Unit 3 Flashcards
two marketing objectives
Market share; brand loyalty
the value of setting marketing objectives
Marketing objectives can provide focus and direction for the marketing department; motivate employees within the marketing function and also allow marketing progress to be reviewed
Formula for market growth
(Market size in year– market size in
previous year) / Market size in previous year x 100
Formula for sales growth
(Sales in previous year - sales in year) / sales in previous year x 100
Formula for market share
(Businesses sales / total market sales) x 100
formula for market size
number of units sold in the market x selling price per unit
what is the difference between primary and secondary market research
Primary research is research that is gathered first hand by the business and is specific to the needs of the business
Secondary research is already available and has been collected for a different purpose
The difference between qualitative and quantitative market research
Qualitiative is concerned with collecting data on attitudes, opinions, beliefs and intentions, whereas quantitative research is concerned more with data than can be quantitified and numerically analysed, such as statistical data
2 benefits and 2 drawbacks of primary research
Up to date
Only available to the business who gathered the information and is therefore specific to the needs of the business
Can be expensive to gather
Time consuming
2 benefits and 2 drawbacks of secondary research
Cheap and often easy to obtain
Can provide information on wider market trends
Not specific to the needs of the business
Data often out of date and may not be reliable
what is the value of sampling when carrying out market research
Sampling is of value as it can save money as only a sample of the total population is selected. It also means that market research results can be obtained more quickly
However, by using a sample, there is less chance that the results reflect the total population. It also depends on the sample size and method chosen
3 factors that influence price elasticity of demand
- Availability of substitutes
- Time period
- Brand loyalty
3 factors that influence income elasticity of demand
- Type of product
- The state of the economy
- Legislation linked to wages
Give 3 ways of segmentation a market
- Demographic
- Geographic
- Income
Consequences of targeting a niche market rather than a mass market
- May be easier to charge a higher price
- Reduced opportunities for economies of scale
- Greater brand loyalty
The value of targeting
Targeting provides more focus in relation to marketing activities and therefore reduces the opportunity cost of marketing
It can be more expensive and may result in certain customers being missed or neglected
The value of market segmentation
Allows products and services to meet the needs of specific target markets
Can be costly to produce a range of products that meet the needs of different market segments
The value of positioning
Positioning can allow a business to gain a competitive advantage as it can create brand awarness and lead to differentiation
Maintaining positioning can be costly
What are the 7 elements of extended marketing mix
- Product
- Price
- Promotion
- Place
- People
- Process
- Physical environment
2 influences on marketing mix
- The marketing budget
- The product that the business sells
give 3 extension strats
- Reduce the price
- New product features
- Target a new market
Penetration pricing
Low prices are charged initially to gain market share quickly
price skimming
High initial prices are charged when a product is launched in order to gain a
high profit margin, pay off r&d costs and take advantage of early adopters
Dynamic pricing
Prices change frequently and quickly in response to the level of demand
