Deck 1 Flashcards
What is a target market?
The type of pepole that buy the product
Benefits of identifying your target market
- Helps you provide the right products
- Helps you set the right prices
- Helps you choose the best advertising media and advertising content
- Helps ensure that your market research is carried out with the right type of people.
Market research
is the process of collecting and analysing data about the market, who operates within the market and the customers within the market.
Primary research
means obtaining new information:
E.g. survey, focus group or observation
Secondary research
means using existing information: e.g. data about the whole market or about competitors.
Marketing mix
The elements of a business’s marketing that are designed to meet the needs of its customers.
The four elements are often called the 4p’s – product, price, promotion and place.
Product in the marketing mix
Product means the goods and services that a business provides for its customers. Packaging is an important part of ‘product’.
Product life cycle
shows the stages through which a product passes through over time and the level of sales at each stage.
Extension strategies
Extension strategies are ways in which a business prevents a product’s sales from declining.
Product differentiation
is used by businesses to make their products different from other products they sell and different from those offered by competitors.
Brand
a named product which customers see as being different from other products.
Own brand
product which is sold under the brand name of a supermarket chain or other retailer, rather than that of the manufacturer of the product. Own brands are usually cheaper than branded products.
Cost based pricing
means adding a percentage profit margin to the cost of supplying a good or service.
Competition based pricing
setting a price based on the prices charged by competitors for similar products.
Price discrimination
means charging different prices for the same product to different groups of consumers.
