Marketing (unit 2) Flashcards
what is marketing
marketing is a strategic activity which covers all the ways in which the business makes sure that its product, or service, is exactly what people want to buy
what is a market
is a meeting place for buyers and sellers to exchange goods/services for money. it can be a local market, a national market or an international market.
what is the role of marketing
marketing identifys what customer wants, anticipates the customer’s requirements and then attempts to satisfy these requirements
what is market segmentation
is where the market for goods/services can be divided into groups of people who have common charecteristics
what are different types of market segmentation
age- business often target people of a particular age. gender oncome/social class geographical location relgious belive family structure
what are the two types of market research
desk and feild
give examples of each type of research (advantages and disadvantages)
FIELD RESEARCH- involves obtaining first-hand information also known as primary. this involves the researcher going out to the market and obtaining the info themselves. advantages include the info gathered is relevant, it is up-to date, you know its reliability EXAMPLES questionaire/survey, customer pannel, hall test, product test
DESK RESEARCH- is using information which has already been collected and is second-hand, also known as secondary information. it has been collected for one purpose and is used by you for another. advantages include it has already been collected so it is easier to obtain, it is cheap to gather EXAMPLES financial reports, governmant publoications, general publivcations.
what is the marketing mix
product
price
place
promotion
Describe Product life cycle
The product life cycle shows the different stages a new product passes through over time and the sales that can be expected at each stage.
Introduction- high costs for research and development, advertising and promoting, low sales and profits, few competitors, relatively high prices
growth- sales rise rapidly, profits show and price softens, competition appears, unit cost declines and mass market emerges
maturity- sales rise but more slowly, profits begin to level as competition grows, prices become very competitive and may even fall
decline- market becomes saturated-supply greater than demand, customer tastes change and more advanced products are launched, sales decline permanently and profits are low or zero, product is withdrawn
describe branding
branding can be very sucessful maketing tool, and is widely used by businesses to create unigue selling points. The business chooses a word or symbol, or both, then registers them so that they can only be used on its products. it then designs a marketing strategy to distinguish its products from all other similar products by using the brand. Baxter’s, cadbury’s and Heinz are all well-known brand names. Using branding, you can create a form of Product differentiation
Give advantages and Disadvantges of branding
ADVANTAGES
- instant recognition
- brand loyalty is built up
- customers believe its better quality than its competitors so the business can charge premium prices
- allows the brand-holder to launch new products using the same brand name.
- brands can convey an image onto the consumer, and if successful can lead to a ‘snob value’ that makes the customer that owns the product look ‘cool’
DISADVANTAGES
- It takes a great deal of toime to establish a brand.
- a single bad event with bad publicity can affect the whole range of same-branded products.
- you have to be able to protect your brand name worldwide and this can often be difficult with huge markets producing ‘fake’ product.
- major brand manufacturers who can charge premium prices for their products suffer most at the hands of the forgers.
- brands which develop through fashion can suffer badly when fashions change
Describe price
the price is the actual amount paid for the product/service by the consumer to the seller
give factors which you have to think about when deciding on a price
- the companys objectives
- competitors prices
- the postion of the product in its life cycle
- the cost of manufacturing
- the time of year, if the company offers summer/christmas sales or if the product is seasonal
- the level of advertising and promotion
- the profit level of expected
- suppliers prices
describe the three types of long term pricing stratagies
LOW PRICE
a lower price than those of competitors is charged where there is price elasticity of demand. This means that consumers respond positively to changes in the price, and lower prices will result in much higher sales. It is impotant where there is little brand loyalty and competition in the market is high. For example, supermarkets have high sales of DVDs and CDs due to lower prices
MARKET PRICE
a price set at market rate means that your prices are broadly in line with those of competitors. It is usual in markets where price competition does not brenefit any of the businesses, such as in the petrol market where there are a few large companies, with very little difference between the competitors products. They tend to compete on things other than price, such as offering air miles
HIGH PRICE
A price is set high by businesses offering high-quality, premium goods and services where image is impotant, such as in perfumes.
Name the six types of short term pricing stratagies
skimming priceing penetration pricing destroyer pricing promotional pricing demand-orientated loss leaders
