Marketing Flashcards
What is market led 3
Business develops products based on customer wants
High levels of market research carried out to determine customer wants
Market led business often exist in highly competitive markets
What is product led 3
Market research not as important
High levels of product research and development required
Often unresponsive to changing external factors
What is consumer behaviour
Thoughts of consumer and actions they take when buying products
What is 2 types of market research
Desk and feild
What is desk research
Involves researching and analysing info that has already been gathered
Examples - competitors websites, magazines, finnancial statements
Advantages of desk research 3
Time efficient
Cost effective
Available - info already exists so is easily available
Cons of desk research 5
Info collected by others so can be bias
May not be specific to what firms need to find out
Not consice researched may have to search through a lot of stuff to find what their looking for
May be outdated
Available to competitors
What is feild research
Gathering brand new info first hand, suitable and specific to exactly what firm want to know
Feild research pros 4
Gathers all info firm needs
Specific to what they want to
Up to date info
Not available to competitors
Feild research cons
Costly
Time consuming
What is random sampling and 2 pros n 2 cons
Randomly surveying people on phone
No bias in researcher
Saves time selecting randoms
Sample may not reflect target market
Can be over represented of a certain segment (eg men)
Can be expensive as many calls might have to be made
What is quota sampling and pros and a con
Researcher chooses from group of people with certain characteristics
Can select customers that reflect target market
Researcher bias could be involved as sample not randomised
Telephone survey pro n com
Easy to target respondents as can phone areas by numbers
Low response rate as customers see it as intrusive
Postal survey one pro 2 con
Easy to target customer segments as can send to affluent areas if expensive products
Survey may be seen as junk mail by customers and binned
Questions need to be simple quick and easy as can’t be clarified and also can’t be to long
Hall tests description pro and 2 con
Product is given to customers to try and feedback is gathered
Good quality feedback given on product
Customers opinions n feelings may be tough to analyse
Customer may feel pressured to be kind
Test marketing description 2 pro 2 con
New product launched in a regional area and reaction is monitored successful products then launched nationwide
Changes can be made before full launch
Money can be saved in a full launch if it fails in regional area
Customer opinions in regional market may not reflect nationwide opinion
Competitors may catch wind and copy product while it’s in regional stage
What is EPOS and 2pros 2 cons
Electronic point of sale - info on customer habits gathered through loyalty cards
Gathers vital info on how customers react to promotional price changes
Can help whether to influence whether to stock more or less
Expensive to set up
Time consuming to set up
4 aspects of marketing mix
Product price place promotion
6 stages of product life cycle
R and d
Into
Growth
Maturity
Saturation
Decline
Describe and comment on sales in profits in this stage - r and d
Research and development
Product being researched and developed. Prototype will be made and tested
No sales
Loss due to costs and no sales
Describe and comment on sales in profits in this stage - introduction
Product launched, promotional activities taking place
Sales slow to begin with as customers unsure of product
Profit still a loss due to high promotional costs
