Marketing Flashcards
Methods of Field Research
Costs and benefits of Questionnaires/ Surveys
Benefits:
Relatively cheap
People in large geographical area can be targeted
Costs:
Not always a high response level
Clarification can’t always be gained so some questions may be skipped
Methods of Field Research
Costs and benefits of Personal Interviews
Benefits:
Clarification can happen if questions are not understood
Information is obtained instantly
Costs:
Time-consuming method and expensive as interviewers need to be paid
Analysis will need to be done manually and can take a long time
Methods of Field Research
Costs and benefits of Hall Tests
Benefits:
Diverse groups can be asked
First Hand information
Costs:
People may feel they need to give positive feedback
Can be expensive to make changes to the product
Methods of Field Research
Costs and benefits of Focus Groups
Benefits: First hand information is gathered Lots of opinions will be gathered Costs: People may feel they can’t disagree so false information can be gathered
Methods of Desk Research
Costs and benefits of Written
Benefits: Can be kept for future reference More accurate than relying on memory Costs: Unable to obtain clarification Must be literate
Methods of Desk Research
Costs and benefits of Oral
Benefits: Instant response and clarification Costs: No evidence if not recorded Information can be misinterpreted or misheard
Methods of Desk Research
Costs and Benefits of Pictorial
Benefits: Information is attractive More easily understood Costs: Not suited to all information
Methods of Desk Research
Costs and benefits of Graphical
Benefits:
Comparisons can be made easily and presented clearly
Costs:
Requires skills to create graphs
Information needs to be understood for graph to be valuable
Methods of Desk Research
Costs and benefits of Numerical
Benefits: Clear information Comparisons can be made easily Costs: Requires numeracy skills May not have much meaning if not explained properly
Costs of a Product Portfolio
Costs of promoting and advertising different products to different segments will be expensive
If one product has a bad reputation this may have an impact on the rest of the portfolio
R&D costs can be high to maintain the success of a variety of products
Staff may require training on the different products which is time-consuming and expensive
Benefits of a Product Portfolio
To spread the risk of failure- If sales of one product decline, another could be growing
The chances of success with a new product are enhanced because loyal customers will be happy to try it
Appealing to more than one customer segment should increase customer sales
To cope with products that have seasonal demand
Pricing strategies
Skimming:
The price is set high to begin with and lowers over time
Short-term strategy
Pricing strategy
Penetration:
Price set low to begin with and increases over time
Used in a highly competitive market
Short-term strategy
Advantages of skimming
Lack of competition allows maximum prices to be charged
Higher return on investment
It segments the market
Disadvantages of skimming
Price skimming attracts competitors
You may end up with excess inventory if skimming fails
