8. Strategies for products and markets Flashcards
What is market research?
The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services
What are examples of field research?
Questionnaires
Internet surveys
Interviews
Observations
Trial testing
Issues to consider with field research?
Costly
Honesty of responses
Closed questions do not provide the why
What are examples of desk research?
Existing company records
General economic data
What is market positioning map?
Giving a product a place relative to its competitors on factors such as quality, price, image
What is the marketing mix?
Set of controllable marketing variables that a firm blends to produce its response to target the market
What are the 7ps? (for services)
Product
Promotion
Place
Price
People
Process
Physical evidence
Brand positioning
Economy brands
Bargain brands
Premium brands
Cowboy brands
Cowboy brands
Over-priced for quality of product
Economy brands
Low price and acceptable quality
Premium brands
High price for high quality
Bargain brands
Low price yet good quality
Push promotion
Ensuring products are available to purchase where and when the customer requires
Pull promotion
Marketing variables to persuade customer to purchase
What are the key factors to be considered when selecting a pricing strategy?
Costs
Customers
Competition
Corporate objectives
What are the different pricing strategies?
Price skimming
Penetration
Price discrimination
Perceived quality
Going rate
Cost plus pricing
What is price elasticity of demand?
Degree to which demand is affected by changes in the selling price
% of demand / % of price
Inelastic means?
Little change in demand when price changes
Elastic means?
Bigger change in demand when price changes
Perfectly inelastic?
Demand does not change when price does
Perfectly elastic?
If price changes above a certain amount all demand evaporates
Unitary elasticity?
% in price increases whilst % in volume decreases
Giffen goods model
Looks at income effect of price changes in staple products
Veblen goods model?
Veblen goods are bought to show off so higher price makes them more desirable
What does an overall marketing strategy consist of?
Analysis - market research (field or desk)
Choice - use market segmentation to identify customers to supply
Implementation - develop marketing mix (using 4ps for products, or 7ps for services)
What are the 4 p’s for products?
Cost
Competitors
Customers
Corporate objectives
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