Sales Value/Volume Formula
Volume x Avg. Price
Market Growth Formula
(Market size in year - market size in prev. year) / Market size in prev. year
Market Share Formula
(Sales of a product / Total market sales) x100
Market Size
Measures potential sales for a business.
Brand Loyalty
Measures degree of attachment a customer has for a brand. Adv: - Regular repeat purchases - Less advertising req. - Higher prices can be charged
Benefits of Marketing Objectives
- Measure of success/failure
- Gives staff sense of purpose
- Can measure efficiency
External influences on Marketing Decisions
- Political factors
- Economic factors
- Sociological factors
- Technological factors
Internal influences on Marketing Decisions
- Finance
- Human Resources
- Operational Issues
Primary Market Research Methods
- Observation of customers
- Focus groups
- Surveys
Primary Market Research Adv/Disadv
Adv: - Can be used to better only your business Disadv: - Expensive - Surveys may be answered dishonestly
Secondary Market Research Sources
- Gov’t publications
- Newspapers
- Magazines
- Internet sources
Secondary Market Research Adv/Disadv
Adv: - Easy to access - Cheaper than primary methods Disadv: - May be out of date - No competitive advantage as research available to rivals
Qualitative Market Research
Collects information about consumer’s opinions.
Adv:
- Can be used to plan for future investment
Disadv:
- Can not compare data
- Data may be distorted
Quantitative Market Research
Answers 'how many' or 'how often' Adv: - Data can be compared to identify trends - Averages can be calculated Disadv: - Often used with a small sample size
Market Mapping
Analyses markets by looking at features that distinguish different products
Market Segmentation
Classification of customers into groups Types: - Demographic - Geographic - Income - Social Class
Market Segmentation Adv/Disadv
Adv:
- Consumer behaviour can be predicted
- Firms can max profits by channelling marketing at a certain segment
Disadv:
- Difficult to put customers into categories
- Hard to reach certain groups as people have common tastes
Niche Marketing
Involves targeting a product at a small segment of a larger market Adv: - Less competition Disadv: - Low profits
Mass Marketing
Aimed at a whole market Adv: - Economies of scale can be achieved - High revenue Disadv: - High number of competitors - Expensive to enter
