Marketing Flashcards
Define marketing
The process of getting the right products to the right place at the right time
What are the two types of market orientation ?
Market orientation
Product orientation
What is market segmentation?
Market segmentation is the process of dividing a market of potential customers into groups or segments based on different characteristics.
What are the four bases of market segmentation?
Geographic
Demographic
Behavioural
Psychographic
How can a business segment its market ?
Through: Age Gender Income Lifestyle Ethnicity Religion Education level Socio economic group Urban/rural areas
How are segments measured ?
Segments are usually measured in sales value or volume
Define niche market
A niche market is a small but profitable segment of a market suitable for focused attention by the marketer. Niche markets do not exist on their own but are created by identifying needs and wants that are not being met by competitors and by offering products that statist them.
Give 2 advantages and 2 disadvantages of a niche market
Advantages:
Less competition
Clear focus / profit margins are higher
Disadvantages:
Lack of economies of scale
Likely to attract competition/ vulnerable to market changes
Give 3 examples of niche market items
Women’s maternity clothes
Customisable products
Rolex watches
Define a Mass market?
A mass market is here a business sells into the largest part of the market where there are similar products on offer.
Give 2 advantages and 2 disadvantages of mass markets
Advantages:
Maximises income
Customer needs and wants are general and less specific / brands are used to their value
Disadvantages:
Heavy advertising costs
Companies must be market orientated, this brings high innovation and advertising costs
What are marketing objectives ?
Marketing objectives are goals set by a business when promoting its products or services to potential customers that should be achieved within a time frame.
Define the term aim
An aim is a long term general statement of what the business is hoping to achieve.
What is an objective?
An objective is a short term, specific target that contributes to the aim. An objective needs to be SMART: (Specific, Measurable,Achievable,Realistic, Timed)
Give some examples of marketing aims and objectives
Develop new products
Improve profitability
Increase market share
Diversification
Define market influences
Influences within the organisation help to shape a business’s choice of its marketing activities.
Explain the internal influences on marketing
Cost of Campaign: a business needs to consider how much it normally spends and how effective the spending is in its marketing activities.
Available finance: large businesses may spend a huge amount on marketing throughout the year while small business may only be able to afford to advertise at certain times of the year
Staff expertise: larger business have marketing departments so they will automatically have the expertise. Small business may pay agencies and consultants to carry out marketing work such as research or handling advertisements.
Size and culture of the business: Marketing activities are influenced by the size of the organisation. Larger businesses will have bigger budgets but more people will influence how the marketing budget is spent.
What are the external influences on marketing ?
There are six main external factors that influence the marketing strategy of a business or organisation. Some organisations may perform SLEPT(Social,Legal,Economical,Political,Technological) analysis time obtain information on external influences on their influences.
Describe the factors of SLEPT
Social: demographics, lifestyle, age groups, education.
Legal: government , stability of government.
Economical: Inflation, interest rates, health of the economy, employment levels
Political: Business laws, regulations on competition and trading
Technological: manufacturing techniques, communication methods, use of internet and social media
Define and describe the Principles and purposes of marketing
A.R.S.S.
Anticipate Demand: aims to work out what customers might want in the future.
Recognise demand: identify customer needs and wants that are not being met and the sort of product or service that might fulfil the needs and wants
Satisfy demand: businesses uses advertising and social media to persuade customers that they want or need a product or service
Satisfy demand: businesses carry our market research to find out what customers think about their products and services so they can adapt and improve them.
What is market intelligence ?
Gathering information from different sources which is analysed and evaluated to identify trends.
Define primary research
Data collected first hand for a specific purpose by the business
Define secondary research
Data that already exists and which has been collected for a different purpose
Name 5 methods of primary research
Surveys Interviews Observation Trials Focus groups
Name 5 methods of secondary research
Customer data (internal) Sales records (internal) Government statistics, Office of national statistics (external) Trade journals(external)
What is quantitative research?
Quantitative research is used to quantify the problem by way of generating numerical data or data that can be transformed in to usable statistics. It is used to quantify attitudes , opinions , Behaviour and generalise from a larger sample population.
Give 3 examples of quantitative data:
Surveys
Telephone interviews
Online polls
Define qualitative research
It is used to gain an understanding of people underlying reasons, opinions and motivations. It provides insights to the problem or helps develop ideas.
Give 3 examples of qualitative data
Focus groups
Individual interviews
Observations
What is Sampling?
Example is a group of people objects or items that are taken from a larger population for measurement.
Name the three types of sampling
Random
Quota
Stratified
What is random sampling
A sample that is chosen randomly. Random samples are used to avoid biased and other unwanted effects. It has an equal and independent chance of being selected.
Explain Quota sampling
A sampling method of gathering representative data from a group. Quota sampling requires that representatives are chosen out of a specific sub group. It is cost effective and quick.
What is stratified sampling ?
Sampling technique where in the researcher divides the entire population into different subgroups, then randomly selects the final subjects proportionally.
