3.5 - Marketing Flashcards
What are customers’ needs?
Customers’ needs are the things people can’t live without
What are customers’ wants?
Customers’ wants are the products and services that they don’t need but would like to have
What is market segmentation?
It is the process of dividing potential customers into different groups based on characteristics like age, gender, income and much more
What is market research?
This is the process of collecting and processing information about the market that a business operates in
What is quantitative research?
This collects factual information
What is qualitative research?
This generally collects information about opinions and views
What is primary market research?
This is market research that is done by a firm for its own use
What is secondary market research?
This happens when firms collects information on research that has been performed by other organisations or people
What do we call a business that focused on building products that meet consumers’ needs?
Market driven
What are the the four Ps that make the marketing mix?
Price - how much a business decided to charge for the product
Promotion - how a business will inform their consumers about a product
Place - where the business is situated, this is where they will sell their product
Product - the product that will suit the needs of a specific target market
What are the four key factors that influence a firm’s pricing decisions?
Degree of competition - the more competition a firm faces, the options customers have
Nature of product - whether a good is a luxury good, this will affect how much a business charges
Product life cycled - determines whether charges a low or high price
Costs - the firm aim to make a profit
What is price skimming?
This is where a business sets a relatively high initial price and then gradually lowers it over time
What is a disadvantage of price skimming?
Slower unit sales growth
What is an advantage?
It allows a business to cover high research and development costs
What is price penetration?
This is where a business tried to increase market share by offering a low initial price
What is cost-plus pricing?
This is a pricing strategy where a business charges the customer based on what it costs to produce the product or service
What is competitive pricing?
This is when a business sets its prices for its product and services based on what others firms in the market are charging
What is the “mark up” in cost-plus pricing?
An addition to the cost of production to make sure the business makes a profit
What is the product life cycle?
The product life cycle is the series of stages that a product goes through over its lifetime
What are the stages of the product life cycle?
R&D - before the product is made
Introduction - where the product launches to the market
Growth - more customers buy the product and it grows
Maturity - the number of new customers have slowed down but the market of the product is still mature
Saturation - the sales of the product have reached its peak
Decline - the demand for the product begins to fall
What is a product portfolio?
This is the full range of products and services that a company offers its customers
What is the Boston Matrix?
Stars - high market share in a fast growing market
Cash cows - high market share in a slow growing market
Problem child - low market share in a fast growing market
Dogs - low market share in a slow growing market
What are the advantages of developing new products?
Higher sales - interest new customers
Diversification - having a lot of options reduces the risk of a business
Brand value - selling more products could improve the firm’s reputation
What are the disadvantages developing new products?
Damage brand
Investment
