Marketing Flashcards
What is marketing?
finding the needs of customers and then meeting their needs.
What is the target market?
a group of customers who the business aims to sell to.
what are the key objectives of marketing?
- understanding customer needs
- informing customers
- increasing sales
what is market research?
the collection of data on customer habits to help decisions.
What is primary research?
research nobody else has.
What is secondary research.
research that another organisation has already collected.
What are examples of primary research?
- questionnaires
- interviews
- focus groups
- trials
What are advantages of questionnaires?
- lots of data collected
- easy to analyse
- can easily be targeted
What are disadvantages questionnaires?
- not all question answers
- low response rates
- lowers validity
What are advantages of interviews?
- richer data
- open questions
What are advantages of focus groups?
- in-depth answers
- more opinions
What are advantages of trials?
- reduces risks
- beneficial long term
What are advantages of UK census data?
- information from lots of people
- it is already collected and analysed
What are advantages of websites?
- cheap to collect
- ready available
What are advantages of internal data
- cheap to collect
What are advantages of Newspapers/ Magazine?
- cheap
- up to date
What are examples of Secondary Research?
- UK census data
- Websites
- Internal data
- Newspapers/ magazine
What is quantitative data?
data that’s numerical or can be turned into numerical data.
What is qualitative data?
data that evolves thoughts, feelings and opinions.
What is market segmentation?
splitting the market for a product into separate parts for different audiences
What are benefits of market segmentation?
- Cheaper to target a group of people
- better meets customer needs
- if you try target everyone you aren’t targeting anyone.
What is the marketing mix?
- Price
- Place
- Promotion
- Product
What are the pricing strategies?
- Cost plus pricing
- Competitor pricing
- penetration pricing
- skimming
- promotional pricing
What is cost plus pricing?
Adding a percentage to the cost of making the product to give selling price
cost item x (1.0%/ 20) = selling price
What are the advantages of cost plus pricing?
- Easy to calculate
- ensures profits are made
What is competitive pricing?
a price is based on what a competitors have charged for a similar product.
What are the advantages of competitive pricing!
- can help grow market share
- Useful in competitive markets
- Important to price sensitive customers
What is promotional pricing?
a reduction in price to attract customers to sell off old products.
What are the advantages of promotional pricing?
- attracts customers into shop
- customers buy more
- breaks brand loyalty with other shops.
What is price skimming?
a price is set high for a period of time until the price is reduced.
What are advantages of price skimming?
- helps build reputation
- high quality products
- potential high sales revenue
What is penetration pricing?
when a price is set lower that competitors for a short term to break customer loyalty
What are benefits of penetration pricing?
- breaks customer loyalty
- can be a promotional tool
What are features of products?
the attributes a product offers that aim to meet customer wants
What is quality of products?
meeting the needs and expectations of customers.
What is invention?
the introduction of something totally NEW
What is innovation?
this is the improvement of an original idea
What is the product life cycle?
the stages a product goes through from when it starts on market to when it finishes.
What are the sections of the product life cycle?
1.introduction
2. growth
3. maturity
4. decline
5. extension strategy (depends)
What is digital distribution?
involves no physical products, the good/service are downloaded digitally.
What are examples of digital distribution?
- audio books
- insurance
- music
- banking
What are the advantages of digital distribution?
- 24/7 access
- available quickly
- cost saving to business
What are the disadvantages of digital distribution?
- not all good are suitable
- good can be sold illegally
- not everyone has access to internet.
What is physical distribution?
getting the product to the consumer.
