marketing Flashcards
market research
carrying out research to find out what customers want
why carry out market research
- discover the needs of customers
- understand structure of market
- discover whether or not market demand is increasing
- establish what stage the product is in its life cycle
-monitor competition
primary research
- field research from a new source especially collected, this info can provide exact and up to date info but it can be expensive and time consuming
primary research - survey examples
personal surveys
postal surveys
telephone surveys
internet surveys
primary research examples
surveys
interviews
focus groups
focus groups
a small, carefully chosen group of people who discuss products
consumer panels
tend to be more product orientated, to test a new product
secondary research
- desk research
- this is info which is already available , this way is the easiest, quickest and cheapest way but it could be out of date
examples of secondary research
- documents
-letters
-diaries
-official statistics
-internet sites
-historical data and info
quantitative data
is statistical information that includes numbers and values that are measurable
qualitative data
is information about opinions and views it cannot be expressed numerically
market segmentation
practice of dividing your target market into approachable groups
customer
the person buying the product/service from the organisation
consumer
the person using the product
marketing department need to understand 3 things
- the size of the market
- the value of the sales
- the growth of the market
target market
the market segmentation at which a business aims its products
businesses use targetable market segments like?
- age
- income
- geographical location
-lifestyle
socio- economic group
socio- economic groups
A
B
C1
C2
D
E
advantages of market segmentation
- can adapt our products to different segments and make more sales
- can predict social media so we can target advertise better
-set price appropriately
4ps
- product
- price
- promotion
- place
product portfolio
a collection of such products sold by one business is knows as a ‘product group’ or ‘product range’
why should businesses have product range
- so they can spread the risk
- a single product may not generate enough returns for a business
-a range can be sold to different segments
product life cycle
represents the stages that a product goes through from the initial development
product life style stages
- development
- introduction
- growth
- maturity
- decline
development
product been designed and created, no sales yet
introduction
product is released to the market sales begin and grow slowly
revenue is low at this stage
high costs on materials, promotion and publicity
growth
rapid sales
maturity
everyones already purchased product, revenue is high growth slowly decreasing, making profit
decline
sales growth rapidly slow down , cost may rise in attempt to increase sales
extension strategy
this is a way to try and increase sales by either e branding or other things like this
extension strategy examples
reducing price of product
rebranding product
increasing marketing activity
repositioning product
cost plus price
in cost plus pricing the business calculates all the costs and adds a margin on top
price discrimination
this is where people pay different prices for the same services depending on a characteristic
loss leader
this is when an item is sold at no profit , sometimes even a loss, but the hope is people will buy more when they are in shop
psychological pricing
this is where a price is set just below a critical point to make it sound better value for money, but this isn’t good option when developing a luxury brand
competitive pricing
this is where a business set their price similar to their competitors usually used in competitive markets like supermarkets
price skimming
this is when a business sets a high price at first then drops it over time. this is usually used in technology industries where research costs need to be recovered fast as they are high
price penetration
when a business launches a new product in a competitive market so in order to ‘get into’ the market they set it low price to get people to try it. they the increase it over time
factors influencing price
- stage in product life cycle
-the other 3ps - company/ business objectives
- competition in the market
- demand
-cost
place
this looks at how a product or service goes from producer to consumer
direct route
the producer sells directly to customer/consumer, this way is much cheaper and has become more popular due to the use of the internet increasingg
retailer route
the producer sells to retailer, and the retailer sells to consumer/customer, usually this is with big retailers as they need to be able to store it.
wholesaler route
producer sells to wholesaler like costco or bookers, as they buy in bulk, then the retailers buy products of them to sell the consumer/customer, usually smaller shops
mail order
the sale and ordering of goods by post
tele sales
focuses on the direct sales of products or services to customer over the phone
e-commerce/ m-commerce
method of buying and selling goods and services online
multi channel of distribution
very few businesses just use one channel of distribution, they often opt for more than one, this helps them reach a wider audience and so should increase sales and market shares
advantages to multi channel of distribution
- reach more customers
- more convenience for customers
- boost sales
disadvantages to multi channel of distribution
- may lead to one channel no longer being used
- prices may vary
- complex to manage
untargeted promotion
above the line advertising like, tv, radio and internet
targeted promotion
below the line advertising
direct mail
advertisement
an advert is a paid for message designed to influence consumer purchases
advantage of advertisement
- great way to stay ahead of competitors
- can be memorable
- can reach a wide audience
disadvantage of advertisement
- very expensive
- viewers may not watch
sales promotion
used to encourage customers to buy more of a product or to increase sales
advantages of sales promotion
- can encourage people to buy more
- make people want to go the the shop
- offer customers better value
disadvantage of sales promotion
-limits revenue
- competitor retaliation
personal selling
the ability of staff to contribute to the promotion of sales, known as upselling
advantages of personal selling
-builds trust
- customer satisfaction
- more influence
disadvantages of personal selling
-high cost
-deception
direct marketing
marketing and selling products and services directly to customers
advantages of direct marketing
- increasing customer numbers
disadvantages of direct marketing
- takes alot of marketing
-expensive
public relations
promotion of a business through news stories, sponsorship
pop ups
temporary retail stores that open for a short period of times in order to take advantage of seasonal demand
social media
the platforms on which users build social networks and share information to build a companys brand
social media analytics
the ability to gather and find meaning in data, gathered from social channels to supports business decisions
search engine adverts
a form of online advertising who businesses pay to have their ads displayed on google etc
blogs
a platform for content marketing where you publish articles, news and info about a businesses products or services
digital adverts
marketing through online channels such as websites etc
primary research advantages
- up to date, gathered by researcher
- specific to a business own needs (accurate)
- provides answers to exact questions that a firm may be interested in
primary research disadvantages
- can be very expensive to collect
-can be very time consuming, market may change
-can have problems of bias
secondary research advantages
-it is inexpensive to collect and quick to obtain
- enables cost effective analysis
secondary research disadvantages
-often out of date
- might not be available
- problems of interpretation
the sales process
a series of steps that helps businesses make sure they maximise sales to potential customers and encourage customers to return to the business to make repeat purchases
the actual sales process
- preparing though good product knowledge
- identify sales opportunities
-understanding needs and wants f customers - informing customers of the features and benefits of product
- closing the sale
- following up after sales
customer service
the support that a business gives to its customers this takes place before, during and after a customer has bought a product
good customer service can result in..
- loyal customers
-repeat purchases - good reputation
- new customers
- increased spending
poor customer can result in..
-loosing customers
- gaining a bad reputation
customers expect a certain level of customer care
- the product or service quality and reliability
-information about the product - sales process
- dealing with complaints
-delivery
any communication
