topic 3 (decision making to improve marketing performance)

Question 1

marketing objectives

Answer 1

These are specific goals/targets of the marketing department. They must be in line with the firms overall corporate objectives.

Question 2

marketing objectives can include

Answer 2

• Sales volume and sales value
• Market share
• Market and sales growth
• Market size
• Brand loyalty vb

Question 3

market share =

Answer 3

actual sales a business has/ total sales in market x 100

Question 4

primary market research

Answer 4

information that is gathered first hand for its own specific purpose.

Question 5

types of primary research

Answer 5

surveys
focus groups
observing and experimentation
loyalty card data on buying habits
test marketing

Question 6

secondary market research

Answer 6

Data that has been gathered/collected by another organisation research is not carried out by firms so may be inaccurate/ irrelevant

Question 7

qualitative research

Answer 7

Information gathered through research methods about people’s views, opinions and beliefs

Question 8

quantitative research

Answer 8

Numerical and statistical data gathered through varied research methods

Question 9

market mapping

Answer 9

This is a technique that analysis markets by looking at the key features that distinguish products or brands. Its useful for firms to identify groups in the market

Question 10

types of sampleing

Answer 10

random
quota
stratified

Question 11

random sampling

Answer 11

everyone in the population has an equal chance of being chosen

Question 12

quota sampling

Answer 12

respondents are selected in proportion to the consumer profile within the target market

Question 13

stratified sampling

Answer 13

select respondents respondents with a particular characteristics then chosen at random within that group.

Question 14

correlation

Answer 14

Correlation looks at strength of a relationship between variables

Question 15

independent variable

Answer 15

the factor that causes the dependant variable to change

Question 16

dependent variable

Answer 16

the variable that is influenced by the independent variable.

Question 17

positive correlation

Answer 17

a positive relationship exists where the independent value increases in value as well as the dependant value

Question 18

negative correlation

Answer 18

a negative relationship exists where the independent value increases and the dependant value falls

Question 19

confidence intervals

Answer 19

This gives the % probability that an estimate range of possible values, includes the actual value being estimated. This helps businesses understand how reliable an estimate is

Question 20

extrapolation

Answer 20

using historical figures to predict future sales

Question 21

advantages of using technology to gather data

Answer 21

Data can be analysed quickly and in greater depth An construct customer data base, which can be used as part of an effective direct marketing scheme.

Question 22

disadvantages of using technology to gather data

Answer 22

To much info can be hard to analyse trends can be misunderstood can be costly to acquire

Question 23

income elasticity of demand

Answer 23

percentage change in quantity demand/percentage change in income

Question 24

market segments

Answer 24

groups who share similar characteristics

Question 25

demographic segmentation

Answer 25

segments grouped together by: age gender occupation socio-economic groups

Question 26

geographical segmentation

Answer 26

Firms can look at where a particular consumer types live, what the income levels are like, whether its rural or inner city.

Question 27

income segmentation

Answer 27

Certain goods/services are aimed at individuals with a certain levels of disposable income

Question 28

Behavioral segmentation

Answer 28

Customers can be divided into groups based on the way they respond to a product these include: Lifestyle Level of brand loyalty Benefits sought by consumers Purchases occasion Frequency of use

Question 29

mass marketing

Answer 29

business try to sell to all the customers in a large market

Question 30

advantage of mass marketing

Answer 30

Generate high sales Can gain economies of scale

Question 31

disadvantage of mass marketing

Answer 31

High sales don’t always mean high profits Fierce competition

Question 32

niche marketing

Answer 32

Businesses target small groups inside larger markets

Question 33

advantages of niche marketing

Answer 33

Large competitors may not be attracted to these small niches By providing high quality products to a small market can attract customers willing to pay high prices

Question 34

disadvantages of niche marketing

Answer 34

Little chance of achieving economies of scale, so costs will be higher Small market limits the scope for making high profits Small firms are vulnerable if demand increases, the larger players may enter the market

Question 35

marketing mix

Answer 35

people, process, product, price,promotion,place

Question 36

People (marketing mix)

Answer 36

This includes staff a company has who come in contact with customers Major impact on a firms quality, customer service and brand loyalty It is impacted by the firms HR policies

Question 37

process (marketing mix)

Answer 37

how the company deals with its customers and deliveries of the products/service It covers areas such as communication how the customer is dealt with, How quickly/effectively needs are satisfied

Question 38

product (marketing mix)

Answer 38

product life cycle - development, introduction, growth, maturity, decline

Question 39

boston matrix

Answer 39

high growth low sales = question mark low growth, low sales = dog low growth high sales = cash cow high growth high sales = star

Question 40

where is the question mark on the boston matrix

Answer 40

high growth low sales

Question 41

where is the dog on the Boston matrix

Answer 41

low growth low sales

Question 42

where is the star on the Boston matrix

Answer 42

high growth, high sales

Question 43

where is the cash cow on the Boston matrix

Answer 43

low growth, high sales

Question 44

price (marketing mix

Answer 44

price is important because Prices to high – low sales, failed business Prices to low – struggle to cover cost, low profit

Question 45

penetration pricing

Answer 45

low prices are charged to help attract customers, to gain a foothold in the market

Question 46

price skimming

Answer 46

high prices are charged to gain a high profit margin from early adaptors

Question 47

promotion (marketing mix)

Answer 47

Promotion is the process of communicating with customers or potential customer to increase sales through various methods

Question 48

place (Marketing mix)

Answer 48

Place Is a important part to get right. As if business are located close to where there product is produced and sold it can be easier to manage and control.

Question 49

Distribution (pathways/methods)

Answer 49

there a different pathways of distribution e.g producer - wholesaler - retailer - consumer producer - retailer - consumer producer - consumer