marketing Flashcards
market led and product led
market led - business develops products based on customer wants
- high levels of market research carried out to determine customer wants
- exist in highly competitive markets
product led - produces products based on what they believe customers will want and try convince them to buy it
- high levels of product research and development
- little no competition within the market
desk research
web pages, trade magazines, sales figures, financial statements
adv - quick to gather information
- cost effective, does not require trained and paid interviewers and research companies
- available, desk information already exists so is easy to look up
dis - could be biased as collected by someone else
- may not fit the exact purpose and may have to be manipulated to fit
- not concise, the researcher may have to read through lots of information
field researcher
adv - complete information is presented no missing parts
- all information is up to date
- fits the purpose its needed for
- information is valid and accurate
dis - not cost effective, requires trained and paid interviewers
random sampling
adv - no bias is shown by researcher
- saves time selecting the sample
dis - may not reflect target market
- can over represent certain segment
quota sampling
adv - quick and easy method as group lists are pre made
dis - bias could be involved as sample is not randomized
stratified random sampling
adv - sample represents target market
- no bias is shown as sample is still randomized
dis - takes time to work through lists and select the exact sample required
- could be geographically dispersed adding to costs
cluster sampling
adv - cheap method of sampling
- saves time compared to researching samples spread across wide areas
dis - risk of sample not being accurate enough to represent target market
PLC - development and introduction
impact on sales - no sales yet as product is still being developed
impact on profits - product will be making a loss as the costs of development and zero income from sales
impact on sales - slow to begin with as customers are unsure of product and may have to be persuaded
impact on profits - begins to cut into losses but high promotional costs still result in overall loss
PLC - growth and maturity
impact on sales - sales start to rise rapidly, because of lack of competition or reduced prices
impact on profits - starting to rise further, losses are starting to decrease further
impact on sales - sales growth peak and level out, many sales can still be made for a long time at this stage
impact on profits - profits still healthy but start to fall as competition rises and take sales away
PLC - saturation and decline
impact on sales - sales begin to fall as competitors become more popular
impact on profits - profits fall rapidly especially if price is slashed to encourage sales
impact on sales - they fall rapidly and eventually the product will be withdrawn from the market
impact on profits - continue to fall, eventually will be sold at unit cost just to break even
extension strategies
lowering price of product - will make product more affordable and appeal to more market segments
rebranding product - can create more hype and appeal to new market segments
changing the packaging - appeal to new market segments
Boston matrix
stars - high market share in a high growth market - they need constant investment in marketing to keep ahead in a competitive market, allow business to be market leader
cash cows - high market share in low growth market - require little marketing due to lack of competition, funds generated can be used to further strengthen stars
question marks - low market share with high growth potential - they can be invested in due to potential, need development of strong marketing mix
dogs - low market share in low market growth - can adversely affect profits, should be divested in
adv and dis of product portfolio
adv - can meet needs of different market segments and appeal to more customers
- range of products increases as awareness of brand increases as a whole
- newer products can replace those at the end of their cycle
dis - high cost for researching and developing
- high marketing costs to promote all the products
wholesalers adv and dis
adv - packaging and displaying of goods is done by wholesaler saving time and money
- wholesalers buy in bulk saving lots of smaller deliveries
- wholesalers can promote products to retailers which saves promotion costs
dis - make less profits as a cut is taken by wholesaler
- they lose control on how product is marketed
- looses control over which retailer they are sold to
advs and dis of above the line promotion
adv - high quality adverts due to outsourcing advertisement
- averts can reach very wide audiences across many market segments
dis - business doesnt have direct control over who their product is advertised to
- very expensive due to being produced by experts
