Topic 5: Marketing Flashcards
What is the marketing mix (4 P’s)?
Product - business must find customers needs or wants then come up with a product that fulfils them
Price - product must be good value for money
Promotion - product must be promoted so potential customers are aware it exists
Place - product must be sold in a place that’s convenient
Are all aspects of the marketing mix equal in importance?
It depends on the situation - e.g. there’s products some would travel an inconvenient way for
What is market research?
Finding out what customers want
What does market research allow a business to create?
A targeted marketing strategy
What can market research help identify?
Size of the market and the market shares of different businesses within that market
What is segmentation?
When people within a market are divided into different groups
What are examples of how a market can be segmented?
Age - e.g. teenage market
Gender - some scents and hygiene products targeted to different genders
Location - location depends on what people want e.g. a rich part of London may have a Gucci but Woking won’t
Income - the different amount people earn will affect how much they’re willing to spend on a product
Why is market research useful to businesses?
Helps a business understand its customers and competitors - helping them create a good marketing mix
Businesses are better able to identify their customers needs - more likely to produce a products that satisfies them
Helps a business to stay competitive and sell more of their product
What is a business able to do by identifying and satisfying a customers needs?
Increase sales - the demand for a product may show how to price product competitively and not make too much of it
Stay competitive - helps a business to show how they’re different and better than competitors
Create targeted marketing - business able to produce promotional material that’ll be effective
What can market research also be used to find in terms of opportunities?
Gaps in the market
What is quantitative data?
Anything you can measure or reduce to a number
E.g. seeing how much of a product people buy on average
What is qualitative data?
People’s feelings and opinions
E.g. if someone prefers one product or another
What are drawbacks of using qualitative data?
Harder to analyse
Harder to compare two people’s opinions
What are positives of using qualitative data?
Gives a greater depth of information
What does good market research use?
Both qualitative and quantitative data
What is primary research?
Doing your own research
What are examples of primary research?
Questionnaires
Phone surveys
Interviews
Focus groups
What are benefits of doing primary research?
Gets a possible customers view on products
Provides data that’s up to date, relevant and specific to the needs of the business
Can be specific to the target market
What are drawbacks of doing primary research?
Only have a sample of people - may not be an accurate representation
Can be expensive and time consuming
What is secondary research?
Using other people’s work
What are examples of secondary market research?
Government publications
Newspapers
Magazines
Articles
What are benefits of doing secondary research?
Gives access to a wide range of data - not just views of sample groups
Useful for looking at the whole market and analysing past trends to predict the future
Cheaper and faster
What are drawbacks of doing secondary research?
Not always relevant to needs
Not specific about a businesses products
Data can be out of date
What can businesses use sales data to analyse?
How well products sell and they may suggest what the issue is if it doesn’t sell well (if it’s price, the promotion, the place it’s sold or the product itself)