unit 3 marketing

What are some examples of objectives for the marketting department

• increase market share

• introduce new producs

• increase customer retention

internal influences on marketting objectives

• finance available, has to operate on a budget

• expertise of staff in the marketting department

• The amount of capacity available for production

External influences on marketting objectives

• competition

• social attitudes

• Tech, ie ecommerce changed how marketting is used

Market share formula

sales / total market sales. x 100

Sales growth formula

current sales - previous sales / previous sales. x 100

Market growth formula

current market size - previous market size / previous market size. x 100

Total market size formula

sales / market share x 100

What are the 2 types of market research

primary and secondary research

What is primary research (field)

When a business collects specific research to answer issues specific to the business through questionairres, focus groups ect

What is secondary research (desk)

Using previous research collected, through census information, other published reports

What is market mapping

Reseach that identifies key customer requirements and how products/businesses are positioned in that market, Ie high price/high quality,

what does market mapping help a business do

identify which is getting the most attention, if low price, low quality has higher traction then a business may want to reposition themselves

How are correlations used for marketting data

to see what marketting works in comparison to the sales , ie if a. business decides to spend more on adverts and in return have higher sales. then there is a positive correlation

What is a confidence interval

The level of confidence a business is that the estimate from research is accurate, most common interval is 95%

What is extrapolation

Using known previous data to predict future data trends

What is price elasticity of demand

How a change in price effects the demand for the product

Price elasticity of demand formula

percentage change in demand/percentage change in price

What is income elasticity of demand

how a change in income effects demand for a product

income elasticity of demand formula

percentage change in demand/percentage change in income

What is elastic demand

PED > 1,, more than 1

What is inelastic demand

PED < 1, ,,,, less than one

What is market segmentation

dividing the market into segments of similiar wants or charecteristics, ie age, sex

What are the 4 key types of segmentation

• demographics

• income

• geographics

• charecteristics

What is market positioning

When a marketing department create adverts that directly target its market audience, ie waitrose advertising quality over low cost.

Advantages of mass marketting

• lower cost per unit due to more sales

• higher revenues

• increases brand awareness

• more funding in research and development tools

disadvantages of mass marketting

• huge capital costs, ie large factories

• Less flexable to consumer changes

• Usually on the cheaper side of the spectrum as high price is more niche

Advantages to niche marketting

• Less competitiors due to smaller market

• Less demand which is good for a smaller business

• Customisation is more accessable

• Specific adverts can be produced as smaller target market to appeal to

Disadvantages of niche marketting

• Small scale so less profit

• vulnerable to failure if there is a change in demand

What is the 7ps marketting mix used for

To be able to meet the needs of the target market in the most effective way

What are the 7ps in the marketting mix

• product, place , price , promotion , people, process, physical environment

What is product in the marketting mix

• design of packaging , convinience, value, quality

What is place in the marketting mix

Where the business sells its products so consumers can access them

• ie shops, retailer

What is price in the marketting mix, more on later flashcards

• the pricing strategies used to market to the target market

What is promotion in the marketting mix

• how a business advertises, through special offers , leaflets,PR, Merchendasiing, direct selling

What is people in the marketting mix

the important people in the business

• management

• employees

• customer service

What is process in the marketting mix

• How the supply chain works, the process of making the product

What is physical environment in the marketting mix

the physical place where the products are sold, the experience

• store layput, cleansliness, interactions, ie hollister is very dark

What is the boston matrix

a tool businesses use to asses the peformance of products , depending on their market growth and market share

what are the 4 aspects of the boston matrix

• problem children ( low market share, high growth)

• stars (high market share + growth)

• cash cows (low market growth +high market share)

• old dogs( low share + low growth)

What are the product life cycle stages

• product development

• intro

• growth

• maturity

• decline

How do businesses keep products from the decline stage of the product life cycle

extension strategies, ie modifying the product, new marketting, new promotion strategies

What is a USP

a unique selling point, something different from rivals that increase its sales and recognisiability

what is price skimming

high price set to get high profits (usually when getting the first mover advantage before competitiors catch up and lower the prices)

What is penetration pricing

low prices set initially to break into the market

What is price leaders

the prices that large companies set

What is the 2 pricing tactics

• loss leaders

• psychological pricing

What is a loss leader

products that are very very low, but attracts customers so they may buy the other products available

What is psychological pricing

• prices set to give an impression of it being cheaper than it is, 99p over £1

what is above the line promotion

advertising through media, ie newspapers, TV, social media

What is below the line promotion

promotion through, branding, sponsorships, direct marketing