Marketing Flashcards
What is marketing
finding out the needs of consumers and demonstrating how a business fulfils those needs so that its sales increase
what factors does a business consider when making a new product
finance available
target market - who is it aimed at
location of customers
What are the three main purposes of marketing
identifying and understanding customers
informing customers
increasing sales
What is market research
the collection of data on customer habits to help decision making in markering
what is a target market
a group of customers to whom a business aims to sell its products - they may be another business as well as consumers
What are the 4 P’s of businesses
product
place
price
promotion
what are the 4 P’s used for
used together to market a product or service
What could market research be used to find out
their age
their economic status
their culture
where they are
what they want
how does good market research find out to help a business to be successful
the product they want
the price they are willing to pay
the design of the product that will be attractive to the customers
how many they want
how to target customers
where and how to sell it
what is primary research
data that is collected first hand - also called field data
what are the main forms of field research (primary research)
questionnaire
interview
trialling
focus groups
what is a questionnaire
a set of questions sent out to selected people in the post or online
what are the advantages of questionnaires
cheap and easy to carry out
easy to target customers
what are the disadvantages of questionnaires
people may not understand the questions
people may not be interested so ask dishonestly or not at all
what is an interview
a person who asks an individual or a group of people questions and records their answers
what are the advantages of an interview
the questions can be explained
it is easy to target certain types of consumers
what are the disadvantages of an interview
it is an expensive method
not everybody likes being interviewed
what is trialling
a product is sold for a short period of time usually in one region of a country if it goes well the business will go into full production
what are the advantages of trialling
a good way to see if the product is what people want
reduces risk in producing large quantities
what are the disadvantages of trialling
the people/area tested must be representative of the total market otherwise the findings arent helpful
what is a focus group
a small group of people are asked to use a product or think about an advertisement and give their opinion this then helps with re-design
what are the advantages of a focus group
the people chosen will be representative of the potential customers
what are the disadvantages of a focus group
it is only a small group
it is usually costly to carry out
what is secondary research
the collection of data using research and information provided by others - often called desk research
what are the main methods of desk research (secondary research)
UK census data
newspapers and magazines
websites
internal data
what is UK census data
information collected by the government about every households information - every 10 years
what are the advantages of UK census data
information comes from the whole population
already collected and analysed reducing business costs
what are the disadvantages of UK census data
information is not collected to the specific needs of the business
the information needs careful interpretation
what is magazines and newspapers
articles and publications that describe current interests and fashions
what are the advantages of newspapers and magazines
information is up to date and cheap and a source of good ideas
what are the disadvantages of magazines and newspapers
information is general and not specific to the business
what is websites
information about other companies can be found including what they sell and the prices they charge
what are the advantages of websites
cheap and readily available - helps decide what to produce and what price to charge
what are the disadvantages of websites
information will need to be carefully interpreted by the business
what is internal data
data collected by the business about sales, profits and customer feedback
what are the advantages of internal data
cheap to collect
readily available
specific to the business
what are the disadvantages of internal data
looks at what has happened not what will happen
What factors are included when deciding which market research to do
how much the business can spend
what information is required
location of customers
how quickly the information is needed
What is qualitative data
data based on opinions of those asked
what is quantitative data
data collected that is based on facts or numbers its usually easier to analyse
whats good about qualitative data
helps a business to understand customer what customers want and what they think
what is bad about qualitative data
information may only be provided by a limited number of people
what is good about quantitative data
its easy to analyse and can be gathered from a lot of people
what is bad about quantitative data
it limits how much people can say about what they like or dislike
What is market segmentation
splitting the market for a product or service into different parts or segments
what are the 5 segments in market segmentation
age
gender
income
location
lifestyle
what does a business consider when it targets different segments
if it should produce different products for different markets
pricing
how to promote
where to locate shops
what is design
when a business plans what a product will look like and what it will do
what is invention
the introduction of a new product or service
what is innovation
the improvement of a product which already exists
what is the product life cycle
the life of a product usually shown as a graph divided into four stages
what are the four stages in a product life cycle
introduction
growth
maturity
decline
what is the introduction in the product life cycle
when a product or service is first on sale
what is growth in the product life cycle
when sales are growing strongly as the new product or service becomes known
what is maturity in the product life cycle
when sales are at their highest level
what is decline in the product life cycle
when sales are falling as the product/ service is old so customers switch
what is it called when you try to increase a products life cycle
an extension strategy
what does a business consider when setting a price
quality of product
how new the product is
number and nature of competitors
how well customers know the product already
what stage of the life cycle
cost of production
what are the 5 pricing methods
skimming
cost plus
promotional
competitor
penetration
What is competitor pricing
when a price is set based on prices charged by competitors for a similar product
what is cost plus pricing
adding a percentage for profit to the total costs of making a product to form a price
what is penetration pricing
a price is set lower than the competitors price - often used to break into the market (Short term)
what is promotional pricing
prices are reduced to give products a boost or to sell off old stock
what is price skimming
where a new product has a high cost as consumers are willing to pay for the newest technology - because the product is more advanced
What is point of sale promotions
a benefit the customer will receive when they buy the product
what is advertising
giving the customer information about the product and persuading them to buy it
what are the main methods of point of sale promotion
price reductions
competitions
loss leaders
free samples
what are price reductions used for
used to sell off old stock
business will make less profit
what are competitions used for
a person who buys the product is entered in a competition to win something
what are loss leaders used for
goods are sold at a loss to make them repeat purchase and spend more elsewhere
what are free samples used for
given out to tempt people to buy the product
what are the main methods of advertising
social media
websites
television
print media
radio
what is social media used for
a cheap way of communicating with a large audience and can target customers - not everyone uses social media
what are websites used for
providing information to potential customers - depends on how much business can afford
what is television used for
advertising reaches a large audience you know which channels potential customers watch - often expensive
what is print media used for
business can target their market however people often dont read them - includes newspapers magazines and leaflets
what is the radio used for
suitable for local advertising but product cannot be seen - cheaper than TV
what is promotional advertising media
the ways in which a company can advertise its goods - social media, websites, print media,television, radio
what is physical distribution
the distribution of a good or service using physical presence such as a shop or office
what are the three channels for physical distribution
producer => consumer
producer => retailer => consumer
producer => wholesaler => retailer => consumer
what are the advantages of produce to retailer to consumer
selling to retailer means the producer can benefit from keeping profit that would be kept by wholesaler, confident that the retailer can market the goods
what are the advantages of producer to consumer
missing out wholesalers and retailers the producer makes more profit rather than sharing
what are the advantages of producer to wholesaler to retailer to consumer
the wholesaler can break up bulk stock and offer retailers the goods in quantities they can afford and sell - more retailers are willing to buy the goods
What is digital distribution
the distribution of goods digitally by downloading from a website
what are the advantages of digital disstribution
the consumer can buy the product 24/7
doesnt have transport or physical shops costs
what are the disadvantages of digital distribution
physical goods cannot be distributed this way
competitive market as prices are
compared
customers without devices can’t buy
some customers may not like sharing details online
what is the marketing mix
the mix of different parts of the marketing campaign - product, price, place, promotion
what must the business consider when making decisions about the marketing mix
the type of product they are selling
the cost of the product
stage in the product life cycle
target market
funds availble for marketing
if you have just introduced a new product what price method should you use
price skimming - set a high price because consumers will be willing to pay for it
if you are introducing a product where should you sell it
sell through exclusive shops to stress products quality
if you are introducing a product how should you advertise it
use targeted advertising to generate interest in the product
if a product is growing what happens to the price
it is reduced to maintain sales
if a product is growing what happens to place
sold through wider range of shops and online to increase customers
if a product is growing what happens to promotion
advertised widely to stress the benefits to a wider market
if a product is maturing what happens to the price
maintained at a stable price
if a product is maturing what happens to place
continued sales through a wide range of outlets
if a product is maturing what happens to promotion
it is advertised to highlight its differences from the competitors
if a product is declining what happens to the price
use promotional pricing to extend sales
if a product is declining what happens to place
it is continually sold to a wide range of outlets but reduced sales in outlets that arent selling many
if a product is declining what happens to promotion
advertised to raise awareness of price reductions
given special offers to encourage people to buy
what is market data
information that can help make marketing decisions
what is market share
the percentage of total sales of a product that the business has made
what is a target market
a group of customers who the business tries to sell its products to
what is the target market used to decide
the design of the product
pricing
when and how to advertise it
which retail outlets to use
which promotional offers to use
what is the market share used to decide
whether to change or to maintain the current marketing mix
what is a change in demand used to decide
price increase/reduce
advertising - more/less needed
the type of advertising
promotional offers
introduce a new product
