paper 1 flashcards 2nd topic-marketing
what are the stages in marketing
1.identifying – finding out by using marketing research about what customers want, and what products and services are already on the market
2.Predicting – analysing the data collected and using the owner’s skills to judge what might happen in these markets and how the products might be suited or changed, adapted or updated
3.Satisfying – customer needs, making sure the person or business are happy with what they are buying, that they will not complain and will be happy to buy again if appropriate
4.Profitably – adding value to the product so when sold, the price of the product is greater than cost of the inputs
what is the purpose of marketing (HINT-there are 3)
1.INFORM CUSTOMERS
2.INCREASE SALES
3.IDENTIFY AND UNDERSTAND CUSTOMERS
what are some customer need(HINT-there are 4)
1.reasonable price
2.variety of choice
3.convenience
4.quality and design
what is marketing research
Market research is the process of collecting
information about business customers,
what are the types of research
-PRIMARY-finding
information that does not yet exist.
E.g. Focus groups, interviews,
questionnaires, own sales data,
observations, consumer panels
-SECONDARY-finding
existing information researched by a
third party. E.g. official market
research publications – CENSUS,
Mintel, Newspaper reports,
what is the benefits of primary research
More specific – questions can
be directly at your research
objective
Up-to-date
what are the drawbacks of pr(primary research)
Expensive and time
consuming – may require
hiring a specialist/employee
to conduct your research.
Limited resources
what are the benefits for SR(SECONDARY RESEARCH)
Saves time (as it can be found
free or bought on the
internet)
Vast amount of resources
(particularly historical data)
WHAT IS THE DRAWBACKS FOR SR(SECONDARY RESEARCH)
Too much information - may
not be relevant to your
research objective
May not be up-to-date
Depending on the third party,
some organisations may
charge you for their market
data.
what are the types of data
-Quantitative
Data expressed in
numbers and statistics.
Results are measurable
-Quantitative
Data expressed in
numbers and statistics.
Results are measurable
what are the Benefits for quantitative data and the drawbacks
BENEFITS-
Measurable – easier to make
comparisons between data. E.g.
65% of Apple customers prefer
a larger screen
DRAWBACKS-Requires a large sample size to
make it reliable
Does not provide in-depth
reasons behind the facts
what are the benefits and drawback for qualitative data
BENEFIT:More in-depth and detailed
information.
Opportunity to hear other
people’s opinions which could
lead to new innovative ideas
DRAWBACK:Difficult to make calculated
comparisons between opinions
Risks of bias responses as
opinions are subjective.
what is a sample
A sample is a group of respondents to a market research
exercise who are selected to be representative of the views of
the target market as a whole.
what is sample bias
where the sample chosen is not
representative of the population studied
what is a segment
BREAKING DOWN A MARKET INTO SUB-GROUPS, ACCORDING TO
SIMILAR WANTS AND NEEDS, IS CALLED MARKET
SEGMENTATION
what are some types of market segments
-AGE
-GENDER
-INCOME
-LIFESTYLE
-LOCATION
WHAT ARE THE 4PS IN MARKETING
PRODUCT
PRICE
PLACE
PROMOTION
what are the stages of the product life cycle
y-axis it says sales in £ or volume
x axis-time
1.INTRODUCTION
2.GROWTH
3.MATURITY
4.DECLINE
TWO TYPES OF DISTRIBUTIONS CHANNELS
Digital:The distribution of goods and services digitally by downloading from a website
Physical:The distribution of goods using a physical presence such as a shop
or office.
what is a wholesaler
A person or company that sells goods in large quantities at low prices, typically to retailers.
WHAT IS A RETAILER
A person or business that sells goods to the public in relatively small quantities for use or consumption rather than for resale.
WHAT ARE SOME METHODS OF PRICING
1.SKIMMING
2.COST-PLUS PRICING
3.COMPETITORS PRICING
4.PENETRATION PRICING
5.PROMOTIONAL PRICING
