CIMA E1 – CHAPTER 8
MARKETING & THE FINANCE FUNCTION
1. WHAT IS MARKETING RESEARCH
Collec<on of informa<on about the marke<ng mix (7Ps)
Ways of
collec+ng
data
Secondary/Desk Research Primary Research
Uses informa<on that Involves ac<vely
already exists: gathering new data:
- Cheap - Expensive
- Easy - Time consuming
- E.g. Published - E.g. Interviews
informa<on
Types of Data
Qualita<ve Quan<ta<ve
- Answers - Answers
ques<ons how ques<ons when,
and why where & how
- Opinion based many
research. - Answers are
- Descrip<ve represented
answers numerically (%)
, 2. MARKETING STAGES
Groups of consumers with similar How to gain compe88ve
needs, considering their: advantage?
1. Measurability – P Perpetual mapping can be
value/poten+al reach of the used to map all
segment compe8tors by quality &
price.
2. Accessibility – consumers in P One company can posi8on
the segment can be many products differently
depending on the segment
reached.
being targeted.
The ‘average’
3. Sustainability – The consumer of the
segment size and stability chosen segment/s is Types of
jus+fy the budget. targeted. market
posi<ons
4. Ac+onability – It is possible
to cater to this segment.
Types of
segmenta<on
Psychographic Market Market Market Market
P Social status leader challenger follower Niche
P Occasions/events Strategy
P Interests & Descrip8on Largest
market share
Lower market share
Aim to be the
Aim to follow
the leader while
Do not compete
with other
lifestyles Strongest leader. remaining players.
brand Take risks with profitable Focus on
Good exis4ng innova4on specific niches.
customer
Situa8onal/Behavioural rela4onships
Large
P Purchasing
Demographic economies of
decisions scale
P Age Product New Products New products Follow the Specific to
P Brand loyalty New Features Increase R&D leader. segment needs
P Gender
P Benefit gained. High R&D OR Low R&D Higher costs
P Na8onality Low Lower produc4on Low costs
P Regularity of produc4on costs Releases aJer
P Family life costs the leader
purchase
stage Price Low Low to gain market
share
Match the
leader but
Higher prices to
meet segment
P Religion consider lower needs beLer
prices
P Household Promo8on Brand High to gain market Some to retain Directed at
Income awareness share awareness segment.
Stressing the
benefits more
Widely Wide availability Wide availability Focused on
Place available purchasing
behaviours /
loca4ons
Increases
Market
MARKETING & THE FINANCE FUNCTION
1. WHAT IS MARKETING RESEARCH
Collec<on of informa<on about the marke<ng mix (7Ps)
Ways of
collec+ng
data
Secondary/Desk Research Primary Research
Uses informa<on that Involves ac<vely
already exists: gathering new data:
- Cheap - Expensive
- Easy - Time consuming
- E.g. Published - E.g. Interviews
informa<on
Types of Data
Qualita<ve Quan<ta<ve
- Answers - Answers
ques<ons how ques<ons when,
and why where & how
- Opinion based many
research. - Answers are
- Descrip<ve represented
answers numerically (%)
, 2. MARKETING STAGES
Groups of consumers with similar How to gain compe88ve
needs, considering their: advantage?
1. Measurability – P Perpetual mapping can be
value/poten+al reach of the used to map all
segment compe8tors by quality &
price.
2. Accessibility – consumers in P One company can posi8on
the segment can be many products differently
depending on the segment
reached.
being targeted.
The ‘average’
3. Sustainability – The consumer of the
segment size and stability chosen segment/s is Types of
jus+fy the budget. targeted. market
posi<ons
4. Ac+onability – It is possible
to cater to this segment.
Types of
segmenta<on
Psychographic Market Market Market Market
P Social status leader challenger follower Niche
P Occasions/events Strategy
P Interests & Descrip8on Largest
market share
Lower market share
Aim to be the
Aim to follow
the leader while
Do not compete
with other
lifestyles Strongest leader. remaining players.
brand Take risks with profitable Focus on
Good exis4ng innova4on specific niches.
customer
Situa8onal/Behavioural rela4onships
Large
P Purchasing
Demographic economies of
decisions scale
P Age Product New Products New products Follow the Specific to
P Brand loyalty New Features Increase R&D leader. segment needs
P Gender
P Benefit gained. High R&D OR Low R&D Higher costs
P Na8onality Low Lower produc4on Low costs
P Regularity of produc4on costs Releases aJer
P Family life costs the leader
purchase
stage Price Low Low to gain market
share
Match the
leader but
Higher prices to
meet segment
P Religion consider lower needs beLer
prices
P Household Promo8on Brand High to gain market Some to retain Directed at
Income awareness share awareness segment.
Stressing the
benefits more
Widely Wide availability Wide availability Focused on
Place available purchasing
behaviours /
loca4ons
Increases
Market
