management of marketing Flashcards
(29 cards)
methods of market research
personal interviews internet websites telephone survey newspaper postal survey government statistics online survey internal sales figures focus group industry reports social networking websites
product development
organisations need to make sure their product is suitably designed for their target customer
GAPTAP
generate the idea
coming up with ideas following market research
analyse the idea
considering the different options and picking the best one
produce a prototype
making a model/early version of your product
test the product
carry out safety tests and also carry out test marketing with customers for feedback
alter the product
make necessary changes following testing
produce the product
start production of product
branding
a brand is a logo, name or symbol that is given to a product that makes it instantly recognisable
advantages of branding
higher prices can be charged for branded products
brands generate “brand loyalty” and mean greater sales
brands are perceived to be of higher quality
brands are instantly recognisable
brands reduce the need for advertising
disadvantages of branding
if a product within the brand develops a poor reputation it can damage the whole brand name
establishing a brand is time consuming, lengthy and expensive process
own brands
products which are sold under the name of a supermarket or other retailer, rather than under the name of a manufacturing firm
own brands are often cheaper than branded products
own brands are often seen as being of inferior quality
own brands appeal to the sector of the market to whom price is important
packaging advantages
can protect the product during delivery
can increase the shelf life of the product
can make the product attractive and encourage customers to buy
can provide nutritional information and health guidance
can inform the customer how to successfully use/install the item
packaging disadvantages
distinctive packaging could be copied by own brands
pressure to use environmentally packaging may lead to higher costs
if distinctive packaging is littered it could create a negative reputation
pricing strategies
low price high/premium price competitive cost plus profit psychological destroyer price skimming
low price
setting a price lower than competitors
high/premium price
setting a price higher than most other similar products in order to create the image of quality
psychological
charging a price which makes the customer think the product/service is cheaper than it actually is
e.g. £9.99 instead of £10
destroyer
setting prices artificially low for a short period of time in order to gain market share from competitors.
competitors may be forced to lower their prices too or move out of the market
factors affecting choice of location
where the customer is located
cost and availability of suitable premises
parking availability near the location
infrastructure
government incentives
availability of employees in the local area
is there lots of competition nearby?
advertising
advertising is about communicating information to your customer
informative adverts
these increase awareness of a product/service and inform customers about the product/service
persuasive adverts
these aim to persuade a customer to buy the product by emphasising its desirability
advertising methods
television newspaper/magazine radio internet websites billboards social media SMS/text messaging
