Marketing Flashcards
The 4 P’s of marketing
promotion
product
place
Price
Market research
This is the process of collecting, recording & analysing data about customers, competitors & the market
Why is market research used
To reduce the risks associated with a new product launches
To predict future demand changes
To explain sales patterns of existing products & market trends
To identify the most favoured designs, flavours, styles, promotions & packages for a product
exapmples of research objectives
How many people are likely to buy our products in Country X?
If we reduce our price, how many more units will we sell?
If we spend money on t.v. advertising, what will be the impact on our market share?
Why are consumer complaints increasing?
Primary research
Primary research (field research); the collection of first hand data that is directly related to a firm’s needs
secondary research
Secondary research (desk research); collection of data from second hand sources
What type of market research is done first
We tend to use secondary research first then ‘fill in the gaps’ with primary
Secondary research sources
Government publications
Local libraries & local government offices
Trade organisations
Market intelligence reports
Newspaper reports & specialist publications e.g. The Financial Times
Internal company records
The internet
Customer relationship marketing (CRM)
Definition: This means using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained
Want to keep existing customers
Involves gaining maximum info about customers & adapting the 4 P’s to meet their needs
What is a product
Anything capable of satisfying consumer needs
A good or service or a combination of the two
A bundle of tangible & intangible benefits
Tangible – the physical good e.g. chocolate, the packaging
Intangible – the feeling of well-being you get from eating the chocolate, quality, after sales service
Other intangibles – services, customer care, durability, branding, installation
definiton: Anything that is capable of satisfying customer needs
product life cycle
Product life cycle (PLC) is measured in SALES not years
PLC is defined as the pattern of sales recorded by a product from launch to withdrawal from the market
The PLC has several stages: development, introduction, growth, maturity, decline
Product life cycle explained
Development – product is not yet launched, negative cash flow
Introduction – product launched, sales are low to begin (there are exceptions)
Growth – sales should grow significantly. Positive cash flow. Cannot last forever.
Maturity/Saturation – sales do not grow but they do not decline either. Can last for years e.g. Coca Cola. For durable products (ones with reasonably long life e.g. car) market becomes saturated
Decline – sales will fall
Extension strategies
These are marketing plans to extend the maturity stage of the product before a brand new one is needed
E.g. developing new market for existing products
E.g. new uses for existing products
E.g. product re-launching
What is mass marketing
Mass marketing means selling the same products to the whole market with no attempt to target groups within it
what is niche marketing
Niche marketing means identifying and exploiting a small segment of a large market by developing products to suit it
With niche marketing, businesses look for a gap where there are fewer competitors.
