UNIT 2: AOS2 MARKETING A BUSINESS Flashcards
what is marketing?
marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
what is the objective of marketing?
finding out what the customers want, then attempting to satisfy these needs?
what is a market?
a market is the number of all actual and potential buyers of a product
what is a customer base?
a customer base is the businesses target market. it consists of individuals who repeatedly purchase the goods or services provided by a specific business and serve as their main source or revenue.
how do you establish a customer base?
establishing a customer base requires market research and the development of a clear idea of who will be buying the provided good or service- which can be achieved by creating a customer profile.
what factors are outlined in a customer profile?
- customer behaviour and needs that the business can satisfy
- customer location and environment
- customer interests, favourite activities, lifestyles, opinions and values
- customer demographies, eg. age, gender, education, socio-economic standing etc.
what are business objectives?
the major aims of the business - can either be financial or non financial
what are the financial business objectives?
making a PROFIT. This can be achieved by:
increasing sales- through advertising and knowing your target market
increasing market share- through maintaining competitive advantage
expanding the business size- through an increase in finance (as a result of successful business)
what is a major non financial objective?
high customer satisfaction. this can be achieved by maximising customer service ie. asking the customers what they want, training staff and rewarding them for good service, anticipating trends by researching the market
what is a market share?
a business’ market share is their share of the total industry sales for a particular market or product
what is a product mix?
a product mix is the total range of products offered by a business. a business eager to expand their business and gain a larger income would seek to increase their product mix.
what is customer service?
responding to the needs and problems of the customer. Ensuring the customer gets what they desire and that it is delivered to them within an appropriate timeframe.
what are performance indictors?
performance indictors are used to measure the success of marketing objectives and the strategies used by the business
what are the three key performance indictors?
- sales analysis
- market share analysis
- marketing profitability analysis
what is a sales analysis?
a sales analysis uses sales data to evaluate the business’ current performance and the effectiveness of the marketing mix. they are used to determine the business’ marketing strategy, by comparing forecast sales with actual sales.
