Marketing

Question 1

The marketing mix

Four p's in marketing:
Product
Price
Promotion
Place

The marketing mix is different for different products

Answer 1

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Question 2

More about marketing

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Businessesmap the market to find information:

-helps a business understand its location within the market

The market map might include:

• how many customera are in the market/how much they spend
• which segements the customers belong to
• which products are popular and unpopular
• competitors selling similar products and where they sell them

Gaps in the market provide opportunities for firms:

• gap in the market
• develop a way to meet the customera needs
• might mean developing a new product
• or might mean selling an existing product in a new place, new price ,promoting it in a new way to convince customers its just what they need
• gap in the market can be a great oppurtinity for a small business -if it gets the marketing mix right -gap can expand into a large market

Answer 2

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Question 3

Market research

Market research finds out what customers want:
-business would be in real trouble if it spent time/money producing and promoting a product that no-one wanted to buy-market research is really important

• it’s used to find out what products consumers want/what pruce they’re willing to pay for/their current buying habits-used to gather information on the products and prices of competitors
• problem with market research-is that it costs money and most new businesses have a limited budget

-so firms need to think carefully about the best way to carry out their research
They need to find out what customers want without spending too much money

-two main types of market research-field research and desk research

Field research(doing your own donkey work):

• also called primary research
• questionnaires/telephone surveys/customer/supplier feedback/focus groups

Desk research(looking at other people’s work):

• also called secondary research/published research
• market research reports/goverment publications/articles/newspaper/magazine/internet

Disadvantagee of desk research:
-not always relevant to your needs, its not specifically about your products/often out of date

Answer 3

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Question 4

Products should be market-Driven
-market driven=some businesses use market research tp find out what people want then make it-usually means the product is useful

• product driven-they invest a new product/try to sell it -this means make something nobody wants
• market driven firms do best.

Smaller firms often target smaller markets
1.large established companies usuallt cater to mass market tastes-often leaves market gaps free for smaller firms to target

2. starting a business costs a lot of money and to begin with atleast there’‘ll be no money coming in from sales
   - cost of research and developmeny and market research
   - products that need lots if expensive equipment to make aren’t realistic for options for lots of businesses either

Answer 4

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Question 5

Price demand and supply:

• Demand rises as price falls
• Suply rises as price rises
• equilibrium-where products and consumers agree

Answer 5

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Question 6

Promotion and place

• firms promote their products by advertising
• products can be advertised in different media
• where firms advertise depends on various things
• place-where the product will be sold

Answer 6

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