Marketing

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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.
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
  • Maximise revenue in the most cost effective way

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