Business Management - Chapter 4

4.5 - Manufacturers' brands - examples, benefits and limitations

- Producers establish the brand image of a product or a family of products, often under the company's name EXAMPLES: Levi's, Coca-Cola, Mercedes-Benz BENEFITS: Successful branding by manufacturers establishes a unique 'personality' for the product which many consumers want to be associated with and will often pay premium prices to purchase LIMITATIONS: The brand has to be constantly promoted and defended

4.2 - Limitations of market segmentation

- Research, development and production costs might be high as a result of marketing several different product variations. - Promotional costs might be high as different advertisements and promotions might be needed for different segments - marketing economies of scale may not be fully exploited. - Production and stock-holding costs might be higher than for the option of producing and socking one undifferentiated product. - By focusing on one or two limited market segments there is a danger that excessive specialisation could lead to problems if consumers in those segments change there purchasing habits significantly.

4.5 - Own-label branding - examples, benefits and limitations

- Retailers create their own brand name and identify for a range of products EXAMPLES: Walmart has numerous own brands, eg. Sam's choice, faded glory, life, Metro 7 BENEFITS: Often cheaper than name-brand products, each own-brand label appeals to different consumer groups and tastes, often little spent on advertising - in-store promotions used instead LIMITATIONS: Consumers often perceive products to have lower-quality image

4.5 - What must a business consider when deciding on a channel strategy?

- Should product be sold directly to consumers? - Should the product be sold through retailers? - How long should the channel be (no. of intermediates)? - Where should the product be made available? - Should electronic methods of distribution be used? - How much will it cost to keep the stock of products on store shelves and in channel warehouses? - How much control does the business want to have over the marketing mix? - How will the distribution channel selected support the other components of the marketing mix?

4.4 - What are pie charts most useful for?

- Showing relative importance of sections or segments out of a total result - these can be visually compared with other time periods. - Are less effective when time comparisons between totals are needed or when percise comparisons of segments over time are needed.

4.2 - Psychographic factors

- These are to do with differences in people life styles, personalities, values and attitudes. - Lifestyles often relates to activities undertaken, interests and opinions other than personally.

4.4 - Methods of primary research

1. surveys 2. Interviews 3. Focus groups 4. Observations 5. Test marketing

4.8 - Consumer to consumer (C2C)

A business model based on e-commerce that creates a facility that allows consumers to trade with each other (sometimes known as customer to customer) - Two main forms are auctions and classified advertisements on websites. - C2C has increased in popularity with arrival of internet, as companies such as eBay and Craigslist have fostered greater interaction between customers. - C2C sites make money from charging money from fees for listing items on sale, adding on promotional features and completing transactions. - expected to grow in future due to effectiveness - minimises costs of using third parties.

4.1 - Importance of competitors and ease of entry

A business must be aware of number and size of their competitors - and the ease of joining rivals in market. Generally, the greater the no. of competitors and the easier it is to join a market, the more price competition there will be (unless product is very unique)

4.5 - Agent

A business with the authority to act on behalf of another firms, e.g. to market its products

4.2 - What is a unique selling point/proposition(USP)?

A factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first-ever product of its kind; a USP could be though of as 'what you have that competitors don't'

4.5 - Above-the-line promotion

A form of promotion that is undertaken by a business by paying for communication of information about the product or business e.g. advertising - are usually directed to a target market by selecting the right media

4.1 - Why do marketing decisions need to be coordinated with finance department?

Any marketing decisions which include increasing budget must be funded by this department and therefore must make sure that adequate finance is available.

4.7 - What is the role of cultural differences in international marketing regarding price?

Average income levels vary greatly across the globe. people in developed countries can buy products at a higher price than those in developing countries, therefore prices must be modified to suit the region. If prices need to be decreased, the design in the countries were it is to be sold may need to be changed to reduce overall production costs. This could negatively impact the brand image as it may cause people to think the quality is reduced. It can also lead to grey markets to developed (goods from cheaper markets are sold in high price ones) Price also needs to be based on the cultural attitude of people, so overall detailed market research must be conducted before entry in undertaken.

4.3 - What are sales forecasts based on?

Based on market research data, gained from both primary and secondary sources. Another common way of assessing future demand for a product yet to be fully launched is to test marketing in one particular area.

Why might a businesses market share fall while sales are rising?

Becuase if total market share is increasing at a faster rate than one firm's sales, the market share will fall.

4.2 - benefits and limitations of differentiation through low/lowest price

Benefits: - Consumers have limited spending power and low prices will always attract a large proportion of consumers. Limitations: - Will total profit fall if the profit margin is reduced to very low levels? - Do low prices integrate with the rest of the marketing mix? - Could consumers perceive the product/brand to be of low quality too?

4.7 - Multinational companies

Businesses that have operations in more than one country

4.5 - The relationship between the product life cycle and cash flow

Cash flow is vital to business survival, and ignoring link between the two could lead to lack of liquidity for business. Cash flow is negative during development as costs are high, but nothing has been produced or sold. At introduction, development costs may have ended, but heavy promotional costs are likely to be incurred, which are likely to continue into growth phase. There will also likely be much unused factory space, straining costs more. As sales increase, cash flow should too, when will depend on the length of consumer credit being offered. Maturity phase will likely have most positive cash flow as sales are high, promotional costs may be limited, and spare factory capacity is low. IN decline, prices and sales decline resulting in cash flow doing the same.

4.4 - Secondary research

Collection of data from second-hand sources. It is the use and analyses of this data, and the data is collected by another organisation, often for different purposes. - often undertaken before primary research, if data exists.

4.1 - What does market segmentation enable?

Companies can target different groups of consumers who perceive the value of certain products or services differently from each others Allows for target marketing

4.2 - geographic differences

Consumers tastes can vary depending on geographic region and therefore may be important to offer different products and market them in 'location specific' ways.

4.4 - Survey

Detailed study of a market or geographical area to gather data on attitude, impressions, opinions and satisfaction levels of products or businesses, by asking a section of the population. - Can collect both quantitative and qualitative information

4.1 - Segmentation

Dividing a market into distinct groups of consumers who share common tastes or requirements, hence responding similarly to market activities.

4.4 - Convenience sampling

Drawing representative selection of people because of the ease of their volunteering or selecting people because of their availability or easy access. - Advantage is the availability and quickness with which data can be gathered. Disadvantages are the risk that the sample might not represent population as a whole, and it might be biased by volunteers.

4.8 - Advantages of B2B

E-commerce relationships save time, require fewer people than traditional purchasing systems and lead to fewer mistakes. Internet gives ability to obtain quotation bids from many potential suppliers and distributors helping to drive down business costs.

4.5 - examples, possible benefits and drawbacks of direct selling

EXAMPLES: - mail order from manufacturer - airline tickets and hotel accommodation sold over internet by service provider - Farmers' markets - selling produce directly to consumers BENEFITS: - No intermediaries, so no mark-up or profit margin taken by other businesses - Producer has complete control of marketing mix (how product is sold, promoted and priced) - quicker than other channels - may lead to fresher food products - Direct contact with consumers offers useful market research LIMITATIONS: - All storage and stock costs have to be payed for by producer - No retail outlets limits chances for consumer to 'see and try' before they buy - May no be convenient for consumer - No advertising or promotion paid for by intermediaries and no after-saes services offered by shops - Can be expensive to deliver each item sold to consumers

4.4 - Sampling error

Errors in research caused by using sample for data collection rather than the whole target population

4.1 - How may cultural differences influence marketing practices and strategies in an organisation?

Failing to respond to cultural differences can lead to a bad feeling or bad publicity whereas responding to local tastes and sensibilities can encourage consumers to accept a new brand as being designed for their needs.

4.2 - What does market segmentation need to be effective?

Firms must research and analyse the total market carefully to identify specific customer groups or segments that exist with it. - Clear picture of consumer profile. Marketing mix decisions need to be appropriate for consumer profile of the target market as a well targeted product will need less advertising and promotional support than one that doesn't meet the needs of targeted market.

4.5 - Cost-based pricing as a pricing strategy

Firms will assess their costs of producing or supplying each unit, and then add an amount on top of the calculated cost. One can used cost-plus pricing for this.

4.1 - Homogenous products

Goods that are physically identical or viewed as identical by consumers

4.5 - Price discrimination as a pricing strategy

Occurs when a business sells the same product to different consumers at different prices. - take place in markets were sub-groups of consumers exist. - Firms can price discriminate if there are different groups of consumers with different price elasticities of demand.

4.4 - Methods of data presentation

Once market research data is gathered it must be presented and analysed in order to be used effectively. Methods of presentation include: - Tables - Line graphs - Bar charts - Pie charts - histograms - pictograms

4.3 - Sales forecasting

Predicting future sales levels and sales trends

4.5 - price

Price is the amount paid by a customer for a product and is a vital component of the marketing mix, impacting consumer demand for the product. Pricing level also: - determined the degree of value added by the business to bought-in components - Influences the revenue and profit made by a business due to the impact on demand - reflects the marketing objectives of the business and help establish the psychological image and identity of a product

4.2 - Price

Price must be correct, if set too low, consumers may loose confidence in the products quality and if too high, many will be unable to afford it

4.5 - How is the marketing mix impacted during the maturity phase of the product life cycle?

Price: - Competitors likely to be entering new market - there will be a need to keep prices at a competitive level Promotion: - Brand imaging continues - growing need to stress the positive differences with the competitors' products Place: - Highest geographical range of outlets as possible - developing new types of outlets where possible Product: - New models, colours, accessories, etc. as part of extension strategies. (really any extension strategy can be undertaken)

4.5 - How is the marketing mix impacted during the decline phase of the product life cycle?

Price: - Lower prices to sell off stock - or if the product has a small 'cult' following, prices could even rise. Promotion: - Advertising likely to be very limited, may just be used to inform of lower prices Place: - Eliminate unprofitable outlets for the product Product: - Prepare to replace with other products - slowly withdraw from certain outlets.

4.2 - Marketing mix

The key decisions that must be taken in the effective marketing of a product made up of 7 unrelated decisions (the sevens P's); Product, price, promotion, place, people, process and physical evidence

4.1 - How should marketing campaigns evolve?

They should evolve to respond to changes in consumer preferences. Changes in consumer preferences should be researched, anticipated and acted upon by the marketing department. Changes can include; fuel efficient cars, healthier food, informal business clothes, tablet computers

4.4 - Stratified Sampling

This draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum. - for sampling to be accurate, it should contain members from all strata (different groups within a target population with many different opinions) - This method of sampling may also be used when a product is designed to appeal to more than one segment of the market.

4.6 - Importance of physical evidence

This element of the marketing mix can help distinguish a company from its competitors. Can be used to support the charging of a premium price for a service and establish a positive customer experience. Customers will make judgments about the organisation based on the physical evidence.

4.5 - What are BOGOF, limitations?

This encourages multiple purchases, which reduces demand for competitors' products too. Limitations: - There could be a substantial reduction in gross profit margin - Consumers may consider if this scheme is operating, are they paying a normal price which is too high? - Is scheme being used to sell off stock that cannot be sold at normal prices - can impact brand reputation - Current sales might increase, but future sales could fall as consumers have stocked up on product.

4.2 - Promotion

This includes the advertisement and packaging. It must be effective and targeted at the appropriate market. It should inform consumers about your products availability and convincing them that 'your brand' is the one to choose.

4.4 - Uses of mean as average measure. Advantages and disadvantages?

Use: When range of results is small, the mean can be a likely indicator of likely sales levels per period of time. Can be used to determine reorder levels (when product needs to be replenished). Often used to make comparisons between sets of data Advantages: -All of the data is included in calculations - Well recognised as the average as it is so widely used, therefore is easily understood. - It can be used to analyse data further in other ways that assist in understanding the significance of the results collected. Disadvantages: - The main problem is that the mean is affected by one or two extreme results. (eg. mean income figure can be distorted by high salary for CEO) - It is commonly not a whole number - eg. is it really useful for stock ordering purposes to know mean size was 6.38.

4.4 - Cluster sampling

Using one or a number of specific groups to draw samples from and not selecting from the whole population, eg. selecting one town or region. - occurs when a full list of potential sample members is nor available or the target population is too geographically dispersed. - helps reduce costs - May not be fully representative of the whole population - Random methods can then be used to select the sample form this group - A multinational wanting to research global attitudes to a product may use cluster samlping to save time and money

4.3 - cyclical variations

Variations in sales occurring over periods of time of much more than a year - they are related to the business cycle. Are more likely to impact income-elastic goods than necessity products and services.

4.2 - Product position map or perception map

a graph that analyses consumer perceptions of each of a group of competing products in respect of two product characteristics. Allows a business to analyse how the new brand will relate to other brands in the market.

4.4 - Sample

group of people taking part in a market research survey selected to be representative of the target market overall. - essential when using primary research methods

4.6 - Physical evidence

the ways in which a business and its products are presented to customers. How a businesses good or services 'appears on the outside'.

4.1 - Social (societal) marketing

this approach considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way when firms meet these demands. Considers a wider range of stake holders. They want to help bring about changes that will benefit society.

4.7 - What is the role of cultural differences in international marketing regarding promotion?

- A global marketing strategy has to study cultural differences before planning its advertising strategy. Advertising should be planned so that it appeals to customers in the international market. How should the people in it look and be dressed, what is ok to advertise, etc.?

4.5 - Family branding - examples, benefits and limitations

- A marketing strategy that involves selling several related products under one brand name (aka umbrella branding) EXAMPLE: Mars bars was the original product, now joined by mars ice cream, energy drink and muffins BENEFITS: Marketing economies of scale when promoting the brand and makes new product launches easier LIMITATIONS: Poor quality of one product under the brand may damage them all

4.7 - What are joint ventures, advantages and disadvantages of this entry method?

- Agreements between at least two companies to own and operate a new business venture. PRO: - Venture partner is likely to be based in the international market being targeted, so local knowledge will be obtained - customs, laws, culture, etc. - Capital injection would be shared - Management responsibilities and risks will be shared - May be the only means of entering some markets if governments insist on 'local partners' CON: - Management problems due to clash of business cultures and personalities - Profits will be shared - local partner needs to be chosen carefully to avoid risk of fraudulent operations - loss of complete control of operations and marketing strategy

4.4 - What are media reports and specialist publications?

- Are often widely available, otherwise can be obtained through subscriptions - Before using market evidence from these publications, questions should be asked about the primary resource of the data (who collected it, is there potential bias). Examples include: - Marketing (journal providing weekly advertising spend data and consumer 'recall of adverts' results) - The grocer, Motor Trader, The financial Times (regular articles on key industries such as IT and detailed country reports)

4.5 - What are price promotions, limitations?

- Are temporary reductions in price, aka price discounting. Aimed at encouraging existing customers to buy more and attracting new customers to buy the product. Limitations: - Increased sales gained from price reductions will affect gross profit on each item sold - There might be a negative impact on the brand's reputation from the discounted price

4.8 - Impact of technology and e-commerce on promotion

- Banners, pop-ups, text messages, web pages, blogs, viral marketing - new forms of promotion formed in e-commerce. Promotional opportunities have been greatly expanded due to e-commerce and IT developments. - Using internet and other IT-based systems for promotion saves costs, and allows for directed, targeted marketing at groups of consumers or even individuals. - Promotional materials and packaging might have to be adjusted to meet legal and cultural demands in different countries being sold to.

4.1 - Important aspects of marketing services

- Building trust: service must be good and trustworthy is consumer is to come back - Time for delivering service: important because if service is promised to be given within a certain time frame, business must deliver whilst providing service to others as well. Accurate time estimates an effective time management when delivering services to client allow more customers to be seen and provided with well effected service. - Deliverability: An issue with marketing services is convincing consumers that they provide quality results which can be delivered within a certain period of time. Service marketing materials like websites can have testimonials and case studies for satisfied clients which prove business is able to perform promised services contained on promotional materials. - Relationships: Marketing a service-based business relies on long-term relationship with consumers than marketing goods does. Trustworthy and loyal relationships being built provide long-term sources of revenue and greater chance of positive feedback.

4.5 - What strategies can be undertaken after analysing Boston Consulting Group matrix?

- Building: Supporting problem child product with additional advertising or further distribution outlets. Finance can be obtained from cash cow. - Holding: Continuing to support star products so that they can maintaining their good market position. Work may need to 'freshen' product in the eyes of consumer to maintain high sales growth. - Milking: taking the positive cash flow from established products and investing in other products in portfolio. - Divesting: identifying worst performing dogs and stopping the production and supply of these. Strategic decision should not be taken lightly as it involved other issues such as impact on workforce and wether spare capacity freed by stopping production can be used profitably for other products. These strategies can only be undertaken if there is a balanced portfolio of products.

What are the marketing objectives of a for-profit organisation?

- Business with clear short-term profit will focus on maximising sales at highest price possible, whilst a business with longer term profit may focus on both profitability and achievement of socially responsible goals. This leads to different marketing strategies being undertaken, such as the latter adopting a societal marketing approach. - increase in Market share - gaining market leadership - increase in total sales (value, volume or both) - increase in average number of items purchased per customer visit - increase in frequency that a loyal customer shops - increase in percentage of customers who are returning customers (customer loyalty) - increase in number of new customers - increase in customer satisfaction. - increase in brand identity

4.7 - Marketing threats of globalisation

- Businesses from other countries now have freer access to the domestic market, so there will be increased competition. Wider consumer choices will drive firms that are not internationally competitive out of business. - The drive for international competitiveness will also be forcing other firms to become more efficient to maintain price competitiveness. - Pan-European/global strategies can fail to consider cultural and taste differences between consumers of different nations. Firms need to 'think global, but act local' - global localisation - International marketing can lead to communication and transport problems. The risk of unethical practices by managers with delegated authority far away from head offices can lead to problems. - Businesses are now increasingly at risk of foreign take overs. - Increasing activity from ant-globalisation pressure groups may result in bad publicity for multinationals, in particular those found guilty for environmental damage in foreign countries. There is growing concern over environmental impact of globalisation, especially on emerging economies.

4.7 - What is exporting, advantages and disadvantages of this entry method?

- Can be undertaken by selling a product directly to foreign customer (e.g. order via company website) or indirectly though an export intermediary, (e.g. agent or trading company based in country) PRO: - selling directly via e-commerce has the same benefits as all online selling - Profit is not 'shared' with another business unless an agent in the importing country is used to promote/distribute product - Complete control of marketing strategy rests with exporting business CON: - No knowledge gains from businesses/partners based in international locations - Exporting business bears all the risks - May be import tariffs imposed by gov. to protect domestic market

4.5 - Why is the choice of distribution channel is an important element of the marketing mix?

- Consumers may need easy access to a firm's products to allow them to see and try them before they buy, to make purchasing and possibility of return easy. - Manufacturers need outlets for their products that give wide market coverage, with desired image of product promoted. - Retailers will sell producers' goods but will demand mark up to cover their costs and make a profit, so if price is very important, using few or no intermediates would be an advantage.

4.7 - Disadvantages of Pan-global marketing

- Despite growing similarity between consumer tastes in different countries, it may still be necessary to develop different products to suit cultural and regional variations. Marketing opportunities may be lost by trying to sell the same product everywhere. - Legal restrictions can vary between countries, regarding products, promotion techniques, etc. - Brand names do not always translate effectively into other languages. May cause offence or unplanned embarrassment for the company. - Setting the same price in all countries will fail to take into account different average income levels that exist.

4.7 - Threats posed by entry to international markets

- Differences in consumer needs and wants , and in usage patters for products in international markets will mean increased costs of adapting products and their marketing to meet these differences. failure to respond to these differences can lead to expensive marketing failures - Differences in legal environment, which may conflict with that of the home market. Businesses will have to meet all legal requirements in the markets they operate in and need to obtain knowledge on the legal constraints in markets they trade in. - High levels of competition from national producers, some of which may receive special treatment or subsidies for national gov. - Growth of the 'counterfeit' and 'grey markets' in international markets can undermine the rep and profit margins of well-known global brands.

4.4 - What are examples of ways companies observe consumers?

- Direct observation of people by marketing specialists to identify action and watch how customers or potential customers respond to stimuli. observational techniques include: - cookies on computers - focus groups utilise observational techniques - Nielsen ratings tracking peoples' popular viewing habits of TV programs - Retail businesses: track purchasing behaviour through barcoded transactions and observe customers reading product packaging.

4.5 - Product branding - examples, benefits and limitations

- Each individual product in a portfolio is given its own unique identity and brand image (aka individual branding) EXAMPLES: Toyota created the Lexus brand of luxury cars or Johnson and Johnson BENEFITS: each product is perceived as its own unique and separate brand - unconnected in consumers' minds with the parent company LIMITATIONS: loses the positive image of a strong company brand

4.7 - Methods of entry into international markets

- Exporting - International franchising - Joint ventures - Licensing - direct investment into subsidiaries

4.4 - What are market intelligence analysis reports

- Extremely detailed reports on individual markets and industries produced by specialist market research agencies. - they are very expensive, but are usually available at local business libraries (they might not be the most up-to-date versions) sold directly to businesses in market being researched - Examples include: Mintel reports, Key Note reports, Euromonitor international

4.7 - What is international franchising, advantages and disadvantages of this entry method?

- Foreign franchises are used to operate a firm's activities abroad. Can either be one foreign company used as a franchise from all branches in their own country or individual franchises being appointed to operate each outlet. PRO: - uses franchisees based 'in country' gives each franchised unit local knowledge - Franchisees contribute to capital cost by purchasing franchising licence - Some operational issues are now the responsibility of the local franchisee CON: - Some loss of centralised control - Careful selection of each franchise is essential as damage to business brand name in one country could spread globally

4.8 - What has caused the rapid growth of e-commerce?

- GLOBAL REACH: internet technology reaches across national boundaries and opens up global marketing with potentially billions of consumers. Consumers have access to products beyond local/national boundaries. - UBIQUITY: access to markets and consumers access to business is available at all times and all locations. Customer connivence is increased. (M-commerce where mobile phones are used for shopping is gaining greater popularity due to convince) - INTERACTIVITY: Allows for two way communication between business and the customer. Growth of use of social media is further enhancing this. - PERSONALISATION: Marketing messages can now be targeted at individual consumers based on their previous spending habits, tastes and interests. - INFORMATION RICHNESS: complex and detailed promotional promotional message can delivered by internet via video, audio and text messages. This level of detail cannot be equaled by any other forms of promotion. - UNIVERSAL STANDARDS: there is ease of access to the internet for both businesses and customers owing to the existence of a cheap universal internet system.

4.4 - How does the new product development (NPD) process relate to the market research process?

- Identifying consumer needs and tastes requires primary and secondary research into consumer needs and competitors - Product idea and packaging design requires testing of product and packaging with consumer groups - Brand positioning and advertising testing requires pre-testing the product image and advertisements - Product launch and after launch period sales need to be monitored and consumer response must be collected.

4.2 - Market segmentation

- Identifying different segments within a market and targeting different products or services to them. - Sometimes called differentiated marketing - It is a form of niche marketing. NOTE: sometimes organisations only market their good or services to one segment deliberately.

4.4 - How can sampling error be reduced?

- If a sample is too small or not varied enough, there will likely be a sampling error. Therefore, by increasing the sample, the likelihood of error is reduce, however the greater the sample, the more costly and the longer time it will take to collect and interpret results.

4.1 - Disadvantageous with market oriented businesses

- If businesses attempt to respond to every passing trend or market fashion, resources can be overstretched and it can be costly with poor results. Offering choice and range for every segment can be costly. - conducting market research is costly.

4.8 - Impact of technology and e-commerce has on products

- Individual requirements can be built into the product or service to suit different needs. - Businesses selling over the internet (due to greater market potential) can afford to stock a wider range of products than nearly all shops could justify, e.g. ASOS - Product design may need to be readjusted to meet the regional and cultural demands of the different countries the products will be sold to.

4.5 - What factors influence choice of distribution?

- Industrial products tend to be sold more directly with fewer intermediates than consumer goods - geographical dispersion of the target market -is target market is wide, but they are widely dispersed, use of intermediates is moe likely. - The level of service expected by customers - Technical complexity of product - if complex sales staff know-how is needed - Unit value of product - it may be worth employing sales staff to sell directly to customers if unit cost is high - Number of potential customers - if no. of potential customers is few, direct selling may be used, but if large more intermediates may be necessary to distribute product. - Channel strategy must be integrated with marketing mix

4.2 - How can the product-positioning analysis be used?

- It identifies potential gaps in the market, which could be the segment that the business should aim for. They can also position their product with others, which is less risky but possibly less profitable. - Having identifies the sector with the greatest 'niche' potential allows marketing managers to become aware of key feature(s) of the product which should be promoted most heavily. - when analysis is used to monitor position of existing brands, a firm can easily see if repositioning of one them is required. This could involve a new advertising campaign or restyled packaging rather than launching a new product

4.1 - Implications of societal marketing

- It is an attempt to balance three concerns: company profits, consumer wants, societies interests. - there may be a difference between short-term consumer wants (low prices) and long-term consumer and society welfare (eg. protection of environment, reasonable wages). Social marketing considers long-term welfare - Businesses should still want to identify consumer needs and wants and satisfies these more efficiently than competitors, whilst enhancing consumers' and societies welfare. - using this concept can give businesses a competitive advantage, many prefer socially responsible businesses. - A social marketing campaign can lead to the ability to charge higher prices as benefiting society becomes a unique selling point.

4.8 - Benefits of e-commerce to businesses

- It is relatively inexpensive compared to the ratio of cost and number of potential consumers reached - Businesses can reach a worldwide audience for a small proportion of traditional promotion budgets. - Consumers interact with the websites and make purchases and leave important data about themselves which can be used for more focused marketing in the future. - Accurate records regarding the number of 'clicks' or visitors, and the success rate of different web promotions can be quickly measured. - Computer ownership and usage in increase across the world. - Selling products on the internet involves lower fixed costs than traditional retail stores and cost saving can be passed onto lower prices. - There is scope to make cost-savings and manage supply chains by using B2B e-commerce - Low-cost growth is much easier than with physical location - logistical issues are the main barrier

4.6 - What does the people element of the marketing mix refer too, and what is their significance?

- It refers to the employees and managers of a business and how they relate to customers and communicate with them. The people employed by a business - especially in service sector - can give a competitive advantage or lead to poor customer reaction and disloyal customers, due to poor experiences being posted on social media. - The people that represent the organisation are important - Online retailers must think of their 'people' as well. By employing people who genuinely belive in products or services, then it is more likely they will perform their best and give more honest feedback to managers and input on types of products being sold and produced.

4.4 - What are academic journals?

- Journals focused on the science and techniques involved in the research market. Would be of particular interest to the market research department of a business. - Do not contain a lot of 'market research data'. but discussion for market research methodology.

4.8 - Issues with C2C

- Lack of quality control (especially for used products) and no payment guarantees. - Can be occasional difficulty in making credit card payments - rise of PayPal has helped eliminate this issue

4.5 - Limitations of internet marketing

- Lack of skill: large businesses have dedicated teams of skilled people monitoring social media, small businesses may not have this - Time investment: Setting up social media is fast, but managing an account day to day is time consuming, and many small businesses therefore omits this. A successful social media campaign relies on constant interaction (responding to comments, posting information, ideas and tips, etc.) - if this does not occur it can form negative or damaging rep for company. Negative feedback: It is beneficial to receive feedback, feedback is made public on social media, and if a potential costumer reads a poor review, they may not buy product or service. It can damage brand image. - Performance metrics: social media makes it difficult to track results of campaign instantly, it does not offer measurability. - Security issues: Not everyone is fan of social media, therefore other promotion techniques must be used to contact wised range of potential consumers possible.

4.7 - Benefits of global localisation

- Local needs, tastes and cultures are reflected in the marketing mix of the business and this could lead to higher sales and profits. - there is no attempt to impose foreign brands/products/advertisements on regional markets - The products are more likely to meet local, national and legal requirements than if they are standardise products. - There will be less local opposition to multinational business activity

4.1 - What management functions are included in marketing? (7)

- Market research - Product design - Pricing - Advertising - Distribution - Customer Service - Packaging

4.1 - What are the market characteristics?

- Market size - Market growth - Competitors and ease of entry - differentiated or homogenous products - Segmentation

4.8 - Impact of technology e-commerce has on price

- Markets are more competitive as prices are compared rapidly - in particular B2B and B2C. Price-comparison websites will even do the search for customers. Competitive pricing is much more likely to be used than cost plus which means customers are more in control. - Price discrimination through geographical separation of markets is now more difficult, given the global reach of e-commerce. However, extension to price discrimination has been formed the offering last minute consumers special deals.

4.3 - Four-period moving average

- Most widely used technique for moving averages. - Often employed when forecasting from quarterly data. Much macro-economic data is released quarterly but if it is collected as monthly sales, then a 12-period moving total can be used. - It splits a year into quarters (3 months)

4.8 - Limitations of e-commerce to consumers

- Must have reliable internet connection. May need to update computer or mobile device to ensure speed and capacity can cope with the websites' requirements. - Not able to see, touch, try on products before they are delivered - time and expense of sending back items that fail to come up to expectations. - Concern over credit card fraud and loss of personal information - Concern over the sale of fraudulent counterfeit goods online. - Delays in receiving goods - speed of delivery will depend on national/international transport infrastructure.

4.6 - What is the managers role with the people?

- Need to carefully plan who is going to carry out each task and responsibility. The right people supporting the companies products and/or services is needed as well as excellent customer-service personnel who can provide support with clearly known expectations is key to maintaining high levels of customer satisfaction.

4.5 - What are sponsorships, limitations?

- Payment by a company to team owners or event organisers so that the company's name becomes associated with the team or event. LIMITATIONS: - success of sponsorship is largely out of the companies control - if team looses every match or event is a failure, it may reflect badly on company - can be expensive

4.2 - Role of marketing planning

- Plans provide focus to the marketing department and a 'road map' of the stages to be taken in implementing marketing strategies - Marketing strategies linked to SMART objectives will increase likelihood of marketing campaigns success. - The budget should be planned in advance with the finance department and should be adequate to achieve the campaigns objectives - Helps achieve integration of different business functions as all departments will need to be involved in the planning process. - Planning ahead helps to ensure that the marketing mix are fully integrated

4.2 - Limitations of marketing planning

- Plans that are not revised to meet the changing internal or external conditions - such as the arrival of new competitors - will become outdated - Plans are insufficient on their own and must be reviewed constantly. Final outcome must be judged against original objectives to aid in future decision making - Marketing plan must be based on up-to-sate assessment of the market and consumer preferences or it will be inappropriate for current conditions.

4.4 - What are government publications?

- Population census (process of collecting, compiling or analysing demographic, economic and social data pertaining, at a specific time, of all persons in a country or a well-defined part of a country.) - Social trends - Annual abstract of statistics - Living costs and food survey

4.5 - What are some examples of sales promotion techniques?

- Price deals - loyalty-reward programs - money-off coupons - Point-of-sale displays in shops - 'buy one get one free' (BOGOF) - Games and competitors - Public relations - Sponsorships

4.2 - Advantages of mass marketing and disadvantages of niche marketing

- Small-market niches so not allow economies of scale to be achieved. therefore, mass-marketed products are likely to enjoy substantially lower average costs of production. - Mass-market strategies run fewer risks than niche strategies. Niche markets contain relatively small numbers of consumers, any change in consumer buying habits can lead to rapid decline in sales, which is specifically a problem for smaller firms. NOTE: pros can be seen as cons of niche marketing

4.8 - Limitations of e-commerce to businesses

- Some countries have low-speed internet connects; and in poorer countries, computer ownership is not widespread. - Consumers cannot touch, smell, feel or try tangible goods before buying - may limit their willingness to buy certain products online - Product returns may increase as consumers may be dissatisfied with their purchase once it has arrived - The cost and reliability of postal services in some countries may reduce the price advantage of internet selling. - The website must be kept up to date and user friendly - good websites can be expensive to develop - Worries about internet security may reduce future growth potential. - Businesses have to remain competitive as price comparisons by consumers are easy. - Expensive IT infrastructure is needed with suitable qualified employees.

4.5 - Company or corporate branding - examples, benefits and limitations

- The company name is applied to products and this becomes the brand name EXAMPLES: Virgin - airlines, rail services, mobile phone provider, all marketed under single brand image, Disney BENEFITS: Similar to family branding - bur now applies to all products produced under the company's brand name LIMITATIONS: Poor quality of one product , or bad publicity of brand can damage image of brand

4.8 - Benefits of e-commerce to consumers

- The internet is convenient for consumers to use. They can quickly compare prices from many suppliers worldwide and there is a huge product choice online. - Online stores are open 24/7 - more convenient than most shops' opening hours. - Prices are often lower than for same goods/services from traditional retailers - No time or money are spent travelling to physical stores and no time spent queuing. - Ability to sell to other consumers (e.g. through auction sites) - Music and film downloads allow immediate access to music/film. - Ability to have businesses bid for custom through reverse auction websites - websites gathers all customers' requirements and prices they are prepared to pay and businesses bid for the custom.

4.2 - Benefits of having a USP

- The most successful new products are those that are differentiated from competitors' products or offer something 'special'. Product differentiation is an effective way of distancing a business from its rivals. The best form of product differentiation is USP. - effective promotion which focuses on the differentiating feature of the product or service. - opportunities to charge the higher prices due to exclusive design/service - free publicity from business media reporting on the USP - higher sales than undifferentiated products - Customers more willing to be identified with brand becuase 'it's different'

4.7 - Limitations to global localisation

- The scope of economies of scale is reduced - The international brand could lose its power and identity if locally adapted products become more popular than the 'international' product - There will be additional costs of adapting products, advertisements, store layouts, etc. to specific local needs - these costs may lead to higher prices than a global marketing strategy would result in.

4.5 - What are public relations, limitations?

- The use of free publicity provided by newspapers, TV and other media to communicate with and achieve understanding of the public LIMITATIONS: - This is not easily controllable as some 'free publicity' might not be positive towards the company or its products, e.g. newspaper reviews

4.7 - Marketing opportunities of globalisation

- There is a greater opportunity for selling goods in other countries. Opening up in new markets which may not have reached saturation as the domestic market may have done, gives chance of higher sales, economies of scale and improved profitability. - increased competition gives firms the incentive to become more internationally competitive, and due to fewer trade barriers this is become easier - Pan-European or pan-global marketing strategies can be used to create global brand identity - saves costs of 'different markets - different product' - There is a wider choice of locations - opportunity to set up operations in other countries and become a multinational. Locations often offer lower costs and direct access to local markets. Working within a market should lead to better market information - Greater freedom to arrange mergers and takeovers and joint ventures with firms from other nations as restrictions on foreign acquisitions are reduced.

4.2 - What is important for appropriate marketing-mix decisions to be made?

- They should be based on marketing objectives that are achievable within the marketing budget. - Coordinated and consistent with each other - Targeted at the appropriate consumer.

4.5 - What are customer loyalty schemes, limitations?

- Things like air miles or customer loyalty cards. They are focused on encouraging repeat purchases an discouraging consumers from shopping at competitors. Information stored from loyalty cards, provide a lot of useful info about consumers' buying preferences Limitations: - Discounts offered by such schemes cuts the gross profit on each purchase - There are administration costs to inform consumers of loyalty points earned and these might outweigh the benefits from increased consumer loyalty. - most consumers now have many loyalty cards from different retailers, so their 'loyalty' impact is reduced.

4.4 - Snowball sampling

- Using existing members of a sample study group to recruit further participants through their acquaintances. - The first respondent refers to a friend who then refers to another friend and so on. - is cheap, and can be operated via social networking sites, however is likely to lead to some kind of biased sample, as each friend is likely to have the same opinion or lifestyle.

4.1 - How can you measure market size?

- Volume of sales (units sold) - Value of good sold (revenue)

4.6 - What defines good people?

- Well-trained (interpersonal skills aptitude for dealing with people service knowledge), confident and well-motivated employees who deal with customers in a speedy, efficient manner help create customer loyalty and deliver quality products. It is cheaper to keep customers then attempting to find new ones.

4.4 - In terms of the consumer, what does market research try to find out?

- Wether a consumer will buy a particular product Analyse their reaction to: - different price levels - alternative forms of promotion - new types of packaging - different methods of distribution

4.4 - What are tables most useful for?

- When a wide range of results needs to recorded - When the results need to be analysed by statistical means and it is essential to have the numbers themselves - generally more accurate when taking results from a table then to interpret from graph or chart. - When there is a lot of text to include with the results, such as detailed heading for each column

4.4 - What are bar charts most useful for?

- When absolute size or magnitude of results needs to be presented or compared - When component and percentage component charts can be used to show how the total figure is comprised of different sections

4.4 - How can the internet be used for secondary research?

- When conducting secondary research on the internet, accuracy and relevance should always be checked.

4.4 - What are line graphs most useful for?

- When time is one of the variables - When the trend and regular variations need to be identified, might be the fist stage in undertaking sales forecasting, aiding in future decisions such as production and staffing levels. - When two or more sets of the time-series data need to be compared - eg. comparing a competitors and own companies sales

4.4 - What should a market researcher consider when conducting consumer surveys?

- Who to ask: the more closely the sample reflects the characteristics of the survey population, the less chance of sampling error. - What to ask: construction of unbiased and unambiguous questionnaire is essential to attain useful results - How to ask: should questionnaire be self-completed and returned by post or filled in by interviewer face-to-face. Should telephone or internet survey be used? Online surveys are becoming more popular - How accurate is it: Assessing the likely accuracy and validity of results is a crucial element of market research.

4.1 - Why is market share and market leadership important?

- an 'internal' measure of marketing success such as costumer satisfaction, brand awareness, loyalty and profit margins which can be benchmarked against competition. - Being 'market leader' with highest market share can be used in advertising and promotional material. - Market leaders are in strong bargaining positions with both suppliers and retailers. Suppliers will want to continue with long-term supply contracts with the most successful businesses in the market, due to both high sales and increased status of working with a successful company. retailers are keen to stock products as consumers will be disappointed to not find them in their stores. These strong bargaining positions can led to lower costs and longer credit periods from suppliers and higher selling prices, and shorter payment periods from retailers. - recruitment of high-class employees is often easier for market-leading businesses as people would rather work for 'winners' - Financing may become easier if investors and banks become convinced that the status of being market leader with the highest market share adds to the stability and profit potential of the business.

4.5 - What are money-off coupons, limitations?

- are a more versatile and better focused way of offering price discount. Coupons can appear on the back of receipts, in newspaper advertisements or on an existing product pack. Limitations: - They may simply encourage consumers to buy what they would have bought anyways - Retailers may be surprised by the increase in demand and may not hold enough stock, leading to consumer disappointment - Proportion of consumers using coupons may be low if offered discount is low.

4.5 - Risks of guerrilla marketing

- as it is unconventional it may not be well received by consumers, possibly why extreme guerrilla tactics are aimed towards 'edgy youth culture' products. - It may not receive attention expect and fails to achieve desired brand awareness. - It may achieve gaining attention from a wide audience, but image created could be negative - The use of this tactic can result in a misunderstanding with consumers who are not expecting this marketing

4.2 - Advantages of market segmentation

- business can define their target market precisely and design and produce goods aimed to these groups, leading to increased sales. - Helps identify gaps in the market - the groups that aren't currently targeted which can be successfully exploited. - Differentiated marketing strategies can be focused on target market groups, avoiding wasting money on selling products to the whole market. Some consumer groups will have no intention of buying the product. - Small firms unable to compete in the whole market can focus on one or two market segments. - Price discrimination can be used to increase revenue and raise profits.

4.8 - Types of e-commerce

- business to business (B2B) - business to consumer (B2C) - consumer to consumer (C2C)

4.2 - Main elements of a marketing plan

- detail of the company's (SMART) marketing objectives -Sales forecasts to allow the progress of the plan to be monitored - marketing budget - how much finance is planned to be spent and how it is to be allocated - marketing strategies to be adopted to achieve the marketing objectives - detailed action plans showing the marketing tactics to be used to implement the strategies

4.7 - Opportunities by entering into international markets

- develop marketing operations in expanding market when domestic market is saturate/mature - potential to increase profits through rapid sales growth and low costs in expanding markets. - spreading risks between different markets at different stages of the economic cycle - poor trading conditions in the home market (possible due to entry of rivals) means that international marketing can allow sales to continue to grow - Economies of scale in production and marketing - increased sales result in lower costs of production. Marketing products in similar ways to global markets should also reduce average costs of promotion

4.7 - What are the main differences between different cultures?

- different perceptions - Different values and ideologies - different tastes, attitudes, lifestyle, religious beliefs, customs and rituals

4.7 - What is the role of cultural differences in international marketing regarding place?

- distribution of goods is dependant on cultural differences. transport systems, logistical systems, wholesale systems and retail systems differs across countries becasue of infrastructure and tradition. These must be understood to know how and where to distribute their product. - e.g. in some countries, internet access is limited so e-commerce 'place' strategy would not be effective. National distribution systems in some countries may not be accessible to foreign companies.

4.1 - What do marketing objectives for a for-profit organisation need to be effective?

- fit with the overall aims and mission of the business- marketing objectives should reflect the aims of the organisation and aid in their achievement. - be determined by a senior manager - the key marketing objective will determine the markets and the products a business trades in for years to come and these issues must be dealt with by managers at a senior level in the company - Be realistic, motivating, achievable, measurable, and clearly comunicated to all departments in the organisation.

4.1 - Benefits of being a market leader

- higher sales than competitors in the same market which can lead to higher profit - Retailers will be keen to stock and promote best selling brands (brand-leaders) and may be given most prominent position in a shop - Since companies are more keen to stock products, they might be sold at a lower discount rate- Combo of this and higher sales levels lead to higher profitability of producer of leading brand. - The fact that the item or brand is the market leader can be used in advertising and other promotional material. Consumers are often keen to buy most popular brand. - economies of scale.

4.4 - How can local libraries or local government offices be used for secondary research?

- if research data is needed for only a small area, then local data would be necessary. this can include: - local population census (total pop. size, age and occupation distributions) - no. of households in area - proportions of the local population from different ethnic and cultural groups.

4. 5 - What should the aim of promotional objectives be?

- increase sales by raising consumer awareness of new product - remind consumers of existing products - encourage increased purchases by existing consumer or attract new ones - demonstrate superiority of product compared to competitors (often used when product has been updated or adapted) - Create/reinforce the brand image or 'personality' of the product - correct misleading reports about product or business and reassure customers after 'scare' or an accident involving product - develop or adapt the public image of the business - encourage retailers to stock and actively promote products to final customers

4.7 - Features of globalisation that have an impact on business strategy

- increased international trade as barriers to trade are reduced - Growth of multinational businesses in all countries as there is greater freedom for capital to be invested from one country to another. - Freer movement of workers between countries.

4.5 - Trends in distribution channels in recent years

- increased use of internet for direct selling of goods and services (eg. is service sector - internet banking) - Large supermarket chains perform the function of wholesalers as well as retailers, as they hold large stocks in their won central warehouses. (businesses engage in vertical marketing when engaging another link in chain) - Businesses are increasingly using a variety of different channels (using both direct and single-intermediary channels, like using agents) - Increasing integration of services where a complete package is sold to consumers (e.g. air flight, car hire, hotel accommodation are all sold or distributed to a consumer at the same time)

4.5 - What is the 'problem child'?

- located in upper right of matrix with high market growth, but low market share. - It consumes resources, but generates little return at least in the short term. - If newly launched, it needs heavy promotional costs to help it become established (finance can come from cash cow) - Future of product is uncertain, so quick decision needs to be made if sales decline, such as revised design, relaunch or withdrawal from market. - has potential as it is in a fast growing market sector and companies must analyse which problem children are worth developing and investing in.

4.1 - Main marketing activities of non-profit organisations

- market research - Identifying the best way to communicate with donors - The need to assess the effectiveness of different promotions and campaigns to increase value for money in the future.

4.4 - Generally, what does market research discover information about?

- market size - consumer tastes and trends - The product and its perceived strengths and weaknesses - The promotion used and its effectiveness - Competitors and their claimed unique selling propositions - Most preferred distribution methods by consumers - Consumers' preferences for packaging

4.2 - Demographic differences

- most commonly used basis for segmentation, for example, age, sex, family size, social class and ethnic background - which can all be used to separate markets. Marketing acronyms for different demographic groups: - DINKY: double income, no kids yet - NILK: no income, lots of kids - WOOF: well-off older folk

4.5 - Market-based pricing strategies

- penetration pricing - market skimming - psychological pricing - loss leaders - price discrimination - promotional pricing

4.6 - The importance of changing processes

- processes must change for a business to remain competitive - e.g. online shopping offers customers with much quicker and more convenient ordering/paying/delivery process. If a business selling goods did not embrace this technology, ,its process would seem outdated. - Often younger consumers are interesting in newer process that better fit in with their lifestyles and expectations.

4.5 - What is the importance of packaging?

- protection (or function) Main purpose, is to protects product from damage during transport from manufacturer to retailer, but prevent damage when on shelves. - Attracting customers May be the key factor that attracts a consumer who may be undecided on which brand to buy - extensive market research is often constructed to determine most appealing packaging to potential customers - Promotion and information Outside packaging may contain info about direction on how to use or make product, may be details about 'special offers' or competitions consumers can engage in, may support promotional material by making references to messages advertised on media. Also may list ingredients and nutritional info which may help to sell products - Differentiation and brand support Can display brand logos, names and colour scheme of company and its brands, helping consumer differentiate product from their competitors. A change and packaging can make it difficult to identify the product.

4.1 - Other important reasons for marketing objectives in a for-profit organisation

- provide sense of direction for marketing campaign - progress an be monitored against these targets - they can be broken down into regional and product sales targets to allow for management by objectives. - they from the basis of marketing strategy. These marketing objectives will have a crucial impact on the marketing strategies adopted - what they are marketing helps them decide how to market it

4.1 - disadvantages of being a market leader

- put pressure on a business and key staff to continue to do well, if not better in the future. Business media will be looking for any signs of slippage in position and will gleefully report that a business is loosing market share and loosing touch with consumers. - to much emphasis on market share can take away fro profitability. Price cuts and lower profit margins are one way of increasing market share, which is not necessarily sustainable in the long-term. The reasons for being a market leader must be carefully assessed before stakeholders can conclude that a business has a winning formula rather than sell cheap to increase share strategy.

4.4 - Ethical considerations of market research

- researches should have permission of the people who they will be studying to conduct research - Data collection methods should not cause physical or emotional harm to the respondents. - Objectivity versus subjectivity in research - researches biases and opinions should not get in the way of interpreting research results. - Many types of research should be conducted on assumption that results are kept anonymous (if not, this should be known) - Researchers should not take advantage of easy-to-access groups (such as children at school gates) simply because they are easy to access. - When presenting and analysing results they should accurately represent what was observed or researchers were told.

4.1 - Characteristics of services

- services are consumed immediately, and cannot be stored (to be profitable, service must occur) - services cannot be taken back to be repaired or replace, therefore service must be right the first time or consumer will not return. - people (trained, approachable, and helpful employees) are very important to be successful in marketing of services.

4.6 - What would an effective process consist of?

- short waiting times, quality information given to customers and the helpfulness and knowledge of employees are all expectations of customers hat should be met if process is effective and well tested.

4.2 - Advantages of niche marketing and disadvantages of mass marketing

- small firms may be able to survive and thrive in markets that are dominated by larger firms - If the market is currently unexploited by its competitors, then filling a niche can offer the chance to sell at high prices and high profit margins, until competitors react by entering too. Consumers will often pay more for an exclusive product. - Niche market products can also be used by large firms to create status and image, which their mass.market products may lack NOTE: these advantages can be seen as disadvantages for mass marketing

4.5 - What can sales promotions be directed at?

- the final customer to encourage purchase (pull strategy) - The distribution channel, e.g. retailer (push strategy)

4.1 - main differences in marketing for non-profit organisations compared to for-profit ones

- the importance of maintaining high ethical standards to avoid alienating the public - Constant feedback on the success of charity campaigns (and future issues to be addressed) to maintain public interest and awareness - free publicity, with aim of capturing the publics imagination (through fundraisers or stunts, not common for most consumer products) Marketing objectives; - maximise revenue from trading activities - increase recognition of the organisation by society - promote the work and aims of the organisation to a wide audience.

4.8 - Impact of technology and e-commerce on place

- the internet is transforming the buying/shopping experience. Growth of e-commerce means that a smaller proportion of all traded goods is now being sold through traditional channels such as shops. - A key issue with e-commerce is the importance of an effective and rapid logistics system to transport products internationally. - Interestingly, Apple - a business more IT-focused than most - is expanding the number of its own stores as it considers that consumers are more confident in buying some of its products from experience 'savvy' retail assistants.

4.3 - Potential benefits of sale forecasting

- the operations department would know how many units to produce and what quantity of materials to order and the appropriate level of stock to hold - i.e. increased efficiency. - the marketing department would be aware of how many products to distribute and wether changes to the existing marketing mix are needed to increase sales. - HR workforce plan would be more accurate, leading to the appropriate number of workers and the most appropriate employment contracts(permanent or temporary) - Finance could plan cash flows with much greater accuracy and make accurate sales forecasts. - Strategic decision-making, would become much better informed. - better cash flow managements - taking into account cyclic and seasonal variation can help managers plan and improve liquidity position of business.

4.4 - Things to consider when designing a questionnaire?

- undertake a pilot survey to see accuracy and usefulness of results - make the objectives of the research clear so questions can be focused on these - Write clear and unambiguous questions - try to make sure that the questions follow each other in a logical sequence - Avoid questions that are seen to point to one particular answer - Use language that will be readily understood - Include some questions that will allow classification of results by gender, area lived in, occupation and so on. - Don't ask many open questions - Don't ask too many questions

4.1 - Why is the size of a market important?

1. A marketing manager can asses wether a market is worth entering or not 2. Businesses can calculate their own market share 3. Growth or decline of the market can be identified.

4.5 - How should you decide which media to advertise on?

1. COST - tv and radio advertising can be very expensive per min (cost also depends on time of day the adverts are transmitted and the size of the potential audience). e.g. national newspapers are more expensive than local ones. Other media includes: posters, magazines, cinema advertising - marketing managers should compare costs, consider price of production and use of celebrities to see if total cost is within marketing budget. 2. PROFILE OF TARGET AUDIENCE - age, income levels, etc. The advertisement should reflect as closely as possible to target consumer profile of the aimed market 3. TYPE OF PRODUCT AND MESSAGE TO BE COMMUNICATED - written forms on communication are likely to be most effective for giving detailed info about a product that consumer needs to refer back to more than once. If an image-creating advertisement is planned, dynamic and colourful TV adverts may be more effective. 4. OTHER ASPECTS OF MARKETING MIX - does it contradict any other area of the mix 5. THE LAW AND OTHER CONSTRAINTS - in some countries there are restrictions to the use of TV to advertise to children, for example.

4.3 - Steps to using a four-period moving average

1. Calculate the four-quarter moving total 2. Calculate the eight-quarter moving total 3. Calculate the eight-quarter moving average (divide total from step 2 by 8) 4. Calculate quarterly variation, i.e. seasonal variation (sales-eight quarter moving average) 5. Calculate average seasonal variation (take data from the same quarters, then average them) 6. plot data on time-series graph and extrapolate trend with a line of best fit. Plot the quarterly moving average/trend. 7. Make sales forecast, consider the average seasonal variation and add/subtract the number corresponding to that quarter.

4.5 - What factors determine the price decision

1. Costs of production 2. Competitive conditions in the market 3. Competitors' prices 4. Marketing objectives 5. Price elasticity of demand 6. Wether it is a new or existing product

4.5 - Stages on deciding on a promotional mix

1. Decide on the image of the product 2. Develop a profile of the target market 3. decide on the messages to communicate 4. Set an appropriate budget 5. Decide how the messages should be communicated 6. Establish how the success of the promotional mix is to be assessed. 7. undertake the promotional plan and the mix elements of it 8. Measure its success

4.4 - Sources where secondary data can be obtained

1. Market intelligence analysis reports 2. Academic journals 3. Government publications 4. Local libraries and local government offices 5. Trade organisations 6. Media reports and specialist publications 7. Internal company reports 8. The internet

4.1 - Benefits of market orientation

1. The chances of newly developed products failing in the market are much lower (not eliminated) if there is effective market research. 2. If consumer needs are being met with appropriate products, they are likely to survive longer and make higher profits than those following a 'product' approach. 3. Constant feedback from costumers, allowing product to be further adapted to market after initial market research. 4. More effective in fast-changing volatile markets 5. Access to market information means that firms can respond more quickly to changes in the market and are also able to anticipate market changes.

4.4 - Why do organisations carry out market research?

1. To reduce the risk associated with new product launches - investigating demand for a new product or service will allow for businesses to assess likelihood of reaching satisfactory sales. Key part to new product development. 2. To predict future demand changes 3. To explain patterns in sales of existing products and market trends - Market research is undertaken for both new or planned products, but also existing ones - a business can analyse their own performance and take action to improve it 4. To assess the most favoured designs, flavours, styles, promotions and packaged for a product. - Consumer tests of products or proposed adverts can give insight to which consumers rate most highly and can then be incoopertbated into product.

4.2 - Common ways markets are segmented

1. geographic differences 2. Demographic differences 3. phsycographic factors

4.4 - Focus groups

A group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging. - discussions are often filmed and sed my market research department as a source of data. This info is often believed to be more realistic and accurate and their is a discussion. But their is a risk of researchers influencing or leading the discussion leading to biased conclusions.

4.2 - Mass market

A market for products that are often standardised and sold in large quantities

4.5 - Boston Consulting Group Matrix

A method of analysing the product portfolio of a business in terms of market share and market growth. Allows businesses to see the future strategies a firm can take.

4.6 - intangible products

A non-physical product - a service - provided to a consumer

4.6 - Tangible products

A physical object that can be touched

4.4 - Observational techniques

A qualitative method of collecting and analysing information obtained through directly or indirectly watching and observing others in business environments, eg. watching consumers walk around a supermarket.

4.2 - Consumer profile

A quantified picture of consumers of a firm's products, showing proportions of age groups, income levels, location, gender and social class

4.2 - Niche market

A small and specific part of a larger market

4.2 - Market segments

A sub-group of a market made up of consumers with similar characteristics tastes and preferences. NOTE: if a business is using mass marketing it is not important to differentiate between market segments

4.7 - What is direct investment in subsidiaries, advantages and disadvantages of this entry method?

A subsidiary, is a company owned or controlled by another company (parent company. ) - can be factories or retail operations set up in foreign countries. They may be almost entirely decentralised - where the local managers take most key decisions - or organised with centralised control from head office in home country. PRO: - Gives complete control over the operations of the subsidiary - Local subsidiary will have managers with local knowledge - Existing operations will allow quicker entry to the market than setting up new facilities. CONS: - Culture clash is possible between parent company and the management of the subsidiary - May be strict local laws regarding takeovers and retrenchment of local employees - Valuation of foreign subsidiaries may be difficult - parent company must avoid 'overpaying' for local knowledge and existing facilities.

4.5 - Cost leadership

Achieving the lowest unit cost in the industry

4.7 - Global localisation

Adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures - Examples of these strategies include: price varied suitable for the different countries to reflect different average incomes, advertisements always containing 'ethnic' people, the testing of distribution and place decisions for local markets.

4.5 - Cost-plus pricing

Adding a fixed mark-up for profit to the unit pice of a product. - Often used by retailers who take pice payed to producer or wholesaler, then mark it up by a certain percentage (% depends on demand, no. of competitors, age and stage of life of the product or traditional practice in industry)

4.7 - Pan-global marketing

Adopting a standardised product across the globe as if the whole market were a single market - selling the goods in the same way everywhere. Particularly important for two groups of products: - Upmarket brands with international appeal for their exclusivity - Mass-appeal brands, like Levi's, Nike and Apple

4.4 - Advantages and disadvantages of using secondary research

Advantages: - Often obtainable very cheaply, a part from purchase of market intelligence reports - Identifies nature of the market and assists with the planning of primary research - Obtainable quickly without the need to devise complicated data-gathering methods. - Allows comparison of data from different sources Disadvantages: - May not be updated frequently and may therefore be out of date - As it was originally collected from another purpose, it may not be entirely suitable or presented in the most effective way for the business using it. - Data-collection methods and accuracy may be unknown - Might not be available for completely new product developments. - Primary research is often required on top of secondary research.

4.4 - Advantages and disadvantages to primary research

Advantages: - Up to date and therefore more useful than secondary data - relevant, it is collected for a specific purpose and directly addresses the questions the business wants answers to. - Confidential, no other businesses have access to this data Disadvantages: - Costly, market research agencies can charge thousands of dollars for detailed customer surveys and other market research reports - Time-consuming, secondary data can be obtained from internet much more quickly - Doubts over accuracy and validity, largely due to need to use sampaling and the risk of sampling error

4.5 - What is informative advertising?

Advertisements that give information to potential purchasers of a product, rather than just trying to create brand image. Info could include price, technical specifications or main features and places to purchase product. - can be particularly effective when promoting a new product that consumers are unlikely to be aware of or when communicating substantial change in price, design or specification.

4.5 - Brand

An identifying symbol, name, image or trademark that distinguishes a product from its competitors. eg. samsung

4.1 - Market orientation

An outward-looking marketing approach basing product decisions on consumer demand, as established by market research and analysis. - aka 'market led'

4.5 - Guerrilla marketing

An unconventional way of performing marketing activities on a very low budget. - is about taking consumer by surprise, making memorable impressions, and creating social buzz via newer media forms. - cheaper than traditional forms of mass advertising, so relevant for new or smaller businesses with limited promotional budgets.

4.2 - benefits and limitations of differentiation through convenience

Benefits: - Consumers' lacks of time or dislike of shopping experience means that more convenient ways to browse and purchase could create effective differentiation. Limitations: - methods of 'convenient shopping' are now so widespread that it is difficult to maintain true, long lasting differentiation.

4.2 - benefits and limitations of differentiation through trust

Benefits: - Customers are careful to spend their limited incomes wisely and will study each purchase to make sure they're making a 'safe' decision. They want to buy from companies they trust and believe in. Limitations: - Trust is difficult for a newly formed business to establish so other forms of differentiation might be necessary - Trust and with it company image can be damaged greatly by issues such as environmental disasters or a series of poor feedback on social media. It is very difficult to re-establish trust.

4.2 - benefits and limitations of differentiation through product features

Benefits: - If these are the results of research and development (R&D) that leads to patented products or processes, then it can be difficult for competitors to copy this form of differentiation. As with USPs it can lead to a reputation for innovative, cutting edge products that can command premium prices. Limitations: - R&D is expensive and time-consuming and does not always leads to successful innovative products. - Constant development might be needed to stay ahead of competitors so a business needs to continue to commit resources into developing innovative products that differentiate the business and its brand effectively.

4.2 - benefits and limitations of differentiation through ethical stance

Benefits: - In some communities, consumers are keen to support companies that adopt an ethical stance by purchasing their products. This ethical approach lead to higher costs and prices, but some customers will 'pay the difference' because of shared values. Limitations: - In some markets low prices are more important than ethical decisions - A lack of genuine ethical position could lead to loss of trust if consumers discover that the business was really adopting a 'window dressing' show of ethical behaviour.

4.4 - Benefits and limitations of market research through observations

Benefits: - Relatively inexpensive as the main cost is that of the observers' remuneration. - observational research can be modified to obtain the best results possible, often in an easier managing such as changing their own location to get a better view of a consumer. - often provide the only way to conduct certain research like determining the no. of shoppers visiting a store or the behaviour of children when watching an advertisement. Limitations: - Time-consuming - observer needs patience and time to devote watching a set no. of individuals or settings to obtain the necessary information. - does not provide qualitative evidence explaining consumers' behaviour - researcher can become distracted while observing, distorting results. - is it ethical to observe consumers without their knowledge or permission?

4.4 - benefits and limitations of using interviews for primary research

Benefits: - response rate to completed questionnaires is often poor, they can be easily misunderstood, or a sample can be biased (many people with spare time answer questions, eg. retired ppl so not a good variety). Direct interviews can avoid this by a skilled interviewer who avoids bias when asking questions and detailed questions can be explained to interviewee. - Will continued to interview until desired sample size is reached Limitations: - can be expensive

4.3 - Benefits and limitations to using moving averages sales forecasting and limitations of sales forecasts

Benefits: - useful for identifying and applying the seasonal variation to trend forecasts - Reasonable accurate for short-term forecasts in stable economic conditions - Identifies the average seasonal variations for each time period and this can assist in planning resources - such as temporary workforce - for each quarter in future Limitations: - Fairly complex calculation - Forecasts further than 1-2 years into the future become less accurate as the projections made are entirely based off of past data. There is no consideration of qualitative factors - Therefore, forecasting for the longer term may require the use of more qualitative methods that are less dependant on past results. - Newly or recently established businesses will have insufficient data to base moving averages on - other methods of sales forecasting are needed, possibly based on market research. Gererally: - time-consuming - ignores qualitative factors (e.g. how STEEPLE would affect sales)

4.1 - Difference between commercial and social marketing.

Both aim to satisfy costumers needs for profit, but social marketing also focuses on achieving certain behavioural goals. 'social good' is the main focus of social marketing and 'financial return' in the main objective of commercial marketing. COMMERCIAL MARKETING: creating, developing and exchanging goods and services that consumers need and want. market research carried out to establish consumer demands. Does not involve making moral judgements.

4.3 - What is a three-period moving average?

Each three-period total is at the end of the three periods it relates to but the average is located at the middle of the year. Three period total is divided by three to find three period moving average. This can be graphed and a line of best fit can be drawn or calculated mathematically. The line of best fit can be extrapolated to allow for sales forecasts to be made. NOTE: using moving averages helps smooth out affect of cyclical fluctuations that occur over a long period of time.

4.1 - What does the pace of market growth depend on?

Economic growth Changes in consumer incomes Development of new products Changes in consumer taste Technological change Saturated of unsaturated markets - do people already own these products?

4.5 - What is the importance of branding? (10)

Effective branding can lead to the following benefits: - Promotes instant recognition of the brand or the product. (especially through use of logo or images) - Helps differentiate the company and it's products from rivals (important when products are difficult to differentiate) - Aids in employee motivation (they can become committed to brand) - Generates referrals from customers (eg. through social media) - Customers know what to expect from company and products - An emotional attachment can develop between the brand and customers, increasing customer loyalty - Increases value of the business above the value of its physical assets (bran equity) - Important for start-ups as it gives customers a clear image of what they can associate the business with. - business with well-known brand can use price skimming or charge higher prices due to image brand has in eyes of consumer. - Globalised branding and marketing can have substantial benefits; increased sales, economies of scale. NOTE: that there a limitations if international brand and image fail to link with localised culture and customer tastes.

4.4 - Random sampling

Every member of the target population has an equal chance of being selected and included in the sample. The following is needed from random sampling: - A list of all of the people in the target population - Sequential numbers given to each member of its population - A list of random numbers generated by computer So if sample of 100 is required, the first 100 numbers on the random number list are taken.

4.5 - Evaluate adding features to the original product as an extension strategy

Example: - Adding camera and bigger screen to an old tablet or computer design Pros: - Can usually be developed and marketed more quickly, and at a lower cost, than a completely new product Cons: - The basic original product is still ageing and at maturity/decline, so consumers may not 'buy into' a slightly revised product

4.5 - Evaluate repackaging a product as an extension strategy

Example: - Breakfast cereal box changes its design Pro: - Relatively cheap and quick method Con: - Consumer may quickly realise the product is the same and feel that they are being mislead

4.5 - Evaluate discount to price as an extension strategy

Example: - Reduce price of an older model of smartphone before new model is released Pro: - Lower-income consumers can now afford the product, product promotion might actually target different market segments. Con: - Impact on long-term image of the brand and the company, better to replace the product earlier to avoid discounting

4.5 - Evaluate selling into new markets (eg. export markets) as an extension strategy

Example: - Selling ageing model of car in a low-income country that has few manufacturers and limited choice of products. Pro: - Market development can increase sales, especially if the product is not perceived as being too old or 'mature' in these markets Con: - Product and promotion may need to be redesigned to meet local laws and cultural requirements, which can be time consuming and expensive.

4.5 - Evaluate rebranding as an extension strategy

Example: Changing the name, packaging and promotion of a confectionary bar so it can be sold to different market segments. Pro: - Opens up new market segments; can be presented as a substantially 'new product' Con: - Expensive - is this rebranding strategy really worthwhile if a product has the perception of being old.fashioned and is shortly to be replaced?

4.5 - Price leadership

Exists when one business sets a price for its products and other firms in the market set the same or similar prices - usually exists when a company is the dominant firm in the market (however, this firm may benefit from economies of scale, so not always the case)'

4.5 - Brand awareness

Extent to which a brand is recognised by potential customers and is correctly associated with a particular product (can be expressed as percentage of target market)

4.3 - Extrapolation

Extrapolation involves basing further predictions on past results. When actual results are plotted on a time-series graph, the line can be extrapolated (extended) into the future along a trend line of the past data. This method assumes sales patterns are stable and will remain so in the future, but is ineffective when it is this does not hold true.

4.1 - Target marketing

Focusing marketing activity on particular segments of the market. It recognises diversity within a market, and does not try to satisfy every group with the same product or service.

4.6 - Why does physical evidence need to be consistent with other elements of market mix?

For consumers, the physical environment has to feel right and be inline with their expectation built from other aspects of the marketing mix and depending on the physical evidence they can either reject/accept a product/service. E.g. if they pay a lot for poor food, they would feel discouraged to return and may leave por reviews.

4.1 - Arguments for an against advertising candy to children

For: - product is not illegal, therefore advertisement of product should not be controlled or made illegal - advertising sweets to children has been proven to increase sales - children like sweets and advertising about products informs them - advertising can increase consumer information and choice, helping them make informed choices - if sweets advertisements are discussed with adults, children can become more critical and aware when exposed to ads. Against: - sweets contribute to childhood obesity - sweets add to tooth decay problems in children - advertising candy damages kids health - might be legal to advertise, but can be unethical and consumers may react negatively to business.

4.4 - Quota sampling

Gathering data from a group chosen out of a specific sub-group, eg. researcher might ask 100 individuals between 20 and 30 years old. - Choice is non-scientific and therefore may be biased as interviewers might be more inclined to ask those who seem more helpful or more attractive. MAIN WEAKNESS: not everyone gets chance from selection

4.5 - Evaluation of Boston Consulting Group Matrix

Has relevance when: - Analysing the performance and position of existing products - Planning action to be taken with existing products - Planning the introduction of new products - establish the current situation in which the firm's products find themselves Limitations: - Those who make the matrix must be skilled to create an accurate one, which can be costly. - Of little use in 'predicting' future success or failure because: - on its own it cannot tell a manager what will happen next with a product. Market research will help, but decision makers must be conscious of potential dramatic effects of competitors' decisions, technological changes and the fluctuating economic environment. - Is only a planning tool and it has been criticised as simplifying a complex set of factors determining product success. - The assumption is made that higher rates of profit are directly related to high market share - not necessarily the case if sales are being gained by reducing prices and profit margins.

4.5 - Stages on the product life cycle

INTRODUCTION: - When product has just been launched after development and testing. Sales are often quite low to begin with, may increase only quite slowly. There are exceptions like newly launched DVDs by famous people. GROWTH: - If product is effectively promoted and well received by the market, then sales should grow significantly. Stage does not last forever (may take days, weeks, or even years for sales growth to slow down or stop). Reasons for declining growth include increasing competition, technological changes making the product less appealing, changes in consumer tastes and saturation of the market. MATURITY OR SATURATION: - Sales fail to grow, but they do not decline significantly either - can last for years, eg. coca-cola. The saturation of consumer durables markets is caused by most consumers who want a certain product to have bought one, also causing this stage to be reached (eg. mobile phones) DECLINE - Sales decline steadily, either no extension strategy has been treid or it was ineffective. Most likely due to new competitors' products. When product becomes unprofitable or when its replacement is ready for the market, it will be withdrawn.

4.2 - Niche marketing

Identifying and exploiting a small segment of a larger market by developing products to suit it

4.3 - In a four-period moving average, why does centering occur?

If a four part moving average was used, the trend figure would sit between two quarters (eg. average would sit between 2 and 3), which is unsatisfactory for calculating variations. Therefore, centring is developed, resulting in the calculation of the eight-quarter moving total.

4.1 - Why do marketing decisions need to be coordinated with HR department?

If additional employees are required, they must hire them. Employees will be needed in operations, finance, administration and marketing. They must be required in good time and have appropriate skills.

4.4 - What are internal company records?

If the business has been trading for some time, a large quantity of secondary data will already be available for further analysis from: - customer sales records - Guarantee claims from customers - daily, weekly and monthly sales trends - feedback from customers on product, service, delivery and quality.

4.1 - What are the impacts of having a differentiated or homogenous products?

If you are selling a homogenous product, it will be difficult to charge prices different than the 'going rate' . Differentiated products, eg. a new type of car, can have higher prices.

4.5 - Promotional options for different stages of the product life cycle

Introduction: - Informative advertising and PR to make consumers aware of product - sales promotion offering free samples or trail periods to encourage customers to test the product Growth: - Focus shifts from 'brand' building and persuasive advertising - sales promotion into encourage repeat purchases - Attempt to develop brand loyalty Maturity: - Advertising to emphasise the differences between this product and competitors - Sales promotion incentives to encourage brand development and loyalty. DECLINE (assuming no extension strategy): - Minimal advertising - Sales promotion- there may be little additional support for the product if the intention is to withdraw it.

4.5 - The relationship between the product life cycle and investment

Investment (capital spending which aims to return a profit) is likely to be heaviest towards the end of the product's life cycle. new replacement models will be needed to take over and investments fund the research an development into new products which will 'take over' the old one.

4.5 - What is persuasive advertising?

Involved trying to create distinct image or brand identity for the product. - common in those markets where there might be little actual difference between product and when advertisers are trying to create perceived difference in the minds of consumers.

4.2 - What happens when the seven P's are not properly integrated?

It can cause the message consumers receive regarding the product to be confused or lacking in focus leading to the possible failure to recognise the identity or 'personality' of the product. Consumers of ten reject these products due to a clear or unambiguous message resulting in fewer long time sales.

4.5 - What is a 'cash cow'?

It is a product located in the lower left of the matrix. It has a high market share and low market growth. - It is typically a well established product in a mature market. Typically, it creates a high positive cash flow and is profitable. - Sales are high relative to the market, and promotional costs are likely to be low as a result of high consumer awareness. - Cash from product can be 'milked' and injected into some of the other products in portfolio - Are wanted to be maintained due to profitably and low promotional costs.

4.3 - How do you know how large your moving average should be?

It is dependant on the data given and the variations in the data. If given daily sales figures, a seven-period moving total would be used because the regular variation in data would have been over seven days. eg. highest sales every Saturday, whilst in a quarter-period total it is in the third quarter. The four-period moving total may be used because the data varies consistently over this period of time (eg. sales are higher in quarter three)

4.3 - What does it mean if you result for the seasonal variation is negative?

It means that the quarter sales are below the trend or average for seasonal reasons.

4.2 - Coordinated market mix

Key marketing decisions compliment each other and work together to give customers a consistent message about the product. All P's are interrelated

4.7 - What is licensing, advantages and disadvantages of this entry method?

Licensing involves the business allowing another firm in the country be entered to produce its branded goods or patented products under license, which will involve strictly controlled terms over quality. PROS: - Reduced capital costs of setting up own operations - goods do not have to be physically exported, saving on time and transport costs and making food products fresher too. - Licensee will benefit from local knowledge CON: - Loss of control over quality and marketing strategy - Profit margin might be reduced compared to maintaining complete control and eliminating a third part of production/marketing of products. - possibility of licensee having quality issues and unethical production to cut costs, reflecting badly on business offering license.

4.5 - What is the 'dog'?

Located and lower right with low market share and low market growth - Offer little to the business in cash flow and existing sales or future prospects as market is not growing. This may need to be replaced shortly, or the firm can withdraws from market sector entirely and position itself in faster growing sectors.

4.5 - Consumer durables

Manufactured products that can be reused and are expected to have a reasonably long life, such as cars.

4.1 - Benefits of product oriented marketing

Market orientation is more advantageous, but benefits include: 1. Product-oriented businesses invent and develop products in belief that they will find consumers to purchase them due to innovative, good quality products being offered. 2. These businesses concentrate their efforts on efficiently producing high-quality goods, believing quality to be valued above market fashion. 3. likely to succeed in slow changing markets and if firm has already built a good reputation.

4.1 - Why do marketing decisions need to be coordinated with operations department?

Market research will be used by operations to determine preferences for consumers in future product mix. Must be aware if and organise additionally output, inventories, supplies and dispatches will be needed.

4.4 - Test marketing

Marketing a new product in a geographical region before full-scale launch recording consumers reactions and sales figures - occurs once decision has been made to produce a limited quantity of new products before full-scale launch. - reduces risk of a new product failing completely, but evidence is not always accurate of the total population does not share the same characteristics and preferences as selected region.

4.1 - How may ethical considerations influence marketing practices and strategies in an organisation?

Marketing activities can have a major impact on if a organisation meets its ethical objectives, and therefore must consider what practices and strategies are fitting. Companies must consider the ethical arguments for and against for a marketing campaign and then decide upon how they should proceed with their idea.

4.5 - Extension strategies

Marketing plans that extend the maturity stage of the product before a brand new one is needed.

4.5 - What are point-of-sale displays, limitations?

Maximum impact on consumer behaviour is achieved by attractive, informative and well-positioned displays in stores LIMITATIONS: - The best display points are usually offered to market leaders (products with high market share) - New products may struggle for best positions in stores - unless big discounts are offered to retailers

4.3 - Random variations

May occur at any time and will cause unusual and unpredictable sales figures (eg. exceptionally poor weather, negative publicity)

4.5 - Brand development

Measures the infiltration of a product's sales, usually per thousand population; eg. if 100 people in a pop of 1000 buys a product it has a brand development of 10. - If high, brand equity is likely to be high as well.

4.5 - Packaging in relation to the marketing mix

Needs to be fully integrated with other elements so consumers gain a consistent message of the prodcut and brand.

4.1 - Differences between for-profit and not-for-profit organisations

Non-profit organisations often don't have external stakeholders providing risk capital, they also do not distribute dividends, so profit generated is retained by the business as further source of capital, and finally their organisational objectives usually include some social, cultural, philanthropic, welfare or environmental dimension.

4.5 - Advantages and disadvantages of predatory pricing

PRO: - Drives down prices to benefit consumers and likely to increase demand for the business - May reduce the no. of competitors in the long term and increase monopoly power for 'predator' CON: - If proven, it is illegal in many countries and heavy fines can be imposed - consumers may try to find alternative products if the newly create monopolists increase prices in long term.

4.5 - Benefits internet marketing

PRO: - Improved audience reach: a global audience, reduces unit cost of reaching potential consumers - Targeted marketing: social media sites give option to advertise to groups who are interested in products based on interests of users - 'smart' marketing. Also enables word of mouth promoting, which is seen as more reliable by consumers - Interactivity: businesses can interact with potential customers through conversation threads and forums, creating deeper interest in product - Performance metrics: some IT-based services provide feedback and assessment services to their advertisers. This provides a consumer profile and demographic info, as well as allows measurement for what adverts attract most web traffic. - Speed of transmission: speed at which social media transmits news about products and businesses can be an advantage. Businesses also have ability to notify followers instantly about product updates, new product launches and product recalls. Live, current content through social media can be more attractive, especially to young consumers.

4.5 - Advantages and disadvantages of pentration

PRO: - Low priced could lead to high demand - important to establish high-market share for new product CON - Profit margins may be very low - prices might have to rise in future and there could be consumer resistance to these

4.5 - Advantages and disadvantages of psychological pricing

PRO: - Prices reflect what consumers expect and this means that the price is likely to be consistent with other aspects of other marketing mix CON: - price levels and demand for product must be constantly reviewed as 'consumer expectations' change over time.

4.5 - Advantages and disadvantages of promotional pricing

PRO: - attracts new customers who may continue to buy when price is restored to original level - allows selling off of out-of season stock - encourages multi buys CONS: - if this method is used frequently, consumers may suspect that higher non-discounted prices can not be justified - Low price may become established n consumers minds as being for quality product

4.5 - Advantages and disadvantages of skimming

PRO: - higher profit margins that will help pay for development costs of new product CON: - higher prices might discourage consumers, unless they are convinced the integrated marketing mix justifies the high price - High prices might encourage more competitors to join the market.

4.5 - Advantages and disadvantages of loss leader

PRO: - makes a loss on one product, but more than compensated by profits of other product - increases market share CON: - Cheaper generic alternatives might be sold by rival firms so the 'profit making' complementary products are not purchased from the loss-leading business

4.5 - Advantages and disadvantages of cost-plus pricing

PRO: - price set will cover all cots of production - Easy to calculate for single-product firms where there is no doubt about fixed cost allocation - Suitable for prices that are 'price makers' due to market dominance CON: - Not necessarily accurate for firms with several products where there is doubt over the allocation of fixed costs - Does not take market/competitive decisions into account - Tends to be inflexible, prices can be increased even higher - If sales fall, average fixed and average total costs could rise, which could lead to price being raised with this method

4.5 - Advantages and disadvantages of price leadership

PRO: - smaller businesses know what price they have to 'aim to set' - Price leader may have lower unit costs so it remains more profitable than competitors even with low prices CON: - Can be perceived as 'predatory' - only really operates effectively for products that are undifferentiated

4.5 - Advantages and disadvantages of price discrimination

PRO: - uses price elasticity knowledge to charge different prices in order to increase total revenue CON: - Administrative costs of having prices at different levels - Customers may switch to lower-priced market - Consumers paying higher prices may object and switch to other alternatives

4.6 - Examples of physical evidence

Physical evidence can refer to appearance and state of a product/service, the appearance of employees and how they dress and act. For products, decisions about size, shape, colour, material printed information for customers, barcode and label of the packaging can be physical evidence and can 'make or break' the product. These things should be consumer tested, to ensure positive response to it and updated when needed.

4.5 - How is the marketing mix impacted during the growth phase of the product life cycle?

Price: - If successful, an initial penetration pricing strategy could now lead to rising prices Promotion: - Consumers need to be convinced to make repeat purchases - brand indenificathion will help to establish consumer loyalty. Place: - Growing numbers of outlets in areas indicated by strength of consumer demand Product: - Planning of product improvements and developments to maintain consumer appeal

4.5 - How is the marketing mix impacted during the introduction phase of the product life cycle?

Price: - May be high compared to competitors (skimming) or low (penetration) Promotion: - High levels of informative advertising to make consumers aware of the products arrival on the market Place - Restricted outlets - possibly high-class outlets if skimming strategy is adopted Product - New model launched

4.7 - Advantages and of Pan-global marketing

Pro: - A common identity for the product can be established. Aids in consumer recognition - Cost reduction can be substantial due to possible of substantial economies of scale. Could be important for firms that spend large sums on developing new products due to short product life cycles. ALSO the same marketing mix can be used, meaning just one marketing agency and advertising strategy can be used in the whole world or region. - Recognises that differences between consumers in different countries id reducing due to globalisation. Often teenagers in different countries have a lot in common, there for pan-global marketing at teenagers can be developed.

4.6 - Process

Procedures and policies that are put in place to provide the service or the product to the consumer. (e.g. process of walking into McDonalds, ordering the burger, eating it, then cleaning) - good processes can lead to customer loyalty and confidence in the company.

4.4 - Market research

Process of collecting, recording and analysing data about customers, competitors and the market.

4.5 - Loss leader as a pricing strategy

Product sold at a very low price to encourage consumers to buy other products - are widely used by supermarkets (setting prices of bread or milk very low so customers buy other products, ensure higher profit margins for supermarket)

4.5 - Below the line promotion

Promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase, e.g. sales promotion techniques

4.5 - Internet (online) marketing

Refers to advertising and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce.

4.2 - place

Refers to where and how a product will be sold to customers - how a product is to be distributed to consumers. If not available at right time at the right place, even the most successful products won't meet it full potential.

4.3 - seasonal variations

Regular and repeated variations that occur in sales data within a period of 12 months or less

4.7 - International marketing

Selling products in markets other than the original domestic market

4.2 - Mass marketing

Selling the same products to the whole market with no attempt to target groups within it

4.1 - Mass marketing

Selling to the whole market using the a standardised product and the same marketing activities.

4.1 - What is perceived value?

Service companies create value from their products through instilling a high perceived value of the service in the minds of a consumer through providing a service which makes a client feel richer, better or something easier in some way. This emotional connection is important and companies try to attain this through marketing good as well. This is done through setting the right price level (if expensive, certain feeling of accomplishment that you worked for it, for example.)

4.5 - Market skimming

Setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand - aims to maximise short-run profits before competitors enter the market with similar products, and to project exclusive image of product. If competitors do launch products, prices are often reduced over time.

4.5 - Penetration pricing

Setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales. - Firms who are attempting mass marketing and gain large market share adopt this method as then price can slowly be increased.

4.5 - Psychological pricing

Setting prices that take account of customers' perception of value of the product. - two aspects: common for manufactures and retailers to set prices just below key price levels to make prices appear lower (eg. 399 not 400) - other is to use market research to avoid setting prices consumers consider to be inappropriate for the style and quality of a product

4.5 - Promotional pricing

Special low prices to gain market share or sell of excess stock - includes 'buy one get one free' - tends to operate for limited periods to boost sales at times of low demand or to support opening of new store - Can also encourage consumers to try a new product

4.8 - E-commerce

The buying and selling of goods and services on the internet

4.5 - Channel of distribution

The chain of intermediaries a product passes through from producer to final consumer.

4.4 - Primary research

The collection of first-hand data that are directly related to a firms needs.

4.5 - What is a promotion mix?

The combination of promotional techniques that a firm uses to communicate the benefits of its products to consumers.

4.5 - Product

The end result of the production process sold on the market to satisfy customer need.

4.5 - Brand loyalty

The faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands.

4.2 - Steps to producing product position map

The first step is to identify the features of this type of product considered to be important to consumer established from market research. Features can include price, quality of materials used, perceived image, level of comfort offered (hotels), etc. differ depending on product category. - Second stage, based on qualitative market research, is to position each of the competing products on the graph according to consumers perception of them. This allows for gaps in the market to be identified.

4.7 - Globalisation

The growing trend towards worldwide markets in products, capital and labour, unrestricted by national barriers (has been caused by improved communications, e-commerce, better transport links and freer international trade.)

4.1 - Easy of entry

The lack of barriers for the establishment of new competitors in a market.

4.1 - Marketing

The management task that links the business to the customer by identifying and meeting the needs of customers profitability - it does this by getting the right product at the right price to the right place at the right time.

4.2 - Target market

The market segment that a particular product is aimed at

4.5 - Product life cycle

The pattern of sales recorded by a product from launch to withdrawal from the market (over a period of time).

4.1 - Market growth

The percentage change in the total size of a market (volume or value) over a period of time

4.1 - Market share

The percentage of sales in the total market sold by one business.

4.5 - Brand value/brand equity

The premium that a brand has becasue customers are willing to pay more for it than they would for a non-branded generic product.

4.2 - Marketing planning

The process of formulating appropriate strategies and preparing marketing activities to meet marketing objectives Often a formal written document

4.5 - What is the 'star'?

The product located on the top left of the matrix with high market growth and high market share. - A successful product preforming well in an expanding market. - Firm is keen to maintain market position in a possible fast-changing market therefore promotional costs are often high to help differentiate the product and reinforce its brand image. - Despite costs, it generates high levels of income. - Can become cash-cows as the market matures and market growth slows.

4.7 - What is the role of cultural differences in international marketing regarding product?

The product should be modified to meet the taste and cultural requirements of the particular country being targeted. Sales will only meet targets if the business keeps in mind the demands of the particular culture. Packaging should also be adjusted to suit local conditions. Language differences should be reflected in the information on the packaging, and a possible new brand name may be required. Colours used may have to be changed

4.5 - The relationship between the product life cycle and profit

The profitability of products will vary during the product life cycle. High profit margins are most likely during growth and maturity phase, but towards end of maturity and during decline, prices might have to fall to be made more competitive leading to lower margins. However, if fixed costs of developing the product and machinery required have been covered, the product might still yield some profit.

4.1 - Market size

The total level of sales of all producers within a market.

4.5 - Promtion

The use of advertising, sales promotion, personal selling, direct mail, trade fare, sponsorship and public relation to inform consumers and persuade them to buy. - effective promotion can increase awareness of products and create images and personalities that consumers can identify with.

4.5 - Viral marketing

The use of social media or text messages to increase brand awareness or sell products - facilitates and encourages people to pass on a marketing message to others - Viral promotions include: video clips, interactive flash-games, e-books and text messages - Marketing managers try to identify 'influencers' and create viral messages that appeal to them to raise awareness about product

4.5 - What are the risks of a business having too many products in decline or introduction

There will be too many expenses, so a balanced product portfolio must be formed where they are at different stages of their life cycle, so cash fro those entering maturity can be used to provide investment funds for developing eventual replacement products.

4.5 - What are money refunds, limitations?

These are offered when the receipt is returned to the manufacturer Limitations: - These involve the consumer filling in and posting off a form and this might be a disincentive - Delay before a refund is received may act as a disincentive.

4.3 - Moving averages

This is another method of quantitative sales forecasting which is more complex. Allows for identification of underlying factors expected to influence future sales. These are the trend, seasonal variation, cyclical variation and random variations. Moving average analyses these through 'smoothing out' the fluctuations in time-series data, allowing managers to identify trends more easily. - It is also known as the trend of the data - the underlying movement of the data has been identified by averaging out the regular seasonal fluctuations

4.5 - Common distribution channels

This is the strategy of how to distribute the channel: - Direct selling to consumer - Single-intermediary channel (eg. manufacturer, retailer then consumer) - Two-intermediaries channel (eg. manufacturer, wholesaler, retailer, consumer)

4.3 - What are quantitative sales forecasting methods?

This method of sales forecasting is based entirely on past sales data. Sales records are kept over time and when they are presented in chronological order they are referred to as 'time series'. This allows for a time-series analysis to occur.

4.4 - Open questions

Those that invite a wide-ranging or imaginative response

4.1 - How may innovation influence marketing practices and strategies in an organisation?

Through the formation of new platforms to market, organisations may shift their marketing strategies and practices to the new innovation, for example, guerrilla marketing and the internet (eg. online shopping, social media).

4.1 - How can a firm's sales be measured?

Through units (volume) or sales value in the market.

4.5 - What are primary goals of promotional activities?

To increase brand loyalty and awareness. This can be very expensive to create an effective brand image, and if bad publicity is received, the image of all products in the 'corporate brand' will be damaged.

4.4 - What are trade organisations?

Trade organisations produce regular reports on the state of the markets their members operate in (eg. society of motor manufacturers and trader, engineering employers federation)

4.8 - Business to consumer (B2C)

Transactions conducted directly between a company and consumers who are the end-users of its products or services. - Business needs a way of displaying products and prices on its website, a mechanism for recording consumer details and a checkout to accept payments. Customers brows pages, select products, pay, give up address and devilry option. - retailers consider B2C to be important, due to growing use of social media channels by consumers to share their opinions about a product, driving increased traffic to stores.

4.8 - Business to business (B2B)

Transactions conducted directly between supplying business and a purchasing business - this system must be capable of accepting orders in different formats such as email, paper documents or electronic orders. It must integrate the receipt of orders with other administrative systems such as invoicing, customer records and accounting. - At a more advanced level, a business can offer product customised to different customers, if production system is sufficiently flexible. The website is able to select the appropriate products to display when a customer logs in. Businesses are increasingly integrating their IT system with the system of suppliers, customers and logistics/transport suppliers, so whole supply chain of purchasing, stock-holding and distribution is more efficiently managed.

4.4 - Uses of median as average measure. Advantages and disadvantages?

USE: could be used in wage negotiations. (half of our union members earn less that €XX a week.) Often used in advertising, eg. reliability records dhow that our products are always in the bets performing 50% of all brands. ADVANTAGES: - It is less influenced by extreme results that the mean is. This makes it more representative than the mean when there are a few significantly high or low results. DISADVANTAGES: - Calculation from grouped data is not straight forward and there is an inaccuracy when doing this. - When there is an even number of items in the results, its value is approximated. - It cannot be used for further statistical analysis.

4.3 - Trend

Underlying movement of the data in a time series

4.4 - Uses of mode as average measure. Advantages and disadvantages?

Use: As the most frequently occurring, the result can be used for stock-ordering purposes. eg. if most popular size is 6, most of size 6 is known to be ordered Advantages: - It is easily observed and no calculation necessary. - Result is a whole number, so is easily understood Disadvantages: - For grouped distributions, the result is estimated from the modal group, a fairly complex calculation could be made if estimate is not accurate enough - The mode does not consider all of the data, so it cannot be used for further statistical analysis. - There may be more than one modal result, which may cause confusion

4.5 - examples, possible benefits and drawbacks of single-intermediary channel

Usually used for consumer goods. but could also be an agent for selling industrial products to businesses EXAMPLES: - Travel agents - Large supermarkets that hold their own stocks - Where the whole country can be reached using one-level route BENEFITS: - Retailer holds stocks and pays for cost of this - Retailer has product displays and offer after-sales service - Retailers often in convenient locations for consumers - Producers can focus on production, no on selling LIMITATIONS: - Intermediary takes a profit mark-up and this could make product more expensive to final consumers - Producers lose some control over marketing mix - Retailers may sell products from competitors too, there is no exclusive outlet - Producer has delivery costs to retailer

4.4 - What are histograms most useful for?

Visually presenting frequency data when the range of the data has been broken down into class ranges; they can be used for some simple statistical analysis such as identifying the modal class (class with highest frequency density)

4.1 - Market leadership

When a business has the highest market share of all firms that operate in that market. - a business is ore successful than its competitors if it has a higher market share.

4.4 - What are pictograms most useful for?

When the user wants to attract the reader towards looking at the data; they are often rather imprecise when using one simple to present a large number of results.

4.5 - examples, possible benefits and drawbacks of two-intermediaries channel

Wholesaler buys goods from producer and sells to retailer EXAMPLES: - In large countries with great distances to each retailer, many consumer goods are distributed this way BENEFITS: - Wholesaler holds goods and buys in bulk from producer - Reduces stock-holding costs of producer - Wholesaler pays for transport costs to retailer - Wholesaler 'breaks bulk' by buying in large quantities - May be the best way to enter foreign markets where producer has no direct contact with retailer. LIMITATIONS: - Another intermediary takes a profit mark-up, may make final good more expensive to consumer - Producer looses further control over marketing mix - Slows down distribution chain.

4.1 - Product Orientation

an inward-looking marketing approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them

4.2 - Product

consumers require the right good or service - might be existing, an adapting of an existing one or a newly developed one.

4.5 - Predatory or destroyer pricing

deliberately, undercutting competitors' prices in order to try to force them out of the market - illegal in the EU and other countries as it favours the strong, established companies unfairly compare to new entrants. _ a sign is when prices gradually become lower, which can happen during a price war (difficult to prove as it can be seen a price competition) - Price war is beneficial for consumer, but in the long-term the company winning the predatory price war will have put other company out of business resulting in them having a monopoly where it can set higher prices, and fewer product offers

4.1 - Consumer service

intangible provision of an activity to end users (consumers)

4.1 - How to calculate market share?

market share % = (firm's sale in time period)/(total market sales in time period) x 100

4.4 - Closed questions

questions to which a limited nubmer of preset answers is offered.

4.4 - Qualitative research

research into the in-depth motivations behind consumer buying behaviour or opinions.

4.4 - Quantitative research

research that leads to numerical results that can be presented an analysed, eg. size of a potential market

4.1 - Consumer good

tangible physical product marketed to end users (consumers)

4.1 - Marketing objectives

the goals set for the marketing department to help the business achieve its overall objectives (corporate aims).