Unit 3- Marketing Flashcards
Role of marketing department
- Identify and satisfy customer needs
- Loyalty (building customer relationships)
- Gain information abotuu customers
- Anticipate changes: find gaps in market and fill them
What happenns if Marketing department is successful?
- Increase of market share, sales revenue, profitability
- Raise customer awareness
- Improve busienss image
- Target/enter new markets
- Develop new products
Why may customer ineterests change?
- Taste/fashion changes
- Change in automation
- Change in incomes; more disposable
- Ageing population: e.g: ageing cream in woman,
Why do markets become more competitive
- Globalization is easy
- Transportation improvements allow your product to easily be shared
- Internet allows you to get anything, anywhere
- Internet also allows gain on customer info(marketing department can use this)
How to improve poor publicity/ maintain good image?
- Improve customer relations
- Improve existing products: adds to diffrentiation
- New products: increase in market share
- Keep costs low
Defien a market
Has a good or service, includes total consumers(including potential ones) and can be measured by value/output of sales.
Two types: Mass market or niche market
Define a Mass market
- Product with large sales
- Designed to appeal to whole market
- Hence; advertisement is expensive
Advantages of a Mass market
- Large sales
- Benefits economies of scale
- Risks are spread as if one product suffers(e.g: a type of gummy flavour) other can be more popular
- Oppurtunities for growth
Disadvantages of Mass market
- Advertisement is expensive
- Alot of competition
- Standardized products cannot meet everyones needs
Defien a niche market
Smaller segment of a larger market, inelastic prices.
Advantages of niche market
- Small firms sell to them, avoiding competition with larger firms.
- Specific needs met
- less competition with small firms.
Disadvantages of niche markets
- Limited sales
- only specialize in one product/area
Defien a market segment
- Made by marketing department
- They investigate it in great detail
- Groups of potential customers that share similar characteristics but are reached out to in different ways.
Potential benefits of a Market segment being made to a business
- Can identify gaps in market
- can fill gaps in market/offers oppurtunities
- Be cost effective
- Enjoy high sales and money because of being cost effective
List a few ways of segmenting a market
- Socio economic
- Age
- gender
- Lifestyle
- use of product
- Region
Market segments and advertisements
Market segments alow to see the best way to adverstise the product, where, and when.
e.g: to teenagers, on TV, in the evenign when a famous program starts.
defien product-oriented?
Product is developed and then seen which market/outlet it is to be sold to, usually fo basic needs and agriculture.
Defien market-oriented
Most likely has a budget so it cannot risk developing a product with no strategy,so it has to research.
benefits of market oriented brands
Less risks and more prepared to meet future customer needs and if customer needs change. THey can launch confidently
Why is market research needed?
SO the company does not loose money in developing/promoting a product no one wants, with market research it effectively avoids bankrupcy
If a business has conducted good market research it can…
remain competitive internationally
2 types of information
- Quantitive: “how many shoes were sold this month”
- Qualitive: answers opinions/questions “What do customers like about this specific product?”
Process fo primary research
- What is the purpose
- decide what method
- size of sample+who will be asked
- Carry it out
- COllate+analyze data
- Produce a report with a summary and conclusion with recommendations drawn from conclusion
Defien primary research
First hand field research, is planned. Has a purpose to answer a question. Method depends on way type of product/service
4 methods of primary research
- questionnaires
- interviews
- focus groups
- observations
Advantages of questionnaires
- Qualitive information
- Customer opinions are clear
- Cheap and easy
- Can be linked to a raffel draw hence attracting sample group
Disadvantages of questionnaires
- Time and money consuming
- Can lead to dishonest answers if questions are unclear/confusing/misleading.
- Collating also takes time.
Advantages of interviews
- Interviewer can explain question, earning a clear response
- Customer cans tate likes and dislikes
Disadvantage of interviews
- Interviewee may bias interviewer and answer dishonestly
- Time and money consuming
Difference between random and quota sample
a Random gives everyone a fair chance of being picked but everyone picked may not be interested, a quota sample may look for specific age, gender, or income.
advantage of focus groups
Can observe and attain detailed information
disadvantage of focus group
People may bias people in their panel and lie.
Advantages of observation
- Inexpensive
- exact and precise numbers counted
Disadvantage of observation
- Basic figures
- No detailed responses
- No reasons given in ‘response’ cannot know how to improve.
3 methods of observation
- audits: counting how much stock sold
- Watching: counting cars passing by
- Recording: putting a metre ina TV, people’s behaviour during a service.
Defien target market
The aimed customers
Defien market research
Process fo gathering and collating the data about cutomers, competitors for the target market.
Examples of internal desk information
- Sales research, price data and research reports
- Finance department
- Opinions of personnel in document
- Customer service department
- Annual reports and accounts
Examples of external desk info
- Government statistics; age of population
- Newspapers: forecasts trends of finance, field research cannot do this
- internet
- Market research agencies.
Advantages of desk research
- Quick
- easy
- affordable
- Large range can be covered e.g newspapers and governemtn
Disadvantages of secondary research
- May not be up-to date
- Not reliable
- biased
- DOes not represent the information properly(graph etc.)
Accuracy of research depends on…
- Age of research
- bias
- Size of sample
- Well phrased/unbiased leading questions
- Sample selected
- How accurately information was collated
- Who did the research
For a questionnaire(designing)….
- where will i carry it out
- which group will i sample
- WHat do i want to find out
Making the questionnaire…
- No more than 12
- Short and clear
- age group options(to find age)
- Logical order
- no leadign questions
- no open ended
Carrying out the questionnaire
- make a grid
- How many people will i ask?
- What time of day?
- Where will you carry it out
- Will the last 2 effectt he answers?
Ways of presenting data
- Line graph
- Tally chart
- Bar chart
- Chart(pie)
- diagram
Why may presenting data be important?
- Clarify significant
- Raw data must be converted so clear.
Defien Marketing mix
all the factrs to market and sell a product
4 P’s
- promotion; discounts etc.
- pricing; should try to cover costs
- product; needs to be successful
- place; channel of distrubution
factors going into brand image
- brand name
- quality
- loyalty
- price
what must the packaging of a product do?
- make it easy to use
- secure and proctect product
- easy to transfer
- informative
- promotional(eye catching) and colourful
Types of products
- Consumer goods: give leisure(furniture, food)
- Consumer services: help customer( salons)
- Producer goods:(for their outlet)
- Producer services: like maintainence, technicians, etc. for a factory
factors of a successful product
- satisfies wants and needs
- makes wants and needs
- desing; quality and price
- Usp
- price
most important P
the product itself-making the product successful allows for the other P’s to happen as well as market segment, research, etc. before placing, pricing, and promoting product
Marketing process
- make ideas
- shallow ideas
- Marketing dept. researches idea
- prototype
- sample
- launch
benefits of making new products
- USp
- diversity
- can enter new market
- can enter existing markets
drawbacks of more product
- can fail to meet needs and wants
- can not sell at all
- company image is tainted
- material waste
- costs time and reseach
Outline product life cycle
- Development- research
- Introduction- promotional pricing, few sales
- Growth- rapid sales
- Maturity- competitors, competitive pricing, most sales
- Saturation- no new competitors, no growth nor decline
- Decline- may promo price to get rid of stock; out of business
Main factors of product lfie cycle
price(3 and 6) and promotio(stage 2)
Methods to extend lifcyle of product
- more outlets
- improve product
- variation-childrens ver
- new countries
- better packaging
- new advert campaign
usually stages maturity and saturation
reasons price can change
- needs more MS
- New market
- cover costs
- mroe proift(however they may overlook this and price according to consumer perception
Influences of price
- supply
- demand
- producer
- outler
- customer
Types of pricing
- psychological: pricing to alter customer perception of product
- skimming: high price as only one in market, attract customers, slowly lower
- promotional: lowest price possible-also rid of demand
- dynamic: high demand=high price
- cost-plus:[total cost/output + %markup]
- competitive: matching competitor
- penetration: new markets
factors of cost-plus pricing
- easy to apply
- BUT maybe higher than competitors
Factors fo competitiv
- research requires time and money
- BUT allows to not over or under price
Factors of psychological
- money= status
- can charge .99
- supermarkets to make you thin better value
- Brands
- little revenue lost
- BUT competitiors may do the same
Factors of penetration
- less profit
- BUT allows more sales and enter of new market
factors of skimming
- high quality perception
- BUT may loose sales
factors of promotional
- get rid of stock
- spikes interest
- BUT little profit
FActors of dynamic
- more sales+profits
- all seats/produce sold
- BUT costs time and money to research
- causes customer to browse best price
Define price elastic demand
demand depends on price, as price increases the demand decreases
vice verse for prince inelastic demand, demand does not decrease as much when price increases.
Aims of promotion
- Inc sales
- introduce products
- create+improve brand image
- issues by gov
- COmpetitors
informative vs persuasiv
- informative for laptop want know ram etc
- persuasive= aftershave want to look attractive
Cycle of promo
- Objectives
- budget
- target market
- media to be used
- watch it burn
Need of cost effectiveness in promotion
- small businesses dotn have too much
- need to be effective with not too little budget
- needs to be effective
- compare to predicted sales
ads of sales promo(short term)
- inc sales in time of year
- new consumers to old product
- old customers to new product
- old customers to buy in bulk
- new customers to sway away from competitors
what do sales promo/promo in gen dep on?
- product life cycle: the stage its in
- the nature of target market: eg local vs nation vs international
- nature of product: alchohol promo in saudia? nu uh
- nature of location: if most pop illeterate newspaper is useless
internet and how its useful in 4 p’s
- Promo: can do online in pop ups
- Product: new features to phone etc
- Price: can do dynamic as research well done
- place:
Advantages of product to consuer directly
- by mail catalogue via internet
- suits some products
- cuts out price
- simple
Dis of product to consumer
- common
- may not suit product
- impracticle if far away
- expensive sometimes
ad of prod to retailer to consumer
- large amt to retailer sold
- less cost of distrubution
dis of prod to retail to cons
no direct contact with consumer
ad of prod to wholes to retail to cons
- wholes can advise abt sales
- can ship so less cost
- buy no pay later for cons in retail
- storage fore retail
- small QUANTITIES compared to rpev route, so less helf life helped
dis of prod to whole to retail to cons
- maybe long way
- maybe spoilt by time arrive
- may be more expensive
- not in large stock or range
ad of prod to agent to wholes to retail to cons
- agent has better knowledge of local
- if business is lost
dis of prod to agent to wholes to retail to cons
less control of sales
