Marketing Flashcards
(32 cards)
What’s the importance of Marketing?
• Informing customers
• Identifying customers (MR)
• Increasing sales by:
- Advertising - New products
- Pricing strategies - New market
- New sales method (eg. Digital)
What’s the difference between Primary and Secondary market research?
-Primary research is done first hand by using methods like surveys to gain new information
- Secondary research uses existing information from other sources
Characteristics and Types of Primary Market Research
- Takes lots of time and resources as it involves customers
- Open to interpretation and can only use closed simple questions
Types:
- Questionnaires
- Focus Groups
- User Groups
- Postal/ Telephone Surveys
- Customer Interviews
- Test Markets
- Online Feedback
What is Quantitative data?
Data based on statistics and facts, doesn’t give detail or reason.
What is Qualitative Data?
Data that involves detailed analysis and explanation (involves the why, when, where, how etc.)
Advantages of Market Research
• Identifies customers’ needs
• Helps to focus attention on business objectives
• Aids planning and development of the business
• May help to reduce the risk of new product development
• Globalisation makes market information valuable
Disadvantages of Market Research
• Costs vs Benefits
• Influence of sample sizes and response rates (reliability?)
• Information is only as good as the methodology
• Can be inaccurate or unhelpful
• Not always useful for innovative products new to the market
What are the 5 different pricing strategies?
1) Cost Plus
2) Competitor
3) Penetration
4) Skimming
5) Promotional
What is penetration pricing?
New products that are sold at low prices to attract interest from customers.
What is skimming pricing?
New products (usually technology) that charge high prices which are then reduced when competitors enter the market.
What is promotional pricing?
Attracting customers by offering discounts on products (eg. Buy one get one free).
What is branding?
The use of a well-known name or symbol that customers can connect with a product or service.
What are the 3 considerations for marketing a product?
•Price (is it affordable for customers)
•Design (eye-catching?)
•Image (does it appeal to target market: eg. Female/male products)
How can you extend the product life-cycle?
• Advertising
• Price reductions
• Added value
• New markets
• Relaunches
What is the Product mix?
Where businesses make and sell more than one product.
What are the advantages of the product mix?
• Spreads the risk and ensures businesses aren’t reliant on one product
• Greater number of products = Greater Revenue
What are the disadvantages of the Product Mix?
• Too many products requires storage space
• Cash flow issues (money tied up in stock)
• No opportunity to specialise
• Unaffordable for small businesses
What are the 4 methods of Promotion?
1) Sales Promotion
2) Public relations
3) Sponsorship
4) Advertising
Name 4 methods of Sales Promotion
Any of the following:
- Price reductions
- Loss leaders (charging less=attract customers)
- Free Gifts/ Samples
- Merchandising
- After sales service (eg. Apple care)
- Competitions (eg. McDonald’s Monopoly)
- Point of sale (encouraging extra purchases at checkouts)
Public Relations
•No costs involved.
•Things like:
- Newspaper presence
- Associations with celebrities
- Radio or Talk shows
Name 5 methods of Advertising.
Any of the following:
- Local/ National Newspapers
- Magazines (specialist or normal)
- Digital Media
- Cinema adverts
- Billboards
- Transport (eg. Sides of buses)
- Flyers
- TV adverts
- Radio
- Social Media/ Internet
What’s the difference between Above and Below the line promotion?
Above the Line:
-Accessible for everybody
- Things like newspapers or billboards
Below the Line:
-Targets existing customers
- Loyalty cards (eg.)
How can companies regulate their advertising?
Avoid any advertising that’s Misleading, Harmful, Offensive or Unfair.
How do companies select the most appropriate method of advertising?
Consider their:
• Business size/reputation
• Marketing Mix
• Time Factor
• Target Market
• Budget
• Product life-cycle
