Marketing Flashcards
(18 cards)
Role of marketing
Find out what customers wants are
Meet demands
Develop the right PRODUCT
Make sure it has the correct PRICE
Make sure customers are aware through PROMOTION
Ensure it is available in the right PLACE
Market segmentation
This is when a business looks at it's market and splits the customers into different groups. AGE GENDER JOB INCOME SOCIAL CLASS
Market share
Percentage of all shares in their market.
Market research
Businesses must find out:
WHAT PEOPLE WANT/NEED
HOW MUCH WILL THEY PAY
DO CUSTOMERS LIKE THE PRODUCTS?
Field research
This is when information is obtained first hand (primary information)
PERSONAL INTERVIEWS
ONLINE SURVEYS
TELEPHONE SURVEYS
Field research
advantages/disadvantages
information is specific to the businesses needs, therefore is relevant - A
information is up-to-date, therefore will be more reliable -A
expensive to collect due to employees wages - D
time consuming, as it has to be gathered first hand - D
information may not always be truthful/accurate - D
Desk research
This is when the business uses information that has already been collected. (secondary information)
You can also do internal and external desk research
INTERNAL
examining customer records
analysing customer records
EXTERNAL
newspapers/magazines
radio/ TV reports
internet and technology
Desk research
advantages/disadvantages
information is cheap, as it is already available - A
information is easily accessible( saves time = decisions can be made faster) - A
may not be up-to-date - D
may not be total relevant to the businesses needs - D
information is available to competitors- D
Marketing mix
product
INTRODUCTION
product is launched
costs are high
GROWTH
sales increase
people are more aware
MATURITY
product is well known
competition may be fierce
DECLINE
customers tastes change
sales fall
Branding
CUSTOMER
a brand represents quality/ reliability - A
will pay more for a brand as prices tend to be more expensive - D
ORGANISATION
encourages repeat purchase( brand loyalty) -A
gives the company a good reputation/image - A
one bad product can result in a bad impression for the whole brand - D
Marketing mix
price
Price refers to how much the product costs to buy.
it is important that the price reflects:
the QUALITY of the product
it is COMPETITIVE in relation to similar products
LOW PRICE- the organisation charges a lower price than competitors. This is used to attract more customers than the competitions.
HIGH PRICE - this is when the organisation charges a higher price than competitors. This attracts customers as they think the quality of the product is better than usual.
COST PLUS - this is when a percentage of the cost is added to give a profit. This strategy ensures a profit is made on each product sold.
PROMOTIONAL PRICING - this is when the organisation charges a lower price for a short period of time. Customers will buy the product because they are getting a deal.
Marketing mix
place
This is the way the business makes the product available to the customer and where the product is sold( the market)
FACTORS TO CONSIDER WHEN LOCATING:
parking facilities
availability of a local employees
suitable infrastructure( availability of water,gas,electricity, transport)
competition- set up far away from competition
Marketing mix
place- distribution methods
ROAD NETWORKS
cheaper than other methods - A
customer receives the product direct to their door-A
difficult to transport large products -D
road works may cause delays - D
TRAIN
large products can be transported -A
large quantities can be transported- A
there isn’t a train station at every location- D
not a door to door service -D
AIRCRAFT
products can be transported across the world quicker than by sea- A
large amounts of small products can be transported.- A
large items cannot be transported -D
not a door to door service - D
BOAT
large products can be transported - A
products can be transported across the world - A
time consuming- D
not a door to door service- D
Marketing mix
promotion
Promotion falls under 3 headings:
ADVERTISING- makes people aware that a product exists
SPECIAL OFFERS- provides customers with a discount when they buy a product
CELEBRITY ENDORSEMENTS- when a celebrity is used to promote a business
business advertise to:
compete with other firms
increase the sales of a product
help launch new products
advertising- TV/cinemas, radio, newspapers/magazines,internet,posters/flyers
Advertising
advantages/disadvantages
NEWSPAPERS/MAGAZINES
- eye catching - A
can target a particular market segments (different types of newspapers)- A
can be expensive- D
INTERNET
-can target customers worldwide - A
relatively cheap - A
may be ignored - D
POSTERS/FLYERS
-can target a particular market segment (hand delivered)-A
customers tend to dislike junk mail through their letterbox
-D
ICT in marketing
Laptop/ computer
- used to store information collected from market research
- used to design advertising campaigns
- used to communicate with publishers
- used to communicate with suppliers/ wholesalers
Software
- used to produce high quality/ professional documents
- used to record sales as a result of advertising campaigns
Direct marketing
This is when the business will directly contact the customer with information about products/services
- mail order catalogues
- direct mail: flyers ect.
- cold calling
Ethical marketing
This is marketing that isn’t illegal, but isn’t morally right.
-price fixing
-negative advertising(against a competitor)
cold calling
-tax avoidance
