Marketing Flashcards
Purpose of marketing
Informing customers
Identifying and understanding customers through market research
Increasing sales
What is market research
The collection of data on customers habits to help decision making in marketing
4ps
Product
Price
Place
Promotion
Primary research methods
Questionnaire, trials, focus groups, interviews
What is a trial
Product is sold in an area for short period of time to see whether it is a success or not
Advantages and disadvantages of questionnaire
A- cheap, easy to target customers
D- people may not understand question, people may not be interested in product
Advantages and disadvantages of interview
A- question can be explained, easy to target specific market
D- expensive , not everyone will want to be interviewed
Advantages and disadvantages of trialling
A- reduce risk , good to see if it’s a product people want
D- area tested may not be representative of target market
Advantages and disadvantages of focus groups
A- people will be representative of potential customers
D- only be small group, costly
Secondary research
Census data, newspaper , websites, internal data
Ways of segmenting market
Gender, age, location, income, lifestyle
Pricing methods
Skimming , penetration , competitor, promotional, cost plus
What is skimming pricing
Price starts high then reduced
What is promotional pricing
Price is lowered to persuade customers to buy stock that remains or to buy product that sales are slowing down
What is penetration pricing
Price starts low then increases
Ways of adverting
Social media, websites, tv, radio
Promotion examples
Price reductions
Entered into competitions
Loss leaders
Free samples
What is market share
Percentage of total sales in market
What is primary market research
Data that is collected first hand, often in the form of questionnaires, interviews and focus groups
Advantages of primary market research
-specific to your company
-confidential findings
-up to date information
-customised data
Disadvantages of primary market research
-can be expensive
-time consuming
-can provide misleading or inaccurate results if sample size is not big enough
-getting people to complete survey
What is secondary research
Collection of data using research and information provided by others such as magazines, journals and the internet
Advantage of secondary research
-little or no cost has collected by someone else
-readily available
Disadvantages of secondary research
-information specific for someone else’s business
-information should be carefully interpreted
-could be from a long time ago so no longer accurate
