Business marketing revision Flashcards
(19 cards)
Describe Market Research
The gathering, recording and analysing of information about the possible market for a good or a service.
Describe the methods of field research
Survey- forms which contain a series of questions. They are designed to obtain answers to questions which will help gain people’s opinions.
Consumer Panel-When a group of people are gathered together and are given a product to look at. this allows initial reactions to be recorded.
Test Marketing- product is tried out on a small section of the market, in a limited area eg: Aberdeen only
Describe the activities involved in marketing
Carrying out market research in order to find out what customers want to buy.
Deciding on the right PLACE to sell the products.
Deciding on the best methods of PROMOTION for products and making customers aware of the products.
Deciding on the right PRICE to charge for the products.
Developing and designing a PRODUCT which meets customers needs and wants.
Outline what needs to be found out using market research
If there is a gap in the market or scope for a new product
if the individual is a potential or exisiting customer and why
what customers like or dislike about the product
what affect a price change would have
the type of adversising that might be beneficial to our firm
if new competitors are entering the market
what the current trends/fashion changes are
Outline the advantges of field research
Information is gathered specific to your purpose
Information is up to date
Outline the disadvantages of field research
It is more expensive to gather compared to desk research
It is more time conmsuming to gather compared to desk research
people may not always give truthul answers in response to questions
Describe desk research
This uses secondary data which is information which is already avaible either from outside the business or inside
Outline the advantages of desk research
it is cheaper to access exisiting information rather than having to collect information from scratch
It is less time consuming to gather compared to field research
Outline the disadvantages of desk research
Information may be out of date
Information is avaible to our competitors
Outline the features of a brand
Unique logo and packaging
high quality
Brand loyalty can be created
they are easily recognisble
help manufactureres keep or increase market share
Outline the benefits of branding
Higher prices can be charged for branded products.
Brands generate “brand loyalty” and mean greater sales.
Brands are perceived to be of a higher quality.
Brands are instantly recognisable.
Brands generate repeat business.
Brands reduce the need for advertising.
Describe own brands
These are products which are sold under the name of a supermarket or other retailer, rather than under the name of the manufacturing firm.
Outline features of own brands
Own brands are usually cheaper than branded products
Own brands are usually seen as being of inferior quality
Own brands appeal to the sector of the market to whom price is important
Advantages of packaging
Can protect the product during transport or delivery
can increase the shelf life of products
can make the product more attractive
can provide nutritional information and health guidance
can inform the customer how to successfully use or install the product
Disadvantages of packaging
Distinctive packaging could be copied by own brands
pressure to use environmentally friendly packaging may lead to higher costs
if distinctive packaging is littered it could create a negative street reputation
Product life style introduction
The product is launched on to the market
it is heavily advertised and promoted at this stage in order to make customers of the product
the product is making a loss for the business
Growth
Sales are increasing rapidly
the product is becoming known
Advertising is continuing , although at a lower level than the initial launch
Maturity
Sales reach their peak and profit levels are at their highest.
The product is well established in the market.
Advertising is used as a reminder to consumers.
R & D costs are likely to have been paid off.
Competitors are introducing products to compete with ours.
Firms will try to stay at this point for as long as possible due to the high profits being made.
Firms will try to introduce new models or variations of the product, or revitalise their advertising campaign to promote sales.
Decline
Sales and profits are falling.
The product becomes out-of-date.
There are more rival products on the market.
