Marketing Test

Marketing is the management process involved in identifying, anticipating and satisfying consumer needs profitability.

market orientation and product orientation

-inward looking approach (product first and then try sell it)

-product led and assumes supply creates its own demand.

• Associated with production of high quality products

• Can succeed when speed of change is slow and firm already has good reputation.

• has control over activities

• takes risks which may lead to business failure or closure

• Spend money on research and development without considering consumer needs.

• outward looking: focused on carrying market research first and then product.

• Focuses on establishing consumer demand

• Due to consumers change in tastes, hard to meet everyones needs

• The research is costly

• market research increases, and risk of failure decreases

• can anticipate and respond quickly to change in market

• Strong position compared to competition because of regular feedback

The % of total shares that a business has within the industry

the increase in number of consumers who buy the goods/services. It’s the % change in market size over a given period of time.

TOTAL sales made by all businesses in a given market.

firm’s revenue, growth and profit margins

• Can be measured by volume and value (dif results)

• dif products included can influence calculation of market share

firm with largest market share within an industry

• increased sales rev (higher profit)

• able to gain EOS

process involving organisation deciding on market strategies that would be most effective in attaining overall strategic objectives.

a doc about marketing strategies that are developed to achieve marking objectives.

• Marketing budget

• Key strategic plans

• Marketing objectives (SMART)

• detailed marketing actions

• identify specific problems and find solutions to them

• Marketing budget ensures resources are not wasted

• SMART objectives improves change of success for firm’s marketing strategy

• may become outdated if not changed quickly

• process may consume considerable resources (time, money for designing plan..)

process of diving market into smaller or distinct groups of consumers to meet their desired wants and needs.

considers varying characteristics of human population in the market.

• age

• gender

• religion

• family characteristics

• climate conditions (cold so warm jackets)

• regions in countries where people live (eg agricultural)

based on lifestyle choices or personality:

• social and economical status

• values (moral beliefs eg animal testing)

• helps identify existing gaps and new opportunities in market

• designing products for specific groups can boost sales (profit)

• minimise waste of resources since customers for products are idenitified

• (CAN BE EXPENSIVE)

process of marketing to specific market segment

• undifferentiated market/mass marketing (entire market)

• Differentiated marketing/segmented marketing (targets several market segments like toyota with all prices)

• Concentrated marketing (smaller and more specific market segment)

involves analysing how consumers define/percieve a product compared to other products within a market. (position map)

• helps establish close competitors

• quick and simple way of presenting research

Niche market → focuses on small groups of people/consumers who have interests with product/service of specific organisation.

Mass market → Aimed at large market segment (aim to find highest number of customers)

feature differentiating product from other competing products. Why consumers choose one product over the other.

• helps firm establish competitive advantage

• customer loyalty (something special abt product)

• Leads to improved revenue

• price

• service (delivery, installation etc)

• product (eg durability or resistance)

• relationship (product and customer, personnel choice, trust)

• distribution (channels of distribution) - eg middlemen

• Reputation (created through other forms of differentiation - like high quality)

process of predicting what a firm’s future sales will be

• better cash flow management

• increased efficiency (stock how much to produce..)

• better workforce planning (how much staff needed - HR)

• Improved marketing planning (greater awareness of future trends)

• time consuming

• ignores qualitative external factors (politics etc)

• entry of competitors may be unseen

• wants and needs of customers are seen

• reduce risk of market failure

• helps business see what is likely to happen in future

primary and secondary research

• ‘field research’, first hand info from market

• direct from customers

analysing data that already exists ‘desk research’

• quicker and cheaper

• data of opinions, attitudes or beliefs

• subjective

• multiple realities

• researcher part of process

  (collecting, analysing and interpreting)

• collection of numerical data

• less open to interpretation

• objective

• researcher is separate

• provides one reality

  Counts and measures

the process of selecting appropriate sample (small group of people to represent population of target market)

segmenting a given population into number of groups that share similar characteristics (eg age)

• quick and cost effective

• usually more reliable that random sampling

• not always representation of population

• interviews may be biased in selecting interviewees

each member of population has equal chance of being picked

• reduces bias

• relatively easy way of obtaining sample

• sample chosen may be too small

• may not consist of target population

• research groups selected based on their easy access and proximity to researcher

• fast, easy and cheap

may be biased and not represent population well