Marketing Flashcards
Technology AD DA 3 for each (NAME THE TECHNOLOGY)
A
Target market contacted directly due to liking or following the businesses social media page meaning that you only market to customers that are interested.
Information on new products, promotional offers can be uploaded immediately.
Consumers can leave reviews and comments which can be used to improve the product.
D
Difficult to engage with new customers as they have to voluntarily agree to see businesses updates
Negative reviews/feedback can put off potential customers
Effective social media is time consuming, large organisations will need to employ someone to take charge of their social media account.
Pricing Strats, 2 strats 1A 1D
Skimming
Price is set high to begin with and lowered over time.
A - Sufficient hype around new product enables higher prices to be set increasing profits.
D - High initial price can put off customers who will wait for lower price therefore low initial sales.
Penetration
Price is set low to begin with to penetrate the market and increases over time.
A - Encourages customers to try new product. Gains repeat customers even though prices rise.
D - Very little profit can be generated during the initial low price period.
Product Portfolio 3A 3D
A
Seasonal fluctuations can be evened out.
Allows organisation to spread risk over different markets.
Can meet the needs of different markets segments.
Newer products can replace those at the end of their lifecycle.
A range of products increases brand awareness.
Easier to launch new product with large existing portfolio.
D
High costs in developing/researching so many products.
High marketing costs to promote so many products.
Bad Publicity surrounding one product can affect the whole product portfolio.
What is market share?
What is market research?
Market share is an organisation’s percentage of the overall sales in a particular market.
Market Research – find out about consumer’s needs/ wants
Desk Research. 3A 3D
A
Timely - desk information quick to gather compared to field research.
Cost effective as does not require trained interviewers
Available - Already exists so is easy to look up.
D
Not objective as it is collected and presented by someone else to suit their purpose.
Competition also have access to the same information
Information may be outdated.
Methods of desk research (5)
Competitors website
Online news articles
Trade magazines
financial statements
Government publications
Methods of Field research (8)
Personal interview.
Face-to-face interview that can be held in the street or at a persons home.
Telephone survey.
Individuals are telephoned at their home and asked specific questions.
Postal Survey.
Questionnaires are sent through the post to select individuals.
Hall tests
Individuals are invited to try out a product and then give their opinions.
Focus groups.
Select individuals are involved in discussions about an organisations product or service.
Observation
Customers actions and purchasing patterns are observed by trained staff.
EPOS
used to gain an insight into what products are selling in each store.
Testing Marketing.
Product is launched on a small area to gauge the consumer response.
