marketing Flashcards
- what are the methods businesses will use for primary research
questionares
interviews trails focus groups
- advantages of questionaires
they are cheaper than interviews tp collect data
they can easily target particular consumers, for example, a questionaire sent with a gaurantee for a product
- disadvantages of questionaires
it is difficult to predict how many completed questionaires will be available
the people filling in the forms may not understand the questions being asked
- advantages of interviews
the interviewer can explain questions if there is a misunderstanding
customers can be targeted easily , for example, picking out certain age groups on a street to interview
- disadvantages of interviews
they can be expensive because an interviewer has to be paid
customers may feel uncomfortable being interviewed whether it is being stopped in the street or on the phone
- advantages of trails
as trails are conducted in a small area a business may save money by having a trail for a product or service, just in case it finds out that customers don’t want what the business has for sale
- disadvantages of trails
trails are still costly to set up, the area chosen must fully reflect the target market of the business if not then money will be wasted. the business may conduct a trail and only find out what they first thought
- advantages of focus groups
because focus groups are chosen to represent the target market for a business. the data from them is usually very accurate and can be relied upon to make important decisions.
- disadvantages of focus groups
focus groups, though carefully chosen, are still small groups which makes the collection of data from them more expensive per person than interviews and questionnaires. the selection of people to take part in a focus group is time consuming and so costly
- advantages of secondary research
as the research has already been completed by another organisation secondary research is usually much cheaper to collect
a wide range of data is readily available, especially with the growth of the internet
- disadvantages of secondary research
the research information might be exactly what a business wants. remember that someone else has completed the research, unless it is internal data
the data may not be up to date. there are possible problems for a business that makes decisions based on outdated market research the data might not be in a form that the business can analyse easily. only by designing its own research can a business be sure that it is in the form it requires
- what are the methods of pricing used buy business
competitor pricing
cost plus pricing penetration priticing skimming promotional pricing
- what are the 4 steps of the product life cycle
induction
growth maturity decline
- what is the induction stage
when the product is launched or first put on sale. when the product is launched a business may advertise it in a number of ways, in order to make sure that it gets off to a successful start.
- what is the growth stage
this is the second stage. the sales show the most rapid growth here. advertising and other promotion support change slightly as the product will be generally known to customers
- what is the maturity stage
sales are towards their highest, but most importantly the rate of growth is slowing down. it may be necessary to support the product with further advertising and offers at this time to maintain sales against competition.
- what is the decline stage
this is the final stage of the cycle. here sales are falling and though the product may be given some support in the form of further special promotional offers, customers see the product as old and switch to those of competitors or a newer replacement. it is at this stage that a successful business will have already developed a new product to replace the one that is in decline
- how to extend the product life cycle
advertising the product more widely is often used to mountain sales. this may simply be a business claiming the product or service is new and improved, or by putting it in more modern packaging
reduce the price will make the product more attractive to consumers and so help maintain sales business may try and sell its product to a different target market
methods by which market can be segmented
age gender income location lifestyle
product in marketing mix
image and design
invention, design and innovation
place in marketing mix
how the business gets the product to the consumer
the place where a product is sold
promotion in the marketing mix
to inform customer about a product or service
to keep a business ahead of its competitors
to create or change the image of a business. its product and services
to maintain or increase sales
methods of promotion
price reductions
competitions
free samples
