Marketing Flashcards
What is marketing
Marketing involves identifying consumers needs and wants and meeting them in such a way that the producer makes a profit
Marketing is just advertising true or false
False
Explain internal/external customers
Internal customers are inside the business while external customers are outside the business
Explain what product led is
Product led is when a firm invents a product without finding out if it’s what consumers want
Explain what market led is
Market led is when forms use market research to find out what consumers want then they make it
The product made is usually useful and successful as they have listened to what the customers want
2 examples of market led businesses
Tesco
Greggs
Costa
Primark
Adidas
2 examples of product led businesses
Dyson
Apple
Tesla
Gucci
Explain market research
In order to be successful you need to know what your customers want
To find this we use market research
Name the 2 types of market research
Field research
Desk research
Explain field research
Field research involves gathering primary information ( first hand informed)
How can you find primary information (conduct field research)
To find primary sources we can use
Surveys
Observations
Consumer panels
Focus groups
Test marketing
Interviews
Name 2 advantages of field research
It is specific to your needs
It is accurate
It is up to date
Name 2 disadvantages of field research
Time consuming to collect
Expensive to collect
Explain desk research
Desk research involves gathering secondary information which is gathered from an external source
How do you find secondary information
(Conduct desk research)
Secondary information can be gathered through
Newspapers
The internet (eg competitors website)
Government statistics
Market research agencies (eh mori)
Name 2 advantages of desk research
Less time consuming
Less expensive
Wide range of sources
Name 2 disadvantages of desk research
-Information is not specific to your needs
-Cannot be sure about accuracy
-Information may be out of date
-May not be objective
Describe a personal interview
A personal interview is a face to face discussion between two or more people where the interviewer will ask questions
Name 2 advantages of a personal interview
- the interviewer can encourage the respondent to anwser questions
- the interviewer can ask the person to clarify statements
Name 2 disadvantages of a personal interview
- it is time consuming and expensive to carry out
- the interviewer will need training
- it is unlikely that the same number of responses will be received compared to a survey
Explain a focus group
A focus group is a discussion between multiple people, the people taking part will be asked questions about the product to encourage a discussion about these things
2 advantages of a focus group
- The feelings and views of people can be observed as well as their body language
- points that are not understood can be clarified
2 disadvantages of a focus group
- it is time consuming and expensive to carry out
- information can be difficult to analyse
- The sample of people used in the focus group may not represent the views of the world
Describe a postal survey
A postal survey is a list of questions sent to people through post, they will be asked to complete the survey and post it back to the business
2 advantages of a postal survey
- It is fairly cheap to send the survey to lots of people over a large geographical area
- People can complete the survey at their own pace
2 disadvantages of a postal survey
- people need to open the survey and send it back, they may not do this
- Can take time to get the information back
- No opportunity for the respondents to clarify anything they don’t understand
-the survey has to be made carefully so it isn’t misinterpreted
What is segmentation?
Segmentation is the differentiation of product to appeal to different consumers
Name the 7 segments
Religion
Gender
Profession/class
Disposable income
Martial status
Age
Socio economic
Name 3 reasons for segmentation
- to achieve their objectives (sales and profits)
To expand their market share ( reach new customers)
To reduce waste, targeting the correct customers means that only people who want the product will buy it (less sales returns)
To build the relationship with the customer - through social media and groups customers will give important feedback about the product
To improve reputation ( will be known for producing a good product)
Name the 4 ps
Product
Price
Place
Promotion
Explain branding
A brand is a product with a unique and instantly recognisable name or image
Explain the benefits of strong branding
A strong branding means that the firm can charge a higher price because the product is perceived as high quality it also has high visibility due to the amount of advertising and brand loyalty
Explain own brand goods
Own brand good tend to be lower priced than branded goods
Often supermarkets use similar packaging to branded goods
Why is packaging important?
Packaging is important to attract customers, the product must be well presented to the consumers
What does packaging allow
Packaging allows the product to be
Kept fresh and hygienic
Stored easily on shelves
Attractive
Cons of packing
Packaging can be expensive and create waste which isn’t environmentally friendly
Explain the product life cycle
The product life cycle is the cycle of products in relation to sales over time
Explain introduction (product life cycle)
Introduction is when the product is launched onto the market, advertising and promoting begins and sales are slowly increasing
Explain growth (product life cycle)
Growth is when the product is becoming well know through word of mouth and sales are increasing rapidly
Explain maturity (product life cycle)
Maturity is when sales reach their peak and being to level off
Explain decline (product life cycle)
Decline is when sales start to fall as demand decreases
Explain extension strategies (product life cycle)
A company can extend the lifecycle of a product by injecting new life into it, these are extension strategies
How can the 4ps be used to extend product life cycle
Product - altering packaging, new features
Price - changing the price
Promotion - new promotion, special offers
Place - Changing the location sold ( eg internet)
Explain how consumers look at pricing
Consumers look at pricing in 2 ways
1) if it is too low they think that the quality is poor
2) if the price is high they will think it is not worth the money
Explain the pricing strategy- high price
Price set above the competition to give an impression of high quality
Explain the pricing strategy - market price
Prices set at the same as competitors and they compete on other factors
Explain the pricing strategy - Low price
Price set below competition to offer customers value for money
Explain the pricing strategy - penetration
Price set below competition initially once customer base has been established price is than raised
Explain the pricing strategy- skimming
Price set high initially while no competition exists. Price gradually dropped as competition enters the market
Explain the pricing strategy - destroyer
Large companies set price artificially low (loss leader) to eliminate competition and gain more market share, once competition is gone the price can be raised
Explain the price strategy - Cost Plus
This is simply calculated by working out the cost per item and then adding on a percentage for profit
Name the 3 main types of promotion
Advertising
Sales promotion
Public relations
What does advertising aim to do
Advertising aims to be either informative or persuasive
Name the types of advertising
Print - newspapers/ magazines
Broadcast - TV/radio/cinema
Outdoor - billboards
Social media
What is sales promotion
Sales promotion are methods employed for a bit of time to increase consumer demand
Name the methods of sales promotion
Buy one get one free
Discounts
Competitions
Free gifts
Product trials
Point of sale advertising
Explain direct mail
Direct mail is a form of mail delivered to your address promoting a Product or service often referred to as junk mail
Explain personal selling
Personal selling involves sales men coming to homes to sell a product it may be something that requires demonstrating or explanation
Name other (miscellaneous) types of promotion
Product placement (products appear on TV/film)
Product endorsement (a celebrity promotes it)
Sponsorship ( of a sport or TV programme)
Explain public relations
The pr department will aim to enhance the organisation image
What does the pr deal with
Press
Government
Public
What activities do the pr department take in
Press statements
Charitable donations
Customer care
What is place?
Place is where the product/service is available for sale
Explain the direct selling Chanel of distribution
This goes directly from manufacturer to customer this leads to closer realtions with the customers
Explain the whole selling Chanel of distribution
This goes from manufacturer to wholesaler to retailer than to the customer
This means the price is highest for the customer this benefits the wholesaler and retailer
Explain the retailing Chanel of distribution
This goes from manufacturer to the retailer to the customer
This leads to the retailer having close relations with the customer which leads to accurate feedback
Explain the fourth Chanel of distribution
This goes from manufacturer to wholesaler to customer
This means the wholesaler is buying in bulk which leads to customer discount
