unit three marketing management Flashcards
What is ‘marketing’?
Marketing is the process responsible for identifying, anticipating, and satisfying customers requirements profitably
What are the main 6 marketing objectives?
Sales volume
Sales value
Sales growth
Market share
Market size
Brand loyalty
what is sales volume
Targeting to achieve a specific number of units sold per customer
what is sales value
Targeting to achieve a specific revenue form sales
what is sales growth
Targeting to achieve an increase in overall sales
what is market share
Targeting an increase in the business’ own sales as a percentage of the total market
what is market size
Knowledge of the potential size of a market to better understand its potential
what is brant loyalty
Targeting an increase in repeat purchases: customers coming back time after time or consistently buying the brand
what is a corporate objective
specific, realistic and measurable goals which an organisation plans to achieve within a given period of time.
what is marketing objectives
Are targets set to the marketing function to achieve the overall business objective.
what is a marketing starategy
a long-term plan for achieving a company’s goals by understanding the needs of customers and creating a distinct and sustainable competitive advantage
what is a marketing tactic
the actual strategic actions that direct the promotion of a product or service to influence specific marketing goals.
what is market size in value and how is it calculated
Explanation:
Give an indication of the potential market, this enables realistic targets to be set for sales.
How is it calculated?
(sales/market share) x 100
What is meant by ‘market growth’? and how is it calculated
Explanation:
Targeting an increase in overall sales order to improve or increase market share
How is it calculated?
Difference in size/ earliest year x100
What is meant by ‘market share’? and how is it calculated
Explanation:
This is the proportion of particular market that is controlled by a business
How is it calculated?
Sales of business/ total market sales x 100
what is primary research
involves gathering new data that has not been collected before
what is secondary research
involves gathering existing data that has already been produced.
4 examples of primary research
surveys
interviews
focus groups
observations
3 examples of secondary research
online research
literature research case study research
advantages of primary research
specific to the business
up to date
disadvantages of primary research
expensive and time consuming
sample size may be too small
poor validity
advantages of secondary research
can be cheaper
immediately available
looks at whole market
disadvantages of secondary research
not specific to the business
can be out of date
available to competitors
advantages of quantative research
based on large numbers of respondents so may be more accurate
disadvantages of quantative research
doesn’t explain the reason behind the data
advantages of qualitative research
provides a more in depth info about customer opinions
disadvantages of qualitative research
expensive and can be unreliable
what are the three types of sampling
random
stratified
quota
random sampling description, advantage and disadvantage
when each individual has equal chance of being elected for the sample
advantage= simple, easy to do, and unbiased results
disadvantages= may not guarantee representation of vital subjects of larger population
stratified sampling description, advantage and disadvantage
1) divide larger population into segments
2) samples are randomly selected
advantages= ensures representation, and able to analyse results from each segment
disadvantages= more time consuming, risk of overlooking key subjects.
quota sampling description, advantage and disadvantage
1) divide larger population into segments
2) samples are deliberately selected
advantages= ensures representation of key characteristics
disadvantages= prone to bias.
what is correlation
it is a stratified technique used to establish the extent of a relationship between two variable, such as the level of sales and advertising expenditures.
what is the confidence interval or margin of error
it is the plus or minus figure used to show the accuracy of results arising from sampling.
what is a confidence level
it is the probability that research findings are correct
what is extrapolation
it analyses the past performance of a variable such as sales and extends the trend into the future.
the value of technology in gathering and analysing data for marketing decisions.
developments in technology means that vast amounts of information can be stored, collected and analysed. it provides faster communication, makes forecasting easier however it relies on the business having the right data in the first place.
what is elasticity
it is a measure of the responsiveness of demand to change in a variable eg price, income
price/ income elasticity of demand=
percentage change in demand/percentage change in price/income
when is the product or service elastic or inelastic
when above one or below one its elastic if between 1& -1 its inelestic
what is market mapping
is a matrix or map that illustrates the range of positions that a product can take in a market based on two dimensions that are important to customers
what is market segmentation
is dividing the market into identifiable sub-markets, each with its own customer characteristics.
what is market targeting
is deciding which segment a business wants to operate in.
what is market positioning
is where a particular brand stands in relation to other brands in the market.
what is niche marketing
is when businesses identify and satisfy the demands of small segments of a larger market
what is mass marketing
is when a business aims their products at the most available market.
what is included in the stp process
segmentation, targeting and positioning
what is demographic segmentation
identifies subgroups of the population based on social and economic profile or characteristics of individuals or households.
this includes age, gender, level of education, race, religion.
what is geographic segmentation
identifies different subgroups on where they live,
people living in different areas may have different product needs.
what is behavioural segmentation
identifies subgroups based on past buying patterns.
what is income segmentation
subgroups on peoples incomes
what are the four types of segmentations
demographics
geographic
behavioural
income
benefits of market segmentation
helps understand the needs of a specific group of customer
helps design a tailored product or service
makes marketing more efficient
drawbacks of market segmentation
segment size may be too small
benefits of niche marketing
usp
charge premium prices
drawbacks of niche marketing
may be too small that its not profitable
higher costs as it doesn’t benefit from economy of scales
benefits of mass marketing
large target market
economy of scales
drawbacks of mass marketing
generic products
economy of scales
higher costs
Elasticity reveres to the
responsiveness to a change in variable such as price or income.
Price and income elasticity equation
Price elasticity of demand= percentage change in-demand/percentage changing price
Income elasticity of demand=percentage change in-demand/percentage change in income.
Market segmentation is the process of dividing a market into
distinct groups.the customers within the same segment will share common characteristics that can help a business to target them and market to them effectively.
Market targeting is when a business
decides which market segment they want to operate in.
Market positioning is where
a particular brand stands in relation to other brands in the market.
The process of segmentation targeting and positioning.
Segmentation→targeting→positioning
Benefits of this process:
Segmentation→targeting→positioning
- Marketing will be more effective as it can be directed specifically at the target group and convoy a clear message.
- Resources will be used more effectively
- Sales and markets share may increase
Drawbacks of this process
Segmentation→targeting→positioning
- A business may overlook a potentially profitable segment.
- Its possible that any changes in taste and fashion could be overlooked.
Influences on choosing a target market and positioning.
- The nature of the product
- competition
The consumer.
- competition
Niche marketing is when businesses
identify and satisfy the demands of small segments of a larger market
Advantages of niche marketing:
- May benefit from price skimming
- Can be highly profitable
- Customer loyalty
Disadvantages of niche marketing:
- Is profitable, may attract competition
- May be hard to get profit.
Mass marketing occurs when
businesses aim their products at most of the available market many small and medium sized businesses sell in the mass market, businesses must be able to produce On a large scale if businesses are going to be in the mass market.
What are the four types of segmentation
Demographic, geographic, behavioral income
What are the 7 ps in The marketing mix
Product, price, place, promotion, people, process, physical, Environment
What ave industrial products
Products bought for further processing or use in conducting a business
What are consumer products
Bought for consumption by consumers.
What is product development
Developing new products or improving existing ches
What can product development also be called
Research and development
What are the five phase of the product devagement process
Idea - development - prototype and testing - modification - launch
Five internal factors that may influence whether abusiness
Will undertake the r and D process
- availability of a budget
- staff innovation
-past success - need to increase sales
-How ad current products.
External factors that may influence whether a business is willing to undertake the rand D process
-New gap in the market
- customer expectations,
- new technology
- competitors actions
- government policies
What is the product lifestyle
A graph that tracks sales of each individual product overtime
What are product life extension strategies
Marketing actions taken roprolong the life oa product.
What ave the five stages of the product life cycle.
R and D, introduction, growth, maturity, decline, and sometimes extension strategy.
What is along the bottom and side of product life cycle graph
Time, sales volume.
Benefits of using the product life cycle to make marketing decision
- Helps forecast trends
- can be applied across portfolio
- very simple to use
Drawbacks of using the product life cycle to make marketing decisions
- Not all products fussow the life cycle
- hard to predict how long a product will stay in stage
- misreading will lead to mistakes.
If a business has a productin every stage of the life cycle what does this mean
There will be a constant flow or cash
What are the four categories in a Boston matrix and what do they mean
Dog: low market share and low market growth. Question mark: low market share, nigh market growth, stars: nigh market Shane, high market growth and cash cow: nigh market snare and low market growth..
What should you do with each section of the Boston matrix
?= monitor, star =invest, dog= remove, cash cow= maintain,
