Unit 3 Flashcards
What is marketing ?
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability.
Purpose of marketing
Anticipating consumers’ wants
Satisfying customers’ wants
Meeting the needs of the business
Define marketing objectives
Marketing objectives: The specific goals/targets of the marketing department. They must be in line with the firm’s overall corporate objectives.
Why must businesses set marketing objectives
Businesses must set marketing objectives to determine what they must do in their marketing strategy to help achieve their overall company objectives.
What is market size?
Market size: The total volume of sales of a product or the value of the sales of a product
Define Sales volume
Sales volume measures the number of items sold or produced
Define sales value
Sales value measures the financial worth of the items sold.
for example, the average car price in 2013 was £27,219
if sold are 4 you do 4 ×27,219
what will a large market size do?
A large market size will attract many competitors so many firms will prefer to operate in smaller niche markets.
Different marketing objectives?
Increase size – For example, sales revenue, market share, sales volume
Market positioning - Appealing to particular or new market segment
Security/survival – A common objective for new start-up firms, those in difficult financial positions and during a recession
Successfully launch a new product or end unsuccessful products
Increase product awareness
Innovation and developing new products
Differentiation – Creating a unique selling point and making the brand stand out from rivals
Add value to existing products – Methods to ensure consumers are willing to pay a high price for the product/service, such as high quality, strong brand image, excellent customer service, etc.
sales growth and calculation same with market growth
Sales growth: The percentage change in sales (volume or value) over a period of time for a specific brand.
Sales growth = new sales – original sales x 100
original sales
how can market growth be difficult?
Market growth can be difficult to achieve for one firm so they may set targets to move into new growing markets by targeting new consumers, developing new products or by completely diversifying (new products in new markets)
Factors influencing market growth
economic growth
types of products
social change
What is primary market research
Primary market research (field research) involves the collection of first hand data that did not exist before and therefore it is original data
What is secondary market research?
Secondary market research (desk research) is research that has already been undertaken by another organisation and therefore already exists
Examples of primary market research?
survey’s and questionnaires
In-depth interviews
Focus groups
