maketing processes

Question 1

What falls under marketing processes

Answer 1

SMEIDI

Situational analysis, product life cycle

Market research

Establishing marketing objectives

Identifying target markets

Developing marketing strategies

Implementation, monitoring and controling

Question 2

situational analysis

Answer 2

Strengths, weaknesses, oppotunities and threats

Question 3

product life cycle

Answer 3

introduction - low brand awareness and customer base when product is launched

growth - where the product starts to make money for the business

maturity - where the product starts making greater profits and the business can start to expand

decline - sales begin to decline and profits lower so business needs to decide if they want to discontinue the business

Question 4

market research

Answer 4

the process of collecting reconding and analysing information concerning a specific marketing problem

involves primary data and secondary data

Question 5

primary data - market research

Answer 5

refers to figures collected from the business themselves - FOSEE

Focus groups - where the target market fills out a survey created to the product

Observations - peoples reactions and behaviour within a specific environment is being observed

Surveys - questionnaire aimed at the products target market

Electronic methods of collection - telephone, mail internet

electronic observation using loyalty programs - can track customer spending habits through database

Question 6

Advantages of primary research - market research

Answer 6

• up to date information that is tailored to a business’s needs
• first hand information that provides details of customers opinion about a product
• most appropriate for qualitative data collection

Question 7

disadvantages of primary research - market research

Answer 7

• expensive to do on a large scale
• not appropriate for quantitative data collection

Question 8

secondary data - market research

Answer 8

internal data - information that has already been collected from internal sources eg sales and management reports

external data - published data from external sources (outside the business) eg internet sources, census and news letters

Question 9

advantages of secondary data - market research

Answer 9

• specalised information collection by professionals
• provides information regarding the market in which the business operates
• cheaper and quicker

Question 10

disadvantages of secondary data - market research

Answer 10

• limited and does not provide a specific option

Question 11

establishing marketing objectives

Answer 11

EIM
- expanding the product range
- increasing market share
- maximising customer service

Question 12

Increasing market share - establishing marketing objectives

Answer 12

• refers to the business share of the total industry sales for a particular product

can be increased by

promotion - increasing advertising creates brand awareness

price - changing pricing strategies to penetration (discount) entices more customers

product - create a new product range

Question 13

expanding the product range - establishing marketing objectives

Answer 13

refers to the range of products offered by a business referred to as the business product mix

business chooses to expand its product range to maintain and increase customer interest in the brand

this can be achieved by

• developing a new line of similar products

improved versions of existing products
- completely different products that are currently on offer

Question 14

maximising customer service - establishing marketing objectives

Answer 14

refers to building a personalised relationship between the business and the customer

• high levels of customer service will result in customer satisfaction and lead to profitability

can be maximised/achived by
- market research - asking customers what they want

• training employees and rewarding them for excellent customer service

Question 15

identifying target markets

Answer 15

• mass marketing approach
• niche marketing approach
• market segementation approach

Question 16

mass marketing approach - identifying target markets

Answer 16

seeks a large range of customers with a wide appeal to meet more needs

seller mass products, mass distributes and mass promotes one product to all buyers

assumes that individual customers in the target market have similar needs

Question 17

market segmentation - identifying target markets

Answer 17

• demographic (age, gender, religion occupation, ethnicity)

-psychographic (personality, motives, consumer opinions and interests)

• geographic (rural, suburban, urban, climate, city size)
• behavioral (loyalty, purchase occasion)

Question 18

niche marketing approach - identifying target markets

Answer 18

• a narrowly selected target market segment
• very specific customer needs

primary target market - mass market approach

secondary target market - niche and market segmentation appoaches

Question 19

why identify target markets

Answer 19

• use marketing resources more efficiently (campaigns can become more cost and time-effective)
• promotion is more relevant to a customer’s needs
• ensures that the product is wanted = creates demand, higher profits

Question 20

Developing marketing strategies

Answer 20

involves the 4 p’s of the marketing mix:
- product
- place
- price
- promotion

marketing strategies are the actions undertaken to achieve the business marketing objective

the business has control over the 4 p’s and uses them to reach is target market

Question 21

implementation, monitoring and controlling (what is monitoring and controlling)

Answer 21

implementation - implementing the marketing stragetgy to attain the objectives

monitoring - checking and observing the actual progress of the marketing plan

controlling - involves the comparison of planned against actual performance and taking coersive action to make sure these objectives are attained

Question 22

steps in achieving implementation monitoring and controling

Answer 22

1. Developing a financial forecast
2. compairing planned and actual results
3. revising the marketing strategy