Marketing Strategies Flashcards Preview

A2 Business > Marketing Strategies > Flashcards

Flashcards in Marketing Strategies Deck (42):
1

Marketing Definition

The management process that allows firms to identify, anticipate and fulfil customer needs profitably.

2

Corporate Objective

How it affects marketing objective - Long term growth vs Short term profitability

3

Operational Issues

Capacity utilisation, quality targets, productivity

4

Finance Issues

Retained earnings, High gearing, Budgets, Investment appraisal.

5

External Constraints

Growth/decline of a market
Competitors actions
Technological changes
Economic Factors
Suppliers

6

Marketing Model

The procedure where businesses make marketing decisions in a scientific manner. Slow/expensive potential for high reward.

7

Hunches/Guesswork

Actions based on previous experience and limited research.

8

Sales Forecasting

The target a firm expects to make in terms of volume/sales. Expensive and the potential for mistakes/changes in the external environment.

9

Ansoff's Matrix

To evaluate the potential risks involved in strategic decisions.

10

Current Market/Existing Product

Market Penetration - Low Risk

11

New Market/Existing Product

Market Development - Medium Risk

12

Current Market/New Product

Product Development - Medium Risk

13

New Market/New Product

Diversification - High Risk

14

Porters 5 Forces

Analyse the nature of competition within an industry.

15

Threat of New Entrants

Barriers to entry, relative economies of scale, access to suppliers/ distribution. Removal of market share.

16

Easy to enter

Common Technology, Access to distribution, Low capital requirements, NO strong brands and NO customer loyalty.

17

Hard to enter

Established brands, restricted distribution, high capital required, economies of scale for acceptable unit costs.

18

Bargaining Power of Customer

How much customers can exert pressure on price and quality of a product.

19

Bargaining Customer Help

Amount of customers and the number of firms supplying,

20

Bargaining Power of Suppliers

The degree of control of which suppliers have over the buyers.

21

Bargaining Supplier Help

Few large suppliers, scarce resource required, high cost of switching to alternative, few substitute resources.

22

Threat of Substitute Products

Produced in a different industry but can satisfy the customer needs.

23

Threat of Substitute Depends

How the price/performance of substitute can match the product, willingness of customers to switch, ustomer loyalty and switching costs.

24

Degree of Competitive Rivalry

How relatable products from different firms are in the same industry.

25

Consequences of Competitive Rivalry

Price wars, Investment in innovation/new products, Intensive promotion.

26

Advantages of a Marketing Plan

All employees know what the business hopes to achieve
Business can take advantage of market opportunities
Enables the business to plan for unexpected events


27

3 Different Marketing Objectives

-Maintain/increase market share
-Broaden range of products to improve market standing
-Break into a new market or market segment

28

Internal Influences Marketing Plan

-Corporate Objective - Achieve it
-Size/Type of firm - Larger firms aggressive objectives, small firms less ambitious
-Financial position - Strong cash flow/profitable
-Possession of USP

29

External Influences Marketing Plan

-Current Market position - Dominant firms build on existing image in new market
-Responses of Competitors - Rivals match actions can determine objectives
-State of economy - Growth/Recession especially luxury items Inferior/Normal good

30

Scientific Marketing

Gathering as much evidence as possible analyse market / influences, like actions of competitors, consumers, suppliers and governments.

31

Extrapolation

Analyses past performance and extends trend to the future. Predict growth/decline markets. Inaccurate future may be different to past

32

Correlation

Analyse the extent of a relationship between 2 variables. No correlation, positive/negative

33

Moving Averages

Calculations used to identify underlying trends in data, by smoothing out fluctuations

34

IT and Marketing

Used to collect online research like surveys, cheap data analysis

35

Test Marketing

Trialling a product in a smaller submarket which is representative of the whole market, geographical, demographic or virtual. Estimate sales/refine product and strategy. Sample too small/rapid industry change.

36

Cost Leadership

Operate at a low cost and offers a low cost product

37

Differentiation

Premium product and charges a higher price

38

International Markets

Diversification/Differentiation strategy. Direct exporting, Overseas Agent, Joint Venture, Foreign takeover

39

Time Series Analysis

Trends - Predicting the future
Seasonality - Short term fluctuations
Cycles - Periodic changes in patterns

40

Forecasting Advantages

Budgets - Plan productions levels
Income - Predict timing of income and expenditure cash flow can be calculated
Avoid overproduction - Avoid selling excess stock at low prices
Market Change information -from new business/product

41

Marketing Plan Advantages

Direction to all employees
Managers compare achievements with the plan take action to be on target.
Planning encourages managers to think ahead to weigh up options to firm and to consider threats / opportunities.

42

Marketing Plan Disadvantages

Takes time and resources. Dynamic market not beneficial, quick decisions, possibly based on hunches,
Plans might encourage inflexibility in managers not responding to changes in market. Might be easier to change targets than fail achieving them.