Marketing Flashcards
What is a Marketing Department for ?
A Marketing Department is responsible for the market research of new products, promotions, distribution, pricing and sales.
What does a Marketing Department consist of?
A Marketing Department consists of:
1) A Sales Team
2) A Market Research Team
3) Promotion
4) Distribution
What is the role of marketing ?
1) Identify the Customers needs
2) Satisfy the Customers needs
3) Maintain Customer needs
4) Gain information about customers to build long term relationships
5) Anticipate Changes in Customers Needs
If the Marketing Department is successful ?
The Business will: Increase Revenue and Profit, Increase Market Share, Develop New Products, Raise Customer Awareness, Enter New Markets
Why do Consumer Spending Patterns Change ?
1) New Trends Emerge
2) New Technology
3) Change in Incomes
4) Ageing Populations
Why do Markets become more competitive?
1) Globalisation- More Products sold worldwide
2) Transport Improvements
3) Internet / E- Commerce
How can Businesses respond to changing Spending Patterns and Increased Competition?
1) Maintain Good Customer Relationships
2) Keep Improving Existing Products
3) Bring Out New Products to keep customers interest
4) Keep Costs Low to Maintain Competitiveness
What is a Mass Market ?
A Mass Market is where there are very large number of sales for a product (eg shoes)
What are Advantages of a Mass Market ?
1) Total Sales are Very High
2) Benefit from Economies of Scale
3) Risks can be Spread across products
4) Due to High Sales, there is opportunity for growth
What are Disadvantages of Mass Market ?
1) There is High Competition
2) High Advertising Costs
3) Standardised Products and Services
What are Niche Markets ?
Niche Markets are small specialised segments of Larger Markets
What are Advantages of Niche Markets ?
1) Small Businesses can sell successfully
2) Needs of Customers can be closely focused on
What are Disadvantages of Niche Markets ?
1) Relatively Small so limited sales potential
2) Often specialised in just one product so risks not spread
What is Market Segmentation?
When a Market is broken down into sub groups which share similar characteristics
What are Advantages of Market Segmentation ?
1) Make Marketing Expenditure Effective
2) Higher Sales and Profit
3) Identifying Segments not fully met, and meeting them to increase Sales
What are ways of Segmenting Markets ?
1) SocioEconomic Group ( Income )
2) Age
3) Region
4) Lifestyles
5) By Use of the Product
What are Benefits of Segmenting to Businesses ?
1) Can Make Different Brands aimed at Different Segments
2) Can Identify Segments whose needs are not fully met, and meet them
( Both increase Sales )
What do Segments Influence ?
Segments influence how products are packed and advertised, and where they are sold.
What Method of Segmentation should be Used ?
1) Detailed Analysis of the Market
2) Company and Brand Image
3) Cost of entering each segment
What is Market Research For ?
To Find Out Would, What and at what price would customers buy the product.
What is Product Oriented ?
The Main Focus is on the Product.
What is Market Oriented?
Market Research is carried out to find out what consumers want.
What is Primary Research ?
Primary Research is when you collect Data by Yourself.
What are Benefits of Primary Research ?
1) It is up to date and relevant to the Business undertaking it
2) It is First Hand
3) It is most effective to gather information to solve a problem
4) It is Not Available to other Businesses
