Unit 3
- Created by: Layla.thomas16
- Created on: 08-11-19 14:46
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- Unit 3
- Setting marketing objectives
- Marketing, management process responsible for identifying, anticipating and satisfying customer requirements profitability
- Percentage change= new-original/original x 100
- Market growth= new market size-original market size/ original market size x100
- Sales growth= new sales-original sales/ original sales x 100
- Market share= sales of one brand/ total sales in the market x100
- Key indicator of success as compares sales with rivals
- Involves-market research, setting prices, designing and using promotion methods, designing product and package, location, distribution, customer service
- External - PESTLE, state of the market, competition, customers and suppliers
- Internal - business objectives, finance, HR, operations, type of product
- Benefits= increase sales volume and sales value, brand image and awareness, market and sales growth, increase market share, build brand loyalty
- Brand loyalty, degree that of customer attachment that a consumer has to a brand- if they are loyal they will be more likely to repeat purchase
- Objectives- increase size, market positioning, security and survival, increase product portfolio, differentiation and value
- Market size, total volume of sales of a product or the value of a product
- Firms will want to enter a growing market, going to have higher profits however there will be more rivals
- Factors influencing growth include, economic growth, the type of product, social changes, demographicchanges, changes in tastes and fashion
- Marketing, management process responsible for identifying, anticipating and satisfying customer requirements profitability
- Understanding markets and customers; Market research
- Marketing is the process of anticipating and satisfying customers wants in a way that delights a customer profitability
- Reasons to research, identify trends and fashions, gain customer views and opinions, discover and predict future trends, analyse the market, rivals, gaps in the market and look at costs
- Primary research - info is gathered first hand
- Surveys, focus groups, observation and experimentation, loyalty card, test marketing
- + Relevant and up to date + specific to the firms scenario + only available to that firm
- - Can be costly and time consuming - may be bias or done wrong - may be difficult to find enough people to represent population
- + Relevant and up to date + specific to the firms scenario + only available to that firm
- Surveys, focus groups, observation and experimentation, loyalty card, test marketing
- Secondary research - data is gathered that has already been collected by others
- Government publications, industry research and reports, newspapers, trade journals and magazines, iinternet
- + Quick + scale used may be too big + can be cheap and easy to access
- - Information may be outdated and inaccurate - biased - may not be suitable for their situation - can be costly
- + Quick + scale used may be too big + can be cheap and easy to access
- Government publications, industry research and reports, newspapers, trade journals and magazines, iinternet
- Quantitative- views, opinions and beliefs
- Quantitive- numerical and statistical
- Sampling, a group of respondents whose views, characteristics and behaviour should represent the overall target market
- Random- all members of population have an equal chance of being selected for the sample, timely and costly ICT used, difficult to keep random
- Quota- a sample chosen with the aim of representing the overall population, divided by age, income and gender, surveyed, quick and cheap, customer opinion, may be biased, if not visited then not surveyed
- Stratified- group of respondents are selected randomly before the survey from a list, but within sub groups i.e. gender, age, often done by mail, email or phone, less biased ICT used, timely and costly
- Quota- a sample chosen with the aim of representing the overall population, divided by age, income and gender, surveyed, quick and cheap, customer opinion, may be biased, if not visited then not surveyed
- Time, costs, life cycle, new or existing firm, position in the market, target audience, knowledge- all impact what sampling method to use
- Random- all members of population have an equal chance of being selected for the sample, timely and costly ICT used, difficult to keep random
- Segmentation, targeting and positioning
- Income, demographic,geographical,behavioural,
- Segmentation helps yo understand target audience, better design of marketing mix, build strong brand identity and loyalty, plan new products
- Difficulties include, difficult to identify most important segments, constant research is needed to stay updated, may be too specific, may ignore opportunities,difficult to reach segment chosen
- Targeting, deciding the market segments the company will aim to sell to
- Niche marketing, target a small segment of the a larger market
- + Lower levels competition + possible build up of intense customer loyalty + set up and operate on a smaller scale decreasing costs + easily differentiate themselves
- - Lower profits and small scale means no economies of scale - barrels to entry are small so new entrants impact massively - changing tastes
- + Lower levels competition + possible build up of intense customer loyalty + set up and operate on a smaller scale decreasing costs + easily differentiate themselves
- Mass marketing- mass appeal and promote to all types of consumers
- + Economies of scales possible + higher sales, revenue and profit + higher barriers to entry decreasing competition
- - High costs - table to easily add value as must appeal to loads - consumer tastes change quicker
- + Economies of scales possible + higher sales, revenue and profit + higher barriers to entry decreasing competition
- Marketing mix
- Product
- Convenience,shopping, speciality, emergency, unsought
- Must be functional, reliable, durable, aesthetic, value, safe, convenient, suitably packaged, fashionable
- Product life cycle
- Boston matrix
- Price
- Competitors products and prices, costs, conditions, economy, bargaining power, location, brand image, quality, PED
- Promotion
- A process of communicating with customers or potential to increase sales through various methods
- Create awareness, build brand image, customer loyalty, persuade the customer
- Advertising reaches wider audience, gives your business a personality, creditability however it is expensive, hard to make changes to and may be ignored
- Public relation increases consumer belief coming from an objective source, a good story can be picked up by many news outlets and it is cost effective however no direct control can be had and its hard to evaluate
- Branding, building an image that helps to differentiate a product from competitors hoping to read to higher sales, market share maintained, stand out, ability to charge higher prices, price inelasticity due to loyalty
- Create awareness, build brand image, customer loyalty, persuade the customer
- Can be informative or persuasive
- Above the line = via media such as radio, cinema, billboards
- Below the line = sponsorships, sales promotions, PR, personal selling
- AIDA, attention, interest, desire and action
- A process of communicating with customers or potential to increase sales through various methods
- Place
- Distribution
- Direct via websites, catalogues and mail order, vending machines, telesales
- Profit margins, distribution costs, control required over display and brand image, proximity and convenience for customers, type of product
- Distribution
- People, physical, process
- People are the staff who come in contact with the customers
- Physical is the features of the service i.e. building, displays, websites, uniforms
- Process is how the company deals with its customers and delivers its service
- Marketing mix is the elements of a firms approach to marketing that enables it to satisfy its customers
- Product
- Setting marketing objectives
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