Unit 3:Marketing Management

What is the value of setting marketing objectives?

-Provides direction

-Allows performance measurement

-Aids decision-making

-Helps coordinate activities

What is meant by sales volume as a marketing objective?

The number of units sold

What is meant by sales value?

The monetary value of sales revenue

What is market size?

The total value or volume of all sales in a market

What is market growth?

The percentage change in market size over time

What is sales growth?

The percentage change in a firm’s sales over time

What is market share?

A firm’s sales as a percentage of total market sales

What is brand loyalty?

The extent to which customers continue to buy from the same brand

What is the value of primary research?

Provides specific, up-to-date data directly from target customers

What is the value of secondary research?

-Uses existing data

-Cost-effective and quick to access

What is qualitative data?

Non-numerical insights e.g. opinions or motivations

What is quantitative data?

Numerical data e.g. percentages or sales figures

What are the three sampling methods in marketing research?

-Random

-Stratified

-Quota

What is random sampling?

Every member has an equal chance of selection

What is stratified sampling?

Population divided into groups, sample taken from each group

What is quota sampling?

Researcher selects a fixed number from each group based on characteristics

What does positive correlation mean in marketing data?

As one variable increases, the other also increases

What does negative correlation mean?

As one variable increases, the other decreases

What is meant by strength of a relationship in data analysis?

How closely two variables are related (strong or weak)

What are confidence intervals?

The range within which results are likely to fall

What is extrapolation?

Predicting future trends based on past data

What is price elasticity of demand?

Measures how demand changes with price changes

What is income elasticity of demand?

Measures how demand changes with income changes

How can PED data be used in decision making?

Helps set prices by estimating demand changes

How can YED data be used in decision making?

Helps target products depending on income changes in the market

What is the value of price elasticity of demand to marketing decision makers?

-Aids in pricing strategy

-Forecasting demand

-Managing revenue

What is the value of income elasticity of demand to marketing decision makers?

-Helps plan product ranges

-Target income-specific segments

How is data used in marketing decision making and planning?

-Guides marketing strategy

-Reduces uncertainty

-Supports planning

What is market segmentation?

Dividing a market into distinct groups with similar characteristics

What is targeting in marketing?

Selecting specific segments to serve

What is positioning?

Creating a distinctive place for the product in the minds of the target market

What is the value of segmentation?

Allows better targeting, increases customer satisfaction, improves resource use

What is demographic segmentation?

Based on age, gender, family size, occupation etc

What is geographic segmentation?

Based on location, region or country

What is income segmentation?

Based on income levels or socio-economic groups

What is behavioural segmentation?

-Based on consumer habits

-Brand loyalty

-Usage rates

What is niche marketing?

Serving a small, specific segment with specialised needs

What is mass marketing?

Targeting the whole market with one offer

What is market mapping?

A visual tool to compare products based on key features

What influences the choice of target market?

-Size

-Growth

-Competition

-Company strengths

What influences positioning decisions?

-Customer perceptions

-Competitor positions

-Brand image

What are the 7Ps of the marketing mix?

-Product

-Price

-Place

-Promotion

-People

-Process

-Physical environment

What are the 4Ps for goods-based products?

-Product

-Price

-Place

-Promotion

What are the extra 3Ps for services?

-People

-Process

-Physical environment

What is product portfolio analysis?

Analysing the range of products to make strategic decisions

What is the Boston Matrix?

A model to analyse products by market share and market growth

What are the four categories of the Boston Matrix?

-Stars

-Cash Cows

-Question Marks

-Dogs

What is the product life cycle?

The stages a product goes through from launch to decline

What are the stages of the product life cycle?

-Development

-Introduction

-Growth

-Maturity

-Decline

What are extension strategies?

Strategies to prolong the product’s maturity phase e.g. rebranding, new feature

What is new product development (NPD)?

Designing and launching new products to meet market needs

What is penetration pricing?

Low initial prices to gain market share quickly

What is price skimming?

High initial prices to maximise early profits

What is the promotional mix?

A mix of advertising, personal selling, PR, sales promotions, direct marketing

What is branding?

Creating a recognisable name and identity

What is viral marketing?

Encouraging customers to share content to generate buzz

What is the role of social media in promotion?

Used to engage customers

-Increase reach and personalise marketing

What is multi-channel distribution?

Using more than one channel e.g. stores, online, apps

What does ‘place’ mean in the marketing mix?

Where and how a product is sold or delivered

What does ‘people’ mean in the marketing mix?

Employees who interact with customers

What does ‘process’ mean in the marketing mix?

Systems and processes involved in delivering the service

What does ‘physical environment’ mean in the marketing mix?

The physical cues e.g. layout, design, atmosphere of service environment

What is an integrated marketing mix?

A coherent blend of the 7Ps aligned with objectives and strategy

What influences an integrated marketing mix?

-Product life cycle

-Boston Matrix

-Product type

-Objectives

-Market

-Competition

-Positioning

What is digital marketing?

Marketing through online platforms and digital tools

What is e-commerce?

Buying and selling products online