MARKETING

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  • Created by: _Holly98
  • Created on: 15-12-15 10:02

WHAT IS MARKETING

PROCESS ANTICIPATING, IDENTIFYING & SATISFYING CUSTOMER NEEDS & WANTS MUTUALLY BENEFICIAL EXCHANGE 

RESEARCH MARKETING - APPROACH MARKETING BUSINESS AIMS BUILD LONG TERM RELATIONSHP BY PROVIDING 

MARKET ANALYSIS - EXAMINING PARTICULAR CHARACTERSITICS OF MARKET

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WHAT IS A MARKET

BUYERS & SELLERS COME TOGETHER

MANAGER MUST UNDERSTAND NATURE

MARKET SIZE - TOTAL VOLUME SALES PERIOD OF TIME

MARKET GROWTH - & CHANGE MARKET SIZE

DIFFERENT / ORIGINAL PRICE X 100

ONLINE

REGIONAL / NATIONAL / INTERNATIONAL 

FINAL CUSTOMER THROUGH INTERMEDIARY 

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INTERNAL INFLUENCE MARKET OBJECTIVES

STRATEGY - E.G. GROWTH - TARGET LEVEL SALES HIGHER MANTAIN SIZE

AMBITIONS - HIGH DEMAND - PUSH BUSINESS FORWARD

EXISTING POSITON - REALISTIC INCREASE

PRODUCTION - CAPACITY 200,000 UNITS CANT HIGHER

FINANCE - PROMOTIONAL ACTIVITY MAKE CUSTOMER AWARE PRODUCT BENEFITS

EMPLOYEES - AFFECT QUALITY DESIGN CUSTOMER SERVICE, RANGE SERVICES PROVIDED

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EXTERNAL INFLUENCE MARKET OBJECTIVES

POLITICAL / LEGAL: DETERMINE ALLOWED BY LAW E.G. RESTRICTIONS CIGARETTE PACKAGING

ECONOMIC: AFFECTS AFFORADIBLITY - 2008 RECESSION SWITCH WAITROSE - LIDL GLOBALISATION - GROWTH ECONOMY MIDDLE EAST - NEW MARKETS TARGET

SOCIAL CHANGE: AFFECT WHAT ACCEPTABLE: ETHICS: HOW EMPLOYEES TREATED

COMPETITION: RANGE OF OPTIONS - INTERNET FASTER ALTERNATIVE - REDUCES COSTS / WIDER AUDIANCE GLOBALLY

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BENEFITS SETTING OBJECTIVES

SMART

SPECIFIC: ACHIEVING SALES X PROVIDES CLARITY - CAN SEE SUCCESS / FAIL

COMMON PURPORSE: ADOPT TEAM APPROACH / UNITED

TIME: IMPROVE EFFICENCY EXAMINING REASON FAILURE & SUCCESS 

REALISITC: SIGNIFICANT EFFORT: EMPLOYEES MOTIVATED SUCCESS IMPROVE PERFORMANCE

DEPARTMENT CLEAR INIDCATION RELATIVE IMPORTANCE ENABLE EMPLOYEES RECOGNISE PRIORITIES

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PROBLEMS SETTING OBJECTIVES

EXTERNAL CHANGE: NOT ALWAYS PREDICTABLE - BASED INCORRECT ASSUMPTIONS - NEW COMPETITOR

INTERNAL CHANGE: FORESEEABLE - E.G. IMPROVE LOYALTY HAMPERED REPUTATION UNRELIABLE OR CUTS ADVERITISING 

UNCLEAR PRIORITIES: EMPLOYEES DECISIONS SUIT THEIR NEEDS NOT BUSINESS

INSUFFIEICENT RESOURCES: TOO SMALL BUDGET

RELUCTANT: MAKE REALISITC OBJECTIVES E.G. -5% REVENUE

TOO AMBITIOUS

OWNERSHIP: IMPOSED EMPLOYEES NOT FEEL OWNERSHIP 

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MARKET RESEARCH

PRIMARY - COLLECTING DATA FIRST HAND SPECIFIC PURPOSE

SECONDARY - SEARCHING DATA ALREADY THERE - ACCESIBLE NOT COLLECTED SAME PURPOSE

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METHODS PRIMARY COLLECTION

EXPERIMENT

OBSERVATION

FOCUS GROUPS

PERSONAL INTERVIEWS

POSTAL SURVEY 

TELEPHONE SURVEY 

INTERVIEW SURVEY

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EXPERIMENT

ORGANISATION PARTICULAR APPORACH CERTAIN ARE CERTAIN AMOUNT TIME

SUCCESFUL LONG TERM / NATIONAL BASIS

PRO:

  • CHEAP 
  • CONSIDER CUSTOMER BEHAVIOUR RATHER QUESTOINNAIRE 

CONS:

  • BEHAVIOUR NOT SAME OVER COUNTRY
  • DELAY INTO POTENTIALLY SUCCESSFUL STRATEGY
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OBERVATION

WATCH CUSTOMERS SHOPPING & GATHER INFO REACTION & THOUGH PROCESSES - ENABLE STORE USEFUL DATA

PRO

  • DETAIL - SHOW CUSTOMOER THOUGHT
  • LAYOUT DISPLAY OBSERVED - REVEAL PROBLEMS E.G. HEIGHT

CONS

  • EXPENSIVE - PSYCHOLOGIST NEEDED
  • SHOWS WHAT INSTEAD WHY
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FOCUS GROUPS

GROUP CONSUMERS DISCUSS FEELINGS ABOUT MARKET 

PROS

  • DETAILED INFO WHY CUSTOMERS REACT 
  • UNCOVER NEW IDEAS

CONS

  • BIAS - INTEREST WANT PLEASE 
  • EXPENISVE COST £400 - £5000
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PERSONAL INTERVIEWS

FACE TO FACE

PRO

  • WIDE RANGE INFO OBTAINED 
  • CAN EXPLAIN UNCERTANTIES

CONS

  • TIME CONSUMING
  • FALSE ANSWERS - BIAS
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POSTAL SURVEYS

CUSTOMER RETURN ENVELOPE

PRO

  • CHEAP
  • TIME AVALIABLE - MORE DETAIL

CONS

  • RESPONSE LOW - 2% NO REWARD
  • NOT REPRESENTITIVE
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TELEPHONE INTERVIEWS

PHONES PUBLIC 

PROS

  • CHEAP
  • TARGET KNOWN CUSTOMERS

CONS

  • DETAIL DIFFICULT - PEOPLE DONT WNAT PHONE
  • INCREASE TELE SALES - CUSTOMER RESISTANT NOT ENGAGE
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INTERNET SURVEYS

CUSTOMERS EXPRESS VIEWS

PROS

  • CHEAP
  • UPDATED FREQUANTLY

CONS

  • BIASED PEOPLE INTEREST 
  • LESS RELEVANT - NOT EVERYONE USES INTERNET
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SECONDARY MARKET RESEARCH

GOVERNMENT PUBLCATIONS: NATIONAL STATISTICS PROVIDES INFO ECONOMIC SOCIAL TRENDS - INVESTIGATE IMPLICATIONS BUSINESS 

NEWSPAPERS: SPECIFIC ATIRCLES SPECIFIC INDUSTRIES

MAGAZINE: THE ECONOMIST PROVIDE DATA FORMS ARTICLES

COMPANY RECORDS: SALES FIGURES PREVIOUS SURVEYS

COMPETITORS: BROCHURES / REPORTS/ INVESTOR INFO

MARKET RESEARCH ORGANISATION: PRODUCE DETAIL SURVEY AVALIABLE BUY 

LOYALTY CARDS: IDENTIFY SPENDING PATTERN

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EVALUATION SECONDARY RESEARCH

INFO AVALIABLE - QUICK DECISION

CHEAPER PRIMARY 

CONDUCTED REGULARLY INFO HELPFUL TRENDS OVERTIME

UNLIKELY ADVANTAGE COMPETITORS

NOT EXACTLY RELEVANT 

LEVEL ACCURACY QUESTIONABLE 

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QUALITIVE

DEALS "WHY" & "HOW"

USE INFO PLAN STRATEGY

E.G. SKY ATTRACT ADVERTISISERS MORE PEOPLE WATCH SKY

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EVALUATION QUALITIVE

CETAIN WAY - GREATER INSIGHT REQUIRED - MODIFY PRODUCT ACCORDINGLY

HIGHLIGHT ISSUES UNAWARE / OPPPURTUNITIES NOT CONSIDERED

DETAIL INSIGHT CUSTOMER THINKING BUYING - MODIFY HAPPIER

EXPENISVE - SKILLED PERSONAL INTEPRET

HARD COMPARE - UNSTRUCTURED TOO STRUCTUED INHIBIT INDEPENDANCE

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QUANTITIVE

"WHO"& "HOW OFTEN"

SELL ADVERITSING SPACE SPONSORSHIP DURING EMMERDALE

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EVALUATION QUANTITIVE

SUMMARISE DATA MEANINGFUL E.G. 8/10 PREFER WHISKAS

NUMERICAL DATA EASIER COMPARE RESULTS COMPETITORS 

IDENTIFY TRENDS & PROJECT FUTURE TRENDS 

ONLY SHOW 'WHAT' THAN WHY - LESS UESFUL 

LACK RELIABILITY & VALIDITY & BIAS IF SAMPLE SMALL

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MARKET MAPPING

ENTAILS REVIEWING BUSINESS PRODUCT PERCIEVED RELATIVE COMPETITORS

CARRIED OUT CUSTOMERS RATE PRODUCTS ON TWO CHARACTERISTCS E.G QUALITY & PRICE

SEE WHERE GAP MARKET

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EVALUATION MARKET MAPPING

IDEFNTIFY FIRM CLOSEST RIVAL - STRATEGY COMPETE

IDENTIFY GAPS / NICHES FIRM FILL

UNDERSTAND PUBLICS PERCEPTION OF ORGANISATION / BRAND 

RELIABLE?

APPLY EVERYONE?

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SAMPLING

VIEW PEOPLE TARGET POPULATION - SELECT REPRESENTITIVE GROUP

SHORTENS TIME MONEY SPENT RESEARCH

INCENTIVE COSTS MONEY

NOT REPRESENTITIVE 

HARD LOCATE RESPONDANTS

DEPENDS UPON: HOW PEOPLE / ITEMS SELECTED. HOW CONDUCTED / SAMPLE SIZ

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INTEPRETING MARKET DATA

CONFIDENCE INTERVALS

INDICATION CERTAIN RESEARCHERS ARE OF DATA

E..G 97% RELIABLE & REPRESENTITIVE 

MARGIN OF ERROS IS RANGE OF POSSIBLE OUTCOMES

MORE CONFIDENT BROADER RANGE DEPENDS SIZE SAMPLE

QUALIFIED CONCLUSION ABOUT DATA

BETTER UNDERSTANDING REUSLTS

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CORRELATION

APPARANT RELATIONSHIP BETWEEN 2 FACTORS

HELPS IDENTIFY CORRELATION DIFFERENT FACOTRS

DEMAND PRODUCT ANTICIPATE SALES

TELLS US WHAT NOT WHY

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EXTRAPOLATION

TRACK WHAT HAPPENED SALES PAST ESTIMATE SALES FUTURE

VALID WAY FORECASTING SALES ASSUMNIG CONDITIONS REMAIN CONSTANT

DISRPUTIVE CHANGE - SIGNIFCANTLY ALTERS MARKET CONDITIONS - LIMIT VALUE

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TECHNOLOGY

SUPERMARKET TRACK BUY LINK TO ADRESS UNDERSTAND CUSTOMER 

MORE DATA DOESNT GUARANTEE SUCESS

RIGHT QUESTIONS & DECISIONS MADE 

BIG DATA MORE FEASIBLE

DIFFICULT ANALYSE PAST IMPORVEMENTS EASIER

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RESEARCH GOING WRONG

CHANGES MARKET: INFO MANAGERS GATHERED OUT DATE / IRELLEVANT NEW BUSINESS

INFO GATHERED: SECONDARY DATE USED - WRONG FORMAT - SAMPLES DONT REFLECT

LACK INFO: KEEN DECISION NOT SPEND MONEY RESEARCH

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ETHICAL IMPLICATIONS

EXTENT CUSTOMERS PERMISSION BEFORE DATA

ACCEPTABLE FILM CONSUMERS WITHOUT PERMISSION

ACCEPTABLE TRACK PURCHASES 

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DECISION MAKING IMPROVE MARKETING

SETTING MARKET OBJECTIVES - UNDERSTAND:

CUSTOMERS WANT / AFFORD

CONDITIONS MARKET

CAPABILITIES / STRENGTHS BUSINESS RELATIVE COMPETITORS

BEST DELIEVER BENEFITS CUSTOMER WILLING PAY

IMPLEMENT DECISIONS

REVIEWNIG

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MARKETING OBJECTIVES

TARGETS SET MARKETING ACTIVITIES

SPECIFIC TERMS RELATES TO 

MEASURABLE TERMS NUMERICAL TARGET & TIME SPECIFIC

COULD INCLUDE:

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SALES VOLUME AND SALES VALUE TARGETS

SALES VALUE - VALUE SALES MEASURED TERMS HOW MUCH SEPND PRODUCT

SALES VOLUME - VOLUME SLAES MEASURED TERMS NUMBER UNITS SOLD

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SALE GROWTH TARGETS

MANAGERS WANT MEASURE INCREASING

DEPEND FACTORS GROWTH OVERAL MARKETS

GROWING FAST - HIGH SALES TARGET

SLOW - DIFFICULT INCREASE GROWTH

DEPEND ACTUAL LEVEL SALES

STARTING UP EASY - LOW NUMBERS

SALES HIGH START - DIFFICULT GROW

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MARKET SHARE

PRODUCT MEASURES AMOUNT SELLS AS % OF TOTAL SALES MARKET

SALES OF PRODUCT / TOTAL MARKET SHARES X 100

HIGH MARKET SHARE

SUGGEST HIGH SALES - POSSIBLE PROFIT

HIGH OUTPUTS = POWER SUPPLIERS - NEGOTIATE BETTER DEALS - REDUCE COST / INCREASE QUALITY

HIGH PROMINENCE - RAISE PROFILE - STRENGTHEN BRAN - LAUNCH EASIER

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BRAND LOYALTY

RETAINING CUSTOMERS IMPORTANT ASPECT

KEEPING CUSTOMER - CHEAPER & EASIER ATRACTING NEW ONES

IMPORTANT MEASURE MANAGERS - TRYING BUILD RELATIONSHIP

VALUABLE SOLD LATER - STRONGER LOYALTY POSSIBLE GAIN MORE SALE

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