Section 3 - Marketing (Chap 10 - 17) Flashcards
define marketing
identifying customer wants and satisfying them profitably
how to identify customer wants
-surveys
what is down side of marketing on wants
wants are limited to how much money people have
rule for customers
customer is always king/ queen
difference btw a customer & consumer
-customer- buys products
-consumer- uses products
define customer
person who buys products
define consumer
person who uses products
note: company - customer - consumer
what does customer satisfaction cause
-value for money
-customer loyalty
-repeated purchases
define anticipating changes
making futuristic call on changes
define market
-where buyers & seller come tgt to cater to demographic
4 market changes
-technology- new products replace old ones
-taste & fashion - what people like/ trend
-income - people’s salary - affects sales on luxury items (wants)
-population - no. people & age - affects sales
what should businesses do if there are lots of competition
-expand market
-globalisation - operate business worlwide
define market segment
-sub groups of entire market
ways to segment a market
-population - age & gender
-geographical factors
-life style
-religon
-social economic groups (classes of people)
2 types of market
-niche market
-mass market
define mass market
-market for general products for everyone
-more safe
define market research
-process of gathering, analyzing & interpreting info. about the market (before selling)
define niche market
-market for specialised products & people are willing to pay a high price for it
-short lived - based on trends
-more profits
define product orientated
-making & selling a product without research
-less cost, time, effort
define market orientated
-doing research before making product
-more success (but not guaranteed)
2 types of market research
-primary research
-secondary research
define primary research
-doing field research - using first hand info.
-new & specific info.
-more time, effort, expensive
-accurate & reliable
define secondary research
-doing desk research - using second hand info.
-less time, effort, expensive
-old & not specific info.
-too much irrelevant info.
-unreliable
-have to pay sometimes
eg of secondary research
-newspaper
-gov. statistics
-online
-competitors website
define focus groups
-people who are paid to test products
eg of primary research
-interviews - direct, timely & costly, can lie, may forget
-questionnaires - Q are easy, no misleading Qs, more detailed info, may lie
-outline surveys - instant
-focus groups - costly
define sampling
groups of selected people who respond to a market research
(only in primary research)
ways to choose sampling
-random - for general products - varied & biased responses - unreliable
-stratified - specific people - more meaningful responses
-quota - people are choose specifically - specific responses