marketing Flashcards
DEFINTION market research
systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation
market research categorised by source
primary
collection of data specifically for the project in hand
secondary
based on data previously collected for purposes other than the research at hand
market research catergorised by methodology
qualitative
attitudes, feelings, motivations
cheaper, probes in-depth feelings and used as a precursor to future research
quantitative
choices, frequency, demographics
how not to conduct market research
lack of resources
research results not actionable
closed mindset
late timing
vague objectives
DEFINITION product
any want-satisfying good or service that is considered together with its perceived tangible and intangible benefits
product life cycle graph
product life cycle in relation to
sales
profitablity
pricing
competition
advantages and disadvantages of using product life cycle
advantages
different stages of a product’s life cycle call for explicity different strategies
framework prepares management for changes of strategy
disadvantages
time spam of curve varies massively
rigid adherence means management can prematurely end the life of a product (self-fulfilling prophecy)
variation exists in shape such as in fashion where the PLC falls much earlier than the traditional PLC
rogers adoption/innovaton curve
innovators
technology enthusiasts
appreciate technology for its own sake
make critics
want cheap products
gatekeepers therefore key to high-tech marketing
early adopters
visionary
driven by a dream
tolerance to unproven technologies
low price sensitivity
easy to sell but difficult to please
represent opportunity
early majority
pragmatists
want measurable, predictable progress
view risk as a negative word
loyal once won
long-term agenda requiring patience
late majority
conservatives
believe in tradition rather than progress
fear of high-tech
should offer pre-packaged solutions
laggards
product characteristics that influences adoption rate
relative advantages
whether it outperforms
compatibility
complexity
divisibility
extent it can be trialed
communicability
geoffrey moore technology adoption cycle
how to cross the chasm
how to cross chasm
must market very differently between early and main market
target niche
force competition out of niche
base for broader operations
eg. palm pilot built a niche with targetting the management teams of high tech enterprises. they simplified the product and lowered the price. the passion carried over to the next segment of consumers
eg. NOT CROSDING sony DAP
differences of services compared to products
implication
intangible
tangibalise the product
inseparable
selection and training of service provider’s personnel
variable
strict quality control. develop customer care programme
perishable
manage supply and demand explicitly
no ownership
manage supply and demand explicitly
price-theory
dertermines of upper and lower limit
UPPER LIMIT DETERMINED BY DEMAND
(price discrimination)
some people are more price sensitive
identify. charge separately. increase revenue
demand for some products are price sensitive
identify. reduce prices. increase revenue
LOWER LIMIT DETERMINED BY COSTS
inputs to pricing decisions
demand
costs
other factors
company and marketing objectives
overall goal
target market
brand image
rest of Ps
competition/market structure
number of firms
degree of differentiation
legal/social constraints
government legislation
regulatory bodies
social/political pressures
DEFINTION price
full cost of producing the item (allocated fixed cost + variable cost) + x% profit margin
advantages and disadvantages of cost-based pricing
advantages
simple method
explicitly considers costs therefore unlikely to result in loss
fair and transparent
disadvantages
largely arbitrary method depending on how you allocate overhead
prevents full usuage of marketing tools
can lead to a nonsencicle circle
increase in price —> reduced demand —> reduced production —> increased fixed cost per unit
popular pricing strategies
skimming
start with a high price for early adopters then reduce the price progressively. good for inelastic demand
penetration
go for maximum market penetration by adopting a low price strategy to attract the largest number of new buyers early on
types of promotion
direct marketing
public relations
advertising
sales promotion
personal selling
viral
roles of distribution channels
provide information
promote
negotiate
take orders
hold inventory
take risk
assume title
distribute to final customer
advantages and disadvantages of intermediaries
advantages
allows manufacturers to stick to job
replaces inefficiency of multiple deliveries
enables consumers to minimise efforts
disadvantages
company loses some control
can add to costs
company loses touch with end users
promotion, price, place and profits across product life cycle
importance of marketing
‘its purpose is to create a customer, the business has two basic functions: marketing and innovation. marketing and innovation produce results; all the rest are costs’ peter drucker
