Business Marketing Test

market

the number of all actual and potential buyers of a product

marketing plan

a document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service. The plan provides a template for future action aimed at reaching marketing objectives, such as establishing a customer base.

Marketing

Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.

Customer Base

the group of customers who might be expected to purchase a business's goods and services

Marketing and business objectives

• Increasing Sales

• Increasing market share

• Expanding the size of the business

• Maximising customer service

Performance Indicators

Sales Analysis

market share analysis

marketing profitability analysis

Sales Analysis

Sales analysis uses sales data to evaluate the business's current performance and the effectiveness of the marketing mix.

By comparing forecast sales (what was expected) with actual sales (what happened), the business can determine the success of its marketing strategy.

Market Share Analysis

By undertaking a market share analysis, a business can evaluate how its marketing strategies are working compared with those of its competitors. This evaluation can reveal whether changes in total sales — either increases or decreases — have resulted from the business’s marketing strategies or some uncontrollable external factor.

Marketing profitability analysis

marketing profitability analysis a method used by the business to break down its total marketing costs into specific marketing activities

Brand Identity

brand identity or a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition

Market Research process

1. Determining information need

2. Collecting data from primary and Secondary Sources

3. Analysing and Interpreting Data

Marketing Data

the information - usually expressed as facts and figures - relevant to the defined marketing problem

Primary data Collecting data tools and techniques

1. survey

2. observation

3. experimentation.

Types of Secondary Data

• internal data

• external data

Statistical interpretation analysis

the process of focusing on the data that represent average, typical or deviations from typical patterns

Market segmentation

when the total market is subdivided into groups who share one or more common characteristics

Market Dimensions

those broad elements that allow a potential market segment to be identified

4 Market Dimensions

• Geographic

• Demographic

• Psycho graphic

• Behavioural

Primary and Secondary Target Market

primary target market the market segment at which most of the marketing resources are directed

secondary target market usually a smaller and less important market segment

Niche Market

a narrowly selected target market segment

Consumer Buying Behaviour

the decisions and actions of consumers when they purchase goods and services for personal or household use

psychological factors

influences within an individual that affect their buying behaviour

• Motives - e.g comfort, safety, joy

• Perception

• Attitude

• Personality

sociocultural influences

forces exerted by other people that affect customer behaviour

• Family and Roles

• Peer Groups

• Social Class

• Culture and Subculture

Product

product a good, service, experience, idea or information that can be offered in an exchange for the purpose of satisfying a need or want

can be tangible or intangible

Product development

the creation of a product with new or different characteristics that offer new additional benefits to customers

The process for new product development

1. Idea for a product

2. Design

3. Create prototype/ mock-up

4. Plan for technical needs

5. Launch Product

Product Positioning

Product positioning the development of a product image compared with the image of competing products

Packaging

packaging the development of a container and the graphic design for a product

Pricing strategies

• Recommended retail price

• Percentage mark-ups

• Price leadership and competition

• What the market will bear

• Quotes

• Price skimming

• Penetration pricing

• Premium pricing

• Bundle pricing (or price bundling)

• Psychological pricing

RRP

Recommended retail price (RRP) is the price recommended by either a wholesaler or the manufacturer of the goods being sold by a retail business.

Percentage Mark Up

Percentage mark-ups increase to the cost price by a fixed percentage to give the selling price

Price leadership and competition

To follow the prices set by another seller is to acknowledge that business as a price leader

Quote

A quote is an estimate of the costs involved with an individual job, plus a certain amount so the business makes a profit.

Price Skimming

This strategy involves placing a high price on a new item, knowing that devoted customers and enthusiasts (early purchasers) will be willing to pay a high price for the new product. The price is then lowered after the initial sales to attract more customers.

Bundle pricing

Bundle pricing occurs when a business sells a package of goods or services for a lower total price than the individual price of each component of the bundle.