3.1/3.2/3.3/3.4 Objectives

Question 1

What is a market?

Answer 1

Where buyers and sellers are willing to make an exchange

Question 2

What is relationship marketing?

Answer 2

It wants to satisfy customers so that they return again.

It is about building relationships with customers so that they are loyal

Question 3

What is marketing?

Answer 3

the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value

Question 4

What is the marketing process?

Answer 4

• Set marketing objectives
• Analyse marketing data
• Marketing decisions
• Implement decisions
• Review

Question 5

What are the main marketing objectives?

Answer 5

Sales Volume
Sales Value
Sales Growth
Market Share
Brand Loyalty

Question 6

What are internal influences on marketing objectives?

Answer 6

Finance
Human Resources 
Operations
Existing Position
Overall strategy of business objectives

Question 7

What are external influences on marketing objectives?

Answer 7

PEST C
Political
Economic
Social
Technological
Competitive

Question 8

What is market research?

Answer 8

Gathering and analysing data relevant to the marketing process

Question 9

How can market research be used by managers?

Answer 9

• Know existing position of business
• Decide on possible objectives
• Identify possible actions to be taken
• How effective marketing decisions have been

Question 10

What does the research process look like?

Answer 10

Define problem/objective
Develop research plan
Implement plan
Interpret data

Question 11

What is the PED formula?

Answer 11

% change in qd / % change in price

Question 12

What affects PED?

Answer 12

Time
How expensive it currently is
Who is paying - company 
Branding of a product
USP
Patent or trademark
Expensive or difficult to switch to another supplier
Amount of available substitutes

Question 13

What is sales forecasting?

Answer 13

Sales forecasting is the process of estimating future sales.

• HR - what are the staffing requirements
• Finance - estimate future inflows and profits
• Operations - expected level of sales and produce to match

Question 14

When can market research go wrong?

Answer 14

There changes in markets
The way information is gathered
Lack of information from not spending enough

Question 15

What is segmentation?

Answer 15

The process of identifying different groups of similar needs

Question 16

What are market segments?

Answer 16

The different groups of needs and wants

Question 17

What is demographic segmentation?

Answer 17

Characteristics of the people in the target population e.g age

Question 18

What is geographic segmentation?

Answer 18

Areas where the customers are based

Question 19

What is income segmentation?

Answer 19

Split into high and low income

Question 20

What is socioeconomic segmentation?

Answer 20

On income or professions
A: Higher managerial, administrative or professionals
B: Intermediate managerial administrative or professional
C1: Supervisors, clerical and junior managerial, administrative or professional
C2: Skilled manual workers
D: Semi and unskilled manual workers
E: Casual labour

Question 21

What is behavioural segmentation?

Answer 21

The behaviours of customers

• What they buy
• When they buy
• How they buy

Question 22

Why is segmentation useful?

Answer 22

• Understand not all customers are the same
• More focused and efficient marketing
• More satisfied customers

Question 23

What is a niche market?

Answer 23

Small specific market

Question 24

What is a mass market?

Answer 24

The whole of the market, aims to meet the wants and needs of most people

Question 25

Benefits of a niche market?

Answer 25

- Can compete with larger firms, without being a direct threat - Limited competition

Question 26

Negatives of niche markets?

Answer 26

- Vulnerable to losing customers - Low profits - As business grows it attracts larger businesses attentions

Question 27

What is good and bad about mass markets?

Answer 27

+ More customers, more potential returns - Large investment needed - Competition - Can lose demand to niche markets

Question 28

What is needed to be successful in mass markets?

Answer 28

- Larger volumes (to fulfill orders) - Promotional techniques to attract customers - Positioning in the market

Question 29

How can the position of a business be shown?

Answer 29

Market Mapping

Question 30

What factors affect the positioning of a product relevant to its competitors?

Answer 30

Services Image Price Product

Question 31

What affects the positioning of a product?

Answer 31

- The strengths of the business - Innovative business - Competitors - Market conditions - PEST- C factors

Question 32

What is the marketing mix?

Answer 32

``` Price Product Promotion Place Process Physical Environment People ```

Question 33

What is meant by Price? (MM)

Answer 33

What the price is | Payment terms

Question 34

What is meant by product? (MM)

Answer 34

What the product looks like

Question 35

What is meant by place? (MM)

Answer 35

The distribution of the product | How it gets to the customer

Question 36

What is meant by people? (MM)

Answer 36

e.g the people who serve you in the shop

Question 37

What is meant by process? (MM)

Answer 37

How you buy the product

Question 38

What is meant by physical environment? (MM)

Answer 38

How the business looks

Question 39

What are some internal influences of the marketing mix?

Answer 39

Changes in financial position Changes to staff Changes to operations Changes to objectives

Question 40

What are external influences?

Answer 40

PEST-C

Question 41

What are the different types of consumer products?

Answer 41

Convenience items - customers will not travel very far to get these Shopping goods - customers compare features before buying Speciality products - thought about buying them for some time and will travel far to get it

Question 42

What is the product life cycle?

Answer 42

``` Development Introduction Growth Maturity Decline ```

Question 43

What is the boston matrix?

Answer 43

Stars - top left- are products that are in fast growth markets that are doing well in terms of market share. Question mark - top right - are in fast growth (appealing) markets, however they are not established and only have a relatively small market share. They are problem children because they may turn out to do well but equally may not. Cash cows - bottom left- well established and so have a relatively high market share, however the market they are in is growings slowly, perhaps because it is mature and therefore not growing fast any more. These products do not need promoting as heavy as some others because they are well known Dogs - bottom right - a relatively low share of a slow growth market. Marketing managers must either invest to revitalise these products or let them decline and eventually remove them.

Question 44

Influences on pricing decisions:

Answer 44

``` Costs Price elasticity Competitiveness of the environment Stage in products life cycle Positioning ```

Question 45

What are the different pricing strategies?

Answer 45

``` Skimming Penetration Competitive Cost plus Dynamic Premium Psychological ```