Test Flashcards
Benefits of market research (7)
Identify the needs and wants of a customers. This means, you can produce a product that is in high demand.
Measure customer satisfaction. Therefore, if a customer were not happy you can make changes so they can return to your business.
Measure levels of customer care. Therefore, if customer care levels are low you can train your staff further.
Identify competition in the market and the price they charge. This means, you can price them or undercut them to steal their customers.
Identify a price customers are prepared to pay. Therefore keeping your sales high as your prices are affordable.
Identify where customers shop. This means, you can rent stores in those areas to improve your chance of success
Identify promotions that convince customers to make a purchase. Therefore, if we use these promotions, we will increase our chances of persuading,informing and reminding customers about our products.
Extension Strategies Example (6)
Product
- change the name/brand name
Example - Opal fruits to starburst or cadbury’s caramel to diary milk with caramel.
Product Line extension
Example - Coca Cola
Change/alter the packaging - for example - iron Bru.
improved quality of features - e.g. washing up liquid/ Washing powder.
Change the shape, size or features e.g Apple
Change the use of the product e.g. Lucozade.
Product Portfolio/Mix/Range (1)
When a business sells more than one product or service.
How do they sell more than one product or service? (Product Portfolio) (2)
Have a range of products or a good mix of products.
Product range should all be at different stages of the product life cycle.
Advantages of having a Product Portfolio. (6)
To reduce the risk of failure.
To assist financing the Launch of new Products.
To cater for different market segments.
To increase sales and profits.
To improve the reputation of the business.
To cope with seasonal fluctuations.
Disadvantages of having a Product Portfolio. (6)
If one product receives bad reputation then the whole image of the range is tarnished.
Reduced opportunity to gain economies of scale.
Cost of Purchasing different machinery.
Training staff to produce different products.
R&D costs will be high for a range of products.
Sales promotions and advertising costs will all be high.
Market Dept use of ICT (15)
EPOS to record customers buying habits.
DATABASE to store customers personal details.
EMAIL to send out special offers and promotions.
WP (Word Processing) to create an advertising poster/flyers.
WP to create a survey
TEXT MESSAGE to send out special offers and promotions.
TEXT MESSAGE inform customers that their product has been dispatched.
WEBSITE to conduct an online survey (Survey Monkey)
WEBSITE/E-COMMERCE - selling products online
APP to sell products to customer.
DTP/PUBLISHER to create business cards for sales Rep.
DTP to design packaging
SPREADSHEET to calculate the selling price of a product.
WEBSITE to advertising products and provide customers with information.
QR CODE - To provide customers with information about your products.
