Business: Unit 3-Marketing Flashcards
customer
a business or person which buys goods or services from a business
customer loyalty
when customers continually buy from a business
customer relationships
communicating with customers to encourage them to become loyal to the business
marketing
identifying customer wants and satisfying them profitably
role of marketing
- identify customer needs
- satisfy customer needs
- maintain customer loyalty
- customer relationships
- gain info about customers
- anticipate changes in cutomer needs
why do we use marketing(benefits to the business)(5)
- raise customer awareness of product/service
- increase market share
- increase revenue and profitability
- develop new products/improve existing ones
- enter new markets
what drives change in consumer spending patterns (4)
- population characteristics
- technology
- consumer tastes in fashion
- income
for a business to stay competitive, it must (4)
- maintain good customer relationships
- keep improving existing product
- bring out new products
- keep costs low to mantain competitiveness
market(who is it made up of)
made up of total number of customers and potential customers and sellers for that particular good/service
mass market
a very large numbe of sales of a product
niche market
a small, specialised segment of a much larger market
market segment
an identifiable sub-group of a whole market in which consumers have similar characteristics of preferances
market segmentation(6)
age gender lifestyle use of product religion income
primary research(3 +, 2-)
information the firm itself has made that is related directly to the preson/company being researched
e.g: questionnaires, interviews, samples
+detailed information
+inexpensive
+detailed answer
- can take lots of time
- interviewer might influence interviewee
secondary research(2 +, 3-) and 2 subgroups
information that has already been collected and is available to others
internal sources: within firms own sources
external sources: outside the business
+cheaper
+some info can’t be obtained from primary research
- broad results
- data might be outdated or innacurate
- might not have the info youre looking for
new product cycle (6 steps)
- generate ideas
- select best ideas
- decide if company will be able to sell enough
- develop prototype
- launch prototype in one area
- go to full launch
new product(4 +, 4-)
+unique selling point
+diversification
+expand into new markets
+expand into existing market
- costs of market research
- costs of trial products
- lack of sales if target market is wrong
- potential loss of company image
unique selling point
special feature of a product that differenciates it
brand name
unique name of a product
brand loyalty
consumers keep buying the same brand again and again withoout choosing a competitor’s brand
brand image
image or identity given to a product which gives it a personality of its own and distinguishes it from competitor’s brands
product life cycle(6)
development introduction growth maturity saturation decline
5 types of pricing and definition
cost plus-cost of manufacturing+profit competitive-price justbelow competitors penetration-price lower than competitors price skimming- high price for new products promotion-very low price
price elasticity
measurement of how responsive the market is when there is a change of price in a product
price-elastic demand
the percentage of loss is greater than the percentage of increase in price
price-inelastic demand
the percentage of loss is smaller than the percentage of increase in price
producer—> consumer
+simple
+lower price for customer
- impractical(consumers don’t live near factories)
- not good for products that can’t be sent by post
producer–>retailer–> consumer
+producer can sell large quantities
+reduced distribution costs
- no direct contact wiht costumers
- price is higher
producer–>wholesaler–>retailer–>consumer
+using a wholesaler saves storage space
+small retails can purchase fresh products in small quantities
+wholesaler can give advice to retailer
- may be expansive for a small shop
- takes longer for fresh produce to reach shops
- wholesaler may be far from shop
- consumer price is higher
producer–>agent–>wholesaler–>retailer–>consumer
+manufacturer can be helped by agent to sell in other markets
+agents are aware of local conditions->they can select the best place to sell in
-producer has less control over the way the product is sold to customers
promotion
publicizing a product/brand to increase customer awareness or increase sales
aims of promotion
create a brand image introduce a new product into a market increase competition improve a company's image increase sales
advertisement
informative advertisement: propotion focuses on giving information about a product
persuasive advertisement: promotion focuses on convincing the customer that really need the product
target audience
people who are potential buyers of a product/service
advertising process(5 steps)
- set objectives
- decide advertiement budget
- create advertisement budget
- select the media to use
- evaluate effectiveness of campaign
advertising media
television, radio, newspaper, magazines, billboards, cinema/DVD, leaflets
sales promotion
using incentives to increase sales
-sales, gifts, free samples
e-commerce
when you buy or sell goods/services on the internet
advantages/disadvantages of e-commerce to a business
+ low cost promotion
+everything can be automated
+businesses can buy from other businesses
- competition is very high
- website design has to be attractive & easy to use
- transport costs are giher
- no direct contact with customers
advantages/disadvantages of e-commerce to consumers
+competition makes prices cheaper
+don’t need to leave the house to buy products
+payment is very easy
+easy to compare prices
- need access to internet
- slow servers can frustrate customers
- products can’t be seen or touched
