Unit 3

• Competitiveness = Quality, Price, Customer service, Availability
• Primary research = The use of first hand data
• Secondary research = The use of existing data
• Random sample = All of the population have an equal chance of being selected
• Quota sample = Candidates are chosen based on their characteristics
• Quantitative data = Data in numerical form
• Qualitative data = Data that is not numerical and is often descriptive
• Advantages of quantitative research: Data relatively easy to analyse, Numerical data provides insights into relevant trends
• Drawbacks of quantitative research: Focuses on data rather than explaining why things happen, Doesn’t explain the reasons behind numerical trends
• Advantages of qualitative research: Essential for important new product development and launches, Focused on understanding customer needs, wants, expectations
• Drawbacks of qualitative research: Expensive to collect and analyse – requires specialist research skills, Based around opinions – always a risk that sample is not representative
• Market mapping analyses market conditions to identify the position of a brand or product
• Correlation: An apparent relationship between one factor and another
• Extrapolation = Looking at what has happened in the past and continuing the trend into the future
• Price elasticity of demand (PED) = The correlation between price and the quantity demanded
• PED =   percentage change in quantity demanded/

                           percentage change in price
• PED > 1 then demand changes more than the price changes
• PED < 1 then demand changes less than the price changes
• Elastic demand = PED is greater than 1
• Inelastic demand = PED is less than 1
• Unitary elasticity = PED equals to 1
• Income elasticity of demand (YED) = The correlation between income and the quantity demanded
• YED =   percentage change in quantity demanded/

                    percentage change in consumer income
• YED > 1 = Demand changes more than income changes
• YED < 1 = Demand changes less than income changes
• Typical marketing objectives: Sales volume,Sales value, Market share
• Market share = The amount a firm sells as a percentage of the total sales of the market
• Market share = (Sales of the product /Total market sales) x 100
• Retaining customers is important to a business – why? Difficult and expensive to win customers, Creates a valuable competitive advantage and barrier to entry to have loyal customers
• Big data is collecting and analysing large data sets from traditional and digital sources
• Market segments are groups within a market that have similar wants and needs
• Segmentation is the process of identifying and categorising market segment
• Targeting is the process of marketing to a specific market segment
• Positioning is establishing customers’ perception of how a product is distinguished from its competitors
• Demographic segmentation = Demographics refers to characteristics of the people in the target population
• Geographic segmentation = Segmentation based on the geographical area in which customers are based
• Income segmentation = High-income customers may have different demands to low-income customers
• Behavioural segmentation = Focuses on what customers actually do
• The value of segmentation is understanding customers gives a firm the ability to try to satisfy varying needs and wants
• Marketing mix (7p's): Price, Product, Promotion, Place, People, Processes, Physical environment