Management Of Marketing Flashcards
What is marketing?
- marketing is trying to meet the needs and wants of customers
- it does this by trying to find out what they want and providing it at a price they can afford and make a profit
Different Markets
- On a website
- In a shop
- Over the phone
- Through a computer
Why Is Marketing Important?
- can attract new customers
- allows the business to enter new markets (e.g. creating new website)
- can increase profits
Market Segmentation
- gender
- age
- occupation
- religious or cultural belief
- class
- location
- lifestyle
The Marketing Mix
- Price (how much money a business charges for their product)
- Product (the actual item produced)
- Place (where the business makes their product available)
- Promotion (how the customers are told the product exist)
Product Development
1) market research carried out
2) ideas are generated bases on research
3) prototype created
4) test marketing
5) changes are made
6) the method of production has been decided
7) the price, place and promotion is decided
Risks With Developing a new product
- customers might not want the product
- the money invested may be wasted
- the reputation may be damaged
- external factors
Product Lifecycle
- introduction
- growth
- maturity
- decline
Why Branding’s Important
- so the products recognisable
-encourages customer loyalty - higher prices can be charged as they’re associated with being higher quality
- new products can be introduced easily
When Deciding Price A Business Takes Into Account
- The product lifecylce
- competitors prices
- how much it costs to produce the product
- how much profit is wanted
- how much product can be supplied
- the market segmentation
Pricing Strategies
Low Price (lower than competitors)
High Price (to seem higher quality)
Promotional Pricing (lower for a short period)
Cost-Plus Pricing (the cost of making the product is calculated before a percentage is added on for profit)
Psychological Pricing (1.99 instead of 2)
Business Location Is Decided Based On Factors Such As
-where the customer base is
- availability of premises
- parking facilities
- suitable infrastructure
- government incentives and grants
- the market segment
- employee availability
- competition
- environmental impact
Distribution Methods
Road
Train
Air
Boat
ADVERTISING TYPES
Internet Websites
ADVANTAGES
- customers world wide can be targeted
- can buy 24/7
- discounts can be given
- stock availability can be checked instantly
- business doesn’t have to pay for premises
- 3D view of the product can be seen
DISADVANTAGES
- product can’t be seen or handled
- technical problems can occur
- can be expensive to make and maintain
- no personal contact
ADVERTISING TYPES
Apps
ADVANTAGES
- can use on the move
- can often use free wifi to access the internet
DISADVANTAGES
- need to own a smartphone
- the internet connection depends on location
