1.52 From mind to market Flashcards
market research definition
carried out to assist in the development of new or existing products
4 types of market research
personal interviews
observe customers
focus groups
surveys
personal interviews definition
structured and unstructured open ended questions on a range of similar products
observe customers definition
using similar products and record any issues together with consumer feedback on individual experience
focus groups definition
a facilitator would use focus groups to discuss or debate the key feature of a new or existing similar product
surveys definition
concise and straight forward questionnaires
needs definition
associated with things we cannot do without e.g. food, clothing and shelter. marketers play no role in creating needs
demands definition
things we would like and arise directly from out needs e.g. a car or a holiday. these wants turn into demands when customers have the ability to buy them. market demands need to be backed with buying power, marketers play a significant role in creating demands
how/why new products arise
due to government legislation.
as a result of new emerging technology.
market research identifying a gap in the market
what is the importance of innovation in the market
creates new and exciting products for the consumer.
helps drive sales figures.
provides competition between companies in the same industry which benefits the consumer.
utilises new emerging tech to provide consumers with new products.
market pull definition
responding to changing lifestyles. changing consumer attitudes change design priorities. new products closely mapped against customer attributes and profiles.
technology push definition
new tech allows previously thought impossible products now possible. can sometimes be driven by environmental pressures or consumer trends.
used to create an advantages in the market as they may be percieved as hi-tech and attractive to the consumer.
incremental product definition
incremental developments refer to stepped changes or improvements or additional features in products.
radical product definition
radical developments refer to a significant leap forward in the use of materials or processes or systems within a product.
what are the 4 market strategies
market penetration
market development
product development
diversification
3 characteristics of market penetration
involves increasing sales to existing customers.
finding new customers for existing products.
taking customers from competitors.
3 characteristics of market development
finding new markets for existing products.
repositioning the product into different sectors for an existing markets.
considered risky as there is no prior knowledge of the market.
3 characteristics of product development
changing or developing existing products further.
developing new products from the basis of the old classic model.
used to differentiate products from competitors.
2 characteristics of diversification
may help develop the business by adding more markets and products to their existing business.
concentrates on product and market growth which would enhance company sales and market share.
what are the 4 P’s
product
price
place
promotion
2 characteristics of product
variable product life cycle.
variation between the life cycles of products.
1 characteristic of price
determining the price and the elasticity of demand.
2 characteristics of place
geographical placing- international and regional differences difficulties and barriers to trading.
physical placing- getting the product to the right place at the right time.
2 characteristics of promotion
sales promotion, advertising processes, publicity, personal selling, exhibitions and trade fairs.
development of promotional strategies for a range of products.
what are the 5 types of products
fashion innovators
opinion leaders
masses
late adopters
laggards
3 characteristics of fashion innovators
interested in the innovation and unique features of a new product.
group of people who would adopt a new model of a particular product first.
often trend setters and would want to be seen to adopt the latest model of a product.
3 characteristics of opinion leaders
celebrities, magazines, early adopters are the next most likely adopters of a fashion product after fashion innovators.
copy fashion innovators by changing the product into a more popular style.
have a strong influence on a product so production is increased and it is sold at more retail outlets.
3 characteristics of mases
adopt the product after seeing it used successfully by the early opinion leaders.
first sizable segment of the population which adopt the product.
adopt a product over a longer period of time compared to the other consumer segments.
3 characteristics of late adopters
described as being cautious before adopting.
adopt when products popularity fades.
often adopt when the product is marked for sale/clearance.
3 characteristics of laggards
the last group to adopt a new product.
dislike change and accept new things only when forced to.
consists largely of seniors and those with low socioeconomic status.
5 different pricing methods
determining the price and elasticity of demand
cost plus
contribution pricing
perceived value
strategies for different stages of growth
determining the price and elasticity of demand definition
the measurement of change in demand or a product in response to changes in its price. if it is more than 1 it is sensitive to change and if it is less than 1 it is less sensitive to change.
3 characteristics of cost plus
estimating the average cost of producing and marketing a product (design, manufacture, packaging) and adding a markup for profit.
doesn’t take demand into account.
no way of knowing if the consumer will pay the price.
3 characteristics of contribution pricing
more sophisticated version of cost plus.
takes variation in costs of production of a given product for different markets and levels.
used to show break even at various levels of sales, only used for products with long life cycles.
3 characteristics of perceived value
price for products are set by the company finding out what potential customers are willing to pay for the product.
price set at max they believe consumer is willing to pay.
used in all stages of product life cycle and normally operates in competitive environments.
3 characteristics of place
international and regional differences can exist that affect your product, this may impinge on trading.
easier to access regional markets.
international trade is more expensive than regional due to border delays and expenses.
3 barriers to trading
tariff barriers
trade embargo
quotas
tariff barriers definition
taxes on certain imports. can raise the price of goods making imports less competitive.
trade embargo definition
banning exports or imports to or from one or more countries. this can have a significant influence on sales of products.
quotas definition
can have an influence on sales of products, e.g. the EU has a quota for allowing certain number of food items to enter without tariffs. once this happens sales figures can be considerably influenced.
3 types of promotion
sales promotion
personal selling
trade fairs
1 promotional strategy
relaunch strategy
3 characteristics of promotion
promotion raises consumers awareness of products price and quality.
promotion is important at all stages of a products life cycle as the market needs to be reminded of its existence.
modifying the product, reducing price and exporting to new markets can prolong life cycle.
3 advantages of sales promotion
encourages consumers to continue purchasing.
result in quick response producing an increase in sales.
instantly recognisable and accepted by consumers.
3 disadvantages of sales promotion
may devalue the consumers perception of the product.
net return from each unit is reduced.
consumer disappointment if there is a failure in product.
3 advantages of personal selling
a sales person is well trained in the approaches and techniques of personal selling.
develop very good relations with consumers resulting in repeat business.
can convey more info than other methods.
2 disadvantages of personal selling
very expensive to deliver and maintain.
personal sellers are somewhat limited to the number of customers they can cover per day.
3 advantages of trade fairs
very good for making new contacts and renewing old ones.
access to large number of buyers.
instant feedback on products and pricing.
2 disadvantages of trade fairs
they are expensive.
time consuming.
relaunch strategy definition
could be to offer additional features with the product, which may be more attractive to new markets or may encourage more people to purchase it.
