4.

Business revision for marketing and cashflow

Importance of market share and market leadership

● Market share is the percentage of how much a company has control over a
specific market. Clearly shows competitors.
● Market leadership is a company with the largest market share in the
industry. They have control over the market.

The 4 methods of primary research.

● Survey
● Interview
● Focus groups( a group of people form a specific demographic)
● Observations

The 4 methods of secondary research.

● Market analysis
● Academic journals
● Government publications
● Media articles

Methods of sampling
● Quota
● Random
● Stratify
● Cluster
● Snow bally
● Convenience

The role of marketing.

Marketing goods versus marketing of services

● Product marketing is concerned with the tangible goods that are physical
while service marketing references to the services that are intangible and
can't be touched or held

Commercial marketing VS social marketing

● Commercial marketing seek to gain the most profit
 ● Social marketing seeks to influence the behaviour usually for the good of
society

The relationship between the product life cycle and marketing mix
● The product life cycle is associated with the changes in the marketing
situation meaning it impacts the marketing strategy and the marketing mix

Marketing mix
● Product
● Price
● Place
● Promation

Life cycle
● Introducing
● Growth
● Maturity
● Saturation
● decline

Pricing strategy
● Price skimming
● Psychological pricing (
● Penetration
● Cost-plus
● Price discrimnation
● Price leadership
● Predatory pricing
● Loss leader
●
E-commerce
● Online purchasing of products and services
●

Know the advantages and disadvantages

Months april May June

Opening balance 1200 6600 10550

Cash inflow (sale

revenue, credit)

Sale revenue 10000 9000 11000

credit 6000 5000 4500

Total cash inflow 16000 14000 15500

Cash outflow

Direct cost -5500 -4950 -6050

Indirect costs -5100 -5100 -5100

Total cash outflow -10600 -10050 -11150

Net cash flow 5400 14000-10050= 15500-11150=

(Total cash inflow 3950 4350
- total cash
outflow)

Closing balance 1200+5400= 6600 6600+3950= 10550+4350=

(opening balance 10550 14900
1 net cash flow)

August September October november

Opening 10000 5850 3040

balance

Cash inflow

Revenue 4000 4800 6000

Total cash 4000 4800 6000
inflow

Cash outflow

Cost of -2000 -2160 -2700

product

Ad -1600 -900 -900

staff -800x5= -4000 -4000

-4000

rent -550 -550 -550

Total cash -8150 -7610 -8150

outflow

Net cash flow 4000-8150= 4800-7610= 6000-8150=

-4150 -2810 -2150

Closing 10000-4150= 5850-2810= 5040-2150=

balance 5850 3040 2890

Opening balance
Cash inflow
Total cash inflow
Cash outflow
Total cash outflow
Net cash flow
Closing balance
Marketing Planning

- Elements of market planning

- Price
- Place
- Promotion
- Product
- The role of market planning
- The purpose of a marketing plan is to decide how you will sell your
products or services to consumers. Rather than assuming your
product is perfect for everyone, the plan focuses on key people who
are most likely to buy the product.
- Difference between target markets and market segments
- Market segmentation involves the entire market that is to be divided
into groups based on similar characteristics.
- Target marketing involves a more defined specific group of
individuals at micro level (i.e. the chosen market segment) to whom
the products will be marketed and sold.
- Difference between niche market and mass market
- Mass marketing refers to a marketing strategy that is focusing on the
entire market.
- Niche market is a clearly targeted market, where homogeneous
buyers with similar needs exist.
Homogeneous → having the same composition or form - companies that
produce or sell products with great similarities, often using the same
components.