Unit 3- Marketing Flashcards
Marketing definition
Identifying, anticipating and satisfying customer wants in a way that delights the consumer and also meets the needs of the organisation
Market definition
A place where buyers and sellers meet.
Refers to generic goods or services eg. Supermarket, cereals, cars etc..
How is Market size measured
Sales volume and sales value
Market share definition
The proportion or % of total sales of a product or service achieved by a firm or a specific brand of product.
Market share equation
Sales of one product or brand or company / total sales in market x100
Market growth definition
The % in sales (value or volume) of a generic product or service over a period of time
Market growth equation
Market size in year - market size in previous year / market size in previous year x100
Factors that influence market growth (5)
Economic growth
Changes in taste
Social change (COVID)
Fashion
Type of product (eg luxury products inferior products etc…)
Sales growth equation
Sales in the year - sales in previous year / sales in previous year x100
Brand loyalty definition
A measure of the degree of attachment that a consumer has for a particular brand of product
Marketing objectives (5)
Increase sales volume
Increase sales value
Market growth
Increase market share
Build brand loyalty
Market research definition
The systematic objective collection and analysis of data about a particular target market
Primary research definition
Research data that is collected first hand for a specific research purpose
Examples of primary research
Observation
Online surveys
Interviews
Focus groups
Test marketing
Primary research advantages
Kept private- not publically available
More detailed insights into customer views
Directly focused to research objective
Primary research disadvantages
Response rates may be low
Time consuming
Costly to obtain
Risk of survey bias
Secondary research definition
Research that uses data that already exists and has been collected by someone else for another purpose
Examples of secondary research
Census
The internet
Magazines
Competitor websites
Secondary research advantages
Often free
Easy to obtain
Quick to access and use
Good source of market insights
Secondary research disadvantages
Specialist reports are often expensive
Not tailored and specific to business
Can quickly become out of date
Qualitative market research definition
Collection of information about the market based on subjective factors e.g. opinions and reasons
Qualitative MS advantages
Greater insight to what needs to be done to meet costumer needs
Highlights issues the business was not aware of allowing it to maximise success
Qualitative MS disadvantages
Hard to analyse and compare
Expensive
Quantitative market research definition
Collection of information about the market based on numbers
Quantitative MS advantages
Easier to identify trends and compare results
It summarises data in a concise and meaningful way
Quantitative MS disadvantages
Doesn’t show the “why”
Sampling definition
Gathering data from a group of respondents whose views or behaviour should be representative of the target market as a whole
Types of sampling (3)
Random- everyone has an equal chance of being chosen
Quota- people are picked who fit into a category to get opinions from the people the product is directly targeted at.
Stratified- researchers divide subjects in subgroups called strata based on characteristics that they share (e.g race, gender etc..) and once divided each subgroup is randomly sampled.
Confidence intervals
Used to assess the reliability of sampled data when trying to forecast figures such as sale levels (used to try understand the results of a survey)
Confidence levels
The degree to which statistics are a reliable predictor of actual events
Factors that influence the confidence levels (3)
Sample size
Population size
% of sample choosing a particular answer (if there is a high or low % there is less margin of error so confidence levels will be low)
Extrapolation
Use of past data to establish a trend which is then projected into the future
Extrapolation advantages
Quite common for past trends to continue
Quick and cheap
Simple method
Not much data needed
Extrapolation disadvantages
Unreliable if there is a significant fluctuation in historical data
Ignores qualitative factors
Assumptions doesn’t always happen
Price Elasticity of Demand
The degree to which the quantity demanded of a good or service is affected by a change in price
Price Inelastic
The % change in demand is smaller that % change in price.
Demand will hardly change if price increases
(-0.2, -0.5, -0.8)
Price Elastic
% change in demand is higher than the % change in price.
Demand will change significantly if price increases
(-1.2, -1.5, -1.7)
Factors that influence the PEoD (7)
Habit/ addiction
Availability of substitutes
Brand loyalty
Consumer income
Necessity
Proportion of income spent on a product
Time (people may have the time to shop around to find the best prices so inelastic in short term and elastic in long term)
