MARKETING
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- Created by: Helenarrowsmith
- Created on: 10-03-22 20:49
what does it mean for marketing objectives to be SMART?
S - specific
M - measurable
A - achievable
R - realistic
T - time based
M - measurable
A - achievable
R - realistic
T - time based
1 of 49
what are 4 marketing objectives ?
- increase sales volume
- sales value - increase rev generated through the sale of G&S
-market size - market n sales growth
- increase market share - attract competitor's customers
-brand loyalty - retaining customers
- sales value - increase rev generated through the sale of G&S
-market size - market n sales growth
- increase market share - attract competitor's customers
-brand loyalty - retaining customers
2 of 49
formula for market share ?
(sales of firm / total market sales) X 100
3 of 49
formula for sales growth ?
and market growth
and market growth
(difference in sales / earliest year ) X 100
4 of 49
formula for market size ?
(sales / market share ) x 100
5 of 49
if Sky has 400 million subscribers globally and this increases by 5% a year. how many subscribers will sky have next year?
400 x 1.05 = 420 million
6 of 49
what are the three main areas market research gathers information on ?
demand
competition
target market
competition
target market
7 of 49
why is market research on demand important to a business?
- know n understand customers needs n wants - improve products and spot market opportunities to stay competitive
- can spot trends which will help develop opportunities for growth and potential threats from new products / technology - encourage innovatio
- can spot trends which will help develop opportunities for growth and potential threats from new products / technology - encourage innovatio
8 of 49
why is market research on competition important ?
- understand major threats in market n how to prepare or diminish them
- see wat competitors are doing well and bad use as opportunity to improve n steal customers - lower pricing, higher quality etc
- see wat competitors are doing well and bad use as opportunity to improve n steal customers - lower pricing, higher quality etc
9 of 49
external influences on marketing objectives and decisions ?
- market n competition - whether market is growing or declining, actions of comp
- economic factors - economic cycle, IR - affects consumption levels
- social factors - changes in taste n fashion
- ethics - promoting fair trade products? exploitation of
- economic factors - economic cycle, IR - affects consumption levels
- social factors - changes in taste n fashion
- ethics - promoting fair trade products? exploitation of
10 of 49
internal influences on marketing objectives n decisions?
- finance available
- production capacity - is it physically possible to achieve any targets for sales growth
- human resources - size n skills of workforce - increasing market share may need further training
- nature of product - innovative products ma
- production capacity - is it physically possible to achieve any targets for sales growth
- human resources - size n skills of workforce - increasing market share may need further training
- nature of product - innovative products ma
11 of 49
what is qualitive research and its benefits?
collects information about opinions and views rather than things that can be quantified
- specific questions - targeted improvements
- specific questions - targeted improvements
12 of 49
what is quantitive research?
collects factual information on things that can be quantified n recorded easily
- spot trends easier
- spot trends easier
13 of 49
what is marketing map used for ?
once businesses have segmented the market, they can use market mapping to identify a gap in the market by looking at what competitors offer
14 of 49
what are the factors of market mapping?
price + quality :
high price, high quality
high price, low quality
low price, high quality
low price, low quality
high price, high quality
high price, low quality
low price, high quality
low price, low quality
15 of 49
in market research, what is sampling ?
when a business selects a representative group of consumers to save collecting data from everybody in that population - used to reduce costs
16 of 49
what is a benefit and drawback from using sampling as a method of market research ?
adv - sampling reduces costs as a business can cross-section of the population instead of collecting data from everyone
dis - may not accurately represent the full target market if sample isn't chosen properly
dis - may not accurately represent the full target market if sample isn't chosen properly
17 of 49
three ways samples can be collected
random sampling - each member of population has an equal chance of being selected
stratified random sampling - separates population into segments - avoids bias - reflects accurately
quota sampling - splits population into a num of groups, each sharing co
stratified random sampling - separates population into segments - avoids bias - reflects accurately
quota sampling - splits population into a num of groups, each sharing co
18 of 49
what type of sampling would be appropriate for researching the market for a product for the mass market
random sampling
19 of 49
difference between primary market research n secondary ?
primary - collection of information for the first time for specific purposes eg surveys, focus groups, observation, test marketing
secondary - collection of data that already exists and has been used for other purposes eg published reports, internet, gov
secondary - collection of data that already exists and has been used for other purposes eg published reports, internet, gov
20 of 49
what is correlation and when does correlation occur?
a statistical technique used to establish the relationship between two variables eg level of advertising n sales
occurs when there is a DIRECT relationship between one factor n another
occurs when there is a DIRECT relationship between one factor n another
21 of 49
a price increase may lead to a fall in demand
what type of correlation is this ?
what type of correlation is this ?
negative
22 of 49
why is knowing correlation beneficial to a business?
help in decision making - eg knowing there is a pos correlation between rising incomes n sales, might enable a business to more accurately forecast sales
23 of 49
why is correlation not always accurate ?
could be due to other factors eg sales might appear to rise w increased advertising but it might be due to a competitor raising prices
24 of 49
formula for PED
% change in demand / % change in price X 100
25 of 49
formula for YED ?
% change in demand / % change in income
26 of 49
what is elasticity
the responsiveness of demand to a change in a variable eg price, income
27 of 49
if a figure is greater than 1, what's the elasticity of demand ?
+1 = elastic
-1 = inelastic
-1 = inelastic
28 of 49
a product has perfectly inelastic demand if its PED coefficient is..
0
29 of 49
how is PED and YED useful for marketers?
- forecast demand and predict the impact of changes in price n income on the quantity of the business' goods n services
- if they think quantity demanded is likely to decrease they can increase advertising to target customers
- if they think quantity demanded is likely to decrease they can increase advertising to target customers
30 of 49
a pet shop has increased the price od dog food by 10% this has REDUCED QD by 20%
whats the PED for dog food
whats the PED for dog food
% change in QD / % change in P x 100
20m / 10 = 2
reduced demand = -2
PED = -2 = elastic
20m / 10 = 2
reduced demand = -2
PED = -2 = elastic
31 of 49
what are the advantages to niche marketing ?
- gain brand loyalty even if price is higher
- highly profitable - opportunity to charge premium prices as less competition
- usp - can develop expertise
- highly profitable - opportunity to charge premium prices as less competition
- usp - can develop expertise
32 of 49
what are the disadvantages to niche marketing ?
- sales may be low - may not be able to spread fixed overheads over sales to attain acceptable profit margins
- if proven profitable, likely to attract new comp
- no economies of scale
- vulnerability because undiverse portfolio - risk
- if proven profitable, likely to attract new comp
- no economies of scale
- vulnerability because undiverse portfolio - risk
33 of 49
benefits n disadvantages of mass marketing?
adv - access to more customers
economies of scale - higher output levels
strong market presence
dis - higher levels of comp
lower profit margins
economies of scale - higher output levels
strong market presence
dis - higher levels of comp
lower profit margins
34 of 49
what are the 7ps of the MARKETING mix ?
price
product
place
promotion
people
process
physical evidence
product
place
promotion
people
process
physical evidence
35 of 49
what is market segmentation ?
process of dividing potential customers into different groups based on age, gender, location, income etc
36 of 49
in the product life cycle what are 2 extension strategies' that could be used as a product enters the decline stage?
- finding new markets for existing products
- changing appearance or what packaging
- changing appearance or what packaging
37 of 49
what 4 categories does the Boston Matrix place products into and where are they likely to be on the product life cycle ?
STAR products - high market share, high market growth (growth)
CASH COWS - high market share, low market growth (maturity)
PROBLEM CHILD - low market share, high market growth (introduction)
DOG - low market share, low market growth (decline stage)
CASH COWS - high market share, low market growth (maturity)
PROBLEM CHILD - low market share, high market growth (introduction)
DOG - low market share, low market growth (decline stage)
38 of 49
what are the characteristics of a problem child?
rapid growth
low profit margins
need lots of finance
good to have as could become tomorrows star or cash cow - even tho high risk
low profit margins
need lots of finance
good to have as could become tomorrows star or cash cow - even tho high risk
39 of 49
what is the difference between price skimming and price penetration ?
skimming - charge a high price at first to gain high profit - before competition enters market, recoups R&D costs. used for new innovative products.
penetration - charge a low price, don't make a profit but undercuts other firms and takes market share off
penetration - charge a low price, don't make a profit but undercuts other firms and takes market share off
40 of 49
difference between a price leadership strategy and price taker strategy
leadership - established products w strong brand image - dominating the market so other businesses will follow their lead
taker - price equal to the 'going rate' or established market price, common for small - medium business
taker - price equal to the 'going rate' or established market price, common for small - medium business
41 of 49
what are two pricing tactics?
short term to achieve specific goals
short term to achieve specific goals
loss leaders - setting very low prices (often below CoP) to attract customers, in hope they will purchase full priced products while purchasing loss leader
special offer pricing - reduced prices for limited amount of time or offers
special offer pricing - reduced prices for limited amount of time or offers
42 of 49
what are the features of the promotional mix
advertising
sales promotion
personal selling
public relations
packaging
branding n merchandising
trade fairs n exhibitions
sales promotion
personal selling
public relations
packaging
branding n merchandising
trade fairs n exhibitions
43 of 49
what does promotion aim to do ?
- attract n retain customers
- improve the position
- ensure survival n growth
- increase awareness of product
- improve the position
- ensure survival n growth
- increase awareness of product
44 of 49
what are the two types of advertising ?
informative advertising - increase awareness
persuasive advertising - better than comp
persuasive advertising - better than comp
45 of 49
when a business is choosing the 'place' and distribution channel what will they consider ?
location - where customers live and low comp
- credit terms - short term periods of trade can help a business' cash flow (start ups?)
- credit terms - short term periods of trade can help a business' cash flow (start ups?)
46 of 49
what is the traditional distribution channel?
what's different about the modern channel?
what's different about direct channel?
what's multi-channel?
what's different about the modern channel?
what's different about direct channel?
what's multi-channel?
producer - wholesaler - retailer - consumer
modern distribution channel ignores wholesaler
direct is producer - consumer
multi-channel uses more than 1 type of distribution
modern distribution channel ignores wholesaler
direct is producer - consumer
multi-channel uses more than 1 type of distribution
47 of 49
how has digital technology improved marketing ?
- gather more detailed info about customers n build relationships with them - eg amazon recommends products based on previous orders
- more contact between business n consumers - customisation n give reviews n feedback
- social media - cost effective way
- more contact between business n consumers - customisation n give reviews n feedback
- social media - cost effective way
48 of 49
what can be a negative of digital marketing and e commerce for businesses?
- reputations can easily be destroyed through online reviews and social media - even if not a true reflection of good or service
- dependability on technology
- global competition - harder to have a USP and gain market share as lots more markets
- high
- dependability on technology
- global competition - harder to have a USP and gain market share as lots more markets
- high
49 of 49
Other cards in this set
Card 2
Front
what are 4 marketing objectives ?
Back
- increase sales volume
- sales value - increase rev generated through the sale of G&S
-market size - market n sales growth
- increase market share - attract competitor's customers
-brand loyalty - retaining customers
- sales value - increase rev generated through the sale of G&S
-market size - market n sales growth
- increase market share - attract competitor's customers
-brand loyalty - retaining customers
Card 3
Front
formula for market share ?
Back
Card 4
Front
formula for sales growth ?
and market growth
and market growth
Back
Card 5
Front
formula for market size ?
Back
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