Marketing and marketing strategies flashcards

Topic 3: Marketing and marketing strategies

SWOT analysis

It sorts factors into internal ones (strengths, weaknesses) and external ones (opportunities, threats). Use it to judge a firm's marketing position. Limits: it is a snapshot, it is subjective, and it does not rank issues or say what to do.

Trial marketing

Launching a product in a limited area or to a limited group before a full launch. It tests demand and finds faults, but delays launch and alerts rivals.

Sampling methods: random, stratified, cluster, systematic, quota, convenience

Random: equal chance. Stratified: groups sampled in proportion. Cluster: whole groups such as towns. Systematic: every nth person. Quota: fill set numbers of each type. Convenience: whoever is easiest to reach (cheap but biased).

Normal distribution

A symmetrical bell-shaped spread around the mean. Roughly 68% of observations fall within one standard deviation either side of the mean and roughly 95% within two (standard results).

Standard deviation of weekly sales 40, 44, 48, 52, 56

Mean 48. Squared deviations 64, 16, 0, 16, 64 total 160; ÷ 5 = 32; √32 ≈ 5.7. A low value means steady sales and easier stock planning.

AIDA and ATR

AIDA: Attention, Interest, Desire, Action. ATR: Awareness, Trial, Reinforcement. Both describe how consumers move towards purchase, so promotion can be matched to the stage.

Customers vs consumers; B2B vs B2C marketing

Customers pay; consumers use. B2C uses mass media, branding and promotions; B2B uses personal selling, trade fairs, contracts and technical detail with fewer, larger buyers.

Cross elasticity (XED) and advertising elasticity (AED)

XED = % change in quantity of A ÷ % change in price of B: positive for substitutes, negative for complements. AED = % change in quantity ÷ % change in advertising spend (spend +25%, sales +7.5% → AED 0.3, weak).

Price falls 5% and quantity rises 8%. PED?

8 ÷ −5 = −1.6: elastic, so the price cut raises revenue.

Marginal vs contribution pricing

Marginal: the price covers only the extra cost of one more unit; useful for extra orders. Contribution: price minus variable cost, which contributes to fixed costs and profit.

Above the line vs below the line; drip vs viral marketing

Above the line: paid media advertising. Below the line: other methods such as discounts, displays and sponsorship. Drip: a steady series of messages over time. Viral: customers spread the message themselves.

Service marketing: the extra elements

Process (how the service is delivered), people (staff skills and manner) and physical evidence (premises, uniforms, website, receipts) that make an intangible service tangible.