Marketing Processes Flashcards
What is a situational analysis?
Assessing the business’ current position to decide what to do next
How do you do situational analysis?
- SWOT analysis
- Product life cycle analysis
What is a SWOT analysis?
Look at the businesses internal strengths and weaknesses, and external opportunities and threats
What are some internal factors on a SWOT? (i.e. things that could be either strengths or weaknesses)
- Quality of the product
- Reputation
- Costs and prices
- Customer service
- Defects
- Environmental impact
What are some external factors on a SWOT? (i.e. things that could be either an opportunity or threat)
- Competitors
- Government policies
- Economic fluctuations
- Technological changes
What are the stages of the product life cycle?
1) Introductory
2) Growth
3) Maturity
4) Decline
How does the product strategy change across the product life cycle?
Growth: refine product based on feedback
Maturity: change the packaging
Decline: Change or replace the product
How does the pricing strategy change across the product life cycle?
Introduction: use price skimming or penetration
Maturity: reduce prices due to competition
Decline: reduce further to sell off remaining stock
How does the place strategy change across the product life cycle?
Gradually increase distribution to more outlets over time, until you get to decline and then reduce to only where remaining customers are
How does the promotion strategy change across the product life cycle?
Introduction: inform what the product does
Growth: advertise to a wider audience
Maturity: Emphasise the product’s reputation (against new rivals)
Decline: Stop promoting
What is the case study for situational analysis?
H&M - expanding into Australia and launching online store
What is market research?
Finding out about your customers and what their preferences are
Why is it important to conduct market research?
To design the product and marketing strategies to best appeal to them
How do you conduct market research?
1) Identify what information you want to find out
2) Collect data
3) Analyse the data
What type of information might a business want to find out in market research?
- Demographics of customers (income, age, gender, ethnicity)
- Preferences and interests of customers
- How customers view your product
What is primary data?
Collecting new data
What is secondary data?
Data that has already been collected
How can you get primary data?
- Focus groups
- Observation method
- Experiment method
What are focus groups?
Interviewing / surveying groups of individuals
What is the observation method?
Watching customers and how they interact with your product
What is the experiment method?
Trying a marketing strategy in one place to see how successful it is
How can you get secondary data?
- Use internal data you’ve already collected
- Access or buy external data from another organisation
What are examples of internal secondary data?
- Loyalty program data
- Warranty claims
- Previous market research
What are examples of external secondary data?
- ABS data
- Buying data from social media platforms (e.g. Google, Facebook)
