Unit 5 Flashcards
Describe 3 internal sources of ideas
Brainstorming sessions- people from different areas of the business come together to come up with creative and innovative ideas for goods. Bad ideas are disregarded and good ideas are taken into consideration.
Ideas from employees-through suggestion boxes or suggestion schemes. Good ideas should be rewarded with bonuses.
R and D- discover ideas for new products or improve products that have already been made through research and development.
Describe 3 external sources of ideas
Monitoring competitiors- see what products are working in the market that the competitor has made and copy it but keep in mind copyright.
Getting market research company- to identify gaps in the market and current market trends so the firm can exploit these gaps.
Current trends- consumers are heavily influenced by trends on social media and world wide trends. Needs, wants and likes are dynamic.
What is market research?
The gathering, recording and analysing information on the transfer of a good from the producer to the consumer.Reduces the risk of business failure.
What is the purpose of market research?
Market- sees how big the market is and if it has room for growth. Also accounts for the demographic of the market ie age.
Marketing mix- determines how to sell the product in regards to the price, the places distributed, the promotional techniques used and the product made.
Consumer opinion-it allows the firm to look into consumers needs and wants and what they’re interested in, in order to increase profits.
Sales- estimates the amount of sales the product will make
Competitors- allows us to see our competitors and what products they have and what their strengths and weaknesses are.
What is field research?
Field research is primary or first-hand research.
It involves a face to face encounter with your target market.
Examples include surveys, observations, consumer panels, questionnaires.
Advantages:
Accurate and specific information on target market
Reliable insight on consumer opinion
Disadvantages:
Very expensive
Very time consuming
What is desk research?
Desk research is secondary or second-hand research taken from information that has already been gathered.Gives us an insight on competitors.
Examples include textbooks, statistics, newspapers
Advantages:
Not a lot of time taken
Not very expensive
Disadvantages:
Not specific to your target market
Not extremely reliable
Outline the stages of new product development.
Ideas Generation:
Concept of brainstorming ideas.
Coming up with ideas for new products to put on market.
Screening ideas:
Filtering out the bad ideas and disregarding them and taking in account all the good ideas and seeing which one will benefit the firm most.
Concept Development:
Taking into account the consumers needs and wants but also making a profit.
A unique selling point is established.
Feasibility Study:
An investigative report to see how viable the product is.
To see if the product will do well in the market.
To see if the product will make a profit.
Prototype Development:
This is when the first sample is made and multiple samples after that until the product is perfect.
This is the most expensive and time consuming stage.
Test Market:
The product is sent out to a small target market and they provide feedback.
The business changes the product to fit their standards.
Full Launch and Evaluation:
Product is released into the market and sales and profits are monitored.
What is marketing?
All the activities involved in identifying, anticipating and satisfying consumers wants and making a profit. It includes: Price Promotion Place Product
What is the marketing concept?
Focuses on satisfying the needs and wants of the consumers ,but also minimising costs whilst not sacrificing quality.
What are the advantages of the marketing concept?
Increases sales revenue as the firm is customer focused
Reduces wastes as more consumers are buying it
A good image and reputation is established
What is marketing strategy?
A marketing plan takes aims and objectives and puts in a series of marketing activities to make sure they’re achieved.
Includes market segmentation and niche markets.
What are the advantages of marketing strategy?
SWOT Analysis:
Self examination to find out the strengths, weaknesses, opportunities and threats the firm faces.
It improves coordination:
All important departments link together and achieve a common objective.
Raising finance:
A clear plan shows the investors that you have good management..
What is market segmentation?
Dividing the market into clearly identifiable segments.
Demographic segmentation:
Regards the persons characteristics like age and gender.
Geographic segmentation:
Regards where the person lives.
Sun hats advertised to hotter countries.
Psychographic segmentation:
Based on someones morals and opinions.
Vegan people prefer cruelty free and vegan produce.
What is a niche market?
A small, specialised market.
It focuses on a specific demographic.
Example: Bridal Shoes
What is a green market?
Concerns the ethics and sustainability of the environment and targets people who are sustainable.
Example: Vegan nuggets
Give an outline account on Product.
Product is based on the external characteristics of the good.
Design: Concerns the shape and colour of the good.
Function: Links to the sales of goods and supplies of services act 1980.
All goods must be fit for the purpose sold.
Form: Goods must be aesthetically pleasing but also comply with health and safety regulations.
What is packaging?
Packaging is a vital piece of the final good as it stays with the product from the time its put on the shelves, to the time its being bought, to the time its being used.
Protection: It prevents the product from getting damaged.
Distinguish: It distinguishes the product from the rest of its competitors causing it to gain consumer recognition.
Information: Provides vital information regarding the product e.g. use by date.
Security: Prevents the product from getting tampered with.
Colour: The brighter the colour, the more it stands out to consumers.
What is a brand?
A distinguishing mark or feature that causes instant consumer recognition.
