Marketing Flashcards
What is market segmentation
Involves putting potential customers into group based on specific criteria or characteristics
What are the ways a market can be segmented
AGE,GENDER,INCOME LEVEL,LIFESTYLE/HOBBY,RELIGION,OCCUPATION
Why might a business conduct market research
Finding out how much the target market is willing to pay
Finding out the target market needs and wants
Gathering info on competitors
What is FEILD research
Gathers first hand info
Primary info
Give two positive and two negatives of FEILD research
Brand new.
not available to competitors
It can be expensive
Time consuming
Give methods of FEILD research
Telephone survey
Postal
Online survey
Hall test
Focus group
Advantage and disadvantage of telephone survey
People may see calls as fake
But allows a lot of people to receive them
Advantage and disadvantage of postal survey
Can cover a large area
People will become annoyed with junk mail
Advantage and disadvantage of online survey
A tool such as ms forms can collect and sort data for you
People require internet
Advantage and disadvantage of hall test
Allows research to gather high quality feedback
People may feel the need to give bias
Justify the importance of good customer service
repeat custom/brand loyalty created
can lead to higher market share
makes it easier to introduce new products to the market
higher prices could be charged
can lead to higher sales/profits
good reputation created
may attract new customers
fewer complaints
fewer returns
What are the 4 aims of promotion
Inform
Provide
Persuade
Convince
Inform
Inform the customers the product is there
Provide
Consumer with information about what the product
Persuade
Customers to buy products
Convince
Consumers to buy from the business
Methods of promotion
Advertising
Sales promotion
What is the definition of advertising
Is a paid communication that INFORMS potential customers of a product or service
• Advertising is normally split into two types:
• Traditional advertising
• Digital advertising
Traditional form of advertising
Tv,radio,billboards,magazines,posters,cinema
Advantage and disadvantage of tv
Reaches a large audience
Expensive
Disadvantage and advantage of newspaper
Consumers can be targeted through choice of newspaper
Not many people read papers anymore
Advantage and disadvantage of billboards
Consumers will repeatedly see the advert
Can be vandalised
Cinema advantage and disadvantage
There is a captive audience that will see it
Some people arrive late and miss advert
What are digital forms of advertising
Banners and adverts on a side of a website
Advantages of website advertising
Is relatively cheap and can target consumers globally
Can target a specific target market
Demonstrations can be given
Website banners Disadvantages
Customers may ignore
Products cannot be handled before purchase
Can be difficult to stand out from other adverts
Advantage and disadvantage of sms messages
Same text can be sent to many customers
Customers receive the sms instantly
Customers will get annoyed
Must have customers phone number
Email advantage disadvantage
Same email sent to many customers
Can be deleted easily
May contain virus
In app advertising advantage disadvantage
Customers don’t need to be online
Customers will be irritated
What is sales promotion
Is used to encourage customers to buy more of a product or increase sales
WHat are the four types of sales promotion
Special offers-to encourage sales of a certain product
Point of sales display-found at end of checkout
Free samples-given to see if they like the product
Free gift-if they spend a certain amount
What are the methods of distribution
Road-vans,Lorrie’s
Sea-ships
Rail-train
Air-planes
Advantage disadvantage of road
Is only method with door to door
Small cargo hold
Rail advantage disadvantage
Large quantities of of goods
Train can only stop at certain stops
Goods have to be picked up
Sea advantage and disadvantage
Large cargo hold
Very slow compared to planes
Advantage and disadvantage of air
Quickest method for transporting globally
Very expensive, not environmentally friendly
Definition of place
Where the business sells their products
What is e-commerce
Buying and selling products via internet
Price definition
Is how much money a business charges
What are factors to consider when setting a price
Price target market would pay
Cost of productIng product
Amount of product to be made
Price charged by competitors
Quality of product
Government policies
What are the long term pricing strategies
Premium pricing PLCC!
Low price
Competitive pricing
Cost plus
Short term pricing strategies
Price skimming PPPPDD!
Penetration pricing
Promotional pricing
Psychological pricing
Demand orientated pricing
Destroyer pricing (ILLEGAL)
Premium pricing
Will set price higher than competitors
Business most ensure high quality
E.g, Gucci
Low price
Set lower than competitors Business most
Customers will see it as bad quality
Competitive pricing
Setting price the same as competitors
Customers will need to decide on other factors of business when buying
Cost plus pricing
• A business first calculates the cost of making or buying one unit of the product
• They then add a percentage mark up to the cost price to calculate the selling price
• E.g. a business which adds which adds a 25% mark-up on a product which costs £1 to make will sell the product for £1.25
Price skimming
The price is first set high when launched
Once sales have declined price is lowered
Penetration pricing
Price is set low when launched
Aim is to attract customers away from competitors
Once customer based has been established price will increase
Promotional pricing
Short term reduction in price of product
Psychological pricing
£1:99 instead of £2 so customers think they are getting a good deal
Demand orientated pricing
Price will drop in increase due to time, or demand E.G, train tickets peak and off peak times
Destroyer
Setting price much lower than competitions to take their customers ITS ILLEGAL IN UK
Advantages of branding
Consumer tend to see branded goods as higher quality
Consumers become brand loyal
Consumers are willing to pay more
Disadvantage of branding
Establishing a brand can be expensive
The entire brand can be damaged by one product
What is packaging
Protects products during transportation
Helps keep products fresh
High quality packaging suggest high quality product
What are some strategies to extend product life cycle
Changing price
Changing the place they are sold
Promotion
Change usage
Change name
METHODS OF desk research
- Government reports and statistics ( such as census data)
- Reports produced by market research companies such as mintel
- Competitors websites
- Trade magazines and journals
Reputable newspapers
What is ethical marketing
• Businesses must ensure that they are acting ethically in all advertising and promotion they use
• A business must be truthful and honest in the information provided in its adverts. There are laws to protect consumers from being mislead by false, unethical advertising
Advantages of ethical marketing
Good reputation for firm
Ethical products sell for more e.g. fair trade
The firm avoids being sued by a consumer, if they state the product doesn’t have nuts and it does they get sued
The firm avoids bad press by pressure groups
The firm can recruit better employees and they will be motivated
New source of finance from ethical investors such as BONO
Disadvantages of ethical marketing
Higher costs
Firm has to stick buy its claims or could end up in a lawsuit
Advantages of desk research
- It is a relatively inexpensive way of gathering data
- It is relatively quick to gather compared to FIELD research meaning that decisions can be made quicker
Large amounts of information and data are available at little to no cost
- It is relatively quick to gather compared to FIELD research meaning that decisions can be made quicker
Disadvantages of desk research
- The data gathered could be out of date, leading to poor decisions being made
- The same information is available to competitors
- The information might contain bias
