Marketing Flashcards
What is the importance of marketing
Producing a product or service that customer actually need and want and not waste money
To advertise the product to let customers know
Distinguish between product and market orientated businesses?
PL not a lot of marketing whereas ML do a lot of marketing
PL has a unique selling point whereas ML is more to do with customers needs and wants
What are the advantages and disadvantages of product led firms?
Ad- unique selling point attracts customers, less market research =less costs, little competitors as it’s a new product
Disad- needs and wants are ignored, USP is only for short term, research is minimum
What are the advantages and disadvantages of a market led firm?
Ad- quick to react to changing needs and wants, more confident to make sales as research is done, easier to deal with challenges as the firm knows the market well
Disad- it can cost a lot of money, time consuming, constant change within the market so market research is always needed to be done which is costly
What is the importance of market research?
It helps identify customers needs and wants
How customers feel about the products
It is needed as they can predict changes required in its product ans services due to customer life syle or income
Justify the different methods of field research?
Personal interviews
Telephone surveys
Online survey
Hall test
Describe the Methods of sampling?
Random sampling- random list of individuals to survey, theses are generated randomly
Quota sampling - when a researcher is given instructions as to the number of people to interview and their characteristics (eg -age, gender, income)
Describe different types of field research
Hall test - when a group of people are invited to a venue to test a product to that reaction and comments can be recorded
Personal interview - when and interviewer conducts a face to face meeting with a consumer using a question air
Social media - retailers can use social media to find out customers reactions to products and services or obtain there feedback on different sites eg- youtube, Facebook, Twitter
Describe the Product life cycle
Research and development - this is when the business is researching and designing the product. A prototype will be made. Profits are not being made due to high development costs and it’s not on the market.
Introduction- this is when the product is put on the market and highly intensely advertised. Profits are low due to high advertisement costs, and low sales.
Growth- this is when the products sales are increasing as May people are now finding out about the product, and competitors start to enter the market. Sales are increasing and profits are starting to increases as advertisement costs are being paid off
Maturity - this is when the product reaches maximum sales and profit, extension strategies might be used to boost sales again
Saturation - large amount of competitors. Customers demand changes sales level out. Profits are high then decreases
Decline- this is when there are new and better products on the market and the firms product is no linger wanted by consumers
Describe diversified product portfolio
This is when the business reaches out into new market sediments, this is when the expand to new areas outside its core activities, this is costly as new research and development has to be done
What are the ad and disad of diversified product portfolio?
Ad- to reduce the rick of failure in one product they are backed up by another, to increase sales and profits by selling different products, to make introducing a new product easier
Disad- cost for promotion is high, if one product receives a bad image so could the whole company, high research and development costs
Describe extension strategies?
Improving the product
What is the marketing mix?
Price - this is the price that the product is made, (factors to be considered when setting a price)
Product- this is the actual product that is sold to the cusp terms on the market ( branding )
Place- this is where they sell the good or service (factors to consider when choosing a businesses location)
Promotion- this is how they let the customers know bout the good or service (advertisement methods)
Process- this is the different processes and systems used to deliver the service being provided, eg drive throughs and mobile apps
People- those involved in providing the service to customers eg- staff need to be trained to provide a high customer satisfaction
Physical evidence- the location of where the service is being offered and what it looks like eg- store lay out helps customers identify brands and shops
Discuss the Boston matrix - cash cow?
High market share
Low market growth
Maturity
Discuss Boston matrix - star?
High market share
High market growth
Growth
Discuss Boston matrix - dog?
Low market share
Low market growth
Decline
Discuss Boston matrix- problem child
Low market share
High market growth
Intro
When setting the price of a product you have to consider what?
Competitors prices
Target market
Time of year
Cost to make the product
Low price
Setting prices low for a product with high competition
Competitive pricing?
Eating prices the same as competitors and competing else where like promotions
High price
Setting high prices to consumers for luxury things like bags then customers think its high quality
Skimming pricing
High price and then reducing it over time
Penetration pricing
Setting a low price to attract customers and to penetrate a existing market
Destroyer pricing
Setting prices so low that the take competition off the market then raise there prices again
Promotional pricing
The price is set low for a certain amount of time to attract customers like 50% off unlimited time
Discriminatory pricing
Setting prices according to the time of year time of month
Psychological pricing
Setting prices at like £7.99 rather than £8 to make it look cheaper and attract customers
Channels of distribution
Manufacturer - makes the products
Wholesaler - buys large amounts (bulks) from the manufacture
Retailer - buys medium bulks of products from wholesaler
Direct selling is what?
When the manufacturer will sell straight to the customer
Eg- personal selling like telesales and door to door sales, email marketing
Discuss the use do e-commerce for a manufacturer?
This is buying and selling products over the internet or mobile technology
Ad- much cheaper and easy to set up, helps create product and brand awareness, accessible whenever, 24/7 access, large market,
Disad- time consuming to set up as updates are required, customers have to wait for delivery, relies on technology so should the website have problems the sake may not be completed
Distinguish between above and below the line promotions?
Above the line promotions target everyone whereas bellow he line target specific groups of people.
Above the line have no control of there audience whereas bellow the line does.
Above the line is more expensive as mass media and large marketing is done whereas bellow the line it is not as they only market where they want and do not target everyone
Above the line examples- media, billboards, Cinema, radio
Below the line examples- direct mail, sales promotions
Describe into the pipe line promotions?
Promotions offered to retailers or wholesalers to entice them to stock the products
Sale or return- this is when the retailer will be able to return any the unsold stock meaning the will t have any money tied up in stock
Staff training - this is when the manufacture may offer staff trainer if the product has a technical nature this will increase customer satisfaction
Credit facilities - the retailer buys goods from the manufactured and can pay on a later date this will improve cash flow
Describe out of the pipe line promotions?
Offers to the customer to encourage them to buy a product
Free samples - encourage customers to try products and buy at a later date
Coupons and vouchers - money off future purchases
Demonstrations - shows the customer how to use the product
Describe methods an organisation can use to ensure they are marketing in a ethical manner
When carrying out market research they must gather appropriately and no stereotype
Advertising and promotion - truth and honesty must be involves, misleading the customer and not have any sexual or violence
Target market - no expose to high pressure selling techniques
People?
These are the employees who help sell the products and make the business have high customer satisfaction as they have close relations with the customer
Businesses will employ highly motivated and skilled workers so high customer satisfaction can be gained
Process?
This is the process on how the service is being provided
Businesses will ensure they have efficient service To ensure customer satisfaction and therefore increase sales and profit
They do this to minimise waiting times, deal with complaints professionally and keep customers happy
Physical evidence?
This is where the service is being delivered from, this is the store lay out that will make customers feel welcome and set the self apart from competitors,
Eg- clean facilities, uniform for staff, seating
It’s how the store is presented to the customer
Describe the role of marketing in a business?
Identify customers needs and wants
Anticipate what customers will want in the future
Satisfy customers needs and wants
