Marketing Flashcards
what are the main purposes of marketing?
identify and understanding customers, informing customers, increasing sales
what is the definition of marketing?
finding out the needs of consumers and demonstrating how a business fulfils those needs so that its sales increase
what are the 4Ps?
price, product, place, promotion
what is the definition of market research?
the collection of data on customer habits to help decision making in marketing
what is the definition of a target market?
a group of customers whom a business aims to sell its products
what does market research aim to find out?
give 5 examples?
information about the target market
age, culture, what they want, economic status, where they are
what does good market research help a business to avoid?
making expensive mistakes
what is the definition of primary research?
data that is collected first hand
what are 4 methods of primary research?
questionnaires, interviews, trialling, focus groups
advantages of questionnaires?
cheap to carry out, easy to target customers
disadvantages to questionnaires?
people may not understand the questions, people may not be interested in the product so may answer dishonestly or not at all
advantages of interviews?
the questions can be explained, it is easy to target certain types of customers
disadvantages of interviews?
it is costly, not everyone likes being interviewed
advantages of trialling?
a good way to see if the product is what people want, reduces the risk of producing large quantities
disadvantages of trialling?
the people or area must be representative of the total market, otherwise it wont help the business
advantages to focus groups?
the people chosen will be representative of potential customers
disadvantages to focus groups?
it will only be a small group, it is usually costly
what is the definition of secondary research?
the collection of data using research and information provided by others
what are 4 methods of secondary research?
UK Census data, newspapers and magazines, websites, internal data
advantages to collecting data from UK Census data?
information comes from a lot of people, it is already collected and analysed
disadvantages to collecting data from UK Census data?
information has not been collected to meet the specific needs of the business, information will need careful interpretation
advantages to collecting data from newspapers and magazines?
information is up to date, cheap
disadvantages to collecting data from newspapers and magazines?
information isn’t specific to the business
advantages to collecting data from websites?
cheap and readily available
disadvantages to collecting data from websites?
will need careful interpretation by the business
advantages to collecting internal data?
cheap, readily available, specific to the business
disadvantages to collecting internal data?
is historical, looks at what has happened not what will happen
what are questionnaires?
a set of questions sent out to selected people in the post or asked online
what is trialling?
a product is sold for a short period, usually in one region of a country
what are focus groups?
a small group of people are asked to use a product or think about an advertisement and to give their opinion
what is the UK Census data?
the national census finds out information about all UK households every 10 years
what is internal data?
data collected by the business about, for example, its past sales and profits as well as customer feedback
what is qualitative data?
data based on the opinions of those being asked
what is quantitative data?
data collected that is based on facts or numbers
advantages to qualitative data?
it helps a business to understand what customers are thinking and what they want
disadvantages to qualitative data?
information may only be provided by a limited number of people
advantages to quantitative data?
it is easy to analyse, can be gathered by a lot of people
disadvantages to quantitative data?
limits how much people can say about what they like or dislike
what is the definition of market segmentation?
splitting the market for a product or service into different parts or segments
what are five ways you can segment a market?
age, gender, lifestyle, location, income
what are the 4 stages of the product life cycle?
introduction, growth, maturity, decline
what happens at introduction in the product lifecycle?
the product is new, sales are just beginning
what happens at growth in the product life cycle?
sales grow quickly
what happens at maturity in the product life cycle?
sales reach their peak
what happens at decline in the product life cycle?
sales begin to fall
what is the definition of decline?
when sales are falling as the product or service is seen by customers to be old and they switch to new products or services
what is the definition of design?
an important element in a number of different products
what is the definition of growth?
when sales are growing strongly as the new product or service becomes known
what is the definition of innovation?
the improvement of an original idea
what is the definition of invention?
the introduction of a totally new product or service
what is the definition of maturity?
when sales are at their highest level
what are 5 pricing methods?
skimming, cost-plus pricing, promotional pricing, competitor pricing, penetration pricing
what is the definition of skimming/creaming?
where a new product is more advanced than that of its competitors, a price is set high as consumers are willing to pay higher prices to own the newest technology
what is the definition of cost-plus pricing?
a pricing method that adds a percentage for profit to the total costs of making a product
what is the definition of promotional pricing?
prices are reduced to give products a boost or to sell off old stock
what is the definition of competitor pricing?
a price is set based on prices charged by competitors for a similar product
what is the definition of penetration pricing?
a price is set that is lower than those of competitors, often a short term strategy
what is the point of sale production?
a benefit the customer will receive when they buy a product
what is the point of advertising?
giving the customer information about the product and persuading them to buy it
what are the 4 point of sale promotions?
price reductions, competitions, loss leaders, free samples
what is price reduction in point of sale promotions?
to sell off old stock, business will make less profit or even a loss
what is competitions in point of sale promotions?
a person who buys a product is also entered into a competition
what is loss leaders in point of sale promotions?
some goods are sold at a loss to tempt people to do all their shopping there
what is free samples in point of sale promotions?
given to tempt people to buy the product
what are the 5 types of advertising?
social media, websites, television, print media, radio
social media when it comes to advertising?
cheap way to communicate with large numbers of people
websites when it comes to advertising?
a lot of information can be provided to customers
television when it comes to advertising?
often expensive, but can reach a wide audience
print media when it comes to advertising?
newspapers, magazines, leaflets. easy to target their market by the type of magazine. many people don’t read them anymore
radio when it comes to advertising?
cheaper the TV, usually suitable for local advertising but products cant be seen
what is the definition of physical distribution?
the distribution of a good or service using a physical presence such as a shop or office
what physical distribution channel does farmers usually use?
producer > consumer
what physical distribution channel do goods sold by electronic companies to big retail chains usually use?
producer > retailer > consumer
what physical distribution channel do many packaged food companies use?
producer > wholesaler > retailer > consumer
what is the definition of digital distribution?
the distribution of goods and services digitally by downloading from a website
advantages to digital distribution?
can buy the product 24/7
without the costs of physical shops or transport
disadvantages to digital distribution?
physical good cannot be distributed
competitive market
what is the marketing mix?
the mix of different parts of the marketing campaign (price, product, place, promotion)
what is the definition of market data?
information that can help marketing decisions
what is the definition of market share?
the percentage of total sales of a product that a business has made
what is the definition of a target market?
a group of consumers to whom a business tries to sell its products
