Marketing Flashcards
What is the purpose of Marketing?
Help achieve the org’s objectives Raise awareness of products Increase the number of customers in a market Inform customers about products Anticipate what customers want
What is the difference between differentiated and undifferentiated marketing?
Diff : organisations market towards a particular target market
Undiff: more than one target market
Advantages of differentiated marketing
Products are SPECIFICALLY TAILORED to customer requirements
Prices can be set to reflect the market segment
Promotions can be tailored towards the market segment
The most appropriate place to sell the product can be chosen
What are the differences between Market and Product led?
M: business responds to customer needs and wants WHEREAS P: business develop products based on what its good at
M: customer need and wants identified through MR WHEREAS P: little/no PR done as need and wants of customers not important
M: products based on customer wants WHEREAS P: products produced bcos the organisation thinks they are good at providing
M: the market may have significant comp WHEREAS P: the market may have little comp
What questions may businesses consider when consumers buy?
Why do they buy what they do? What motivates them? What influences buying decisions? What customers buy the products Where do they choose to buy? Why? What do they look for when buying?
What are the 4 different types of purchasing?
IMPULSE: without thinking. Been influenced?
ROUTINE: buying something out of habit, eg bread
LIMITED-DECISION MAKING: requires a little thought before a decision is made, eg piece of clothing
EXTENSIVE-DECISION MAKING: requires a high degree of thought and isn’t made often, eg new car or even house
What are the 7P’s of the extended marketing mix?
Product Price Place Promotion People Process Physical Evidence
Describe the 3 extra P’s of the marketing mix
PROCESS: the different processes and systems used to deliver the service being provided
PEOPLE: those involved in providing the service to customers
PHYSICAL EVIDENCE: the location of where the service is being offered and what it looks like
What can market research help find out?
TYPE of customers and their buying habits
What CHANGES might need to be made to existing products
What customers would like to see in the FUTURE
How customers have REACTED to different products, prices and promotions
What are the different types of Market Research?
FIELD (primary): New information
DESK (secondary): Already existing
Advantages and Disadvantages of Primary information
Adv:
Source is known • more reliable than secondary info
Info gathered for a specific purpose • relevant
Unbiased
Disadv:
Time consuming to collect, may delay decision making
Expensive • reducing profitability
Advantages and Disadvantages of Secondary information
Adv:
Easier to obtain than primary
Usually cheaper than primary
Disadv:
Collected for another purpose so maybe not as useful
Information may be biased
Advantages and Disadvantages of Internal information
Adv:
Unique to the organisation and • more relevant
Source is known and • more reliable
Disadv:
Info may not be up to date or complete • wrong decision could be made
Computer systems may be required to store info -> TMT expensive
Advantages and Disadvantages of External information
Adv:
Easy to obtain, saving organisation time
More information can be accessed through internet
Disadv:
Source might not be known and could be unreliable
Information may not be up to date • not relevant
What are the different methods of field and desk research?
Field: >survey/questionnaire >interview >observations >sampling >hall tests >focus groups
Desk: >websites >newspaper articles & magazines >government reports >textbooks
Describe a questionnaire/survey
Asking people’s opinions and views (done over phone, post, online or in the street)
Adv: Tailor made Q’s Cheap to conduct if online If online/post • reaches large audience As you’ve prepared it • unbiased/reliable
Disadv:
Expensive if using post, phone, IRL
Time consuming to get answers
Takes time + skill to be prepared
Describe an Observation
Watching something and recording what happens
Adv:
Can’t be lied to as don’t know they’re being observed • acting natural
Quantitative info gathered • easier to analyse
Disadv:
Observers need to be aware and trained
Need to be subtle
Cannot speak/clarify info or observations
Describe a hall test
A product being tested by customers to obtain opinions
Adv:
Allows first hand info to be obtained
Can clarify opinions
Relatively inexpensive to carry out
Disadv:
People maybe not honest about what they think about the product as they’ve got it for free
Describe a focus group
A discussion between a selected number of people and a researcher
Adv:
Allows the org to gain an understanding of people’s feelings
Understand more detail about their buying habits
Disadv:
Qualitative info TMT can be hard to analyse
Describe sampling
Random: randomly selecting people from a list, eg telephone directory
+ easy to set up and limits interviewer bias as the haven’t selected particular people to participate
- expensive to administer and assumes everyone is the same
Quota: selecting people to question based on certain characteristics, ie age, gender, etc.
+ less expensive to carry out than random sampling
- can maybe be biased
What are the two types of data?
Quantitative: factual and be counted
Qualitative: based on opinions
Describe the 6 stages of the product life cycle & what is the profitability at each stage?
Development: R&D…market research. NO SALES, HIGH COSTS & NO PROFIT
Intro: Product launch, heavily advertised to increase sales. LOW SALES, HIGH COSTS, LITTLE/NO PROFIT
Growth: Products gained more awarenes & sales grow rapidly. SALES GROW RAPIDLY, PROFITS BEGIN TO INCREASE
Maturity: Sales peak & product is well known. Need extension strategies. HIGH PROFITS
Saturation: End of maturity…everyone has product & no longer demanding. HIGH PROFITS BEFORE THEY DECREASE
Decline: Sales decline as newer & better products are introduced. PROFITS FALL AND A LOSS MIGHT EVENTUALLY OCCUR
