3.5 Marketing - Simle Defintions Flashcards
Marketing
A scientific process that focuses on meeting the needs and wants of the customer profitably.
4 marketing processes
Research
Segmentation
Development of a product or service
Devising a marketing mix
Market research
The process of gathering, analysing and processing data to find out the needs and wants of potential customers
Primary research
Defintion
Business collects original first-hand information. Involves creating new information.
(Field)
Primary research methods
Test marketing
Observations
Surveys/questionnaires
Consumer panels/Focus groups
Secondary research
Definition
Business uses data that already exists.
Secondary research methods
Past sales data
Written word (internet, books, magazines, newspapers)
Government statistics
Market intelligence reports
Qualitative
Descriptive opinions
Open questions
Quantitative
Numerical data
Closed questions
Survey types of questions
- Closed questions
- Multiple choice
- Semantic differential - Express a degree of opinion
- Open ended
Segmentation
Grouping customers into subsections of the market with similar characteristics.
Segmentation methods
Gender
Age
Location
Income
Market size
Total size of the market (All the businesses/sales in a market)
Market size
Calculation
Total number of units sold X Price per unit
Market share
The percentage of sales that any one business controls in the market.
Market share
Calculation
Sales of one company / total sales X 100
Design features of a Product
Design
Image
Needs of the target market
Product differentiation
Methods that a business uses to make their product distinct from rivals.
Product differentiation methods
Quality
Design
Promotion
Branding
Packaging
Stages of product development
Generate an idea
Check the idea
Develop the product
Trial the product
Launch it
Product life cycle
A model showing the lifespan of a products sales from launch to being taken of the market.
Extension strategy
Ways in which a business modifies a product to appeal to more customers and maintain sales.
Extension strategies methods
Reduce prices
Change the package
Change image
Change name
Price
The amount charged to a consumer for a good or service
Factors influencing prices
Competitors pricing
Economy
Cost
Demand
Business objectives
Nature of the market/brand strength
Stage of product lifecycle
Rest of the marketing mix
Product portfolio
The range of products that business sells
Boston matrix
A tool to analyse a products share and growth within a market.
Promotion
The different ways in which a business tries to communicate with its customers.
Sales promotion
A short term incentive used by businesses to encourage customers to make a purchase.
Money off vouchers, price reductions, free samples and competitions
Forms of promotion
Social media
Sponsorship
Public relations
Public relations
Communicating with the media and other interested parties to enhance the image of the business and its products, and therefore improve sales.
Sponsorship
A business will sponsor an individual or event to raise its profile.
Factors affecting choice of promotion
Finance
Competitors actions
Nature of the product or service
Nature of the market (how the rest of the market promotes)
Target market
Place
Where the product is sold
Also involves the method of distribution used to get the product to the consumer.
Channel of distribution
How the ownership of a reduction passes from the producer to the final customer.
Factors influencing choice of channel
Choice of intermediary - negotiate with a retailer?
Desired control over channel
Size of the business
Infrastructure available
E commerce
Buying and selling of goods and services online.
M commerce
Buying and selling of goods and services online through a mobile device, often through a mobile app or a website accessible on a mobile phone.
Marketing mix
All the activities/elements that influence wether or not a customer buys a product.
Factors influencing choice of marketing mix
Product
Competitions
Target market
Business approach
