Marketing - Ans-- finds out customers need & wants
- anticipate what customers will want in future
*Includes:*
- research
- analysis
- planning
-
... [Show More] "marketing mix"
Marketing objectives - Ans-- targets set for marketing department help businessess achieve overall
objectives
- targets tend to focus on sales
i.e. increase company sales by 25% by end of 2019
Sales volume & sales value - Ans-- sales volume (number of unites sold)
i.e. sell 500,000 units over a year
- sales value (amount of money come in from sales)
i.e. £500 million in sales over a year
Sales growth - Ans-*EQ: sales growth (%) = sales this year - sales last year / sales last year x 100*
- helps indentify if sales are being gained or lost
- can be measured over any time period
Market size - Ans-- total number of sales (or value of sales revenue) in a market over given period of
time
Market share - Ans-*EQ: market share (%) = sales / total market size x 100*
- important to look at trends in market share &
market share of competitors
- *to increase:* entice customers from competitors or attract new customers in growing markets
Market growth - Ans-*EQ: market growth (%) = new market size - old market size / old market size x
100*
- helps indentify if market is growing (increasing demand) or if market is shrinking (decreasing demand).
Brand loyalty - Ans-- having a recognisable brand image helps improve loyalty to brand
- helps to hold on to existing customers
- important when products are very similar, customers tend to purchase those that are more
recognizable
Repositioning - Ans-- changing a product, branding & image to shift to slightly different market sector
i.e. Greggs from bakery to on-the-go food
Internal influences on marketing objectives - Ans-- *Corporate objectives:* marketing objectives should
be aligned with overall goals
- *Finance:* finance department allocates marketing budget, affecting the ability of the department
- *Human resources:* allocates the capacity of staff for marketing, fewer staff limits how effective
marketing is at increasing sales volume
External influences on marketing objectives - Ans-*Market:* state of the economy (economic boom =
attempt to increase sales volume, recession = attempt to maintain market share)
*Technology:*
- rapidly changing technology shortens product life cycles, creates many opportunities.
- goals are often based on sales & price to maintain competitiveness
*Competitors:* actions of competition affect objectives
i.e if competitors focus on low prices, marketing may focus on consumers seeing them as price
competitive
*Ethics & environmental factors:* awareness increasing amongst consumers, harmful actions damage
brand image, marketing consider this
i.e. using less packaging to show environment conscious
Non-price competition - Ans-- rivalry based on factors other than price (i.e. advertising, sales promotion,
newest products)
USP - Ans-- *USP meaning *'unique selling point'*
- difference between competitor products that makes a product stand out
Predatory pricing - Ans-- cutting prices to force competitor out of market
- illegal in EU & US
Marketing mapping - Ans-- shows both extremes of any of measures on a matrix in a simple way:
*Measures:*
- low vs. high price
- low vs. high quality
- basic vs. luxurious
- youth vs. mature appeal
*Importance:*
- can help to spot gap in market
- identify closest competitors
- show how much customers are willing to pay
Main reasons for market research - Ans-- spot opportunities (i.e. buying patterns, growing markets,
declining markets)
- decide what to do next (i.e. develop advertising campaign before product launch)
- identify is current strategies are working
Quantitative market research - Ans-- produces numeral statistics (facts & figures)
- often based on larger samples that can be shown on graph & used to find correlations
- collected using survey with fixed, predetermined answer choices
- tend to be easier to collect (online, questionnaire, telephone)
Qualitative market research - Ans-- looks into opinions, attitudes, beliefs & intentions of consumers
- not necessarily statistically valid but can identify things that quantitative data cannot
- focus groups discussing a product
i.e. interviews with open questions
- tend to be more time-consuming & expensive
Primary Research - Ans-- when a business gathers new data first-hand (or outsources)
- sampling gives predictions on entire market
i.e. test marketing in a region to research customer response before launching nationwide
- specific for purpose (good for niche markets)
- labour-intensive, expensive, slow
*Types of primary research:*
- questionnaires
- interviews
- surveys
- product reviews [Show Less]