Management of marketing Flashcards
what is field research
is when new information is gathered for example from interviews, surveys and observations. Gathers primary information.
What is desk resaerch
looking at existing information such as books, internet and newspapers. Gathers Secondary information
Advantages of field research
Researchers has gathered new information and is therefore more up-to-date than existing information
The information has been gathered for specific purpose and is therefor more relevant to the businesses needs
disadvantages of field research
It can take a long time to carry out field research which could stop decisions being made quickly
People need to be trained to carry out field research which can be expensive
Advantages of desk research
It is usually cheaper to gather than field research, which saves the organisation money
Decisions can be made quickly because the information already exists.
disadvantages of desk research
the information might be biased, which can lead to wrong incomplete decisions being made.
The research might have been carried out a long time ago and therefore the information is not relevant to todays business environment.
Description of surveys/Questionnaire
Involves specific information being asked to respondents.
Advantages of Surveys and questionnaire
Response for telephone survey is immediate.
A large number of people can be surveyed
Disadvantages of Surveys and questionnaire
Many people do not like telephone surveys - respondents can be quite hostile.
questions must be simple and easy to answer
Description of Test marketing
Launching a product in one region. The product will be launched to the whole country if result from the test market is positive.
Advantages of Test Marketing
Customers can indicate area about the product they dislike
If the product fails in the test area the expensive of national launch is saved
Disadvantages of test marketing
Customers in the test area may have tastes that are only specific to that area and are not a representation of the whole country.
Description of face to face interviews
Face to face interviews which can be held in the street or at the respondents home
Advantages of personal interviews
Allows for two way interview
Misunderstandings can be quickly cleared up
disadvantages of personal interviews
Home Interviews can be unpopular with respondents
Product…
A product is a good or a service sold to a customer or a business. Customers buy the products to meet their needs.
Stages of Product development:
Market research is done to find out the needs of the customers.
Ideas of the product are made based on the information from market research.
A prototype is Made
Market testing done so that the customers are able to try out and give feedback about the product
changes may be made due to the feedback from test marketing
Method of production has to be decided
Price to be charged has to be decided
Method of promotion has to be decided,
The place the product will be sold has to be decided.
Development Stage
The product life-cycle
Cost in developing the product may be high. There are no sales
Introduction Stage
The Product life cycle
The product is launched onto the market. Advertising cost will be very high
Growth stage
The Product life cycle
Sales start to rise
More customers are aware of the product
Maturity Stage
The Product Life Cycle
Sales at their peak. Advertising can be reduces as more know about the product
Decline Stage
The Product life cycle
Sales start to decrease
Product may be withdrawn from the market
Factors to consider when setting the price of the product.
Life Cycle of the product Price charged by competitors How much it costs to make the product how much profit is wanted how much of the product can be supplied the market segment that the product is focused towards
High Price Strategy
The price charged is higher than the competitors
The product will be purchased by customers because they think it is of a high quality than competitors
Low price strategy
The price charged is lower than competitors.
Competitive Pricing Strategy
Organisations set similar prices for similar products. This prevents price wars. Customers will have similar prices offered by all the business.
Where can products be sold
Through retailers such as John Lewis
Wholesalers who buy in bulk from manufacturer and sell to retailers.For example, Costco, Makro, Booker
Direct to the customer through personal selling, mail order or the internet.
Advantages of Road Transport
Often cheaper than other methods
Can be a fast method of delivery
Customers receive their products right to their door.
Disadvantages of Road Transport
Difficult to deliver large items
Not as environmentally friendly as other methods
Advantages of train transport
Large Products can be transported
Large Quantities can be transported
Disadvantage of Train Transport
Not a door to door service
Advantages of Aircraft
Products can be transported across the world more quickly than sea
Large amounts of small products can be transported
Disadvantages of aircraft
Not a door-to-door service
Large items cannot be transported
Advantages of Ship/#
Larger Products can be transported
Products can be transported across the world
Disadvantages of Ship/Boat
It is time consuming to transport products across the world
Not a door-to-door service
