Marketing/Mr Lenaghen Ohkyaaay Flashcards
Explain Marketing
Marketing is the process of identifying,anticipating and satisyfing customer requirements profitably
What is the purpose of market research?
Identify, Understand and Inform Customers
Leading to more sales
What is another name for Primary Research?
Field Research
Explain Primary Research
It is a research which involves collecting new data and information that has never been collected before
Advantages of Primary Research
1) Information is reliable as it is taken directly from customers
2)Information is detailed and up to date
Disadvantages of Primary Research
1) Inaccurate and people may not give honest answers or take it seriously
2) Time and Money
What is another name for Secondary Research
Desk Research
Explain Secondary Research
It is a research method which uses the data collected by someone else
Advantages of Secondary Research
1)Information is cheaper as it has already been collected
2)Information can be accurate if take from a reliable sources
3) Information is immediately available
Disadvantage of Secondary Research
1)Information may be out of date
2)Unlikely to be collected for the same purposes
Examples/methods of Primary Research
1)Product Trial
2) Surveys
3)Questionnaires
Examples/methods of Secondary Research
1)Magazines
2)Newspapers
3)Market Reports
4)Websites
Define the Term Sampling
Sampling is the process of creating a small unbiased population to be used in a test or an experiment and removes the idea of surveying everyone in a market or a populationD
Define the Term Random Sampling
Random sampling does not target any specific market segment and people included in the sample are generated at random
Define the Term Quota Sampling
Quota sampling is a sampling in which the researcher will choose the characteristics they wish the respondents to have
Advantage of Random Sampling
1) Less biased
2)Simple
3)Easy
Disadvantage of Random Sampling
1) May not reflect target market
2) can be expensive as a larger sampling is required
Advantage of Quota Sampling
Cheaper as less respondent required
Disadvantage of Quota Sampling
Harder to eliminate bias in the selection process
Define Market Segmentation
Market Segmentation is the process of dividing business’ target market into different groups
Types of Business Segments
Location
Demographic
Behavioral
Lifestyle
Define Marketing Mix
the combination of products, pricing, places and promotions it uses to differentiate itself from the competition.
What are the three different pricing policies?
Skimming
Penetration
Competitor based
Explain Skimming
Skimming is the process of the business setting their prices relatively high before their competitors have a chance to enter the market
Advantages of Skimming
The initial high price gives the impression of high quality
Disadvantage of Skimming
If price is high, not many people may be able to afford it
Explain Penentration
this is when a low price is set at the beginning in order to gain entry to an existing business
The price is then increased when customer loyalty increases
Advantages of Penetration
Ensures Sales
Suitable for a competitive market
More people can afford it
Disadvantages of Penetration
Poor image as low prices are often perceived as low
Customers may become dissatisfied as once price increases
Explain Competitor Based Pricing
Is when a business accepts the price which its competitors are charging and then prices its products same level or lower in order to gain advantage over the competitors
What are the factors which affect price
Demand
Cost of production
Seasonality
Competition
Explain Cost of Production
The business has to calculate the price of manufacturing the goods, wages and transport charges, and the price charged to the consumer which would cover all of these costs and make a profit
Explain Demand
Estimating the price according to the demand
high demand= high price
low demand= low price
Explain the price which the market can bear
This is involves setting a price which the customers can afford and are willing to pay
Explain Seasonality
Demand for certain products increase during certain time of the year. At these times of greatest demand the price is highest and falls immediately after
What are the stages of Product Life Cycle
1) Introduction
2) Growth
3)Maturity
4)Saturation
5)Decline
Explain the Introduction stage
Product is sold for the first time
Slow sales as customers are often hesitant to buy new products/ideas
Advertising costs are high
Skimming or penetration price policy is used
Explain the Growth Stage
Sales are rapid as most people are aware of the product and more customer loyalty is achieved
Competitor based pricing would be introduced
Explain Maturity Stage
Sales level would be maintained but not increasing
Product has established a place in the market
Explain Consumer Rights Act 2015
Must be of satisfactory quality(should not be faulty or damaged at time of sale)
must be fit for purpose
goods must be as described( products should match descriptions)
Explain Consumer Protection Act
designed to protect customers from products that do not reach level of safety
Any product not achieving the level of safety expected by consumers is said to be defective
Any person injured by a defective product is entitled to sue a product
Product should be used with reasonable care. Therefore manufactures can prove that the product was defective because of the way the consumer used it
Explain Traditional Channel of Distribution
Manufacturer to wholesaler to retailer to consumer
Explain Modern Channel of Distribution
Manufacturer to retailer to consumer
Explain Direct Channel of Distribution
Manufacturer to Consumer
What are the 4 Methods of Promotion
Advertising
Sales promotion
Sponsorships
Public Relation
Explain and Give Examples of Advertising
Advertising refers to the process of drawing
attention to a product, a brand or a company.
Newspapers
Radio
TV
Explain and Give Examples of Sales Promotion
Sales Promotion is any short term strategies used to persuade customers to purchase a product
Buy One Get One Free
Discounts
Loyalty Points
Explain Sponsorships
Many large businesses will sponsor an event, team
or individual in order to build up brand awareness.
Explain Public Relation
Method of promotion which creates a positive image for a business
Charity events
Explain Trade Descriptions Act
Goods and services supplied must be accurately described giving full information(Business cannot provide false/misleading descriptions)
The Country of origin must appear on all packaging
Prices of Goods and Services Must be Genuine
Explain ASA
Advertising Standard Authority
Deals with complaints about advertising
Sets a guidelines and a code of practice for advertiser
Ensures advertisements are legal,decent,honest and truthful
Explain OFCOM
Office of Communication
protects consumer from harmful or offensive materials on television/radios
