Flashcards in Marketing Deck (22)
What are the four Ps in marketing?
What does product mean in the 4 Ps?
Business must come up with a product that people will want to buy. It must fulfil some of the customer's needs or wants
What does price mean in the 4 Ps?
The price must be one that the customer thinks is good value for money. This isn't the same as being cheap
What does promotion mean in the 4 Ps?
The product must be promoted so that potential customers are aware that it exists
What does place mean in the 4 Ps?
It must be sold in a place that the customer will find convenient
What is a mass market?
Contains very large numbers of customers buying ordinary products such as bread
What is a niche market?
Smaller group of customers who buy more specialist products
Give 5 examples of what the market can be separated into.
•Age - teenager, elderly etc
•Social class - professionals and unemployed
•Location - Popularity of something in a certain place
•Culture or religion - Different groups have their own unique product
•Gender - Some businesses target some items at men, women, boys and girls
Name the 7 point of sale promotions.
•Buy one get one free
•Use of credit
Give 6 examples of customer service.
•Accurate product information
•Dealing with customer questions and concerns
•Fulfilling the requirements
•Delivering on time
•After-sales support and warranties
What does SWOT mean?
How is SWOT analysis useful?
It uses it to analyse its self and other factors in the market. It can then use the results to help decide on its marketing strategy
How do you work out a mark-up?
Work out how much the product costs and then add a percentage mark-up.
How do you work out a profit margin?
Work out how much the product costs and increase by the required profit margin.
How do you work out a gross profit margin?
Gross profit margin = gross profit divided by sales
How do you work out net profit margin?
Net profit margin = net profit divided by sales
What does quantitative mean?
Quantitative information is anything you can measure or reduce to a number.
What does qualitative mean?
Qualitative information is all about people's feelings and opinions.
Why would there be a gap in the market?
Sometimes a group of customers will have a need that isn't being met
What is a product trial?
When a customer buys a product for the first time to try it out
What is repeat purchase?
When customers come back after their first purchase to buy the product again and again