Marketing Flashcards
Three ways an entrepreneur comes up with an idea
They brainstorm, research competitors, and intrapreneurship- getting employees within the business to input ideas.
Market research
is the gathering and analysis of information about consumer opinion to help the business make informed decisions.
3 benefits of market research
Understand the demand for the product - how many people would buy it?
Understand what the consumer likes/dislikes about the product - feedback can inform changes
Understand the best price to charge - how much will consumers pay?
Target market
A group of people who all need/want a particular product/service. It is who your product is aimed at.
Desk research
involves looking at information that is already available. It is also called Secondary Research as the information has already been gathered for another purpose.
Desk research examples
Internet research, sales reports, newspapers
Field research
going into the marketplace to gather information first-hand from your target market. It is also called Primary Research as you are making direct contact with potential consumers.
Field research examples
Surveys/questionnaires, observation and focus groups
The four Ps
Product, price, place, promotion
Product life cycle
Introduction, growth, maturity, decline
USP
Unique selling point. The USP is what makes the product different from the competition and is highlighted to encourage people to buy the product.
Premium pricing
Charging a permanently high price to give the impression of luxury
Cost-plus pricing
takes the cost to make the product and adds a percentage of profit on to get the final cost of the item for customers.
Loss leaders
selling a product below the cost it takes to make it in order to attract customers.
Penetration pricing
charging a low price when a product is first introduced to encourage sales but increasing the price once sales have reached a certain level.
