Marketing Mix Flashcards
Define product
An item a business sells to fulfill the customers’ needs.
How much should businesses charge for the product?
At good value for money; not necessarily cheap.
Why do businesses promote their products?
So potential customers are aware it exists.
Where should businesses sell the products?
Somewhere the customers find convenient.
Why do businesses try to find when conducting market research?
1) What products consumers want.
2) What price they’re willing to pay.
3) Their current buying habits.
What are the advantages of primary research?
1) Up to date research.
2) Relevant and specific to your products.
What are the disadvantages of primary research?
1) Expensive.
2) Time consuming.
Who do businesses target when conducting primary research?
Focus groups - Small groups of people who discuss their attitudes towards a product.
What are the advantages of secondary research?
1) Gives wide data range (not just small sample views).
2) Cheaper, easily found and instantly available.
3) Useful for looking at the market: can look at past trends to predict the future.
What are the disadvantages of secondary research?
1) Not up to date research.
2) Might not be relevant and specific to your products.
Define market driven firms
Firms that conduct market research to find out what people want and make it.
Usually do better than product driven firms.
Define product driven firms
Firms that design / invent a new product and then try to sell it.
Define demand
Consumers’ desire and willingness to pay a price for a specific good or service.
What is the law of supply and demand?
Supply and demand are inversely proportional to the price.
What can badly affect the profits of small businesses?
Decreases in demand and prices.
