business test Flashcards
Marketing
Marketing definition
Marketing is about finding out your customers needs and wants and developing a way of delivering them.
Marketing activities 1
Carrying out market research in order to find out what customers want to buy
Marketing activities 2
developing and desiginging a Product which meets customers needs and wants
Marketing activities 3
Deciding on the right price to charge for the products
Marketing activities 4
Deciding on the best methods of Promotion for products and making customers aware of the products.
Marketing activities 5
Deciding on the right Place to sell the products
Market segmentation Defintion
Organisations have decide what to make and sell, which will involve finding out who the likely customers are.
Market segmentation Defintion
a Market segment is a group of buyers with similar characteristics
Market segmentations characterisics
Age- Noddy and playdays for children
ideal Homes, Hello, Golf Monthly and Top Gear for Adults
geograhpic Location- More sausages eaten in scotland compared to the rest of UK
Yorkshire people eat more fish compared to rest of UK
Insulated wooden kit houses sell better in Scandinavia than in the Mediterran area
Income- People on lower incomes spend their money differently from those on higher incomes.
Family size - Solo flats compared to three-bedroom family villas
Family packs of crisps compared to single packets
Lifestyle - Goods for those who like to exercise and live a healthly/sporty lifestyle
Those who enjoy the outdoors lifestyle.
Describe market research
Market research is the gathering, recording and analysing of information about the possibe market for a good or service.
outline what needs to be found out using market research.
if there is a gap in the market
Exactly what the customer wants or needs in the product eg special features
what customers like or dislike about our product.
what effect a price change would have
the type pf advertising which might be beneficial to our business
if new competitors are entering the market
what our competitors are doing
What the current trends/fashion changes are.
identify the two types of market research.
Field research and Desk research
Describe Field research
Field research involves finding out information first hand Primary information directly from the public/consumer
outline the advantages of field research
information is gathered specfic to your purpose
Information is up-to-date
outline the disadvantages of field research
It is more expensive to gather compared to desk research.
It is more time consuming to gather compared to desk research.
People may not always give truthful answers in response to questions
describe the methods of field research
Telephone survey are forms which contain a series of questions. They are designed to obtain answers to questions which will help gain peoples opinions.
consumer panel is when a group of people are gathered together and are given a product to look at. This allows initial reactions to be recorded. Their opinions are obtained on the design of the product, colour, shape etc and what they like and dislike about the product.
Personal interview is a face to face interview in the street or at home with a trained interviewer.
Test marketing is when the product is tried out on a small section of the market, in a limited area eg Aberdeen only.
describe desk research.
Desk research is when secondary information which is already available, either from inside the organisation or from outside.
outline the advantages of desk research
It is cheaper to access existing information rather than having to collect information from stratch.
It is less time consuming to gather compared to field research.
outline the disadvantages of desk research
Information may be out of date
Information is available to our competitors
Outline problems with market research
- The market research questions may have been worded badly
- People do not behave consistently or predicably
- The actual people doing the interviews may influence how people answer.
- People may not think too carefully about their answers, or may give any old answer.
Describe a brand
A brand is a company like Heinz or a product like Persil with a name symbol or a design which makes it instantly recognisable .
Outline the features of a brand
Brands have unique logos and packaging
Branded products are seen to be of high quality
Branded loyalty can be created
branded products are easily recognisable
Branded products help manufactures keep or increase their market share.
Branded products can be sold at a higher price or premium price than similar products because the quality of the product is usually higher and because these brands are heavily advertised, and customers are therefore more aware of the advantages claimed for these products.
Identify examples of brands
Kellogg’s nescafe Nike coca cola persil Heinz Cadbury
Outline the benefits of branding
1 higher prices can be charged for branded products
- Brands generate brand loyalty and mean greater sales
- brands are perceived to be of a higher quality
4 Brands are instantly recognisable
5 Brands generate repeat business
6 Brands reduce the need for advertising
7 Brands make it easier for a business to launch a new product under the same brand name as they are perceived to be of a high standard and reliable.
Describe own brands
Own brands are products which are sold under the name of a supermarket or other retailer, rather than under the name of the manufacturing firm
Outline the features of own brands
own brands are usally cheaper than branded products
own brands are usually seen as being of inferior quality
own brands appeal to the sector of the market to whom price is important
Identify the 4 stages of the product life cycle
introduction
growth
matority
decline
Describe the 4 stages of the product life cycle
the product is just launched onto the market and is making a loss for the business.
Growth sales are rapidly increasing the product is also becoming more known the product is beginning to make a profit.
Maturity sales are at their peak and profit levels are at their highest the producty is well established in the market competitours are introducting produce to compete with ours
Decline sales and profits are falling rapidly there are more rivial products on the market the product becomes out of date .
Outline the advantages of packagin
can protect during transportation/delivery
can increase the shelf life of the product particluallry for food items
can make the product for attraqtive and encourage customers to buy
can provide nutrtional information and health guidance
can inform the customer how to sucessfully use/install the product.
Outline the disadvantages of packaging
Distinctive packaging could be copied by won brands
pressure to use envirnmentally friendly packaging may lead to higher costs.
If Distinctive packaging is littered it could create a negative reputation eg starbucks cups on the street
Government legislation may force you to put certain information on packaging which highlights how unhealthy the product is eg traffic light indicators
