Management of Marketing - Unit 2 Flashcards
What is a Product-led business?
- A company that produces a product because they think that they are good at providing it
- little or no market research conducted as the needs and wants of the customer are not important
- the market have little or no competition (Apple)
What is a Market-led business?
- A company that produces products based on what the customer wants.
- Customers wants and needs are identified through market research
- The market have significant competition
What are the methods of Sampling a business may choose to use for research?
Random Sampling - Selecting groups of consumers at random
Quota Sampling - Selecting groups that meet certain criteria
Systematic Sampling - selecting a section of the population at random and then deciding the number to be sampled
Convenience Sampling - Taking a response from anyone willing to take part in the survey
What are the 2 main types of Research?
- Field Research - Gathering first hand information by finding it yourself.
- Desk Research - Finding information from existing sources, secondary information
What are examples of Field Research Methods?
- Personal Interview
- Technology Survey
- Consumer Focus Group
- Hall Test
- Observation
What are examples of Desk Research Methods?
- Government data/statistics
- Printed media, e.g. books, journals
- Online research
What are the 6 stages of a Products life cycle?
Development - Research, Tests
Introduction - Launch to market
Growth - Sales begin to grow
Maturity - Sales level out
Saturation - No further growth
Decline - Sales start to fall
What are the 7 p’s of the Marketing Mix
Product
Price
Place
Promotion
Physical
People
Process
What are the 4 categories of the Boston Matrix and what do they mean?
Cash Cows - Products with low growth but a high market share, e.g Apple Iphone
Dogs - Products with Low growth and a low market share, may be worth discontinuing.
Question Marks - a product with a high growth but low market share, they have the potential to be great.
Stars- Products with a high market growth and a high market share
What is Cost Plus Pricing?
This is based on how much the product costs to produce. then the manufacturer decides how much they want to make profit. This is usually a percentage of the cost.
What is Price Skimming?
This is when a high price is initially charged for a product and as competition increases the price falls in line with competitors. For example Video Games.
What is Penetration Pricing?
This is when a low price is set initially for a product in order to attract customers. Once the product becomes popular the price can be raised in line with competitors.
What is Price Discrimination?
This is when different prices are charged to different groups of customers or at different times of the day/month/year.
What is Destroyer Pricing?
This is when a low price is set with the aim of destroying the competition. Once the competition has been destroyed the business can then raise the price again. For example, Poundland.
What is Loss Leader Pricing?
This is when a range of products are advertised at a low, unprofitable price to encourage customers into the shop. Whilst in the shop customers will often purchase other full priced products so a profit will therefore be made.
