to communicate to the largest possible audience - who probably have a lot of different wants and needs
Example of mass marketing
Tv commercial, bulletin board
Niche marketing
When a business communicates with small groups of either potential or existing customers that have similar yet specific needs and wants
There is a lot less….
Competition in niche marketing
Marketing mix
Product, Price, Promotion, and Place
Peter Drucker’s theory was….
That marketing should not be though of as a seperate activity functioning individually from another sector of the business
What is market share?
The percentage of total sales volume in a market captured by a brand
Revenue market share =
Sales revenue of the organisation (divided by) sales revenue of market
Unit market share =
Units of sales of organisations (divided by) total unit sales of market
It is important to….
Define the market being studied when analysing market share data
Market segments
Groups of people that share one or more of the same characteristics.
The 5 steps of the marketing planning process:
Marketing audit, marketing objectives, marketing strategies, monitoring and reviewing, evaluating
Marketing Audit
A review of current marketing activity, with the aim of enhancing the marketing performance of a company
Examples of marketing audits:
SWOT and STEEPLE analysis
Marketing objectives
Define what a company wants to achieve through its marketing activities
Examples of marketing objectives
Increased market share or diversifying into a new market, objectives should be SMART
Marketing Strategies
Strategies that are used in order to achieve the marketing objectives - (The marketing plan and marketing mix will outline the marketing strategies to be adopted)
Monitoring and reviewing
This involves outlining controls that will be used to monitor progress and to check and asses that targets are being met
Evaluation
Measuring the results and outcomes of a company’s marketing activities against the original marketing objectives set
Why are evaluations important?
Evaluations are significant because they help with decision making and planning for the next marketing audit
A perception map
Lets companies trace or plot their customer’s views and perception of the products onto the ‘perception map’ - usually two variables are plotted
How are perception maps created // used?
The most important attributes that influence consumer choices are considered, marketers can decide on their own position in relative to competitors, It identifies any gaps within the market so the company can position itself
Examples of primary market research:
Surveys, Interviews, Focus Groups, Observations
Examples of secondary research:
Academic journals, Media articles, Market analysis, government publications
Quantitative research:
Information that involves a numerical or measured value. Closed and rating scale questions on surveys that can be measured
Qualitative research
Descriptions, feelings, perceptions, data which can be observed yet not measured. Open-ended questions and focus group research
Random sample
Every member of the population has the same probability of being included within the sample - it produces fair and unbiased results
Cluster
Used to avoid problems in having to collect data from populations that are geographically scattered, populations can be divided into clusters. A cluster is then chosen at random and then people are chosen at random from that cluster. This is good for a business that operates in multiple geographic locations.
Stratified
This involves dividing up the population into different sub groups, (male, female, age, ethnicity) and then choosing people from these sub-categories at random. This method ensures a more proportionate or representative sample. It helps make sure an appropriate number of males and females are gathered.
Difference between stratified and cluster
With a stratified, you are initially divining up the population into groups as different as possible but with cluster sampling you are dividing the population into groups as similar as possible
Quota
Does not choose people at random, just a designated number of individuals from a sub group. This could be the first 10 people to walk past a shop, or the first 5 males and 5 females to complete an online survey. This method can make sure the right amount of males/females are gathered.
Snowball sampling
When there is no access to a sufficient amount of people with the characteristics you are looking for. You request referrals from initial respondents until you reach the desired amount. This can be used with quota sampling to reach a desired quota.
Convenience sampling
Rather than at random, people are selected based on availability. This produces the most inaccurate and biased results.
Benefits of sales forecasting
It is a useful forecast for budgeting, or working capital management (activities that repeat regularly each year), helps with better stock management so businesses know how much stock to hold on hand, opportunities for businesses to tap into customers changing preferences and buying trends and adjust their marketing mixes
Limitations of sales forecasting
Accurate forecasts of cyclical and random variations are difficult to predict, the forces influencing the trend and the patterns may change, takes no account of changes beyond control of a company such as government policies, pressure from competitors, changes to laws etc, It is a very complex activity
What is the product lifecycle?
The progression of a product’s sales over its lifetime
The four stages of the product life cycle
Introduction, growth, maturity, decline
What is the best known method of analysing a product portfolio to see its balance?
The Boston consulting group (BCG) Matrix
The two variables of the Boston Consulting Group (BCG) Martix
Relative market share (x axis) Market growth rate (y axis)
How does the Boston Consulting Group (BCG) Matrix fit in with the product lifecycle
The four categories in the matrix equate to the four stages of the product lifecycle
A question mark
Recently introduced product which has not yeast established itself, hence why it is hard to predict it’s future (low share, high growth)
Dogs
(Low share, low growth) most people remove dogs from their product portfolio as the drain resources, but in same cases they can still make some revenue. EG: If a newer car model is out, some people will still need new parts for their older car even if the model is hardly selling
Cash Cows
(high market share, low growth rate) Basically the maturity stage of the PLC, well established products, dominant positions in the market that deliver a significant amount of income, and is not costing the business much to maintain