marketing Flashcards
two types of market research?
desk and feild
methods of desk research?
books
articles
internet
what are some examples of field research?
surveys
hall test
focus group
face to face
define field research?
Field research is information that is first-hand information. It has been collected by the business for a specific purpose.
what is good and bad about field research?
benefits:
Only firm that collects data has access to it
Collected for a specific purpose
costs:
Expensive to collect
Time consuming
what are the advantages and disadvantages of a face to face interview? (field)
benefits:
- Two-way communication
- Researcher can encourage respondent to answer
- Mistakes and misunderstandings can be cleared up right away
costs:
- Personal interviews can be expensive
- Researchers have to be selected and trained
- Home interviews unpopular with consumers
what are the advantages and disadvantages of a postal survey?(field research)
benefits:
- Inexpensive
- No interviewer training needed
costs:
- Questions must be simple and easy to answer
- Response rate very low, incentives sometimes needed
what are the advantages and disadvantages of a focus group? (field）
benefits:
Qualitative information provided in the form of opinions, feelings and attitudes
Topics can be explored in some depth
costs:
Can be difficult to analyse qualitative information
Expensive
advantage and disadvantage of a hall test? (field)
Qualitative information provided in the form of tasting or demonstrations
Respondents may be too positive as they feel obliged to give favourable opinion
advantages and disadvantages of telephone interviews? (field)
Advantages-
Can reach a large geographical area
Inexpensive
Disadvantages -
Response rate may be low as people may view it as a “nuisance call”
what are the pros and cons of online surveys? (field)
advantages -
Large sample sizes
Inexpensive
disadvantages-
Limited to people with internet access
what are advantages of desk research?
Saves time
Relatively inexpensive
Widely available
disadvantages of desk research?
Not specifically gathered for the business
May be out of date
May contain bias
what is a product portfolio?
A product portfolio is the range of items sold by a business.
what are the costs of maintaining a large product portfolio?
- increased research and development costs due to multiple products being produced
- marketing and advertising costs may be high due to the promotion of a large range of products
- bad publicity incurred by one product may affect sales of all products within the portfolio
- resources may be spread too thin and this could affect the performance of existing cash cow products
what are the benefits of maintaining a large product portfolio?
- having different products can spread risk between markets. This mean there is less chance of a company making losses
having a range of products can lead to greater brand awareness - can encourage customer loyalty as customers are more likely to buy multiple products from the same brand
- easier to launch new products due to greater brand awareness
- can meet the needs to different market segments
- can allow for seasonal fluctuations
- allows for new products to replace products at the end of the product life cycle
- can increase profits from selling a range of different products
what is penetration pricing?
Penetration pricing is used to enter a new market. The price will be set lower than competitors to gain market share.
Once a product becomes established the price will increase to be more like the market price.
This strategy can be used to encourage customers to switch brands, although it does mean the company will not be making much profit during the initial launch of the product.
what is market skimming pricing?
In market skimming pricing a new product is launched at a high price. At this early stage those people who must have it will buy the product despite its price.
In this way a business is said to skim the cream from the top of the market, allowing the business to make a high profit.
Once the sales start to slow, the business will begin to lower the price so that more customers can afford their product.
This short term pricing strategy can only work when there are little or no competitors in the market.
what are the benefits of skimming?
sufficient hype around products allows a higher
be charged which can increase profits.
lack of competition can allow a maximum o to be charged)
what are the disadvantages of skimming?
high initial prices can put off some customers
method results in low initial sale numbers
What are the benefits of penetration pricing?
encourages customers to try out new products
the business hopes to gain repeat customers once the price increases
what are the disadvantages of penetration pricing?
very few profits can be generated during the low initial
price period.
could result in a price war if competitors set lower prices too.
how can social media benefit marketing?
Twitter, Facebook, Instagram and Snapchat can all be used to interact with customers. Products can be advertised at any time and they allow access to a wide range of customers. Social media allows customers to:
respond to adverts
ask questions to the company
what are the costs and benefits of a postal survey? (field research)
advantages:
inexpensive
No interviewer training is needed
disadvantages:
Questions must be simple and easy to answer
The response rate is very low, and incentives are sometimes needed
