Business Marketing Test revision Flashcards
one stage of product development?
Market research is carried out to find out what customers want
second stage of product development?
ideas are generated based on market research.
third stage of product development?
A prototype is created- this is a working model of the product.
fourth stage of product development
pricing of product will be discussed
product life cycle
introduction - the product is launched onto the market low sales/ high costs no profit is being made
what is growth?
Sales start to increase as consumer awareness of product increases
what is maturity
sales start to increase as consumer awareness of product increases
what is decline?
sales start to fall as new products enter the market profit is falling.
what is place?
where the business chooses to sell its product
factors to consider place 1)
where the customer is
factor to consider place 2)
where suppliers are located
factor to consider place 3)
employee availability
factor to consider place 4)
available of suitbale premises
one method of advertising?
Television
advantages
1) adverts can be targeted at specific market segments
2) large audience can be reached
3) Demonstrations can be given
Disadvantages
1) very expensive
2) people may skip the adverts
Second method of advertising
Newspaper/ magazine
advantages
1) adverts can be kept and referred to at later date
2) specific customers can be targeted eg local
disadvantages
1) no sound, video or demonstrations can be given
third method of advertising
digital billboards
advantages
1)colour, sound and movement can be used for impact.
2) if placed in a busy area viewed by many people eg traffic lights on busy road.
3) captive audience
disadvantages
1)Limited amount of information can be displayed
2) can be expensive if placed in shopping or sports centre.
fourth method of advertising
social media
advantages
1) Updates can be recieved 24/7 via mobile technology
2) cost effective
disadvantages
1) customers recieve so many that they may ignore/ delete them without reading
Methods of distribution one example
Road
advantages
1) door to door
2) Delivery time is short
3) relatively cheap
disadvantages
1) Roadworks may cause delay
2) difficult to transport large items
3) not very environmentally friendly
second example of distribution
Rail
advantages
1) Large items can be transported
2) Large quantities can be transported
disadvantages
1) requires transfer by road to final destination
2) is not always a railway station near by
third example of distribution
Sea
advantages
1) products can be transported anywhere across the world
2) suitable for large and bulky items
disadvantages
1) Lengthy delivery period
2) Delay may occur at ports
3) requires another mode of transport to final destination
fourth example of distribution
Air
advantages
!)products can be transported quickly around the world
disadvantages
1) large items cannot be transported
2) expensive
3) not environmentally friendly
4) requires another mode of transport to final destination
What is Field research
first hand primary information which the organisation gathers its self through questionnaires and interviews
One method of field research
Hall test: a product is given to the customer to try and give feedback on it
advantages
1) quality feed is obtained and can be used to modify product
2) inexpensive to run and easy to carry out
disadvantages
1) feedback can be difficult to can be difficult to analyse due to be feelings and opinions
2) consumers may feel pressured to be positive
second method of field research
Focus group: selected consumers are involved in discussions about an organisations product/ service
advantages
1) In depth feedback and detail gathered from discussion and more information can be teased out
2) Consumers have agreed to participate so considered responses more likely
disadvantages
1) strong personalities in group can sway discussion and opinion
2)Feed back can be difficult to analyse due to be feelings and opinions
