3.3 - Marketing Managment Flashcards
(38 cards)
What is marketing
- The process of advertising a product in order to get a product to the customer, whilst making profit
What is a marketing objective?
- Precise and detailed statements of the aims/goals of companies in the realm of marketing
What are some examples of marketing objectives?
- Increased market share
- Sales growth
- Sales volume and value
What is the formula for calculating market share
- Total units sold / total units sold in a market x100
What are the causes of a decreased market share?
- Increased competition
- Increased costs
- Change in consumer demand
What are some ways to increase market share?
- Decrease price of product
- Innovate
- Improve advertising
What are some internal factors that influence objectives?
- Finance
- HR
- Operational issues
What are some external factors that influence objectives
- Economic environment
- Competitor actions
- Technological change
What is the acronym to identify external factors in a business?
Political
Economic
Social
Technological
Legal
Ethical/Environmental
What are the advantages of primary research?
- Specific to the immediate data needs and topic
- Offers behavioural insights, not available from secondary research
- Up to date
What are the disadvantages of primary research?
- Costly
- Time consuming
- Requires more sophisticated training and experience to design, study and collect data
What are the advantages of secondary research?
- Saves time
- Free or inexpensive (except for syndicated data)
What are the disadvantages of secondary research?
- May not be precisely relevant to information needs
- Information may not be timely
- Sources may not be original, and therefore usefulness is an issue
- Methodologies for collecting data may not be appropriate
- Data sources may be biased and available to competitors
What is PED?
- The responsiveness of demand to changes in price
- The value is always negative
- % ∆QD / % ∆P × 100
What is an inelastic product?
- A product where an increase in price will lead to an increase in revenue
- Less than 1
What is an elastic product?
- A product where an increase in price will lead to a decrease in revenue
- More than 1
What are the influences on PED?
- Supply of product
- Time period
- Price levels
- Income levels
Nature of goods
What is the income elasticity of demand (YED)?
- A measure of responsiveness of demand to changes in income
What is the formula for PED?
% change in quantity demanded / % change in price
What is the formula for YED?
% change in quantity demanded / % change in income
What is targeting?
- A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.
What is segmentation?
dividing into approachable groups such as:
- demographic (age)
- geographic (region)
- income (level of income)
- Behavioural (routine)
What is the marketing mix?
7P’s that work together to achieve the desired effect
What are the 7 P’s?
Price, Product, People, Process, Physical Environment, Promotion, Place
