Marketing Flashcards
(100 cards)
what is the role of the marketing department
- to help raise awareness of products and services
- to help raise the business profile
- encourage new customers to purchase
- to know what customers want
- monitoring changes and trends
what is market share
market share is the percentage of all sales within a market that is held by one brand/product or company
what is a market leader
a market leader could be a product, brand, organisation, which has the highest percentage of total sales revenue of a particular market
what is market growth
the increase in demand for a product or service over a period of time. The sales of all businesses within the same market could benefit in a period of market growth
what does product-led mean
product-led focuses on producing a technically sound product and then introduces it to the market, where customers are persuaded to buy. No form of market research will have been carried out prior to its development. It is normally a new invention e.g i-pad
what does market-led mean
market-led continually identifies, reviews and analyses consumer needs. The organisation will then modify its products or services in response to change in the market e.g walkers crisps
what is field research
this is when information is obtained first hand, it is primary information
advantages of field research
- information is specific to the business needs
- information is unique to the business so they can have a competitive edge
- information is up-to-date
- the source can be verified as they know who gathered it and conditions of this
disadvantages of field research
- expensive to collect-staff wages
- time consuming as it has to be gathered first hand
- questionnaires must be well constructed
- information may not always be truthful and accurate
what is desk research
this is when the business uses information that has already been collected, this is secondary information
advantages of desk research
- information is usually cheap as it as already available and does not involve as much labour/wage to collect like field research does
- information is easily accessible and readily available, therefore saves time allowing decisions to be made faster
Disadvantages of desk research
- may not be up to date
- may not be totally relevant to the business’s needs
- information is available to competitors
Methods of field research
Telephone survey: a market researcher telephones customers and asks them questions
Postal service: a survey is sent to customers through the post and is returned once completed
Online survey: a website or email is used to ask customers questions
Personal interview: often conducted as a street survey or by ‘cold calling’ at customers homes
Hall tests: a product is given to customers to try and their feedback is gathered
Focus groups: a group of customers is brought together and asked to answer and discuss questions put forward by a market researcher
Test marketing: a new product is launched into a regional area and the reaction is monitored. Successful products are then launched to a wider market
Electronic point of sale (EPOS): information on customer preferences and habits is gathered as their loyalty cards are swiped through electronic tills. Used to match purchasing information with customer details.
Telephone survey advantages and disadvantages
Advantages: easy to target specific customers
Information is obtained immediately and can be clarified if necessary
Disadvantages: customers can feel that telephone surveys are intrusive and may not want to respond
Only short surveys can be carried out
Postal survey Advantages and Disadvantages
Advantages: easy to target specific customers
Customers can choose to complete the survey at any time that is most convenient for them
Disadvantages: questions must be simple and easy to follow for the best result
Customers often via postal services at ‘junk mail’ and will simply ignore them
online survey, advantages and disadvantages
Advantages: customers can be surveyed across a very large geographical area
Online software can often be used to collate and analyse the results easily
Disadvantages: the responses may be too brief to be meaningful as clarification cannot be gained
Access to the internet must be available
personal interview advantages and disadvantages
Advantages: Allows two-way communication. Interviews can respond to the customers, body language, tone of voice, and facial expressions to encourage fuller responses
Disadvantages: I can take a lot of time to conduct these interviews
Customers may feel that this sort of questioning is a nuisance and may not wish to respond
Hall tests, advantages, and disadvantages
Advantages: good quality feedback can be gathered based on the product trial allowing changes to be made
inexpensive and easy to do
Disadvantages: customers, opinions and feelings can be more difficult to analyse
Customers might feel the need to give a positive response to have been given a free product
Focus groups advantages and disadvantages
Advantages: more in-depth feedback can be gathered
customers have agreed to participate, so considered responses are more likely
Disadvantages: participants are often paid which can increase research and development costs
Strong personalities within the group can sway discussions and opinions
test, marketing advantages and disadvantages
Advantages: changes can be made to the product before they ate launched to a wider market
money can be saved on launching a product to wait or market if it is unsuccessful in the test area
Disadvantages: customers in one area may have tests are not representative of the wider market
Electronic point of sale, advantages and disadvantages
advantages: gathers, vital information about consumer behaviour, such as where they buy, what they buy, how they react to promotions or price changes, which can allow for inventory to be ordered accordingly
allows retailers to offer promotions
disadvantages: it can be very expensive to set up the systems
It can be time consuming to set up
When used with loyalty schemes reward points with money off vouchers which lowers potential profits for the business
Information could be incomplete, if customers decide to shop elsewhere at times
internal desk research methods
- examining customers records
- Studying trends and sales figures
- examining managing reports
- Analysing the firms accounts
external desk research methods
- newspapers and magazines
- Books, reports and journals
- Government publications
- Internet and technology
Different methods of sampling
Random: totally random from the list of names. Each person must be interviewed. this can therefore become costly.
Stratified: The sample is more representative of the population as a whole
Quota: selection of a number of people who meet specific characteristics according to age, gender or income group. The researcher must find people to interview for this categories
Cluster: the population of split into smaller ‘clusters’, often geographically, which could represent the population on a smaller scale