Chapter 8: Marketing Tools Flashcards
How is good information sourced for sales?
Through market research techniques.
What are the 3 kinds of market research?
Desk Research, Field Research and Test Markets.
What is desk research?
Research using info that has already been collected either by an internal or external source. Data is warehoused for later use and analysis and then ‘mined’ to find useful trends.
What is internal and external data and how do they vary?
Internal data comes from sources within the company like the accounting team or data from data warehouses and data mining. External data comes from third parties like the government, ONS or consultancy firms specializing in market research. External data normally has to be purchased from the owner.
What is field research?
Conducting evidence in the field (outside of office) through data collection techniques like interviews or questionnaires. Products can be sent to product testers for review and feedback prior to entering any kind of market.
What are test markets?
Before a new product is globally launched the company may release it into a local market to test the reaction of a smaller group to it. These markets need to be small, accurate of the larger population with little fluctuation (no tourism towns etc.)
What are the 3 types of marketing? [Explain each]
[1] Business to Consumer: Tactics change based on the demographic of the customer, customers are susceptible to promotional messages and high markups on smaller home use items.
[2] Business to Business: Expert buyers who want large discounts for large quantities. Quality if important and bigger sales mean sales people give the contract more of their time.
[3] Business to Government: Huge orders at very low but profitable rates, has specialist negotiators and a very slow process due to the budget being taxpayer money.
How does marketing products differ from marketing services?
Marketing products relies on: Heterogeneity (consistent identical products - services more bespoke), Less Perishability (Schedule means service times without customers make 0 whilst products can wait to sell longer), Intangibility (Products are tangible and services are often harder to value), Simultaneity (Manufacturing is broken down but services are delivered simultaneously meaning planning is important), No ownership transfer (Buying products gains ownership, services does not just an experience).
What is marketing services reliant on?
Reputation, Satisfaction Surveys and Availability.
What is relationship marketing?
Marketing with a focus on customer satisfaction, retention and loyalty over quantity of short run transactions. Done by tracking preferences with techniques like cookies online.
What is experiential/engagement marketing?
Inviting a customer to engage in the development of a product or brand to improve the brands reputation. Inclusive of many community led programs.
What is a brand?
A unique logo, symbol or design that serves to differentiate a product in the market. Over time they become associated with desirable attributes like quality or status.
What is brand equity?
The value on top of a generic product that a brand adds or takes away from the product.
What are the 5 stages of a product life cycle? [Image Needed]
Introduction: Gain initial indication of likely success.
Growth: Copycats join so you have to stay ahead and grow.
Maturity: High profit but now so popular people want bulk discounts creating price pressure.
Decline: Loss of sales that cant be remedied with a worthwhile low investment.
Senility: Need to diversify or leave the market so you don’t monopolize the now failing market.
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What are the cost stages of a product life cycle?
Initial Costs: Before production starts
Operating Costs: During Production
Disposal Costs: After Production.
Profit: Revenue - Total Costs.
