Decision Making to Improve Marketing Performance Flashcards Preview

AS AQA Business Studies > Decision Making to Improve Marketing Performance > Flashcards

Flashcards in Decision Making to Improve Marketing Performance Deck (20)
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1

What is marketing?

The process of identifying, anticipating and satisfying customer needs profitably.

2

What does the marketing function in a business do?

  • Determines what the market wants
  • Develops the strategy to achieve the marketing and business objectives
  • Delivers the marketing actions to achieve the objectives

3

What are the 2 marketing orientations?

  1. Production orientation
  2. Marketing orientation

4

What is production orientation?

Business develops products based on what it is good at

5

What is marketing orientation?

Business responds to customers needs and wants - designs products accordingly

6

Why do businesses segment the market?

  • Better matching of customer needs
    • Customer needs differ
  • Enhanced profits for the business
    • Customers have different disposable incomes and vary in how sensitive they are to price
  • Better opportunties for growth
    • Can increase sales
  • Retain more customers
    • By marketing products that appeal to customers at different stages of the product lifecyle, a business can retain customers who may have gone to competition
  • Target marketing communications
    • Businesses need to deliver their marketing message to a relevant customer audience. By segmenting markets, the target customer can be reached more often and at lower

  • Gain market share of the segment

    • Through careful segmentation and targeting, businesses can often achieve competitive production and marketing costs and become the preferred choice of customers and distributors

7

What are the 4 main basis' of market segmentation?

  • Demographic
  • Geographic
  • Behavioural
  • Psychographic

8

What is niche marketing?

Where a business targets a smaller segment of a larger market, where customers have specific needs and wants

9

What is mass marketing?

Where a business sells into the largest part of the market, where there are many similar products on offer

10

What are the advantages of niche marketing?

  • Less competition
  • Clear focus - target particular customers
  • Builds up specialist skills and knowledge
  • Can often charge a higher price
  • Profit margins are often higher
  • Customers tend to be more loyal

11

What are the disadvanatges of niche marketing?

  • Lack of economies of scale
  • Risk of over dependence on a single product or market
  • Likely to attract competition if successful
  • Vulnerable to market changes

12

What are the key features of mass marketing?

  • Customers form the majority of the market
  • Customer needs and wants are more general and less specific
  • Associated with higher production output and capacity
  • Success usually associated with loss-cost operation or market leading brands

13

Describe a B2B market

  • Based on relationships with business buyers
  • Often small & focused market
  • More complex and longer buying process
  • More sophisticated buyers
  • Aims to turn prospects into buying customers
  • Educational element to promotion 

14

Describe a B2C market

  • Products more important than relationships
  • Usually larger markets
  • Single step buying process; often short e.g. impulse purchase
  • Less sophisticated buyers
  • Emotional considerations affect buying behaviour
  • Brands very important

15

What is competitvness?

The ability of a business to deliver better value than its competitors

16

What are the factors affecting competitiveness?

  • Market structure
    • How many firms there are in the market
  • Market conditions
    • How the market is affected by current external factors

17

Describe market structure.

  • The current extent of competition
  • The potential for new firms to enter the market
  • The extent to which firms produces an homegenous product or a differentiated product

18

What are the 4 market structures?

  • Perfect competiton
  • Monopolistic competition
  • Monopoly
  • Oligopoly

19

What is a perfect competiton market structure?

Many firms all producing or selling homongeous goods

20

What is a monopolistic competition market structure?

Competition between many firms producing differentiated goods