BU$INE$$ Flashcards
Market Research
Collection, presentation and analysis of information relating to the marketing and consumption of goods and services
Dis:can be expensive
Untapped
Supply, market and talent that is available but has not yet been exploit
Dis: finding untapped market is not easy
Primary or field research
Gathering of ‘new’ information that does not already exist
Adv: it’s original and the info gathered can be adapted to the needs of the business
Consumer panels
Group of customers are asked for feedback about producers over a set period
Dis: the group may be small so generalising from the results may not be reliable
Secondary or desk research
Collection of data that already exists
Dis: is available for other users
Qualitative data
Information about attitudes, beliefs and intentions, usually written in words
Example: consumer message on social media about a new product
Quantitative data
Information that can be quantified, that is, expressed in numbers.
Adv: easier to gather
Sample
Small group of people, which must represent a proportion of a total market when carrying out market research
Dis: human behaviour is unpredictable
Market
Set of arrangements that allows buyers and sellers to communicate and trade in goods or services
Eg: supermarket
Marketing
Identifying costumers needs and satisfying them profitably
Example: Coca Cola advertising campaign
Product orientated
Where a business focuses on the design and manufacture of the product itself rather than the needs of customers
Example: pharmaceuticals industry
Market orientated
Where the business focuses on the needs of customers rather when developing product
Example: Disney
Market share
Proportion of sales in a total market that a business or product enjoys
Example: EA controls most of the market of football video games
Market analysis
Quantitative and qualitative assessment of the market
Adv: the business may be more successful
Mass market
Very large markets in which products with mass appeal are marked
Example: breakfast cereals
Niche market
Smaller market, usually with large market or industries
Eg: weeding plants
Market segments
Part of a whole market where a particular customer group has similar characteristics
Eg luxury and RR
Socio-economic groups
División of people according to their social class based on their employment status Example: sports car may be target at young profesionales
Marketing mix
Elements of a firms marketing that are design to meet the needs of customers
Adv they can make a profit
Product life cycle
Level of sales at different stages through which a product pases over time
Eg. Development
Skimming
Or creaming setting a high price initially and then lowering it later
Advantage: when you low the price people may buy it more
Penetration pricing
Setting a low price to start to get stabilised in the market and once stablished the price may rise
Adv: it’s hopped that consumers get into the habit of buying the product when the price is low. Then when the price starts to rise up people continue to buy it
Extension strategies
Methods used to lengthen the life of a product
Example: changing the appearance of the product
Product portfolio
Range of products that a business is currently marketing
Adv they can attract more customers
Boston Matrix
2x2 matrix that describes products according to the market share they enjoy and whether the market has any potential for growth
Eg cash cow
Early adapters
Consumers who are keen to buy new products as soon as they are launched
Cost-plus or cost-based pricing
Adding a percentage to the cost of producing a product to get the price
Adv ensures that all costs are covered
Mark-up
Percentage added to costs that makes a profit for a business when setting the price
Example: the cost of doing a bike to a manufacturer is 60€. The manufacturer adds a mark-up of 25% to get the price. Therefore the price of the bike is 75€
Competition-based pricing
Pricing strategies based on the price charged by the rivals
Adv: a price war is likely to be avoided
Destroyers or predatory pricing
Setting a low price until rivals have gone out of business
Adv: if everything goes well their rivals would not be able to compete with the prices so they would need to leave the market allowing the predator to rise prices again
Patent
Legal document giving a person or company the right of making or selling a new product, invention or method of doing something and stating that no other person or company is allowed to do this.
Adv nobody can copy you
Loss leader
Product sold below cost to draw in costumers
Adv: generate profit
