Marketing Flashcards
what does it mean when it says anticipate?
Try to find out and predict what the consumer will want in the future
What is marketing?
Marketing is the process involved in anticipating, identifying and satisfying customer needs.
What does it mean when it says identify?
Finding out what consumers want (conduct market research) – There is little point in providing something that no one will buy.
What does it mean when it says satisfy?
Without consumers the business will fail – you must provide information (promotion) about the right product at the rate price, distributed (place) in a convenient space.
What is a market?
A meeting place for buyers and sellers to exchange money for goods/services.
What is desk research?
This is looking at research that already exists. There is a wide range of secondary data which is available from within (Internal - sales records, financial information) the organisation and from out with (external - newspapers, internet, journals) the organisation
What is field research?
This involves carrying out research and obtaining the information firsthand. Organisation may collect this information or pay a market research company to do it for them. This can be done using: interviews, surveys, hall tests, consumer panels.
What is a market segment?
Market segment is a group of customers who have similar wants and needs.
What are the main methods of segmentation?
Age, gender, geographical location, ethnicity or religion , Socio economic grouping, lifestyle.
What are advantages of segmentation?
Products are developed to sit customer needs – more appropriate so more successful.
Can target specific groups with products/promotions to suit that particular segment – money is not wasted.
Helps when deciding on the best place to sell the product.
What is mass marketing?
Some market segments are very large beer called mass market. A mass market has a large value of seals by volume e.g. soap powder, toothpaste, Kelloggs cornflakes.
What is niche marketing?
This is when a business concentrates its entire effort and resources on serving one segment of the market – attempt to build up expertise in that Area
What are the four P’s?
Product, price, place and promotion
Why is product the most important element?
Product is the most important element as it determined what the price will be, how it is promoted and where is sold (place)
What are core products and augmented products?
Core: provides a basic need
Augmented: is made more attractive to customer by having additional features.
What does the product life cycle show?
Shows different stages a product will pass through and the levels of sales that can be expected at each stage.
What is the development stage?
It is researched and tested during this stage. There are no sales but costs of development may be high.
What is the introductory stage?
This is when customers are first becoming aware of product. Sales are low.
What is the growth stage?
This is when sales are rising quickly, as more customers become aware of the product.
What is the maturity stage?
When products are fully established. Sales have reached their peak.
What is the decline stage?
When competitors join the market, sales fall and product may enter decline stage.
Give examples of extension strategies?
- encourage more frequent use - get customers to use the product more; this is achieved by reducing the price
- style changes - introduce a slightly different version of product
- widen product range - produce product in different sizes, flavours
What does the price depend on?
- competitors prices
- production costs
- what market segment it’s aimed at
- what prices customers will be willing to pay
What is penetration strategies?
Charging a very low price to grab the attention of consumers - to break into the market
What is promotional pricing?
Prices reduced for a short period of time
What is destroyer pricing?
Prices are set really low to try and drive out competitors from the market
What is discriminatory pricing?
Different prices are charged for the same product at different times of the day.
What is sales promotion?
Having special offers such as BOGOF (buy one get one free)
Free samples
Vouchers
Competitions
What is celebrity endorsement?
This is when a business approach a celebrity to appear in their advert or be seen using their product/service.
What is sponsorship?
Supporting an event/activity/org by providing money or other resources valuable to the sponsored event in return for advertising space or as part of the publicity for event.
What is a brand?
The name, symbol or logo given to a group or type of product is known as a brand.
What are factors to consider when choosing a location?
- closeness to customers - no point in setting up where there are no customers
- closeness to suppliers - need suppliers regularly, quick deliveries, save on delivery charges
- parking facilities - customers need to be able to access the business easily
- premises availability size rent
- competitors - choose to set up as close too or as far from competitors
- environmental impact
- employee availability - must have suitable skills
Why do businesses have a brand?
To try beat competition, to encourage repeat purchases and try to increase market share. And can help increase profit.
Advantages of branding?
- New products can be successfully introduced due to the brand name as it’s already well known.
- Brands are easily recognised by customers - helping customers to tell them apart from similar competitors products.
- Branded products are often associated with quality and customers may be more likely to buy them
Disadvantages of branding?
- time consuming and expensive for a business to establish a well known brand
- poor product or one simple bad event can effect whole brand - customer put off by the whole brand
- brands can be copied and fake products can be produced - reduced profits
What is Quantitative Research?
- speak to a large number of consumers to identify trends
- usually collected using questionnaires/ surveys
- usually presented in the form of numbers/ statistics/ facts
- used to make comparisons between products/years/branches of stores
- Normally numerically based, very easily compared*
What is Qualitative Research?
- speak to much smaller group of consumers, one to one discussion
- usually collected through focus groups or in consumers homes
- gives in depth information about consumer
- Normally expressed in words not easily compared includes descriptive opinions*
Why do market research?
to reduce risk when launching products
Three examples of methods of field research?
Hall tests
online survey
personal interview
Advantages of these methods of field research?
Hall test - Fairly cheap method to gain customers opinions, often used in supermarkets
Online Survey - A large number of people can be surveyed, people from all around the world can participate
Personal Interview - Allows two way communication. the interviewer can encourage answers.
Disadvantages of these methods of field research?
Hall test - Can be difficult to analyse qualitative information
Online survey - No personal contact, response rate may be low
Personal Interviewer - Can be an expensive method, training and paying interviewers
Why is market research important?
- To find out the price consumers are willing to pay
- To find out where consumers are likely to buy/purchase this product e.g. online
- To identify if consumers would like existing p/s changed
- To identify if p/s currently offered buy any competitors
- To find out if consumers like the p/s and if they would buy it. (reduce risk)
Why is customer satisfaction important?
- To encourage customers to return (Customer loyalty)
- To maintain/ increase in sales (sales maximisation)
- To maximise profits
- To establish and maintain a good reputation
To attract new customers (improve market share)
What are advantages of 2 advertising methods of promotion?
T.V. - adverts can be targeted to a particular audience, large audiences can be reached
Internet - Changes can be made easily to adverts
What are disadvantages of 2 advertising methods of promotion?
T.V. - Many viewers switch channels when adverts come on
Internet - Many people ignore adverts on the internet
Give 3 examples of electronic promotion?
Loyalty cards e.g. Tesco clubcard - card is used to record spending habits and consumers are then targeted based on previous spending patterns. points can be earned for money off/free gifts.
QR Codes - smart phones can scan the code using an app which directs consumers to a business website
Apps - downloaded to mobile devices widely used to advertise and promote businesses, easily accessible
What is e-commerce?
The process of buying and selling products or services online. E.g customers can buy clothes, food, books and customers can sell goods on gumtree, ebay
What are 3 advantages of e-commerce for CUSTOMERS?
- Goods are available to order 24hours a day
- Can quickly find what you are looking for search facility on website
- Stock availability can be checked instantly
What are 3 DISadvantages of e-commerce for CUSTOMERS?
- Might have extra charges e.g. delivery, insurance
- Goods can’t be seen or handled or tried on before buying (inconvenient if goods need to be returned)
- Technical Problems might occur sometimes customer left wondering if their order has been placed
What are 3 advantages of e-commerce for ORGANISATION?
- Customers worldwide can be targeted
- Cheaper than traditional e.g. property and staff costs are reduced
- Instantly update product info on a website e.g. latest price (no printing costs and is more environmentally
What are 3 DISadvantages of e-commerce for ORGANISATION?
- Website has to be maintained regularly (will need significant amount of the time dedicated and may need to train employees
- Site must be secure, Customers will have to enter personal details
- Some goods are difficult to sell online e.g. where customers like to see, touch or try before buying
Why should company’s have their own websites?
- A business can advertise and provide info on its product/services to (potential) customers: the most up-to-date info can be provided easily, compared to paper based method such as catalogue it’s easier, quicker and cheaper to update info.
- A business has access to a world wide market and it’s open 24 hours a day 7 days a week. This is also useful when your business affected by time zones: the web is very convenient for everyone
- A business can sell goods even when there is no-one there through the use of e-commerce allows people to buy and sell online you are not restricted by geographical location
- A business will save money on traditional trading costs, a shop requires rent, heating, lighting, staff etc all of which can be very expensive
