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
What are the cons of Qualitative data
Slow, Difficult makes it harder to make decisions
What is Quantitative data
Sales, figures, numbers and stats
What are the pros of Quantitative data
Easy, Quick, Fast, Stats
What are the cons of Quantitative data
Narrow/closed questions, unhelpful
What are the steps product development process
Concept,
Research,
Analysis,
Develop,
Launch,
Why is it important to develop new products
Shows brand as innovative
You can protect the new product via legal means
More profit due to higher prices
What are some examples of extension strategies
Target new market ( people)
New market (country)
New packaging
New design
new features
Cheaper price
New campaign
What is an extension strategy
method for a business to increase sales when in a saturated market
What are the section of a product development
R+D, Launch, Mature, Saturation, Decline/Extension start + decline
What are the properties of a cash cow in the Boston matrix
High market share
Low Market growth
What are the properties of a dog in the Boston matrix
Low market share
Low Market growth
What are the properties of a star in the Boston matrix
High market share
High Market growth
What are the properties of a question mark in the Boston matrix
Low market share
High Market growth
What is PESTLE
Political, Economical, Social, Technology, Law, Environment, any external factors effecting the business
