5 Marketing Flashcards
What is market research?
The process gathering information about the market?
Why may a business do market research?
So they have the best position to make better decisions to help them make profit.
They can identify opportunities
It may help asses the effectiveness of the actions already done
Lower the risk of entering a new market
What will market research help gather info about?
Demand for the product (eg. market growth)
Market share of competitors
The competition -size market share why they are good/bad
The target of the market and what segments there are in that market
What is a market segment?
A group of buyers with similar needs within the overall market
What are the 2 types of data used in market research?
Qualitative data
Quantitative data
What is qualitative data?
Views and opinions of people (customers) - this may not be that reliable especially if you only take a small amount of opinions
What is quantitative data?
The use of numbers and stats. This is quite reliable
How do you calculate the market size?
Number of units sold X price per unit = market value/size
How do you calculate market share?
(Sales of the product/total market sales)X100
What is primary research?
What is air also known as?
Research which has been gathered for the first time
Field research (you do it)
What is secondary research?
What is it also known as?
When you use data that has already been gathered
Desk research (which someone else has gathered
Advantages of secondary market research?
Cheeped
It is quick to gather
You can find data about a large chunk of the population
There is a lot of data out there
Disadvantages of secondary market research?
Data not np be exactly what the business wants
May be outdated
What are the advantages of primary research?
They will meet the business needs exactly
They are reliable if done right
It may be more acúñate and up to date
What a re the disadvantages of primary market research?
If done wrong they will be misleading
It is expensive
It may take some time to get data
How may primary research be gathered?
Observation- watching how people react to different products
Experimenting- trying out new forms of advertising… watching the customers reactions watching for increased/decreased sales
Surveying- asking people what they think
What re the different types of surveying
Telephone surveys Questionnaires Customer/supplier feedback Focus groups Internal research Printed press
What are telephone servers
Are there Advantages and Disadvantages?
Phoning customers to get feedback
Quite cheap
Some people may get suspicious of a scam call
People might ignore it
What is a questionnaire?
Are there Advantages and Disadvantages?
A list of questions interviewed or brought writing
They may be ignored, answered may misleading, people may lie
It is cheap
What are focus groups?
Are there Advantages and Disadvantages?
A small number of people selected to give there opinions on a product/service
May not represent the market
You can discuss the product in a range of detail and find out what you want to know,
Quote reliable of they volunteer
What is internal research?
Are there Advantages and Disadvantages?
Tracking numbers of what products are bough how often people return if they buy a certain product, how often product are returned
Quite reliable
Could be hard however with more technology it is becoming easier and cheaper
What is printed press?
Are there Advantages and Disadvantages?
Reading newspaper articles and reviews about the business and competitions
Cheap
Quite reliable however may be (biased*) 1 sided
What is the market mix?
All he factors that influence your decision to buy a product
Gife some examples of market mix?
Price
Place
Promotion
Product
Explain the market mix product?
All the factors related to the design of the prodcut
Eg features of the product
Explain the market mix promotion?
If you promote your product well then you are likley to make more sales especialy if you target a market
Explain the market mix price?
The way that people pay may influcne if they buy your product. This could mean cheaper prices, if you can use cash or a credit card ect (basicly making it easier for he customer)
Explain the market mix place?
You may make more sales with nicer stores. Or if the stor has a higher foot fall. However this may cost more to achieve and therefore decrease profits if sales don’t increase my enough
How may you chose which partd of the market mix to invest more in?
To actual product
Your competitors product
The target customers (are they likley to by the product ect)
The bussiness’ aproach
How does the service with the product effect the customers decision to buy a product?
If there are better customer service and post sale service then more people may buy their product
How does the performance of the product effect the customers decision to buy a product?
If the product is better than a competitors then more people will buy it as it is likley to offer better value for money
How does the product development stage effect the customers decision to buy a product?
If it cost a lot to develope it then you may need to charge higher prices to make profit
How may you decide what price to set?
You may akso consider the value that the product serves for he customer
You also need to think about how much it cost to make
and the effects that he price will have on demand
Your expected sales. Alot may mean you set prices low
What is product differentation?
When a business tries to make their product run out
How may you make your product different?
Through making the logo recognisable
By having a unique selling point
New features
…
Why would you spend more money to make your product different?
In the hopes to make more slaes and therefore make more profit
What is the product portfolio?
The collection of products that a firm produces
What is the Boston Matrix
A way of analysising a products value?
What are the 2 things the Boston Matrix measures?
Market growth
Your market share
What are the 4 sections on the boston matrix?
Dogs
Stars
Question mark (problem child)
Cash cows
What is a dog product?
A product that has a low market share in a slowly growing market
These products are often non-proditable and may either be abbandoned or need more investment/changes
What is a cash cow product?
A product with a high market share but in a slow growing market.
These will often make a lot of money with little advatising as they are normally already well known
What is a question mark product?
A product with a low market share but in a fast growing market
There will often be something wrong with the product and may need new advitising or a change in statagy to increase the market share
What is a star product?
A product which has a high market share in a fast growing market
These will make profit and may be cash cows in the future when the market stops growing
How may a business use the Boston Matrix?
Theu can decide which product to stop producing and which product to invest in
How may a cash cow be beneficial?
The business can use the money from a cash cow to develope question marks or to invest in stars
What is the product lifecycle?
Shows how the sales of a product changes over time
What are the stages of the product lifecycle?
Development
Introduction
Growth
Maturity
Decline
Explain the stage of development in the product life cycle?
The idea for the product is developed amd tested to see of ot sill work
May be market reseach amd high expenses with no sales as the product hasn’t been launched yet
Explain the stage of introduction in the product life cycle?
Where the product is launched
Some initial sales but expenses may still be more than profit
Explain the stage of growth in the product life cycle?
Product starts to make profit as sales increase. A business may need to increase it’s scale to keep up with outgoings. This where you are most likley to break even
Explain the stage of maturity in the product life cycle?
Sales start to slow down.
You may consider usong an extention startagy
Explain the stage of decline in the product life cycle?
People get board of your product ect
Sales start to decrease. Businesses need to decide weather to take the product of the marlet or invest money into increasing the sales
What happens to the market mix during the product life cycle?
It may change
Eg initial advatising may bw for all people to show it excists
In the growth stage you may set proces higher
What is an extention strategy?
Attempt to maintain the product and prevent it from enterong decline
Give an example fo some extemtion strategies?
Decreasing the price More advatising Rebranding Adding more features Trying a new market mix
How may demand affect pricing?
Low demand may decrease the price
High demand may increase the price
What different pricing methods may you use?
Price skimming Price penentration Competitive pricing Loss leader Cost plus pricing
What is price skimming?
Where you start the price high and lower it over time
Why may price skimming be used?
To get a lot of money for a produt when it is hyped up, the help repay the r&d phase of the product life cycle
When does price skimming work best?
When there is a unique selling point
What is price penentration?
When the price starts low and is increased over time
Why may you use price penentration?
To get people hooked or to buy the product. They then spread work of mouth marketing. Once it startes to get hyped up the price is high
What is the aim of price penentration?
To achieve fast initial sales
What is competitive pricing?
Setting your prices to match what your competitors are charging
When may competitive pricing be used?
Where here is a lot of competition and there is no unique selling point
What is loss leader?
When a business sells something at a loss eg a printer
But sells something else at a high price which they will need eg ink.
The busienss may make a loss on the printer but they will make an ultimate profit from the ink
What is cost plus pricing?
A way that a business can make sure they make a profit (if they make sales)
They calcuate the cost of providing the product/service and add a persentage of that onto the final price
What is a disadvantage of cost plus?
It doesn’t consider what people are willing to pay
Where may cost pricing be used often!
Retailers
What may the price of a product depend on?
Cost Demand Natire of the market Busienss objectives How the business sets prices The product position the the product life cycle The rest of the market mix
How does the cost of making a product effect the price of the product?
Business need/want to make a profit so they need to sell heir products/servies for more then what they take to make or do so they make a profit
How does the demand of a product effect the price of the product?
Higher demand higher cost can be chaeged as people will buy it
How does the nature of a product effect the price of the product?
If it has new features/ will be wanted by a lot of customers then you can chatprge higher prices
Of it is one of many then most customers will buy the chepest one
How may you promote a product?
Newspapers Online Radio Billboards TV
Why may you promote a procuct?
To make people aware of a new feature/product/lower prices/any changes
Show the benefits of the busiess
Trying to get more sales
What is the promotional mix?
The combination of promotional methids used
What things do you need to concider when promoting a product?
it stage in the product life cycle
The product The market (comprtivness) Price Your tarket market Which method would be the best
What is a distribution channel?
How the owneship of the product passes from the producer to the customer
What is a wholesaler?
They buy things in bulk (for cheaper) and then sell them to retailers for cheaper prices
What may be some ways to connect the distribution channel?
Onlice selling (E-commerce)
Mail-order businesses
Telesales
What is a relailer?
They are shops thay sell direct to the customer
What is direct marketing?
When there is a direct link from the producer to the customer with no intermediaries
What is an intermediary?
A link in the distribution channel between the producer and the customer
How do you describe the different levels of intermediaries?
Zero/One/Two… level
Each one reffers to the n. Intermediaries
What are the advantages of using intermedieries?
You don’t need to soend money on a store or advatising the product to sell
You don’t need to worry about customer service as much
What are the disadvantages of using intermedieries?
You loose control of the product
The product may get a bad reputation due to advertising which you havn’t aproved
You may loose profit
