maketing processes Flashcards
(22 cards)
What falls under marketing processes
SMEIDI
Situational analysis, product life cycle
Market research
Establishing marketing objectives
Identifying target markets
Developing marketing strategies
Implementation, monitoring and controling
situational analysis
Strengths, weaknesses, oppotunities and threats
product life cycle
introduction - low brand awareness and customer base when product is launched
growth - where the product starts to make money for the business
maturity - where the product starts making greater profits and the business can start to expand
decline - sales begin to decline and profits lower so business needs to decide if they want to discontinue the business
market research
the process of collecting reconding and analysing information concerning a specific marketing problem
involves primary data and secondary data
primary data - market research
refers to figures collected from the business themselves - FOSEE
Focus groups - where the target market fills out a survey created to the product
Observations - peoples reactions and behaviour within a specific environment is being observed
Surveys - questionnaire aimed at the products target market
Electronic methods of collection - telephone, mail internet
electronic observation using loyalty programs - can track customer spending habits through database
Advantages of primary research - market research
- up to date information that is tailored to a business’s needs
- first hand information that provides details of customers opinion about a product
- most appropriate for qualitative data collection
disadvantages of primary research - market research
- expensive to do on a large scale
- not appropriate for quantitative data collection
secondary data - market research
internal data - information that has already been collected from internal sources eg sales and management reports
external data - published data from external sources (outside the business) eg internet sources, census and news letters
advantages of secondary data - market research
- specalised information collection by professionals
- provides information regarding the market in which the business operates
- cheaper and quicker
disadvantages of secondary data - market research
- limited and does not provide a specific option
establishing marketing objectives
EIM
- expanding the product range
- increasing market share
- maximising customer service
Increasing market share - establishing marketing objectives
- refers to the business share of the total industry sales for a particular product
can be increased by
promotion - increasing advertising creates brand awareness
price - changing pricing strategies to penetration (discount) entices more customers
product - create a new product range
expanding the product range - establishing marketing objectives
refers to the range of products offered by a business referred to as the business product mix
business chooses to expand its product range to maintain and increase customer interest in the brand
this can be achieved by
- developing a new line of similar products
improved versions of existing products
- completely different products that are currently on offer
maximising customer service - establishing marketing objectives
refers to building a personalised relationship between the business and the customer
- high levels of customer service will result in customer satisfaction and lead to profitability
can be maximised/achived by
- market research - asking customers what they want
- training employees and rewarding them for excellent customer service
identifying target markets
- mass marketing approach
- niche marketing approach
- market segementation approach
mass marketing approach - identifying target markets
seeks a large range of customers with a wide appeal to meet more needs
seller mass products, mass distributes and mass promotes one product to all buyers
assumes that individual customers in the target market have similar needs
market segmentation - identifying target markets
- demographic (age, gender, religion occupation, ethnicity)
-psychographic (personality, motives, consumer opinions and interests)
- geographic (rural, suburban, urban, climate, city size)
- behavioral (loyalty, purchase occasion)
niche marketing approach - identifying target markets
- a narrowly selected target market segment
- very specific customer needs
primary target market - mass market approach
secondary target market - niche and market segmentation appoaches
why identify target markets
- use marketing resources more efficiently (campaigns can become more cost and time-effective)
- promotion is more relevant to a customer’s needs
- ensures that the product is wanted = creates demand, higher profits
Developing marketing strategies
involves the 4 p’s of the marketing mix:
- product
- place
- price
- promotion
marketing strategies are the actions undertaken to achieve the business marketing objective
the business has control over the 4 p’s and uses them to reach is target market
implementation, monitoring and controlling (what is monitoring and controlling)
implementation - implementing the marketing stragetgy to attain the objectives
monitoring - checking and observing the actual progress of the marketing plan
controlling - involves the comparison of planned against actual performance and taking coersive action to make sure these objectives are attained
steps in achieving implementation monitoring and controling
- Developing a financial forecast
- compairing planned and actual results
- revising the marketing strategy
