3.3

• What is the role of marketing?

  The process of identifying, predicting and satisfying customer needs profitably
• What is the value of setting marketing objectives

  Ensure functional activities consistent with corporate objectives

  To provide a focus for marketing decision-making and effort

  To provide motives for marketing team and measure of success or failure

  Establish priorities for marketing resources and effort
• Marketing objectives

  sales volume and sales value

  market size

  market and sales growth

  market share

  brand loyalty
• Benefits of setting marketing objectives

  Targets: They give departments something to strive for and motivating them

  Direction: marketing objectives help to give companies a sense of where they're heading

  Planning: shows the steps needed to achieve their overall goal

  Measurement: most marketing objectives have quantifiable targets that can be measured, which help show whether a business is failing or achieving success
• Internal influences on marketing objectives and decisions

  Planned growth

  Recouping of investment

  Corporate objectives

  New product development

  Finance objectives

  Skills of workforce

  Management/leadership style - attitude towards risk, innovation and creativity
• External influences on marketing objectives and decisions?

  Pressure groups

  Changing trends

  Environmental changes

  Competition

  Economic factors
• Primary research methods

  face to face interviews

  telephone interviews

  postal surveys

  web forms

  email

  focus groups
• Advantages of primary research?

  1. it finds new information about the target market
  2. reveals relevant and up-to-date information
  3. it allows the business to concentrate time and money more effective
• Disadvantages of primary research

  1. time consuming and expensive
  2. the accuracy and reliability of the data collected depends on the researcher and questions asked
  3. depends on the mood of the interviewee and may not reflect the opinion of the population as a whole
• Secondary research methods

  1. the internet
  2. newspapers
  3. magazines
  4. business journals
• Advantages of secondary research

  
  

  1. cheaper and quicker
  2. allows the business to examine the trends in the market
  3. data including the mass market is added
• Disadvantages of secondary research?

  
  

  1. reliability of historic data must be treated with caution
  2. also available to competitors
  3. time-dependant
• What is qualitative data?

  Seeks to gather and explore feelings and thoughts about the product from consumers
• Methods of qualitative research

  1. focus group discussions
  2. interview with consumers on what they think about the product/service
  3. observations of buyer behaviour (e.g. only families bought it)
• What is quantitative data?

  Numerical information or data that can be measured or counted. Examples of quantitative data include measurements of height, weight, temperature, or scores on a test.
• Methods of quantitative research


  
  

  1. Data displayed in charts, graphs, as statistics and percentages
  2. Questionnaires written to gather numerical data
• What is market mapping?

  a market map show the range of positions that a product can take in a market based on 2 things that are important to customers

  - cost & quality

  collects information to compare your product to competition and identify opportunities for new products
• Advantages of a marketing map

  
  

  1. help spot gaps in the market
  2. useful for analysis of competition
  3. encourages use of market research
• Disadvantages of a marketing map

  
  

  1. just because there’s a “gap” doesn’t mean there’s demand
  2. not guarantee of success
  3. may not be reliable based on dimensions chosen
• What is sampling?

  Sampling is the process of selecting a sample of individuals or items from a larger population in order to gather information or make inferences about the entire population.
• Sampling methods

  1. random
  2. quota
  3. stratified
• Advantages of random sampling

  1. everyone has a equal chance of being selected
  2. simple sampling method
  3. ICT is often used and useful for surveys online
• Disadvantages of random sampling

  
  

  1. takes time and costly
  2. difficulty in keeping it random
• Advantages of quota sampling

  1. quicker and cheaper to do
• Disadvantages of quota sampling

  1. the population is divided
  2. may develop bias
  3. not everyone has a equal chance of being selected
  4. cannot be used to predict the behaviour of the rest of the population accurately
• Advantages of stratified sampling

  1. less biased
  2. accurately reflect the views
  3. ICT is often used
• Disadvantages of stratified sampling

  1. time consuming
  2. costly to select and gather
• What is correlation?

  Correlation is a statistical measure that quantifies the relationship between two variables.