Marketing Flashcards
Marketing defintion
Marketing is the management process of finding out what customers want and then making a product that will satisfy their needs and persuading them to buy that product
Market research defintion
Market research involves collecting, analysing and reporting information about marketing issues to enable managers to make effective decisions
Field research
Corrects information directly from consumers.
More accurate and specific.
Expensive and time consuming.
How is field research obtained
- Observation e.g. Researcher watches security camera in Tesco to see which direction the customer turns when they enter the shop
- Customer panels - consumers who are regularly monitored. They give insights.
- Survey e.g. Questionnaire - qualitative and quantitative data
Desk research
Research someone else has found.
Information already exists.
How is desk research are obtained
- Internal reports - sales/financial reports
- Government publications - census, CSO
- Internet - check competitors prices - Google
Importance/Advantages of Market research
- Saves business money in the long run - surveys
- Reduces the risk of failure
- Helps a business to improve its advertising
- Helps managers decide the best price,packaging and design
Target market
A specific segment of the overall market that the business sets its sights on e.g. Lidl budget - concious consumers
Niche market
a narrowly defined group of potential customers within a market for a product or service e.g. Dublin’s country mix 106.8
advantages of targeting a niche market
- No competition
2. You can get a higher price
Market segmentation
Market segmentation involves dividing the market into different section which have common characteristics. It allows a firm to identify who their target market is.
How do you segment the market
- Geographic segmentation - satisfying local needs e.g. Tipp FM
- Demographic segmentation - Divided by characteristics e.g Nivea - Nivea for men
Advantages of Market segmentation
- Establish a presence e.g Newstalk
- Increase sales e.g Nivea
- Lower marketing costs - market they know will appeal to segment e.g Nivea
Marketing concept
Customer is the most important person to the business.
Customer is always right. e.g. Brown Thomas
Advantages of adapting the Marketing concept
- Increased sales
- Word of mouth
- fewer returns
Marketing plan/strategy
A written plan that sets out the business’s marketing objectives and the means by which it will achieve these
Steps:
1. Investigate the market to develop business opportunities
2. Select a target market
3. Perform Market research on the selected Target Market
4. Developing a marketing mix
I Meth - Investigate market
Tried Meth - Target market
Real Meth - Research market
Meth Meth - Marketing mix
Benefits of marketing plan
- Acts like a roadmap - strategies
- Controls the progress of the business
- Helps raise capital - potential investors
Marketing mix
- Product
- Price
- Place
- Promotion
Why give a product a brand name
- Charge a higher price - e.g. Lidl mars bar
- Increase sales e.g Nike sells more runners than Dunnes
- Customers become ‘‘Brand loyal’’ e.g. Apple fans
- Launching new products - famous name e.g Tesco mobile
Product packaging importance
- It protects the product
- It gives an image to the product - luxurious boxes
- Used to make a convenient size for consumers
- It gives informations about the product - ingredients
Example: Apple
P - Protection
I - Image
C - Convenient size
I - Information
Product life cycle
Introduction - Sales slow, Money on promotion e.g. Apple iWatch
Growth - Word of mouth, New competitors e.g Apple TV
Maturity - Sales are at highest level e.g. iPad
Saturation - New and improved versions e.g. iPod
Decline -sales fall - New technology - e.g. Traditional cameras
‘‘I Gave Martin Some DVD’s’’
How to extend the life of the product
- New and improved versions
- Advertising and re-branding
- Decrease price
What should a business consider when setting the price for its products
- Cost of the product - breakeven price
- Competitors’ Prices - Price vs Quality
- Consumers perceptions of prices - willing to pay
- Type of product/Image - high rate
Pricing strategies
- Penetration pricing - low price for its product, grow its market share e.g Daily mail
- Price skimming - Charges a higher price for its product when it first comes out, price drops later e.g. New phones
- Psychological Pricing - high prices with high quality e.g. Rolex
- Loss leader - below cost price, attracts customers e.g bottled beers
- Different customers, different prices e.g. cinema tickets/Newspapers
‘‘Pricing Strategies — practice Listing Dem’’
