Unit 5 Flashcards
What is the definition of marketing
The process of identifying and fulfilling customers needs at a profit
What are the effects of satisfying customers needs effectively
Increase in sales,
Able to select correct market mix
Avoid costly mistakes
Compete better with other firms
What is the process of marketing
Customers needs
Market research
Product development
Pricing
Promotion
Place
What does fulfilling customers needs lead to
Increase in sales
Avoid mistakes
Filling a gap
What are some different market segments
Gender
Age
Lifestyle
Income
Ethnicity
Region
What does selecting your target market allow for your business to do
Develop target market
Specialisation
Opportunity cost
Drawbacks of segmentation are
Development costs
Promotional costs
Stock holding costs
Extensive market research
What is Price skimming
when the price of a product is set very high to recoup high r&d costs
What is Price penetration
A business sets a low price for a product to gain good market share quickly
What is Competitive pricing
where the prices charged by competitors are taken into account
What is loss leader
Its a product that is deliberately sold for less than it costs to attract customers
What is cost plus
Adding a fixed amount/percentage to the cost of making a product
Why would a business complete market research
Find a gap in the market, improve decision making (reduce risk)
What is Qualitative data
Interviews and focus groups, peoples opinions
What are the pros of Qualitative data
Its super in depth and gives more than just numbers
