Marketing
- Created by: Meganallam
- Created on: 11-12-18 08:50
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- Marketing
- Marketing objectives
- These are the targets set for the marketing activities of the firm
- Sales volume = the number of units sold
- Sales value = how much is spent on the product
- Market size = number of units sold in the market per period X average selling price
- Market growth = change in market size / original market size
- Sales growth = the rate of growth expected dependent on the market growth levels and sales growth
- Market share = sales of this product / total market share X 100
- Brand loyalty = retention and repeating customers.
- These are the targets set for the marketing activities of the firm
- Market research
- This involves gathering and analysing data relevant to the marketing process to find out what the customer needs and wants
- This can give managers the necessary information they need to make good decisions.
- There are two different types of research - Primary and Secondary
- There are two different types of data - quantitative and qualitative
- Sampling - involves gathering data from a sample of people who should be representative of the target market
- Market mapping - illustrate the range of positions that a product can take based on two dimension
- It allows them to see gaps in the market or where there is demand so that they can differentiate and remain competative
- This involves gathering and analysing data relevant to the marketing process to find out what the customer needs and wants
- Interpreting marketing data
- Correlation - the strength of the relationship between two variables
- This correlation can be positive, negative or non-existent
- Extrapolation - uses established trends to forecast the future
- Confidence level is the probability that the research findings are correct
- Confidence interval is the possible range of outcomes given a confidence level
- Correlation - the strength of the relationship between two variables
- PED and IED
- PED measures the extent to which demand is affected by price
- % change in quantity demanded / % change in price
- IED measures the extent to which demand is affected by a change in income
- % change in quantity demanded / % change in income
- PED measures the extent to which demand is affected by price
- Segmentation
- This is the process of identifying different groups with similar needs in order to capitalise on customers needs and wants
- Demographic - dividing a market into segments based on demographic variables e.g. age and gender
- Income - dividing a market into different income groups
- Behavioural - division based on the use or response to a product and the benefits they seek
- Geographical - division into different geographical units e.g. regions or cities
- This is the process of identifying different groups with similar needs in order to capitalise on customers needs and wants
- Targeting and Positioning
- Targeting - choosing which segment to focus on
- Positioning - identifies the benefit and price combination of a product relative to competitors
- Niche and mass marketing
- Niche marketing focuses on a particular segment of the market
- Mass marketing aims to provide products that meet the needs of the many.
- The 7P's
- Product - What the customer buys
- Price - how much the customer pays
- Place - how the product is distributed
- Promotion - how the product is shown to the consumers
- People - who makes contact with the consumer
- Process - how the product is delivered to the customer
- Physical Environment - what the customer experiences
- Pricing
- Penetration Pricing = low prices to gain market share
- Price skimming = high price when product is launched
- Dynamic pricing = prices are continually changing
- Promotion
- There are 5 main methods of promotion
- Advertising - this is paid for - newspaper, billboards
- Public relations - when a business tries to get free coverage
- Sponsorship - sponsoring events or people to improve awareness
- Sales promotion - special offers e.g buy 1 get 1 free
- Sales teams - contact potential customers and distributors
- Branding
- A brand represents a promise made by a business to provide a specific set of benefits
- If a brand is strong demand can be price inelastic, customers may become brand loyal and you can control the market
- There are 5 main methods of promotion
- E-commerce
- Developments in tech e.g digital marketing
- Gather more information about customers
- Build relationships with customers more effectively
- Target specific segments
- Involve customers more in the marketing process
- Target global markets 24/7
- Developments in tech e.g digital marketing
- Marketing objectives
- Maximise revenue in the most cost effective way
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