Unit 3 Marketing

• What is the broad objective of a marketing department?

  Increase sales
• What does sales volume refer to?

  The amount of units sold
• How is sales value different from sales volume?

  Sales value looks at monetary value
• Why might a marketing department want to stimulate market growth?

  To increase overall sales
• What does brand loyalty imply about price elasticity of demand?

  It becomes more inelastic
• How does increased brand loyalty affect revenue when prices rise?

  Higher revenue due to inelastic demand
• What are the two types of influences on marketing objectives?

  Internal and external influences
• What internal factor can influence marketing objectives?

  The mission statement of the business
• If the operations department faces production issues, what might a marketing department focus on instead?

  Increasing brand loyalty
• What external factor might require more marketing efforts?

  Increased competition in the market
• How do economic conditions affect marketing objectives?

  They can shift focus between growth and stability
• If consumer incomes are rising, what marketing strategy might be pursued?

  Push for brand loyalty
• How do interest rates influence consumer spending?

  Lower rates encourage more spending
• What demographic changes might affect marketing objectives?

  Shifts in population age or income levels
• What ethical changes could influence marketing objectives?

  Changes in consumer attitudes towards sustainability
• What are the key marketing objectives for a marketing department?

  • Increase sales
  • Increase sales volume
  • Increase sales value
  • Increase market share
  • Stimulate market growth
  • Create brand loyalty
• What are the internal influences on marketing objectives?

  • Mission statement
  • Core objectives
  • Resource constraints from finance
  • Production issues from operations
  • Skilled labor availability from HR
• What are the external influences on marketing objectives?

  • Competition levels
  • Economic conditions (boom or recession)
  • Consumer incomes
  • Interest rates
  • Demographic changes
  • Environmental and ethical changes
• What is market mapping used for?

  To analyze competition in a specific market
• What are the common variables used in market mapping?

  Price and quality
• How would you plot price and quality on a market map for the airline market?

  Price on one axis, quality on another
• What does a saturated quadrant in a market map indicate?

  High competition in that market segment
• What can be inferred from a gap in the market for high quality low price?

  It may not be financially viable for businesses
• Why is market research important after identifying gaps in the market?

  To validate the existence of demand
• What did Ryanair successfully target in the airline market?

  Low price and budget flights
• How can existing businesses use market mapping?

  To reposition their brand or product
• What are the pros of using market mapping?

  • Identifies potential market gaps
  • Helps reposition existing brands
  • Shows overcrowded market areas
  • Encourages market research
• What are the cons of using market mapping?

  • Gaps do not guarantee success
  • Limited to two variables
  • Potential bias in mapping
  • Poor accuracy can lead to bad decisions
• Why might a gap for high price low quality exist?

  There may be no demand for such products
• What limitation does market mapping have regarding variables?

  It only considers two variables at a time
• What can poor accuracy in market mapping lead to?

  Wasted investments and poor decisions
• How might a business use market mapping to target different customer ages?

  By adjusting the product range accordingly
• What does a market map help businesses avoid?

  Poor decisions in saturated markets
• How does market mapping reduce risk for businesses?

  By encouraging the use of market research
• What is the output of market mapping?

  A market map
• What are the key components of the marketing mix?

  • Price
  • Product
  • Promotion
  • Place
• What has been the trend in technology and marketing over the last decade?

  Increasing trend towards ecommerce and M commerce
• What types of data are generated from ecommerce and M commerce?

  Customer data, financial data, operational data
• What does customer data include?

  Names and emails
• What is included in financial data?

  Sales made and pricing information