Marketing Flashcards
What is the marketing mix?
A combination of factors that can be controlled by a company to influence consumers to purchase its products.
Product
Promotion
Price
Place
Explain why market research is important?
- Room for growth in market
- Need to provide evidence to secure loan
- Able to respond to consumer demand
Explain what is meant by ‘market segment’?
A market segment is a group of people or organisations sharing one or more characteristics that cause them to have similar product and/or service needs.
What is geographical segmentation?
Dividing the market into different geographical units, for example state, region, city country or even neighbourhood
The company pays attention to geographical differences in needs and wants, differences in population density or climate.
Popular with small businesses
What is demographic segmentation?
Involves dividing the market into groups based on demographic variables such as
Age
Gender
Family size and life cycle
Income
Occupation, etc.
It is the most popular bases for segmenting consumer markets because consumer needs often match closely with demographic variables, and also because of the ease of measurement of the variables
What is generational segmentation?
A generation is defined as “a cohort of people born within a similar span of time who share a comparable age and life stage and who were shaped by particular events, trends and developments.”
Baby Boomers
Born after WW2 and before 1960
Generation X
Born between 1960 and 1980.
Generation Y/Millennials:
Born between 1980 & 2000. A more segmented and diverse audience.
Generation Z
Born around or after 2000. First tribe of true digital natives. Keen to look after their money and make the world a better place.
What is psychographic segmentation?
Demographics explain “WHO” your buyer is whilst psychographics explain “WHY” the buyer buys
You can only effectively reach your target audience when you understand both their demographics and psychographics. Combining both sets of data starts to form your buyer persona – a detailed picture of your customer
Some psychographic variables include:
Activities
Interests
Opinions
Attitudes
Values
What is behavioural segmentation?
Behavioural segmentation is based on actual customer behaviour toward products.
Variables include:
Product Usage
Brand Loyalty
Occasions – birthdays, marriage, events
User frequency – light, medium or heavy usage
Benefits sought – shampoos, whitening toothpaste
What is meant by the term ‘Target Customer’?
The consumer most likely to buy the product and respond to marketing stimuli in a predictable way.
What is meant by a ‘unique selling point’?
The competitive advantage that is of value to the customer and makes the product unique. It can be price, packaging or branding.
Why is branding important?
- Established as number one natural sourced water brand
- Many existing customers of Highland Spring may be likely to try the flavoured water
- Awareness of the existing brand will help achieve their growth plans market and therefore promotional activities
- Popularity of Scottish brands may encourage custom
- The awards gained add to the brand in terms of quality and recognition
- Any other reasonable suggestion
What does segmentation mean?
A market segment is a group of people or organisations sharing one or more characteristics that cause them to have similar product and/or service needs.
What does target market mean?
A ‘target market is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping.
Describe two ways in which market research could have been carried out prior to attempting to launch the Mackies in the US.
- Taste testing – food stall
- Focus groups
- Questionnaires
- Reference to existing market information (reports)
o Establishing the dominance of existing brands in the US - Any other reasonable suggestion
Name 3 methods of pricing.
Skim, penetration, cost-plus, discriminatory, market pricing (supply and demand), contribution pricing.
