Chapter 27 - Marketing Flashcards
What is a market?
A place where goods and services are bought and sold
Target market
All of the people who might buy a particular product or service
What are the four P’s of the marketing mix?
- Product
- Price
- Place
- Promotion
Explain the marketing mix factor ‘product’
Producing the right product that the customer needs and wants. It is also important that the packaging is attractive and contains all the necessary information
Explain the marketing mix factor ‘price’
Choosing the most suitable price to sell your product, taking into account certain factors. For example prices charged by competitors
Explain the marketing mix factor ‘place’
Choosing the best way to get your product to the customer. For example through the wholesalers or direct to the retailers?
Explain the marketing mix factor ‘promotion’
Making sure the customers know about the product or service. For example through ads, sponsorship and sales promotion
Market research
Involves collecting information about a product and its market and then using that information to make business decisions
Name two methods of collecting information for market research
- Desk research
* Field research
What are the methods of field research?
- Questionnaires
- Test marketing
- Direct observation
What is desk research?
Collecting information by looking up reports, newspaper reports and other documents available on the Internet, libraries or government agencies
What is field research?
Physically going out and asking members of the public questions in order to find the information you need
What are questionnaires and how do they work?
They contain questions about your product or service. They are given to members of the public to complete. Questionnaires may be sent online, sent by post, read out over telephone, or given directly to members of the public. They should be designed so they are clear and easy to understand
What is test marketing what is it used for?
Involves asking a small number of people to try out the product before the firms decide to invest in new equipment and expensive advertising campaign. It will reveal problems with the product. The problem can be solved before large quantities are produced
Explain direct observation
Finding out the information you need by watching people go about their day-to-day business. For example a researcher might watch what customer buys in supermarket
Marketing
Everything involved in getting a product or service from the producer to the consumer at a profit
What is advertising?
Communication of information about your product or service to the customer
What are the four types of advertising?
▫️Informative advertising
▫️Persuasive advertising
▫️Competitive advertising
▫️Generic advertising
Describe informative advertising
The purpose is to give information about something to the consumer. For example health warnings, forthcoming concerts, sales
Describe persuasive advertising
The purpose is to convince or persuade consumers that they need a certain product or service
Describe competitive advertising
The purpose is to make the consumer buy one certain brand over another. For examples persuading customers to fly with Aer Lingus instead of Ryanair
Describe generic advertising
An ad is put out by an industry rather than one particular firm. For example the National Dairy Council putting out ads is to encourage people to drink more milk but not minding which brand you buy
Name the different forms of advertising (advertising media)
📺 TV 📻 Radio 💻 Internet 📰 Newspapers 📖 Magazines
Sales promotion
All ideas, other than advertising, used by a firm to try to increase the sales of a particular product or service
What are the most popular types of sales promotion?
- Free gifts
- Special introductory price
- Competitions
- Money-off coupons
- Piggyback selling
- Two for the price of one
What is branding?
About getting your target market to see your product that meets their needs and wants better then any other brand
What is a brand name?
A name used by a business on all their products so the consumer knows that they are from the same manufacturer
Sponsorship
Where a firm pays money to have their name or their products associated with a major event or a famous person
Merchandising
Any methods used to display products in a shop in order to generate interest in the product and encourage consumers to make a purchase
