Decision making to improve marketing performance
- Created by: ellie
- Created on: 26-02-21 13:57
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Marketing objectives
- Marketing objectives are likely to be informed by research and potentially constrained by budgets
- Sales volume and value
- Market size
- Market and sales growth
- Market share
- Brand loyalty
Sales volume and sales value
- Sales volume is the amount of sales expressed as a number of units sold
- Sales value is the amount of sales expresses as the total sum of money spent by customers
Market size
- The total sales value or sales volume in a given market
Number of units sold x price
Market and sales growth
- The percentage increase in the size of the maket by value or volume over a period of time
Change in size of market / original size X 100
Market share
- The proportion of total market sales that a firm has
Business A sales / Markey sales X 100
Brand loyalty
- Exists when customers keep returning to buy a recognised brand
Branding
- Promotional method thatinvolved the creation of an identity for a business that distinguishes it and its products from competitors
Internal influences on marketing objectives
- Finance
- HR
- Operational issues
- Corporate objective
External influences on marketing objectives
- Competitors actions
- Market factors
- Technological change
- Ethical and environmental
Market research
- Market research is the collection and analysis of data and information to inform a busines about its market
- Primary market research involves the collection of firsthand data that did not exist before and therefore it is original data
- Secondary market research is research that has already been undertaken by another organisation and therefore already exists
- Quantitative research produces numerical statistics- facts and figures
- Qualitative research looks into the feelings and motivations of consumers
Market mapping
- A market map is a diagrammatic technique that enables businesses to display the perceptions of customers
Value of sampling
- Businesses cannot ask for the opinions of all potential customers and therefore try to choose a representative sample
Types of sampling
- Random - a sample is selected for study from a population where each individual is chosen entirely by chance
- Quota - the population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup
- Stratified - the population is first segmented into subgroups before respondents are randomly selected from within that subgroup
The interpretation of marketing data
- Inform decision making
- Devising stratgey
- Identify sales patterns
Correlation
- Identifying a relationship between two variables
Correlation can be:
- Positive - the two variables move in the same direction
- Negative - the two variables move in opposite directions
- Zero- there is no relation between the factors
- The correlstion can be expressed on a spectrum -1 to +1
Confidence levels
- Confidence levels reflect the degree of certainty with which a business believes a stated outcome will happen
- Will be affected by factors such as the sampling technique, research method and expertise of…
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