3.3 Decision making to improve marketing performance

Students should consider the following throughout this section of the specification:

  • how developments in technology are affecting marketing decision making and activities (eg digital marketing and the use of social media, relationship marketing and dynamic pricing)
  • ethical and environmental influences on marketing decisions
  • market conditions and competition
  • how marketing decisions help improve competitiveness
  • the interrelationship between marketing decisions and other functions.

3.3.1 Setting marketing objectives

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Additional information

The value of setting marketing objectives

Marketing objectives include:

  • sales volume and sales value
  • market size
  • market and sales growth
  • market share
  • brand loyalty.

External and internal influences on marketing objectives and decisions

 

3.3.2 Understanding markets and customers

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Additional information

The value of primary and secondary  marketing research

Marketing research should include:

  • qualitative and quantitative data
  • market mapping.

You should be able to calculate market and sales growth, market share and size.

The value of sampling

 

The interpretation of marketing data

Interpretation of marketing data should include:

  • positive and negative correlation and an understanding of the strength of the relationship
  • understanding the concept of confidence intervals
  • understanding extrapolation.

The value of technology in gathering and analysing data for marketing decision making

 

The interpretation of price and income elasticity of demand data

Students should be able to interpret price and income elasticity of demand data and be able to analyse the impact of changes in price and income on revenue (they do not need to be able to calculate these).

The value of the concepts of price and income elasticity of demand to marketing decision makers

 

The use of data in marketing decision making and planning

 

3.3.3 Making marketing decisions: segmentation, targeting, positioning

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Additional information

The process and value of segmentation, targeting and positioning

Segmentation methods include:
  • demographic
  • geographic
  • income
  • behavioural segmentation.

Influences on choosing a target market and positioning

Targeting may include niche and mass marketing.

3.3.4 Making marketing decisions: using the marketing mix

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Additional information

The elements of the marketing mix (7Ps)

 

The influences on and effects of changes in the elements of the marketing mix

The marketing mix should be considered for goods and services, both industrial and consumer.

Types of consumer goods considered should include convenience, shopping and specialty products.

Product decisions

Product decisions should include:

  • the value of product portfolio analysis and the Boston Matrix
  • the value of the product life cycle model including extension strategies
  • influences on and the value of new product development.

Pricing decisions

Pricing decisions should include penetration and price skimming.

Decisions about the promotional mix

Promotional decisions should include the value of branding.

Distribution (place) decisions

Distribution decisions should include multi-channel distribution.

Decisions relating to other elements of the marketing mix: people, process and physical environment

 

The importance of and influences on an integrated marketing mix

Influences on an integrated marketing mix include:
  • the position in the product life cycle
  • the Boston Matrix
  • the type of product
  • marketing objectives
  • the target market
  • competition
  • positioning.

Understanding the value of digital marketing  and e-commerce