Marketing department Flashcards
Role of the marketing department
To promote and advertise the product
To carry out market research
To price the product correctly
To find the best place to sell the product
To ensure the product looks the best it can
Market segmentation methods
Age, gender, religion, wealth, location
Benefits of target marketing
To increase sales of products in that segment of person
Can tailor your product to your customers needs and wants
Can promote and advertise to appeal to that type of person
Increase customer satisfaction from your target market
types of market research
Field research
Desk research
Market research benefits
Can find out if there is a demand for a product
Can help identify a target market
Help redesign and get feedback on existing products
Can get information on marketing mix.
Field research definition
Field research is when a business gathers primary information by going out and gathering their own information.
Desk research
When a business gathers secondary information from a source that already existed.
Methods of field research
Postal survey Face to face interviews Online surveys Focus groups Hall tests
Methods of desk research
Newspaper articles
Government statistics
Textbooks/ non fictional books
Websites
Desk research advantages
Cheap
Quick
Large quantities of info are easily gathered as doesn’t need trained professionals
Field research advantages
More relevant than desk research
Not available to competitors
Is new and so up to date
Field research disadvantages
More expensive than desk research
More time consuming than desk research
Can have low reliability
Needs skilled professionals to carry it out
Desk research disadvantages
Information may be out of date or inaccurate
Information is available to competitors
Information may be in a difficult form to interpret
May have less relevant because gathered for a different purpose
Marketing mix
Price
Place
Product
Promotion
Marketing mix
Price
Place
Product
Promotion
Marketing mix definition
The combination of all the elements that the marketing department must look at to be successful
Price definition
The price is how much you will charge your customers to buy the product
Pricing strategies
Premium -: where you set a higher price than competitors to heighten brand image and make your product seen as better.
Low-: where you set your price lower than competitors in order to maximise sales
Competitive -: where firms set their price to the same as competitors to increase market share and steal customers from that business
Cost plus pricing -: where the cost of the product and a markup percentage are added together to ensure there is always a profit on every unit sold
Promotional pricing -: where the price is reduced for a limited time to increase sales by pressuring customers into buying the product now.
Product definition
The product is the good or service that the business sells and the customers buy
Product development stages
GAPTAP Generate the idea Analyse the idea Produce the prototype Test the prototype Alter the product Produce the product
Branding definition
Branding is where a business, group of products or product are given a distinct easily recognisable character to make them seem higher quality and stand out from competitors
Branding benefits
Stand out from competitors Can charge more Increase repeat business Seen as higher quality Can release new product ranges more safely/with less risks involved
Branding disadvantages
Can cost lots of money to maintain brand image
Bad publicity and failed products can tarnish entire product ranges
Brand loyalty
Brand loyalty is where customers only buy your particular brand of the product because they believe that it is better than competitors.
Brand loyalty benefits
Repeat business
Helps influence others
Increase in sales and profit.
Methods of branding
Logos, slogans, jingles
Packaging
Packaging’s main function is to protect the product and ensure it is high quality when reaching the customer, but can also be used as a branding tool to communicate information necessary by law, build a brand image by displaying a logo and promote any special offers available.
Own brands definition
Brands set up by supermarkets with a lower quality and less branding development with a lower price to attract customers away from these brands.
Product lifecycle stages
Introduction
Growth
Maturity
Decline
Introduction
Where the product has just been released, not very many people know the brand and so the will be low sales and no profit
Growth
This is where the product starts to gain some popularity and people start to recognise the brand so there is medium amount of sales and some profit made
Maturity
Where the product reaches the peak of its popularity meaning that sales and profit are both maximised
Decline
Where the product is starting to be come less fashionable and so the sales and profit start to decrease
Promotion
Promotion is how a business persuades a customer to buy a product
Methods of promotion
Sales promotional strategies
Advertising
Advertising definition
Where a business uses the media to promote and inform the to the public about their product
Methods of advertising
Radio Television Magazine/newspapers Billboards Posters Packaging Social media Celebrity endorsements
Sales promotional strategies definition
Where a business uses incentives to persuade customers to buy their product
Examples of sales promotional strategies
Coupons Discount sales Competitions Loyalty cards Free delivery Next day delivery
Ethical marketing
Where you attract customers by ensuring that your products don’t have any negative impacts on the environment or community
Methods of ethical marketing
Decreasing Carbon footprint and plastic waste Recycling materials used in packaging No child labour used High working standards and conditions No mistreating animals Employing locally
Methods of ethical marketing
Decreasing Carbon footprint and plastic waste Recycling materials used in packaging No child labour used High working standards and conditions No mistreating animals Employing locally
Place definition
The location that a business sells a product at
Factors to consider when choosing a place
Distance to customer base Distance from suppliers Availability of property in the location Business environmental impact Location of competition Price of property
Methods of distribution
Road
Rail
Sea
Air
Road distribution
Where the business product is delivered by lorries or vans, it’s direct and can depart at any time and can keep perishable items cool, disadvantages however are that it isn’t environmentally friendly and can be delayed by roadworks.
Rail distribution
Where the product is transported to the business by train, it’s good for bulky products or large quantities, and is considered more environmentally friendly.
However it needs road distribution afterwards to transport from the train station to location of business premises
And cannot move internationally
Air distribution
Where planes transport the product to the business premises/ location of retail. It is good because can transport internationally, is faster than other methods, and good for perishable products. What’s bad however is it needs road distribution to transport after the airport, not good for bulky goods or large quantities and is less environmentally friendly, it also takes a long time to get through customs
Sea distribution
Sea distribution is where the product is delivers to the retailer by a boat/ship. It is cheap and can transport international also it can carry large quantities of product, a disadvantage is it needs road distribution to transport to and from shipping ports and is much more time consuming and less environmentally friendly
Technology in marketing
Websites-: source of desk research
E-commerce -: used to sell products without needing premises to any property
Email-: used to contact customers about promotional strategies taking place
Social media -: used to advertise and inform
Online surveys -: used to gather field research
