Marketing Flashcards
Purpose of marketing
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Marketing is…
The anticipation, identification and fulfilment of customer needs
External factors
PESTEC - political, economic, social, technical, environmental, competitive
Customer markets
Are made up of individuals who purchase goods/ services, usually from retailers, for their personal use
Industrial markets
Are made up of organisations that purchase goods/services from other organisations to help produce their own goods/services. Manufacturers / service companies
Market segmentation
Splitting customers into groups e.g. Socio-economic group, age, religion, occupation, income, gender, geographical location
Market segmentation is useful to an organisation as it can assist with:
4 Ps - Price, Product, Promotion, Place
Niche marketing
When companies identify a niche (gap) in a certain market. They aim a product at a small market segment e.g. Saga, Aston Martin
Niche marketing is popular as it allows businesses to:
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Market research is…
The systematic gathering, recording and analysing of data about an organisation’s products/services and it’s target market
Market research allows a firm to:
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Market research can provide an organisation with info about:
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Two types of market research methods
Desk research
Field research
Desk research
Is carried out by a researcher using secondary information in the form of published sources originally produced by someone else e.g. Gov. reports, financial papers…
Field research
Is carried out by a researcher ‘in the field’ on order to gain first-hand info for an organisation to use. The researcher goes out to the market and obtains the info themselves
Personal interview
Involves a face-to-face interview either in street or at home
Advantages of a personal interview
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Disadvantages of a personal interview
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Focus group/group discussions
Involve specially selected groups of people. Usually led by an experienced chairperson who puts forward points to encourage open discussion
Advantages of focus group/group discussions
Qualitative information given in the form of opinions, feelings and attitudes
Disadvantages of focus group/group discussions
Can be difficult to analyse qualitative information
Telephone survey
Involves a market researcher phoning people at home and asking them questions
Advantages of telephones survey
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Disadvantages of telephone survey
Many people don’t like strangers asking questions over the phone, therefore hostility can be encountered
Postal survey
Involves a market researcher sending a questionnaire out through the post
Advantages of postal survey
Inexpensive as it does not require a trained interviewer
Disadvantages of postal survey
Questions must be simple and easy to answer, very low response rate
Customer audit is:
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Advantages of customer audit
Accurate info can be gained if diaries are kept properly, info can indicate customer trends as they are completed over a period of time
Disadvantages of customer audit
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Hall test
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Advantages of hall test research
Information gained is qualitative
Disadvantages of hall test research
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EPOS
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Advantages of EPOS
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Disadvantages of EPOS
Can be very expensive to set up the system to record consumer spending
Observation
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Advantages of observation
Provides accurate quantitative information
Disadvantages of observation
Cannot ask questions that explain customers actions as there is no direct contact with customers
Test marketing
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Advantages of test marketing
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Disadvantages of test marketing
Customers in one area may have regional tastes that are not representative of the national public
The marketing mix
Four Ps - product, price, place, promotion
