Marketing Flashcards
What are the 4 P’s?
Product, Place, Price, Promotion
What is included in the product section of the 4 C’s?
The business must identify customer’s needs. Then it needs to come up with a product that will fullfil those needs.
What is included in the price section of the 4 C’s?
The price must be one that the customer thinks is good value for money
What is included in the promotion section of the 4 C’s?
The product must be promoted so that potential customers are aware that it exists, and will want to buy it
What is included in the place section of the 4 C’s?
Place refers to the channel of distribution used to get a product from the company to the customer
What are some factors that affect a business’s marketing mix?
Changes in technology, e.g. e-commerce is now a thing, so more companies are selling items online rather than in stores.
Customer needs and wants usually change over time - a business should adapt it’s marketing mix to meet these changing needs.
How competitive the market it and what the business’s competitors are doing will affect the marketing mix, as, if one has lower prices, the business should also lower it’s prices to match theirs
What is a Questionairre?
- A question sheet filled in by the consumer
- Primary research method
What is Market Research?
The collection of data on customer habits to help decision making in marketing
What is Primary Research?
Data collected first-hand, often in the form of surveys, sometimes reffered to as field research
What is Secondary Research?
Collection of data using research or information provided by others, such as magazines, journals and the internet (sometimes referred to as field research)
What is an interview?
- A question sheet filled in by the person conducting the interview
- Also used to in job recruitment
What are trials?
- Used to test whether customers will buy a product
- Product is released for a short time in a location, lets the business see how it will sell
- Primary Research method
What is Census Data?
- Data that is collected by the government every ten years, questioning the entire population on their income, occupation, ect.
- Secondary Research method
What is internal data?
Data already within a business based on past performances
What is Qualitiative Data?
Data based on opinions of those being asked (using words)
What is Quantative Data?
Data collected that is based on facts or numbers, usually easier to analyse than qualitiative data
What are advantages of Questionnaries?
- Cheaper to collect data that Interviews
- Easy to target particular customers
What are disadvantages of Questionnaires?
- DIfficult to predict how many people will complete them
- People filling them out may not understand the questions that have been asked
What are advantages of Interviews?
- The interviewer can explain questions if there is a misunderstanding
- Potential customers can be targeted easily
What are disadvantages of Interviews?
- Expensive as interviewers have to be paid
- Customers can feel uncomfortable
What are disadvantages of Trials?
- Expensive to set up
- Money will be wasted if the area chosen doesn’t reflect the target market of their business
What are advantages of Trials?
- Conducted in small areas, so businesses can save money if there is no demand for the product
What are advantages of Focus Groups?
- The data is usually very accurate as the people themselves are chosen to represent the businesses target market
- Can be relied upon to make important decisions
What are disadvantages of Focus Groups?
- More expensive per person than interviews or questionnaires
- The selection of people is time-consuming and costly
What are advantages of Census Data?
- New businesses can base their product or service in a certain area based on information from the Census
- Census can help schools plan ahead for classroom numbers
What are disadvantages of Census Data?
- Data may not be up to date, as it is done every 10 years
- Possible problems arrise for a business that makes decisions based on outdated market research
What are advantages of Websites?
- Huge amounts of information available
- Able to see own progress
- Able to see competitor’s websites to compare
What are disadvantages of Websites?
- Online surveys have a low response rate
- Websites with high crash rates will reduce potential customers discovering the business
What are advantages of Internal Data?
- Many businesses have their own secondary data from: past sales figures, profits, comments from customers
- Able to see how your business progresses
What are disadvantages of Internal Data?
- Lack of speciallization will produce no results in personal internal data
What are advantages of Newspapers and Magazines?
- Full of information that is useful to businesses
- If it is an online newspaper or magazine, it is easy for a bsuiness to search for what they need
What are disadvantages of Newspapers and Magazines?
- Opinions in tabloids can be biased and opinionated
- Paper wastage could go against company values
What is a market?
- A place where sellers and buyers interact
- Trade of goods and services in exchange for money
- Made up of existing/ potential customers who have the ability to pay for a good/ service
What is market research?
- Collection of data to inform a business about potential gaps in the market
Why would a business decide to carry out market research?
- Identify who the product or service should be targeted at
- Better understand the target market and their needs
- To enable a business to segment their target market
What is Market Segmentation?
- Breaking down a market into different sub-groups based on age, gender, income, lifestyle and location
Why would someone segment the market by gender?
- Many products are aimed at either men or women
- A business may produce or adapt it’s products to ensure it can be marketed effectivley
Why would someone segment the market by income?
- The population can be segmented by annual salary (low income, middle income, high income)
- Establishing a groups disposable income is important because it is easier to price the product correctly
- It is easier to target something to a specific income group
Why would someone segment the market by location?
- It is easier to target something to a specific place because of the weather conditions, e.g. selling swimsuits in warm countries
- Businesses could also target a rural area instead of an urban area
Why would someone segment their market by lifestyle?
- It is easy to target specific hobbies of people’s, or their values, beliefs, attitudes
- Gives the person a personal connection with the business
What is marketing?
- The process of finding out the needs and wants of the target market and informing them of the product/service you are selling
What is the difference between Primary and Secondary research?
- Primary research is research done by the business themself, while secondary research is taken from other places
What is Competitor Pricing?
When some products or services are priced very similar to close competitors (could be higher or lower)
What is cost-plus pricing?
This method of pricing is based on calculating the cost of producing the item and then adding on the percentage profit required by the company
What is Penetration Pricing?
This means setting prices really low for a new product to encourage sales and persuade customers to try it for the first time, and then gradually raise it when demand is high
What is Skim Pricing?
Setting the price high to start to establish a sense of luxury, then lowering it later to get more sales
What is Promotional Pricing?
A product or service is offered for sale at a cheaper price for a limited time to either boost sales, or to use up old stock
What does the “Product” part of the 4 P’s relate to?
Quality, packaging, design, and branding
What does the “Price” part of the 4 P’s relate to?
Retail price, discounts, payment plans, credit terms
What does the “Promotion” part of the 4 P’s relate to?
Advertising, public relations, personal selling, emails
What does the “Place” part of the 4 P’s relate to?
Retail location, distribution, delivery, downloads
What is “image and design” in business and why is it important?
- In the image of a business is damaged in any way, it will take time for customer belief to be restored in the product
- It is difficult to say whether a product has been sold because it has a great design, or whether it has a particular image that the customer wants to be assosiated with
- Negative image could affect sales/ positive image improves sales
What is “innovation, invention and design” in business and why is it important?
- When an entirely new product enters the market, the product has an advantage over it’s competitors
- Design plays a large part in the success of a product
What is “branding” in business and why is it important?
- Branding is closely linked to design and image
- If it was an unknown make with a brand name we did not recognize, we might not buy the product
What is the “introduction” stage of the product life cycle?
- The product is first launched
- Before this, a business could have conducted market research and invested money into the product
- When the product is launched, a business may advertise it in a number of ways to make sure it gets off to a successful start
- At this stage, the product is unknown and customers need to be told about it
- Sales should rise steadily
What happens in the “Growth” section of the product life cycle?
- Sales should show the most rapid growth
- Advertising and other promotions should chance slightly as the product becomes known to customers
- No need for special offers because the product is new and high in demand
What happens in the “Maturity” section of the product life cycle?
- Sales are towards their highest
- Rate of growth is slowing down
- It may be necessary to support the product with further advertising and offers at this time to maintain sales against competition
What happens in the “Decline” section of the product life cycle?
- Sales are falling
- Product may be given support with promotional offers
- Customers see the product as old and switch to those of competitors or a newer replacement
- Successful businesses would already developed a new product to replace the one that is in decline
What is physical distribution?
The distribution of goods using a physical presence, such as a shop or office
What is digital distribution?
The distribution of goods and services digitally, from a website/app
Advantages of Digital Distribution?
- A business can sell throuought the world and has more potential customers
- A business may be able to improve its image with skillful use of websites
- Less staff may be required, will cut costs
- A business is able to sell to new markets, so it will increase sales
- Open all hours
- Business can promote products much easier to moire potential customers
Disadvantages of Digital Distribution?
- All businesses can sell throuought the world, so there is more competition
- There may be a need to recruit or retrain workers with the introduction of digital distribution, which may increase costs
- Digital content can easily be copied and illegally shared for free online
- There are costs with building and maintenence of a website
