3. processes of marketing Flashcards
(24 cards)
What is achieved through situational analysis?
Current snapshot of up-to-date information and factors that impact the business
Includes: SWOT analysis and consideration of product life cycle.
What is a SWOT analysis?
involves the identification and analysis of the internal strengths and weaknesses of the business, and the opportunities in, and threats from, the external environment
It allows a business to evaluate its strategic position
What is the function of a SWOT analysis?
Provides information needed to complete the situational analysis and gives a clear indicated of the business’ position compared with its competitors.
What should a business do after a SWOT analysis?
Assessment of products position in the product life cycle should be carried out, necessary because different marketing strategies will need to be used at different stages of product’s life.
What are the components of a SWOT analysis?
Internal:
Strengths
Weaknesses
External:
Opportunities
Threats
What is the product life cycle?
Consists pf the stages a product passes through: introduction, growth, maturity and decline.
Used to identify what type of strategies they should use.
what are reasons for product decline
- Changing public perception of what is fashionable at certain times
- New technologies replacing old ones
- New products reduce demand for old ones
- Fluctuations in level of economic activity result in shift in consumer spending
strategies for the introduction stage of the product life cycle
- direct promotion at early buyers
- educate customers about the product
- selective distribution
- lower prive to gain market foothold
- establish product brand
strategies for the growth stage of the product life cycle
- maintain or improve quality
- maintian price to maintain market share
- seek wider audience through promotion
- increase distribution channels as product becomes more popular
strategies for the maturity stage of the product life cycle
- differentiate product and packaging from competitors
- adjust price downards to maintain market share
- sustiain promotion
- offer distribution incentives to rival competitors
strategies for the decline stage of the product life cycle
- maintain product with some improvement or sell to another business
- reduce price to sell remaining stock
- discontinue promotion
- reduce distribution channels only offer to loyal segment of market
case study for product life cycle
MACCAS FRIES
1. intro - replace potato chips
2. growth - expand across US now more popular
3. maturity - change recipe, met with resistance, share price drop
4. renewal/post maturity - more variations: waffle fries etc
What is market research?
The collection and analysis of information to identify what the customer wants and to make marketing decisions based on those wants.
- Ensures a customer marketing approach
- Needed to maintain customer satisfaction
Why is market research important?
- Marketers must know about the market they are dealing in if they are going to develop an effective marketing campaign.
- Minimises the risk of launching new products
- Provides information about needs and wants and develops a responsive marketing plan - keeps it dynamic and developing
What are the components of market research?
- Determining information needs
- Data collection (primary and secondary)
- Data analysis and interpretation
What is ‘Determining information needs’?
Information/data is determined by:
- Identifying and defining marketing problem
- Making research purpose clear
- Planning research methods and tasks
What is marketing data?
Marketing data - the information relevant to the defined marketing problem
What are the types of marketing data to be collected?
- Primary data
- Secondary data
What is primary data?
- Primary data
- Gathering original data directly from customers and target market
- Time consuming and costly
- Can solve specific marketing problem
- Find out exactly what customer is thinking
- Method:
- Observation
- Focus groups
- Surveys
- Experiments
What is secondary data?
- Secondary data
- Information already researched and published
- Need to ensure validity and reliability of info
A. Internal data - business’s own record keeping (sales records, product performance, market costs)
B. External data - business environment (ABS, consumer database, research firms, published reports)
Advantages and Disadvantages of Primary Data
Advantages:
- More unique and personalised to specific needs
- You know how it was collected - can ensure validity
- Current and up to date
Disadvantages:
- Time consuming and expensive
- Errors and confirmation bias
- Limited reach due to resource constraints
Advantages and Disadvantages of Secondary Data
Advantages:
- Established sources, authority and reputation
- Easier to attain
- Less expensive and time consuming
- Can access a wider range of people (e.g. ABS)
Disadvantages:
- You don’t know how it was collected - must verify validity
- Outdated
- Not reflective of specific needs of the business
What is statistical interpretation analysis?
The process of focusing on the data that represents average, typical or deviations from typical patterns.
- Researchers look at relationships between raw data to develop meaning from facts and figures
What does data analysis and interpretation assist a manager in doing?
- Making decisions when developing marketing plan and overall direction
- Taking corrective action and revising marketing strategies
