Business Test 15&16 Flashcards
Define goods
Tangible items tart I can physically touch and see e.g food clothes
Define services
Services e.g airlines hotels car rental
Marketing practices (4 stages of marketing)
1) production
2) sales- persuading people to purchase
3) marketing department- brought under one department to achieve goals
4) market oriental approach- satisfying customers
Why is the market oriental approach important?
It is customer orientated
It lowers the risk of new rely developed product or service failing in the market.
What is the marketing concept?
The business focuses on satisfying the consumers needs instead of selling the product Four factors of it- 1) costumer satisfaction 2) everyone is involved 3) objectives 4) KPI's
What does the marketing process involve?
Market research- finding customers needs and wants
Marketing strategy- objectives and what mark the business will make
Marketing mix- the 4 P’s ( product, price, place, promotion)
Evaluation- how well the first 3 steps went
What is a market?
A group of potential customers with similar needs who are willing to exchange something of value e.g good
Define marketing
Process that provides the link between producers or providers of goods and services, and consumers
4 factors when deciding a marketing strategy?
- Strength of the business
- Resources available
- Competition
- Objectives
4 basic types of markets?
Consumers- selling products
Business- purchasing of business personnel
Global- exports
Government- organisation formed to provide assistance to or infrastructure to society
Market segmentation
Carried out to perform precision marketing, to create a profile
4 forms of market segmentation
Geographical- where they live
Demographically- age gender
Psychological- social class personality
Behavioural- needs, way they buy etc
What is the Pareto principle?
Referred to as the 80/20
In a local shop 20% of your regular customers make up 80% of your sales
Showing that we should acknowledge customers for their loyalty
How does a business determine their target market?
Once they have done their market segmentation, they must decide their target market. E.g from being drinks to sports drinks
What is niche marketing?
Aims to provide products to buyers with specific desires and preferences
What attributes are needed to niche marketing?
Costomers have a destinct set of needs
No competition
Factors of niche marketing?
If there is no competitors it’s easier to make a profit
Only problem is that people’s preferences change meaning the profit will decrease
What is the positioning strategy?
A business differencing its product from its competitors within the market segment
E.g. Chocolate positioned itself in a mass produce chocolate market. By knowing there competitors they can narrow down on marketin strategies to beat their competition
Factors that influence consumer behaviour?
Cultural- religion
Personal- age, gender and occupation etc.
Psychological- way they think when buying and before they buy
Social- others influenced by people around them
What are situational factors?
When, where, how? Consumers make their purchases
When- day time? Season?
Where- where the buying decision is made, before or during
How- how they pay, in single or in bulk?
What are consumer trends?
One stop shopping- add related items in store. Sufboards in a beach store
E-commerce- how they pay
24/7- fast service, people can always access is
Tweens- not kids but not teenages
Treated as individuals- people who wanted to be treated as individuals not mass
What is market research?
Systematic approach used to assist in making decisions about consumers and the market place?
What is market research needed?
- Reduce the level of risk
- Access the current products, advertisements and promotion and see if any changes need to be made
- Predict future trends
How do you conduct market research?
Small business? Can use costumer survey, watch competitors and industry trends
RULES: must not use the identity or info on the wrong way e.g call someone pretending to use market research but sell something
What can be discovered through market research?
Market size
Consumer likes and dislikes
How good your product is
Packaging effectiveness
E.g mac as use it everyday to ask question what people like best so that they can implement these idea into the store
There are 2 option you can take for market research?
Objective and systematic
Objective approach for market research
Must be conducted in a non biased manner often done by a marketing consultant
Systematic approach for market research?
A formal method approach
Step 1 of the systematic market research
Define the problem and establish the research objectives?
- most important step
- by finding a problem and establishing objectives a business is able to gather the relevant info to assist with decision making
Step 2 of the market research, systematic approach!
Determine the research design?
Exploratory- informal manner (magazine, using the product)
Descriptive- watching the consumers attitudes, intentions and behaviour
Casual- cause and effect of certain action (changing price to see what happens)
Step 3 systematic approach to market research
There are two types of data available primary and secondary
Primary- info that has been gathered by the business or market researches
Secondary- info that has been previously collected (internal records or external sources)
Step 4 the systematic approach market research!
Design data- getting a selection of people and running questionnaires and more
Questionnaires- list of questions
Observation- note on people behaviours and actions
Focus groups- 6-12 people, market researcher provides a topic and people place their opinions
Experiments- conducted in field or lab
Removing every variable but one
E.g. Blind taste test
Step 5 systematic market research
Collect and annalyse data
Data is collected by gained professionals asking a series of questions. Mostly done on the telephone now
E.g TVs record what we are watching and who is watching it
Step 6 systematic approach to market research
Prepare your final report
Tell owner results
Present with graphs
Oral and visual presentation
