Marketing in Business Flashcards
What is the role of importance of marketing?
To carry out market research to find out what customers want
to develop products that will satisfy these customer wants
To raise awareness of these products and encourage people to buy them!
To research competitors to find out what they are doing eg their products and prices
To identify possible customers target
What is market share (key terms)
This is a percent a business has out of the total that are in the market
25% market share means for every 100 customers they will have 25 in that market
What is market segmentation ( key terms)
This is when the whole market is divided up into smaller groups based on certain characteristics
What is market leader (key terms)
Market leader is a business in a specific market that is the most popular in a market.
This means the business with the highest market share ie the most customers
What are some examples of market segments?
Age, Income, Gender, Lifestyle, Occupation and Religion
What are the benefits of market segments
Products are developed that meet the need of specific customers
Prices can be set that cater to different incomes
Place where customers want to be able to buy the product is more likely to be more suitable for them
Promotions such as advertising can be designed to appeal to certain market segments aswell as other promotions (special offers/discounts) can be made to appeal to particular market segments
What are the product stages of development (5)
The stages of product development are;
Market research is carried to find out what customers want
suitable method of promotion is identified,
pricing of product will be discussed,
Methods of promotion will be agreed
and places where the product will be sold
What is the product life cycle
Introduction - the product is launched onto the market. Low sales / high costs (advertisement, development). Not much profit is being made
Growth - Sales start to increase as consumer awareness of the product increases
Maturity - Sales are at a peak and profits are at a maximum
Decline - Starts to fall as competitors enter the market and profit is falling
What is product branding (advantages) 4
Logos, symbols and names can be used as a marketing tool to differentiate and make the product stand apart from its competitors
Customers can become brand loyal, increasing sales / market share
Higher prices can be charged for the product if it is perceived to be higher
New products can be introduced more easily as brand name is already established and has built up a loyal customer base
What is the cost of branding
If one product within the brand gets a bad reputation this can damage all the products reputation in a brand
Establishing a brand is a costly process as huge amounts of money must be spent on advertisements
Brand imitations can weak the brand are expensive to challenge via the courts
What are the factors determining the price
How much it costs to make
The market segmentation the product is aimed at
Price charged by competitors
How much profit is wanted
Quantity of the product supplied
Quality of the product
Desired image for the product
The stage in the product life cycle
What is low pricing
Low pricing when prices is set below competitors and is used to encourage customers to buy from your business
What is high pricing
High pricing is when prices are set above competitors prices and is used to give the impression that your product is higher quality
What is competitive pricing
Competitive pricing is when prices are set inline to prevent a price war as businesses need to compete on other factors
What is promotional pricing?
Promotional pricing is when prices are reduced for a set amount of time and is used to attract customers into your business
What is destroyer pricing
Destroyer pricing is when prices are set very low, little or no profit being made and is used to try remove a competitor from the market
What is cost-plus pricing
Cost plus pricing is when the cost of the product is calculated and amount of profit would be added on and is used to ensure costs are covered and profits are being
What is phycological pricing
Phycological pricing is when prices are set to make the customer think that it is cheaper than it is e.g. £0.99 and is used to encourage customers to buy the product as it perceived to be cheaper than it actually is
What are factors to be considered for place
Where the customer is
Employee availability
Competition
Target Market
Suitable infrastructure
What are methods of transportation
Road
Rail
Air
Sea
What are the advantages of the methods of transportation listed above?
Road - door to door, short time and cheap
Rail - Large products can be transported and large quantities of goods can be transported
Sea - Products can be transported anywhere and is suitable for large bulky items e.g. cars
Air - products can be transported around the world quickly
What are the disadvantages of the methods of transportation
Road - Roadworks can cause delays, difficult to transport large item and not environmentally friendly
Rail - requires road as final destination and there is not always a railway station nearby
Sea - takes longer amounts of time, unexpected delays may occur at ports and requires another mode to final destination
What are methods of advertising
Television, Cinema and Social media
what are the advantages of advertising
Television - adverts can be targeted at specific market segments, large audiences can be reached and demonstrations can be given
Cinema - They are most likely to acknowledge the adverts and adverts can be targeted at specific market segments appropriate to film audience
Social Media - Updates can be received 24/7 via mobile technology and is cost effective
What are the disadvantages of methods of advertising
Television - very expensive and people may skip the advert
Cinema - Customers arrive just in time for the film therefore the advert is missed and recalling a specific advert may be difficult
Social media / E-mail - consumers may receive so many therefore they ignore / delete the adverts without looking
What are methods of sales promotion
Free Sample - Consumers try the product at no extra cost
Bonus Packs - additional amounts are given for no extra cost
Buy-one-get-one-free - Customers receives 2 products for the prices of 1
What are market research types
Desk Research - using public information
Field Research - Information the organization gathers themselves
What are methods of field research and their advantages
Test Marketing, when a product is launched onto a smaller market to obtain feedback, advantages are reduces risk of an unsuccessful product
Hall Test is when a product is given to a customer to test and the advantage of it is that quality feedback can be obtained
Focus group is when a group of people are offered to get involved to get feedback, the advantage is that it in-depth feedback can be obtained and more information can be teased out
What are uses for IT Marketing
Social Media - To interact with customers
E-commerce - to sell products online
Text Messages - To alert customers to promotions
Data bases - To keep customer records and to search and merge information into direct mail slots
Self-check out systems - to speed up the process of buying products
What is product packing advantages
Makes your product unique
Customers can identify it easily
Honest packaging will prevent legal issues
What are the disadvantages of product packaging
adds an extra cost to the product
Depending on product material it isnt enviormentally friendly
