Marketing Flashcards
What is marketing
The process of indentifying and satisfying customer needs profitably
Ways of meeting customer needs
Suggestion box
Questionnaire
Focus groups
Complaints
What is market segmentation
Segmentation occurs when a market is divided into different groups of needs and wants.
Types of segmentation
Gender
Age
Location
Income
What is market research
The process of gathering, analysing and processing fata relevant to market decisions
What is the purpose of market research
Without information on their products, their markets and their competitors a business will be taking major risks and face a lot of unknown
What does market research gather information
Demand
Market share
Competition
Target market
What is a quantitative data
Involves using numbers such as the size of the market, the growth of a market or number of customer
What is qualitative data
Involves views and opinion but does not provide statistically reliable information. Eg talking to a small group of people. It focuses on why people do things
What is primary market research
Use data gathered for the first time
What is secondary market research
Uses data that has been gathered already
Advantages of secondary market research
It can be gathered quickly and cheaply
It can provide information on large section of the population
Disadvantages of secondary market research
The existing data may not be exactly what the business wants
What is product differentiation?
Making your products distinct from competitors and achieve a unique selling point
4 p’s of marketing mix
Price
Place
Promotion
Product
4 factors that influence a firms pricing decisions
Costs
Product lifecycle - firms may charge higher at the launch of a product
Nature of the product - whether it it luxury or hard to differentiate it
Degree of competition
What is price skimming
A pricing method where a business sets a relatively high initial price and then gradually lower it over time
What is price penetration
Where a business tries to incease market share by offering a low initial price
What are loss leaders
Products that are sold by a business at a price where the business makes a loss to attract new customers
Disadvantage of price penetration
Lower short-term profits
Disadvantage of price-skimming
Slows unit sale growth
What is competitive pricing
When a business sets its prices for its products and services based on what other firms are charging
What is cost-plus pricing
Pricing strategy where a business charges the customer based on what it costs to produce it
What is the design mix
Cost
Function
Aesthetics
What is the product life cycle
A series of stages that a product goes through over its lifetime.
Research and developmeng
The before a product has actually been made
Businesses will invest in researching a certain area of the market to discover opportunities
Introduction stage
Where a business a introduces or launches the new product to the market. Marketing and advertising are important in this stage
Growth stage
Sucessfull products often undergo a period of growth as more and more customers buy the product
Maturity stage
The of new customers buying the product has slowed down
Saturation stage
The sale of the product have reached its peak and no longer increase but remain steady
Decline stage
Changes in fashion, consumer preference, technological advances and new competiton can all cause the decline of a product
What is an extension strategy
Try to prevent a product from reaching the stage where sales start to decline
Examples of extension strategies
Rebranding or repackaging
Advertising
New feature
Change target market
What is a product portfolio
A full range of products and services that a company offers
What is the Boston Matrix
A way for firms to analyse their product portfolios. It organises products into 4 categories based on market share and market growth
What is a star in the boston matrix?
Products in a portfolio that have a high a market share in a fast growing
What are cash cows in the Boston Matrix
Products with a high market share in a slow growing market
What is a problem child in the Boston matrix
Low market share in a fast growing market
What are dogs in the Boston Matrix
Low market share in a slow growing market
How do businesses use the Boston matrix
Help allocate investments so the portfolio is diversified
Examples of promotional methods
Sponsorship Public relations Advertising Product placements Sales promotion Social media
What is public relations
PR is all about a business’ reputation. PR involves maintaining a good public image
What is the aim of public relations
To make sure the information spread by the company is as positive as possible
Types of sales promotions
Point of sale displays Samples Competition Value for money Free gifts Discount coupons
What is a sponsorship
Paying athletes, celebrities or other organisations for them to advertise for a business
How can firms use social media for promotion
Can use it for paid advertisements as well as creating their own pages to share content
What is product placement
When products are clearly fewture in comercial Tv or films
What is the promotionsl mix
Combination of different promotional methods that a business uses
Factors that influence the promotional mix
Target market Nature of product or service Nature of market Competitor actions Finance available
What is a distribution channel
Describes how the ownership of a prodcut passes from the producer to final customer
What is a wholesaler
Buy in large communities from producer and sell to retailers
What is an intermediaries
In between producer and consumer
Producer -> consumer advantages
Producer keeps all the profit
Full control of marketing mix
Direct feedback
Charge lower price - increased demand
Producer -> consumer cons
Responsible for storage, promotion and delivery
Lower sales
Pros of producer -> retailer -> consumer
Way to overcome marketing cost and more reacg
Cons of producer -> retailer -> consumer
Won’t recieve full price
Producer - wholsaler - retailler - consumer pros
Lower distribution and logistics costs
Lower marketing costs
