Unit 3 Flashcards
what is it important to do when making marketing decisions
- your marketing objectives link to coperate objectives
- gather data to ensure the decisions you make are appropiate
- use your data to form a hypothesis
- test the options - check your resaerch is valid
- once launched should review and potentially start over again with new objectives if unsuccessful
benefits of advertising via social media
- free and cheap
- advertise towards particular customers
- spread information worldwide quickly
- gain more customers
- no agencies needed
6 ways that marketing use new technology
- analytics - a free service which identify patterns of how cutomers engage with the business and online
- dynamic pricing - enables a business to adjust its prices based on current market market demands
- audience reach - business more able to communicate and target audience based on decisions consumers make online
- CRM - managers interactions with customers and potential customers, help build relations
- Campaign testing - allow business to set up one or more marketing campaigns to test what is the most effective
- competitor analysis - software which enables business to track competitors
define greenwashing
behaviour or activities that make people believe that a company is doing more to protect the environment that it really is
define monopoly
when one business dominates the whole market - it has 100% concentration
what are the 5 ways to regulate monopolistic power
- price capping - limiting price increases
- regulation of mergers
- breaking up monopolies
- investigations into cartels and unfair practise
- nationalisation - government ownership
define commidity
a substance or product that can be traded, bought or sold
what marketing decisions can help improve its competitiveness
- Design - Some firms are highly competitive due to their products that are differentiated by their design. UK manufacturers have high wage rates so can’t compete on price alone, production costs are too high compared with rivals in countries where the wages are lower so must use a design as USP
- brand image - markets brand image is crucial. Many consumers can’t tell the difference between tesco own labelled and premium priced brand,
- marketing mix - marketing strategy businesses look at the marketing mix. Ensuring the business gets the right price for the correctly designed product, promoted correctly and distributed to the right places to reach the target audience
what does a marketing process allow a business to do
- understand the market in which it operates in
- understand what customers want
- understand its relative strengths and weaknesses compared to its competitors
- build a strong brand
- build relationships with customers
- understand the nature of pricing its products
what are the 6 marketing objectives
- sales volume and value
- market size
- market sales and growth
- market share
- brand loyalty
- enhance or reposition a brands image
internal influences on marketing objectives
- pressure to increase market share and sales growth
- new corporate objectives set
- development on an innovative product
- new financial objectives
external influences on marketing objectives
- changes in fashion or taste
- changing competitors actions
- changing economics pressures
- changing natural environment
what are the 4 different types of markets
- local market - small local companies care very little about size or value of national market
- national market - other firms are more likely to be concerned with the national market, access to large supermarkets enables access to national market
- physical market - buy face to face, all markets used to be physical
- electronic/virtual market - increase number of virtual markets, london stock exchange is now on computers
what are the factors affecting demand
- price - can affect demand in 3 ways. Higher the price the more people who cant afford it, higher the price the less good value the item will seem, price tag you put on gives message about its value
- income levels - individuals income goes up, their ability to purchase goods and services increases so demand increases
- consumer taste and preference - changing taste and preference can have a significant effect on demand for different products
- companys marketing activities - Persuasive advertising is designed to cause a change in tastes and preferences and increase demand
- competition - competitors always look to take bigger share of the market, cut their prices or introduce better or new version of product
- seasonal factors - firms expierences significant variations in sales throughout the year
what are the 3 different type of goods
- inferior - products people turn to when they are struggling but turn away when they are better off
- luxury - products people buy much more when they can afford it
- Normal - products or services whose sales change broadly in line with the economy. income rises these goods price rises
what are the 2 types of market research
primary and secondary
what is primary research and its pros/cons
data that has been collected first-hand for a specific research purpose
examples:
* focus group
* interviews
* survey and questionnaires
pros: aim questions directly at research objectives, lastest information
cons: expensive, risk of bias
what is secondary research and its pros/cons
using existing data that was collected for a different purpose
pros: good overview of market, no/low cost
cons: data may not be regualrly updated, not tailored to own needs
what are the pros and cons of primary and secondary research
what is secondary internal research and its pros and cons
- records within the organization itself and can be found in various departments
For example:
* Marketing: past advertising campaigns can be compared with sales data to assess effectiveness
* Sales: historical sales help identify trends and predict furutre performance
pros: fast, cost-effective, exclusive to the organisation
cons: outdated, incomplete or unavailable for new projects
what is secondary external research and its pros and cons
- type of data is collected outside organizations
for example:
* commercial market research
* government data
* competitors
pros: quick, free
cons: out of date, available to everyone and not tailored to your business
what are the 2 ways market research is measured
quantitative and qualitative
what is quantitative research and its pros and cons
- based on data (numerical)
- larger samples
- obtained from forms of survey
pros: easy to analyse, numerical data provide insight to relevant trends, compared with other data
cons: focus on data rather than explaining, does not explain reasons, lack reliability if sample size and method is not vaild
what is qualitative research and its pros and cons
- based on beliefs, opinions, attitudes and intentions
- focus group and interviews
- understand why consumer acts certain way
pros: essential for new product development and launches, focus on customer needs, understanding and wants, highlight issues
cons: expensive to collect and analyse, based around opinions
