markting unit Flashcards
market segmements
age, gender, location, socia economic grouping,religon lifestyle
how is having target markets good for a business
so when doing markting they can market that product or service to them
what is field research
Field research gathers primary information that is first-hand information. It has been collected by the business for a specific purpose.
examples of field research
face-to-face interview
postal survey
focus group
hall test
telephone interview
online survey
observation
what is desk research
Desk research gathers secondary information that is second hand information. It has been collected for a different purpose.
examples of desk research
The businesses or competitors sales figures
Newspapers
Websites
Government publications e.g. the Census
Commercial publications e.g. Keynote and Mintel reports
advantages of field research
Competitive edge: only the business has access to the findings
Up to date: the business will know the date it was carried out
Accurate: Collected for the specific purpose for the business
disadvantages of field research
Expensive to carry out: the business has to create surveys, train employees to carry out interviews
Time consuming
advantages of desk research
Easy to access the information: it is usually in the public domain
Quicker than field research: you do not need to conduct, analyse or interpret the data
Inexpensive
disadvanges of desk research
Information can be out of date
Competitors can be using the same information
May contain bias
benifits of a hall test
Can see respondents reactions first hand
Can ask respondents further questions
coast of a hall test
The respondent may feel obliged to give a positive response
benefits of a telephone interview
Can reach a large geographical area
Inexpensive
coasts of a telephone test
Could have a low response rate as customers see it as a “nuisance call”
benefits of a online survey
Can send it to a large sample size
You can get feedback quickly
coasts of a online survey
Limited to people with internet access
coasts of a focus group
This data is harder to analyse
Can be expensive to pay respondents to participate
benefits of a focus group
Can gain information from respondents body language, facial expressions, tone
Can explore topics in depth
benefits of a face to face interview
Two way communication
Can clarify any misunderstandings
coasts of a face to face interview
Can be expensive
Business needs to train staff how to interview
benefits of a postal survey
Inexpensive
Can target specific postcodes
coasts of a postal survey
Low response rate as seen as junk mail
benefits of a observation
Can see real life behaviours in action
coasts of a observation
Analysis of the observation could be bias
what are the 4 ps in the markting mix
product,place,price,promotion
what is a product
A good or a service that is sold to customers or other businesses. This includes the after-sales service and packaging.
A product should have a USP (Unique Selling Point).
what is place
This is the process by which the product reaches the market and consumers.
This includes where the consumer purchases a product from the business.
This can be in a physical location, through a website or an app. It also includes how the product is distributed.
what is a promotion
to show people your product
what is price
This is what customers pay in order to obtain the product.
what are the stages you go through to develop a product
idea genertation
development
prototype and testing
modifications
launch to market
product life cycle stages
interdouction growth maturity decline
how do u draw a product life cycle diagram
sales up the side time at the bottom
interdouctuon
The product has just been launched in the market and sales are slow. No profit is made yet due to still covering advertising costs.
growth
ales begin to rise as more customers become aware of the product. The business may begin to make profit at this stage..
maturity
The sales and profit are at their peak in this stage as the product is now well known. This means less advertising is needed now.
decline
Sales and profit begin to fall because newer products are entering the market
branding advantages
Can save money on marketing once the brand is a household name
Higher price can be charged
Easier to launch new products
Customer loyalty
branding disadvantages
Fakes can appear- expensive to fight
One product can affect whole brand image
High initial costs
factors to consider when setting a price
competition
image
quality of raw materials
production coast
profit per unit
demand
the econmy
what is price skimming
A new product enters the market at a high price then lowers over time
what is penetration pricing
The price is set low when entering the market then rises once the product has become popular with customers. Used in a market with lots of competitors.
what is premium pricing
The price is set higher than competitors to achieve the image of quality
what is low economy pricing
The price is set lower than competitors to be the cheaper alternative
what is competitive pricing
Businesses charge the same price as their competitors then compete on factors other than price
what is deystoryer pricing
The price of a product is set much lower than competitors so they can’t compete
what is coast plus pricing
This is a strategy used to set the price. The cost to make the product is calculated then a % of profit added to create the price.
what is phycological pricing
The price is set just below a whole number to appear cheaper e.g. 99p, £249
what is promotional pricing
Price is reduced for a short period of time
what is price discrimination
A business charges different prices for the same product or service at different times of the day/ year e.g. off-peak
factors to consider when choosing a location
demand, competitors , close to suppliers , cheap staff can easily access , good infrastructure, parking , government legislation ,government grant
why do u want demand when choosing a location
A location with demand from consumers in the area who want their goods and services
why do u want compitiors when choosing a loaction
A location away from competitors to attract more customers OR near competitors to give customers choice
why do u want it to be cheap when choosing a location
A location with a cheap price or cheap rent
why do u want it to be close to suppliers when choosing location
A location close to suppliers of raw materials to reduce lead time and transport costs
why do u want staff to easily access your shop
location that staff can easily access and local people can be employed as they have the suitable skill set
why do u want good infrastructure
. A location with good Infrastructure e.g. good road and rail links
why do u want a place with parking
Some businesses will want a location with customer parking
why would u want a place with government legislation
A suitable location not breaking any government legislation e.g Health and Safety Act
why would u want a location where you could possibly get a goverment grant
Possibly a location where the business is eligible for a government grant
different methods of distribution
road,rail, sea, air
advantages of road
Door to door delivery
Cheapest method of transport
disadvantages of road
Difficult to transport large items
Can be slow
Not environmentally friendly
disadvantages of rail
Often rail stations are not located near customers or retailers so still require another method of transport
advantages of rail
Can transport large quantities
Often quicker than road
disadvantages of sea
Slow and time consuming
Very harmful to the environment
risk of piracy
advantages of sea
Can transport large quantities in shipping containers
disadvantages of air
Can’t transport large items
Very expensive
advantages of air
Can transport items worldwide
Quick method of transport compared to sea
advantages of ecommerce
Can sell to customers all over the world
Online shopping 24/7
Discounts can be given to customers
Businesses can save money because they don’t need a physical store
Whole product range can be shown
disadvantages of ecommerce
Goods can’t be seen or handled before they are purchased.
Can be expensive to pay for an internet service provider.
Can be expensive to make and maintain a website.
Employees need training to maintain and update the website
methods of promotion
- discounts e.g BOGOF
- celebrity endorsement
-free samples - competition
-loyalty card - adveristing
diffrent forms of advertising
- tv
-newspapers - radio
-cinema - social media
- apps
- billboards
- direct mail
advantages of tv
Can reach many customers
Can demonstrate the product
Target different markets depending on time/channel
disadvantages of tv
Very expensive
Viewers channel hop during adverts
advantages of newspapers
Can be aimed at different market segments
Can be kept for future reference
disadvantages of newspapers
Can be expensive
Competitors also advertise here
Easy to flick past
advantages of radio
Cheap on local stations
Captive audience with viewers less likely to channel hop
disadvatages of radio
Listeners may not pay attention
Cannot see the product
advantages of cinema
captive audience
disadvantages of cinema
Limited audience
More likely to remember the film than the advert
advantages of direct mail
Cheap
Can target market segments
disadvantages of direct mail
Many consumers bin ‘junk mail’
advantages of billboards
Usually in a busy location so large audiences
People may go past it more than once
disadvantages of billboards
Deteriorate with the weather and vandalism
advantages of apps
Can be downloaded onto the phone- send reminders and pop up adds
disadvantages of apps
may be ignored or deleted
advantages of social media
Can target large audiences
Can respond quickly to changes/customers
Relatively inexpensive
disadvantages of social media
Customers may not see adverts unless they already follow the business
data base
Information on customers can be stored in databases. These can be searched to find customers with specific characteristics. This can then be used for target marketing or promotional campaigns.
epos
Electronic point of sale (EPOS) is used by the marketing department to gather information on customers buying habits
QR codes
When a customer scans a QR code it will take them directly to a company website. They are often shown on promotional advertising billboards and magazines.
It enables the customer to access the goods quickly and easily. This could increase sales.
ecommerce
E-commerce allows the marketing department to sell the businesses products online via website or app.
This can be used to send surveys or promotions to customers.
powerpoint
Can be used to display market research information, present promotional campaign or new adverts to management.
apps
Apps can be used to give customers easier access to products and services. They can also be used to advertise products, for example ‘in-app’ advertising when playing games.
spreadsheets
Can be used to analyse data from market research and create graphs and carry out calculations.
desktop publishing
DTP software can be used to create professional looking advertisements to encourage customers to purchase products.
