Marketing Flashcards
Describe what a questionnaire is
A questionnaire involves asking people their opinions or their feedback through a series of questions. This is usually done online but it can be done by post, by telephone or by person.
Describe the advantages of a questionnaire
Relatively inexpensive method
People in large geographical areas can be targeted.
Describe the disadvantages of a questionnaire
Not always a high response level (phone/Post)
Clarification can’t always be given so questions may be skipped.
Describe what a personal interview is
A personal interview is when people meet face to face and a number of questions will be asked. Usually occurs between a manager and a potential employee. The information that is gathered will allow the manager to determine if the person is suited to the job.
Describe the advantages of a personal interview
Clarification can happen if questions are not understood.
Information is obtained instantly.
Describe the disadvantages of a personal interview
Time consuming method and expensive as interviewers need to be paid.
Analysis will need to be done manually and can take a long time.
Describe a hall test
A hall test involves a product being given out to customers to test, they then give feedback and their opinions on the product. Based on this, changes may need to occur before it is released.
Describe the advantages of a hall test
Diverse group can be asked.
First hand information.
Describe the disadvantages of a hall test
People may feel they need to give positive feedback.
Can be expensive to make changes to the product.
Describe a focus group
A focus group is when a group of people are asked for their views on a product/topic and a discussion will be generated. Used to observe peoples reactions and feelings towards something.
Describe the advantages of a focus group
First hand information is gathered.
Lots of opinions will be gathered.
Describe the disadvantages of a focus group
People may feel they can’t disagree so false information can be gathered.
Describe a product portfolio
A product portfolio refers to the different products an organisation may choose to sell.
This means that businesses sell more than one product.
This is the range of different products a business sells, usually under the same brand name.
The business could also decide to move into very different product ranges.
Describe a product line portfolio
A product line is a group of products that are closely related.
Different products within a product line will appear ton different market segments.
A product portfolio is the sum of all the various product lines and organisation produces.
Describe a diversified product portfolio
This is where a business sells a mix of unrelated products.
But some businesses have both a product line and a diversified product portfolio.
Describe the benefits of having 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 which have seasonal demands e.g., Christmas decorations.
Describe the disadvantages of having a product portfolio
Cost of promoting and advertising lots of different products to different segments will be expensive.
If one product receives a bad reputation, this can have an impact on the rest of the portfolio.
Research and development 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.
Describe the skimming pricing strategy
Skimming is when the price is set high to begin with and lowers over time.
Short term strategy.
Lack of competition allows maximum prices to be charged.
Describe advantages of the skimming pricing strategy
Provides higher up-front sales figures to cover research and development costs.
Creates the perception of a high quality product.
You can create a higher end brand image and increased customer loyalty.
Describe the disadvantages of the skimming pricing strategy
Customers who bought the product earlier might get put of the business due to its price decrease of the product.
This pricing strategy does not work if you have competitors creating similar products to the business.
The quality of the product or service must justify the higher price or customers may complain.
Describe the penetration pricing strategy
Price set low to begin with and increase over time.
Short term strategy.
Used in highly competitive markets.
Encourages customers to try new products.
Describe the advantages of the penetration pricing strategy
Customers may be more interested in the product due to its lower pricing leading to an increase in sales.
Customers may become loyal to the business because the product is of good value and the quality of the product will hopefully keep them loyal once the price increases.
Describe the disadvantages of the penetration pricing strategy
If the quality of the product is poor, customers may stray once the price increases.
A potential price war can start because competition may try to undercut your price.
May not give the business that good of an image if product prices are set low.
Describe how social media can be used in marketing
Social media can be used in marketing to interact with customers, marketing opportunities, strong brand image.
Describe the advantages of social media in marketing
Social media can be used to advertise new products/services. Promotional adverts or media clips can be posted and used as an effective method of marketing.
Can gather feedback from customers through the use of likes and comments. This communication can be two ways as the business can respond directly or through private message.
Can be used to alert customers about problems or issues e.g., if the telephone line is down.
Can provide links to websites so customers can view products in more detail or buy/order the products.
Describe the disadvantages of social media in marketing
Messages have to be short and to the point, limit to how much text can be added.
No guarantee that everyone will see the message or post, so many are added daily that it may be missed. Also people may not check their account regularly.
Information on these sites are open to the public - all comments and replies are visible to anyone. Must be careful about content, no confidential information which could breach data protection regulations.
