management of marketing Flashcards
5 ways a business uses marketing segmentation
age - consumers dived into groups based on there age
gender - consumers are grouped together based on gender
income level - consumers are grouped together based on how much disposable income they have
lifestyle- consumers who have a particular lifestyle
religion - consumers grouped based on there beliefs
benefits of target marketing
- products/services will be better suited to the targets needs and wants leading to costumer satisfaction
- business will choose appropriate pricing that appeals to there target leading to increase in sales
- business will sell their products in appropriate places were the target market shops leading to increase in sales
-there’s a decrease chance in product failure leading to less reductions in wasted investment
what does market segmentation mean?
grouping potential costumers together by common characteristics
what are the different types of market research (explain)
field research - involves business gathering new information themselves
desk research- involves the use of pre existing data that has been gathered by someone else
3 methods of field research
online survey
face to face interview
telephone interview
hall test (test product)
3 advantages of field research
-data collected is brand new
- data is not available to competitors
-the research is tailored to specific requirements
2 disadvantage of field research
- it can be expensive type of research compared to desk
- it can be time consuming
methods of desk research
government reports and statistics
newspaper
website
advantages of desk research (3)
-inexpensive way to gather data
-it is quick compared to field research
-large of amount of data and information are available
3 disadvantage of desk research
-the data gathered could be out of date
-the same information is also available to competitors
-the information might be bias
6 stages of development for products
market research - consumers needs and wants
idea - generated from the data collected
prototype - a basic model which shows the product
production - final product
changes - make changes based in tests or feedback
test -giving consumers a basic model of the product
4 stages of the product life style
introduction
growth
maturity
decline
advantages of brandi b
customer see branded good being good quality
costumers will become brand loyal
costumers will be willing to pay a higher price
costs and risks of launching a new products is reduced
disadvantage of branding
- establishing a brand can be expensive
- the entire brand
could be damaged by one poor product - branding good makes them easy to be copied
factors to be considered when setting a price
- the business needs to make sure the price is higher then the cost of making it
- the amount of profit to be made
- business needs to consider weather to price mach competitors or choice a different strategy
-the quality of the product
- the process the target market will pay
- government restrictions on pricing
factors for business location
- the type of business it is and what’s a suitable location for it
- location of competitors
-cost of premises
-availability for enough people to employ
-transit links (easy access to travel)
-
methods of distribution
road
ad - cheap method of transport
dis-large products difficult transport
rail
ad- large volume of products transferred
dis- stations not always close to businesses
sea
ad- can transfer large volumes in containers ships
dis- very slow/time consuming
air
ad- quickest way to transfer goods in worldwide destinations
dis- expensive
methods of traditional advertising
tv : ad- can reach worldwide audience and demonstration can be shown
dis- very expensive and viewers may avoid watching
newspaper: ad- consumers can be targeted from specific newspapers and consumers can cut adverts to keep for future references
dis - limited to only text abd images and newspaper contain many adverts
billboard: ad- consumers will see adverts repeatedly and usually place. in busy areas
dis- can only contain small amounts of information and be vandalised or danger by weather
cinema: ad- advanced sound and screen tech and a captive audience
dis- some consumer arrive late to avoid adverts abd only a small number of people see at one time
methods of digital advertising
sms texts: ad- cost effective as it can be sent to many people and consumers received text immediately
dis- consumers will become annoyed and sms can only contain limited information
internet adverts: ad- can reach a global audience and can target specific market segments
dis- consumer will ignore the adverts and become difficult to stand out
promotion strategies
special offers contain:
free samples- test out
free gift -consumer given a gift
loyalty scheme-involves collecting stamps
competition- consumer is entered to draw to win prizes
celeb endorse- involves using a famous well liked perosn to promote
to be ethical in marketing a business should:
-not mislead consumer by making false claims on products
-make sure adverts don’t offend consumers
- make sure adverts comply with legislation regarding promotion of products
