5 Marketing Flashcards
(75 cards)
Marketing mix
How a business combines its product, its price, uses promotion and the place of sale in order to be successful.
Market segmentation
Dividing market into groups of ppl based on different characteristics
Main categories of market segmentation
Location
Age
Income
Gender
Drawbacks of segmentation
Expensive
Hard to reach ppl
Purpose of market research
Identify customer needs/wants
Gain insight to competition
Primary research
Focus groups questionnaires asking customers for more insightful specific opinions
Secondary market research
Online research, customer reviews
Primary research benefits
Detailed
Customer loyalty
Primary research drawbacks
Expensive
Time-consuming
Secondary research benefits
Cheaper
Save time
Secondary research drawbacks
Not always accurate
May be out of date
Quantitative data
Numerical data, online, surveys, telephone
Qualitative data
Opinions, beliefs - focus group interviews
How can market size be measured
Volume of sales - total number of units sold
Market share
Percentage share of total market owned by a particular business, product or brand
How to calculate market share =
Business or product sales
______________________________ x 100
Total sales in the market
Marketing mix elements
Product
Price
Promotion- how customer found and persuaded to buy product
Place - how product go to customer
Factors that affect use of marketing mix
Level of competition
Type of product
Distribution channels
Retailers
Wholesalers
Distribution channel
Moves a product through stages of production to final consumer
How retailers can be classfied
Type of goods being sold
Advantages of using intermediaries
Access to more customers for producer
Save costs for producer
Disadvantages of using intermediaries
Increased price at each level
Producer may lose control of where product sold
Drawbacks e-commerce
No personal contact with customers
More competition
