Unit 3: Decision making to improve marketing performance (Using the…
Unit 3: Decision making to improve marketing performance
Setting marketing objectives
Marketing objectives could be sales (volume+value+growth) and market share and brand loyalty
To help improve performance in decision making you can -set marketing objectives
-understand what customers want and can afford
-Conditions in the market
-capability and strength of competitors
A market occurs when there are buyers and sellers
Ethics and marketing are important as it will have an effect on what the consumer will want to buy. e.g. should they promote harmful products like cigarettes?
-high prices for medicines?
Internal influences on marketing objectives and decisions refer to factors within the business such as operational resources
Relationship Marketing is an approach to marketing in which a company seeks to build long term relationships with its customers by providing consistent satisfaction. it focuses on customer retention rather than one of sales
External influences on market objectives could be PESTLE
Segmentation, targeting and positioning (STP)
These are the different groups within a market e.g gender
Geographic segmentation is the segmentation due to area as different places/countries may want different needs.
Demographic segmentation is the segmentation due to characteristics such as gender and age
Income segmentation is the segmentation due to earnings. e.g. high income users will want to know where to invest
Behaviour segmentation is segmentation is what people do e.g when they buy or how much they buy
Niche markets is a specific section of a market
Mass marketing is the targeting of the majority of people with products that meet some of the needs
Positioning identifies the benefits on one competitor to another e.g price
Influences on positions a product are strengths of a business, market conditions, competitors and innovation
Using the marketing mix (Influences that a customer has to undertake)
(How you buy a product)
The marketing mix is the combination of marketing choices that can be used by a business to influence consumers to buy products
Influences on the marketing mix are: types of products, consumer and industry
Product life cycle (development, intro, growth, maturity, decline. Maybe extension strategy)
A product portfolio are the range of items sold in the business (Often linked to the boston matrix)
Extension strategies maybe increase promotion, lower price, find new target segments
A balanced portfolio is an appropriate mix of products in terms of market share and growth
Understanding markets and customers
Correlation is whether 2 factors are related such as ice cream and hot days. 1 is a perfect correlation, 0 in no correlation and -1 is perfect negative correlation
A confidence level is the probability that the research findings are corect
Market mapping is the analysis of market conditions and to identify the positions of one product or brand relative to other in the market given by criteria
A confidence interval is a range such as 200,000 - 400,00 that 95% of those will happen.
Market research can be primary or secondary research where you gather and analyse information and then interpret the findings
PED= Percentage change in quantity demanded/ percentage change in price
Percentage change in demand/ percentage change in income
X<1 means price inelastic (smaller change in demand)
X>1 is price elastic (bigger change in demand than price)
Patent protects new inventions
Trademark is a sign that distinguishes goods and services of a business. (like a brand)
Price skimming: high price when product is launched
Dynamic pricing: Price changes rapidly due to changing demand.
Price penetration : low price to gain market share
Mulithchannel distribution means that customers can buy the product in several ways. e.g in store or click and collect or online.
Ecommerce: this is the buying and selling of products and services through an electronic medium e.g internet.
Benefits of this may include gathering of information using cookies, building relationship with customers buy recommending products by looking at their buying habits