Unit 3: Marketing Flashcards
(38 cards)
What is Marketing?
Marketing involves a mutually beneficial exchange process. The business provides a product or
service in exchange for something else – usually money.
What is the Marketing Function?
The marketing function of a business provides the link between the customer and the business. This
means that marketing managers need to understand the nature of the market they are operating in
and feed back this information to the other functions of the business such as operations.
What does Marketing aim to do?
Marketing aims to satisfy or ideally delight customers so they want to come back for more. Marketing is not about one off transactions but about building a relationship with customers so they are loyal to the organisation, they will return for more and will be more willing to try other products the business offers.
What is Market?
Marketing occurs when there are buyers and sellers. An example of a market is that there are people who want sell their house and people who want to buy them – this creates the housing market. There is a market for currency, shares, clothes, holidays, so there is basically a market for anything.
Illustrate the Marketing Decision Process.
Set marketing objectives –> Analyse marketing data –> Make marketing decisions –> Implement decisions –> Review –>
(continuous process)
What is ethics in marketing outline one example?
Its whether a business acts in a socially acceptable manner when marketing.
Example -
- Should a business that produces a new drug for a serious illness charge high prices because it can, or should it make it more widely available at a low price? - ethically speaking a business would make prices more affordable
What are 3 key marketing objectives?
Sales Volume and Sales values targets
Market share
Brand loyalty
What is a sales value target?
Sales value – the value of sales is measured in terms of how much is spent on a product, e.g.
sales of £30,000
What is a sales volume target?
Sales volume – the volume of sales is measured in terms of the number of units sold, e.g.
sales of 200,000kg or 5 millions cans
Why do managers set sales growth targets?
Managers will not just set targets for sales volume or value, they will also want to measure how
much they are increasing. Growth rate depends on the actual levels of sales.
What is the equation for percentage growth in sales?
Change in sales over a given period / Existing sales
x100
If percentage growth in sales is negative what does that mean?
It means that sales are falling.
What is market share?
The market share of a product measures the amount it sells as a percentage of the total sales of the market.
What is the equation for market share?
Sales of this product / Total market sales
x100
Why is market share given as a target?
Market share is often given as a target rather than the absolute level off sales because it reflects
what is happening in the market overall.
State 3 reasons why a manager would want a high market share?
- Relatively high sales and therefore possibly profit (depending on costs)
- Relatively high outputs; this may give the business power over suppliers and other partners
– this may enable it to negotiate better deals in terms of lower prices or better quality
- Relatively high prominence in the market; this may raise the profile of the business,
strengthen the brand make launching new products easier
What is brand loyalty?
When a business retains customers, its measured by how many customers return to the business.
What is the benefit of brand loyalty?
Keeping
customers is easier and cheaper than having to attract new ones and so brand loyalty is an
important measure for managers especially if they are trying to build a relationship with customers.
Brands are also valuable and may be sold later – the stronger the loyalty, the more it may be
possible to gain from the sale.
What is the difference between internal and external influences on marketing objectives?
Internal influences on marketing objectives and decisions refer to factors within the business such as
employees and operational resources.
External influences on marketing objectives and decisions refer to factors outside of the business
such as the state of the economy
State 6 internal influences on marketing objectives
The overall strategy of the business
The ambitions of managers
The existing position of the business
The amount the business can produce
Finance
The employees of the business
State 6 external influences on marketing objectives
PESTLE
Political, Economic, Social, Technology, Legislation, and environment
- Competition
Explain how Economic change can influence marketing objectives
Globalisation and the growth of emerging economies such as Indonesia,
Nigeria, Turkey and Vietnam create new growth markets to target. Again this will influence
marketing objectives such as the expected sales in different markets.
The cost of borrowing money for a mortgage; this will affect the number of people
able to buy a house
Incomes in the economy and the number of people in work; this will affect demand.
Explain how social change can influence marketing objectives.
Social change is affecting customers views of what is acceptable and what they expect from product and a producer. This affects the likely targets set by marketing managers for different products in different markets.
Social patterns. These changes affect the typical size of house required (for example a family house or a retirement home) and the number of people looking for houses. Urbanisation occurs when people move to the cities from countryside, which affects the demand for housing in different areas.
Explain how technology can influence marketing objectives.
Technological change is affecting how businesses communicate with customers and track their behaviour, what they are offering them, how customers order products, how products are reviewed and even where ideas for new products come from as customers are invited to submit their own designs and ideas.
