Marketing Flashcards
characteristics of market led
- high levels of market research carried out to determine the customers wants
- the business develops products based on customer wants
- market-led businesses often exist in highly competitive markets
- the marketing mix will be responsive to changes in external factors and consumer behaviour
characteristics of product led
-the business produces products that they believe customers will want and try to convince them to buy them
-market research is not seen as important. There are, however, high levels of products research and development.
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what is consumer behaviour
consumer behaviour
is the thoughts consumers have and the actions they take when purchasing products
name the sampling methods
- random sampling
- quota sampling
- cluster sampling
- stratified random sampling
what is random sampling
this is where sampling is picked randomly
what is quota sampling
this is where the researcher decides from a group of people based on criteria of specific characteristics
what is stratified random sampling
this is where a sample is selected based on the targeted market
what is cluster sampling
this is where the population is split into smaller groupings, usually split on geographical location.
advantages of random sampling
- there is no bias shown from the researcher
- it saves time in selecting the sample
advantages of quota sampling
-quick and easy method as the group is already made
advantages of stratified random sampling
- sample represents the target markets
- no researchers bias as the sample is the randomised from the list of those that meet the characteristics required
advantages of cluster sampling
- saves time comparing to research samples spread across in wide areas
- a cheaper method of sampling in comparisons to others
disadvantages of random sampling
- the sample may not reflect the target market accurately
- it can over represent a certain segment of the market
- can be expensive as many of the calls may have to be made if the customer lists are out of date
disadvantage of quota sampling
the exact sample from every group will not be randomised, which means there could be bias involved.
what is market research
market research involves looking at information and finding out what competitors are doing.
why do business do Market Research
businesses do market research for lots of reasons, to make sure they stay ahead of competitors, to make sure they are provide the goods and services that they customers want
what are the types of market research
field research,desk research
disadvantages of stratified random sampling
- takes time to work through the population lists and select the exact sample required
- the sample chosen could be geographically dispersed which adds costs to research
Disadvantages of cluster sampling
-when cluster sampling the business will run the risk of the small not being very accurate enough to represent the target market
Name the methods of field research
- postal survey
- telephone survey
- online survey
- a personal interview
- hall tests
- focus groups
What are the advantages of a telephone survey
- it s easy to target certain customers, for example a specific location (city) the business would like more data on, so that the business can meet the locals needs
- another advantage is that the information can be easily obtained as it is received immediately, the answer can also be clarified if there is any confusion
What are the advantages of the postal survey
- easy to target specific customers, for example wealthy regular buyers would be sent exclusive new products so that the company can meet their needs
- it is easier for the customer as unlike the telephone survey the customer can do it when it most convenient for them
What are the advantages of an online survey
- customers can be surveyed from many different areas of the world
- there can be online softwares used to collate all the data together then have it analysed easily
What are the advantages of hall tests
- there can be good quality data gathered based on the customers trial of the product, allowing for any issues to be fixed
- An inexpensive way to gather data
What are the disadvantages of a hall test
- customers feelings and opinions may be harder to be analysed
- the customers response may be slightly bias as they will feel they needs to give a positive response after being given a free product
Disadvantages of a online survey
- the customers must have access to the internet
- the responses may be to brief and not in enough detail for analysis for analysis to be made
- there is not chance for any clarifications to be doing if needed
Disadvantages of a postal survey
- the survey may be seen as junk mail and will be thrown away and ignored
- the questions must be simple and easy to follow for the best results to be gathered
Disadvantages of the telephone survey
- customers may feel an intrusion of privacy with the survey and choose to ignore it
- the surveys must be short so that customers are not kept on the line for a long period of time
What is the marking mix (7p’s)
Product Price Place Promotion People Process Physical evidence
What are the stages of a product life cycle (chronological order)
Development Introduction Growth Maturity Saturation Decline
Description of the development stage
The product at this stage is being research and developed. Here prototypes will be made and tested. Changes may be made after they’ve had feedback, there is no sales being made as the product is still being produced, the product will be currently making a loss as there is cost of development and no income from sales.
Description of the introduction
The product is launched at this stage, this usually coincides with introductory advertisements to create a “hype” around the product, sales at this point are slow as customers are unsure of the product, at this point the product will being to reduce the loss but promotional costs will still result in overall loses
Description of the growth stage
The product has been on the market for some time, customers are aware of the product and are regularly being bought, sales are rising rapidly there isn’t a lot of competition in the products market aswel, at this point profits will finally begin to be made and production and promotional costs have been payed off
Description of the maturity stage
The product has been in the market for a long time and there is now more competition in the market. The sales have peaked and have levelled out, many sales can still be made at this point and for a decant while afterwards, the competition is beginning to steal some sales causing a slight dip in sales and profits
Description of the saturation stage
The product will suffer from too many competitors in the market, the sales will begin to fall as customers opt for other competitors products, the profits will rapidly fall and especially if prices are lowered to encourage customers to buy
Description of the decline stage
The product here is nearing the end of there life cycle and will stop being produced, sales here fall rapidly and eventually the product will be withdrawn from the market. Profits continue to fall. Eventually the product may be sold at unit cost just to break even
