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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What is marketing?

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


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


What are the 2 marketing orientations?

  1. Production orientation
  2. Marketing orientation


What is production orientation?

Business develops products based on what it is good at


What is marketing orientation?

Business responds to customers needs and wants - designs products accordingly


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


What are the 4 main basis' of market segmentation?

  • Demographic
  • Geographic
  • Behavioural
  • Psychographic


What is niche marketing?

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


What is mass marketing?

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


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


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


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


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 


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


What is competitvness?

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


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


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


What are the 4 market structures?

  • Perfect competiton
  • Monopolistic competition
  • Monopoly
  • Oligopoly


What is a perfect competiton market structure?

Many firms all producing or selling homongeous goods


What is a monopolistic competition market structure?

Competition between many firms producing differentiated goods