Marketing Processes Flashcards
SWOT Analysis
A SWOT analysis involves the identification and analysis of the internal strengths and weaknesses of the business, and the opportunities in, and threats from, the external environment.
o It can be used at all stages of the marking planning process
o Provides information needed for the situational analysis
o Gives a clear indication of the businesses position compared with its competitors
Product life cycle
Consists of the stages a product passes through; introduction, growth, maturity and decline.
What is market research?
MARKET RESEARCH is the process of systematically collecting, recording and analysing information concerning a specific marketing problem which allows marketers to make informed decisions about the marketing mix.
o Helps estimate the level of market demand
o Helps businesses remain competitive through analysing competitors
o Helps more accurately define the target market
3 steps of the market research process
- determining information needs
- collecting data from primary and secondary sources
- analysing and interpreting data
What are market objectives?
MARKETING OBJECTIVES are the realistic and measurable goals to be achieved through the marketing plan.
3 common marketing objectives
- Increasing market share
Market share to the business’ share of the total industry sales for a particular product. This is important as gains in market share results in profits. - Expanding the product range
The total range of products offered by a business is referred to as the product mix. Expanding mix will increase profits in the long term as the same product will not remain effective for long due to the changing nature of customer preferences. - Maximising customer service
Customer service means responding to the needs and problems of the customer. High levels of customer service will result in improved customer satisfaction.
What is a target market
A TARGET MARKET is a group of present and potential customers to which a business intends to sell its product.
what are marketing strategies
Marketing strategies are the plans for action that are developed to achieve marketing objectives using the marketing mix (the 4 elements that make up the marketing strategy – 4P’s).
what is Implementation
the process of putting marketing strategies in operation (describes how, where and when things are to be done)
Financial forecast
Before the implementation process, a financial forecast should be carried out. A financial forecast estimates what the income statement will look like for a particular strategy. It involves measuring the expected revenue, the marketing plan will generate compared to the anticipated cost of implementing it (benefit-cost analysis)
What is monitoring
Strategies need to be constantly monitored to make sure they’re still effective. it is about observing the acutal process of the marketing plan and collecting information.
what is controlling
Controlling is comparing planned results against actual results and taking corrective action to make sure marketing objectives are achieved.
How do businesses compare actual and planned results?
businesses should first establish key performance indicators (KPIs) that outline what should be achieved. Businesses can use a mix of 3 KPIS:
1. Sales analysis – compares actual sales against budgeted sales to measure the success of the marketing strategy.
2. Market share analysis – compares the business’s portion of total market sales to competitors to allow evaluation of marketing strategies as compared with those of its competitors.
3. Marketing return on investment – involves splitting up total marketing costs into specific activities to help measure how much revenue a marketing campaign is generating compared to the cost of running that campaign and decide how to best allocate marketing resources in future.
What does revising the marketing strategy involve
based on the previous results/information, the business may modify their marketing plan in 3 ways:
1. changing the marketing mix
2. New product development
3. product depletion
