marketing Flashcards
what is marketing?
the management process for identifying, anticipating and satisfying customers requirements profitably.
what is the role of marketing? (3 things)
- identify and understand customer needs
- informing customers
- increasing sales
what must a business understand when selling their products and services?
- age
- gender
- income
- location
why must a business understand who they sell their products and services to ?
- influence how the business is marketed
- understand its customers
- need to understand customers needs without making costly mistakes
how could customers be informed with new products or services?
through advertising : websites, leaflets, social media
what ways could a business increase their market sales?
- more advertising
- introduce new models to appeal more customers
- increase the range of products
- reducing prices
- sell in different places
- using different methods
what is market research?
it is how businesses collect information on whether their products or services will be bought
why is it important for a business to carry out market research?
so that they don’t waste money, effort and time on products people don’t want to buy
what is primary research?
process of collecting original information that has been collected first hand
- also known as field work
give examples of primary research?
- interviews
- questionnaires
- surveys
what are the advantages of primary research?
- can tailor questions to your business
- up to date information
what are the disadvantages to primary research?
- expensive
- time consuming
- possibility of bias
what is qualitative data?
is collected when the opinion of the customers is needed.
- often collected through primary research
- opinions may be more difficult collate
what is quantitative data?
related to facts and figures
- easier to interpret than qualitative data
what is secondary research?
collection and use of data which has already been collected and published by someone else for an entirely different piece of research
what are the advantages of secondary research?
- free/low cost
- may be used on large samples
- good overview of the market
what are the disadvantages of secondary research?
- may not be up to date
- not tailored to your needs
give examples of secondary research
- competitor accounts
- magazines
- sales reports
advantages of questionnaires
- cheaper than interviews to collect data
- easy target
disadvantages of questionnaires
- difficult to predict how many completed questionnaires will be available
- might not understand the question asked
advantages of interviews
- can explain question if the don’t understand
- customers are targeted easily
disadvantages of interviews
- expensive
- customers may feel uncomfortable
what is a trial?
products or services sold for a short amount of time as a test to see if customers like it
advantages of trials?
- conducted in small areas
- businesses may save money if the customers don’t like it
disadvantages of trials
- costly to set up
what are focus groups?
small groups of people carefully selected to represent the target market for a product or service
advantages of focus groups
- usually accurate
- can be relied upon when making decisions
disadvantages of focus groups
- small groups make it more expensive per person
- time consuming
what is the market segment?
how the market for a product or service is divided up into segments (groups) at which a product may be aimed
why would a business segment a market?
- to target particular groups of consumers
- the product, price and promotion can therefore match what particular groups want
- avoid waste
what factors would affect the price businesses charge for their good and services?
- the price charged by competitors
- a new business might have to charge a low price to entice customers to use them
- the cost to make the product
- the profit they hope to make
what are the 5 types of pricing strategies?
- skimming
- cost plus
- penetration
- competitors
- promotion
what is physical distribution?
about getting the product to the consumer
what is digital distribution?
how to the product gets to the consumer
give examples of digital distribution
- music
- books
- insurance
- banking
- newspaper
advantages of digital distribution
- customers access products and services 24 hurt a day
- goods are downloaded so are available quickly
- business can sell through the world
disadvantages of digital distribution
- not all goods are suitable for digital distribution
- all businesses can sell through the world so more competition
- not all customers have access to the internet
what is promotion?
any form of communication a business or company uses to inform, persuade or remind people about products and improve its image
what are some of the aims and important points about promotion?
- persuade potential customers to buy
- explain features
- tell customers where the product is sold
what are 2 types of promotion?
- point of sale promotion
- advertising
what are the 4 types promotion?
- price reduction
- loss leaders
- competitions
- free samples
what are the 5 types advertising?
- social media
- websites
- television
- radio
- printed media
what re the 4 parts of the product life cycle?
- introduction - product is launched
- growth - rapid growth , persuading, advertising
- maturity - sales no increase slowly
- decline - sales will fall
what is the part of the product life cycle that only sometimes happens to particular businesses?
product extension
what are some of the extension strategies?
- advertise more widely, possibly new packaging, new improved versions
- reduce the price - more attractive for customers
- enter new markets - identify a new target market
what is market data?
information that will help a business make marketing decisions
what is the marketing mix also know as?
the 4ps
