Unit 3- Decision Making To Improve Market Performance Flashcards
Marketing objective
a target set for the marketing function
Eg, increase sales by 10% within 3 years
Sales value
The level of sales in a given period in pounds sterling
Sales volume
The level of sales in a given period in terms of units sold
Market share
The sales of one brand or business as a percentage of total market
Sales growth
Percentage change in sales volume or value over a given time
Market growth
The percentage change in the total sales in the market over a given period
Internal influences on marketing objectives and decisions
Factors within the business such as employees and operational resources
External influences on marketing objectives and decisions
Factors outside of the business such as the state of the economy
Globalisation
Increasing trade between countries and the growing internalisation of the business
Market research
Gathering and analysing data
Competitiveness
The extent to which a business offers good value for money relative to competitors
Primary market research
Involves gathering data for the first time
Secondary market research
Using data that already exists
Target population
All the items or people relevant to the market research being undertaken
Business ethics
Whether a business decision is perceived as morally right or wrong
Sample
A group of people or items selected to represent the target population
Market Mapping
Analyses market condition to identify the position of one product or brand relative to others in a given criteria.
Used to identify a gap in the market
Confidence level
The probability that research findings are correct
Confidence interval
Possible range of outcome for a given confidence level
Eg. You might have a 95% confidence level that sales will be between £500,000 and £700,000
Price elasticity of demand
How responsive demand is to changes in the price, all other factors consistent
Income elasticity of demand
How responsive demand to changes in income, all other factors consistent
Big data
Large complex data sets
These have been difficult to analyse in the past but improvements in technology is making the use of big data more feasible
Segmentation
When similar customers needs and wants are grouped within a market
Market segments
Groups of similar wants or needs within a market
Targeting
When a business decides which segments it wants to operate in
Niche Marketing
Focussing on a particular segment of the market
Mass market
Provides products that meet some of the needs of a large proportion of the market
Positioning
Identifying the benefit and price combination of a product, relative to competitors
Marketing mix/7 P’s
Price Product Place Promotion People Physical environment Process
Marketing mix
The combination of marketing choices that can be used by a business to influence consumers to buy products
Consumer products
Goods bought for consumption of the general public
Industrial products
Goods bought for the use in a business process
