1.1 Core Marketing- Marketing Flashcards
Identifying current requirements of customers
If the product does not meet current requirements, customers will not buy it. Marketing aims ensure that customers buy and continue to buy goods or services. Price and quality are important but so are prompt delivery and attractive packaging.
Anticipate future requirements of customers
Consumer expectations evolve over time, products therefore need to be developed and evolved over time. This is especially so where tastes and fashions change quickly e.eg clothing and toys.
Satisfy requirements of customers
Dissatisfied customers will take their future business elsewhere. Businesses therefore need to monitor customer satisfaction, and make adjustments to their marketing as required.
Product-led approach
It assumes that the product being offered is the best on the market, and little competition exists. Product-led approaches may apply to technical products where there has been major investment in product development and it would be difficult for a competitor to enter the market in the short term.
Market-led approach
A market-led approach ensures that customer needs are considered before production takes place and requires extensive market research. This means there will be a greater choice for customers, there will also be a greater greater responsiveness to the actions of competitors.
Consumer behaviour
The action that a person takes in purchasing and using products or services. It also includes the mental and social processes that preceded and follow these actions.
Routine response/ programmed behaviour
Buying low involvement frequently purchased low cost items, need very little search and decision effort, purchased almost automatically. Examples include soft drinks, snack foods, milk etc.
Limited decision making
Buying product occasionally. Requires a moderate amount of time for information gathering. E.g. clothes, known product class but not the brand.
Extensive decision making/ complex
High involvement, unfamiliar, expensive and/or infrequently bought products. High degree of thorough before buying. E.g. cars, homes, computers, education. Spend a lot of time seeking information and deciding.
Impulse buying
No planning, a spur of the moment decision.
Field research
It gathers first hand primary information for a specific purpose. This may be conducted by the organisation itself or be commissioned through a market research organisation. The information collected in this way may be relevant, complete, appropriate, concise, confidential, time consuming and expensive.
Desk research
Gathers secondary information collected for another purpose but which can be reused for another. It will be less relevant, appropriate, complete, but will be quickly available and cheap or even free to collect.
Field research- Questionnaire
A questionnaire is a list of written questions which ensures that all respondents are asked the same questions in the same way. Questionnaires can be posted or emailed out.
Advantages of questionnaires (field research)
Removes the need for using a trained interviewer which brings down the cost conducting the research.
Questionnaires can be distribute to a wide geographical area.
Incentives such as free entry in to a prize draw may used to encourage returns.
Disadvantages of questionnaires (field research)
Questions cannot be as comprehensive as the questions must be easy for people to understand.
Response rates can be low, meaning that high numbers of questionnaires must be distributed to get a reasonable return.
Field research- Personal interviews
These are spoken questions conducted face-to-face eg in shops, on the street or in customers own homes. An interview in the street is less friendly and detailed than an interview in the home.
