Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

biz! > Unit 3-decision making to improve marketing performance > Flashcards

Unit 3-decision making to improve marketing performance Flashcards

1
Q

in terms of marketing, what do the managers need to understand about the market?

A

the nature of the market they are operating in to be able to feed it back to the other functions, such as operations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what does the marketing function of a business provide?

A

a link between the business and the customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what does marketing involve?

A

a mutually beneficial exchange process where they provide a good or service in exchange for something else, usually money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what does marketing aim to do?

A

satisfy or delight customers so they’ll come back for more and it allows space for a better relationship with customers to increase customer loyalty.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what does relationship marketing aim to do?

A

-build long-term partnerships with customers
-retain customers
-build connections between the business and the customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

how are sales values measured?

A

in terms of how much is spent on a product (eg. sales of 30,000)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are some marketing objectives?

A

-sales volume
-sales value
-sales growth
-market share
-brand loyalty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are sales growth targets?

A

targets set to see how much the volume and the value have increased by

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

how are sales volumes measured?

A

in terms of the units sold (eg. sales of 200,000kg or 5m cans)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the formula of the % of growth in sales?

A

change in sales over a given period/ existing sales x100 (eg: 50,000-40,000/40,000 x100=25%)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what does market share measure?

A

it measures the amount it sells as a percentage of the total sales of the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are some external factors that affect marketing decisions?

A

-market and competition
-economic factors
-ethics
-technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is the formula for market share?

A

sales of this product/ total market shares x100 (eg: 400,000/ 4,000,000 x100= 10%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are some internal factors that affect marketing decisions?

A

-finance
-production capacity
-human resources
-nature of product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is the formula for market growth?

A

difference in total market sales/ earliest year x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is the formula for market size?

A

sales/ market share x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is primary market research?

A

the collection of info for the first time directly by or for a business to answer specific issues or questions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

examples of primary research market

A

-surveys
-observations
-focus groups
-test marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is secondary research market?

A

second-hand research involving the collection of data that already exists

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what are examples of secondary market research?

A

-published reports
-government and other agencies
-internet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is the aim of qualitative market research?

A

to find about the attitudes and the opinions of consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what might qualitative data help a business find?

A

it might reveal customer reactions to:
-products
-pricing
-packaging
-branding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is quantitative data?

A

the collection of information on consumer charts that can be analysed statistically

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what might quantitative data show?

A

-sales and potential sales
-the size of the market
-the prices consumers are prepared to pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what does market mapping do?

A

it can enable a business to identify the position of its product in the market relative to others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what does market mapping measure?

A

different business’s
-high and low prices
-high and low quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is random sampling?

A

it is when each member of the population has an equal chance of being included

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

when is random sampling used?

A

when researching a product aimed at a a larger group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is stratified random sampling?

A

it separates the population into segments or strata

30
Q

what does stratified random sampling do?

A

it avoids bias by ensuring that the composition of the sample accurately reflects that of the entire population

31
Q

what is quota sampling?

A

it is when the population is split into a number of groups, each sharing common characteristics

32
Q

how is quota sampling used?

A

things such as surveys might take place allowing for a limit of respondents which leads to a save in money

33
Q

what marketing decisions might a business need to make using sampling?

A

-pricing policies
-product design
-types of promotions
-target customers

34
Q

when does a correlation occur?

A

it occurs when the is a direct relationship between one factor and another (could be positive or negative)

35
Q

what is a confident interval?

A

it is the margin of error that a researcher would experience if they asked a particular question of a sample group and they expected to get the same answer back beyond that

36
Q

what is a confidence level?

A

it is an expression of how confident the researcher is in the data collected (confidence level is expressed as a percentage- most commonly used is 95%)

37
Q

what does extrapolation do?

A

it collects data to predict future data

38
Q

why should extrapolation be treated carefully?

A

because it assumes that the future will be similar to the past so it may not be suitable for industries subject to rapid change

39
Q

what is the importance of technology in gathering data for marketing decision making?

A

-enables targeted sales messages
-makes forecasting easier
-provides faster communication
-however, it relies on a business having the right data in the first place

40
Q

formula for price elasticity of demand

A

% change in demand/ % change in price

41
Q

formula for income elasticity of demand

A

% change in demand/ % change in income

42
Q

what makes a product elastic and what effect does a rise and fall in prices have on it?

A

if the answer is greater than 1
-rise: total rev falls
-fall: total rev rises
eg: luxuries such as handbags

43
Q

what makes a product inelastic and what effect does a rise and fall in prices have on it?

A

if the answer is less than 1
-rise: total rev rises
-fall: total rev falls
eg: necessities such as toilet paper

44
Q

what other factors should be considered when making marketing decisions?

A

-brand loyalty
-competitor actions
-consumer tastes and fashion
-availability of substitutes

45
Q

what is market segmentation

A

the process of dividing a market into distinct groups. Customers within the same segment will share common characteristics and this might help a business market them effectively

46
Q

what is market targeting?

A

when a business targets its marketing to a specific market segment. Allows for a marketing plan to be created.

47
Q

what is market positioning?

A

this refers to how a customer views an individual brand relative to competing brands

48
Q

what is the process of segmentation, targeting and positioning?

A

-segmentation breaks the market up into definable groups (gender, age…)
-then, you’re able to know which groups you want to target.
-the biz will determine how it wants to position its product or service within the market

49
Q

adv of the process of segmentation, targeting and positioning

A

-marketing will be more effective as it will be directed specifically to a targeted group
-resources will be used n¡more effectively
-sales and market share may increase as a result of the clear focus of marketing

50
Q

dis of he process of segmentation, targeting and positioning

A

-they might overlook a potentially profitable segment
-changes in taste and fashion could be overlooked

51
Q

what are some influences on the target market and positioning?

A

-the nature of the product
-competition
-the consumer

52
Q

what is niche marketing?

A

when a business identifies and satisfies the demands of small segments of a large market.

53
Q

adv of operating in a niche market

A

-may benefit from price skimming
-can be highly profitable
-customer loyalty

54
Q

what is mass marketing?

A

when a business aim their products at most of the available market

55
Q

dis of operating in a niche market

A

-if profitable, could attract competition
-may be difficult to generate acceptable profit

56
Q

what are the 7 P’s of the marketing mix?

A

-Product, price, place, promotion, people, physical environment and process

57
Q

what are some influences on the value of a new product development?

A

-technology
-competitor’s actions
-the entrepreneurial skills of managers and owners

57
Q

what factors should businesses take into account when designing the marketing mix for a product?

A

-tech: the product itself and methods of distribution
-market research: key influence on al parts of the marketing mix
-finance: profit levels and cash flow
-nature of the product: determines that certain elements of the marketing mix may be more critical

58
Q

what is the importance of a business having a USP?

A

it allows the business to differentiate its products from others in the market

59
Q

what are the 5 stages of the product life cycle?

A

-development
-introduction
-growth
-maturity
-decline

60
Q

what are some extension strategies? (extending the product life cycle)

A

-finding new markets for existing products
-changing the appearance or packaging

61
Q

what does the Boston matrix measure?

A

undertakes product portfolio analysis based on the product’s market growth and its market share.

62
Q

what are the 4 sections of the Boston matrix?

A

-star products: dominant share and good prospects for growth
-cash cows: dominant share, low prospects for growth
-dogs: low share and no prospects
-problem children or ?: small share of a growing market

63
Q

what are some pricing strategies that a business might use?

A

-price skimming: original high price to regain losses, decreased when competitors enter
-penetration pricing: once a product is established, price inc to boost profit margins
-price leadership: used for established products
-price taking: no influence over the market price

64
Q

what are the elements of the promotional mix?

A

-advertising
-sales promotion
-personal selling
-merchandising
-public relations
-branding
-packaging
-exhibitions and trade fairs

65
Q

what are some of the influences the promotional mix?

A

-the position of the product on the product life cycle
-the type of product
-the finance available
-where customers make purchasing decisions
-competitors actions

66
Q

factors that a business might take into account when choosing outlets and distributors

A

-location
-credit terms
-willingness to display products in prominent positions

67
Q

what are the 3 main types of distribution?

A

-traditional: buy stock from wholesalers-provide advice, credit and delivery but can be expensive
-modern: purchase directly from manufacturers and arrange their own distribution
-direct: lowers prices at which they can sell their products, e-commerce

68
Q

what are the influences on an integrated marketing mix?

A

-place in the product life cycle
-Boston matrix
-type of product
-marketing objectives
-target market
-competition
-positioning

69
Q
A

biz! (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions