unit 5 - marketing Flashcards
what’s segmentation?
allows business to focus on individual groups, such as men/women, age groups, geographical location, levels of income.
benefits of segmentation.
-design better products.
-understand customers better.
-maximise profits from each group.
drawbacks of segmentation.
-detailed research may be expensive.
-difficult to predict consumers likes.
-competitors will be trying to do the same.
what is market research?
a business collecting information that will help it to better complete with its opposition.
what’s quantitative data?
data that is numerical.
what’s qualitative data?
information that is descriptive.
what does place refer to?
the different channels of distribution a business uses to get their products to the customers.
what does promotion refer to?
the name given to all of the businesses activities that encourage the customer to buy a product.
ways to promote a product.
-advertising.
-PR.
-sales promotion.
-sponsorship.
-social media.
things that affect the price of a product.
-costs associated with the product.
-nature of the market.
-degree of completion in the market.
-the stage a product is at in its lifestyle.
what’s price skimming?
setting a higher price when a product is released.
what is price penetration?
setting a lower price than the competition for a short time.
what is competitive pricing?
pricing alongside or similarly to the competition.
what is loss leader pricing?
setting a price for a product that means a loss is made on each sale.
what is cost-plus pricing?
adding a percentage profit to the cost of producing/selling a product.
