Marketing Flashcards
(32 cards)
what is marketing?
marketing is a strategic activity which covers all the ways in which a business makes sure that it’s product, or service, is exactly what people what to buy.
what is the role of marketing?
marketing identifies what customer wants, anticipates the customer’s requirements and then attempts to satisfy these requirements.
what are market segments?
market segmentation is where the market for goods/services can be divided into groups of people who have common characteristics
what are the two types of market research?
field research
desk research
what is field research?
field research involves obtaining first-hand information also known as primary information. this involved the researcher going out to the market to obtain the information
what is desk research?
desk research is using information which has already been collected and is second-hand, also known as secondary information. it has been collected for one purpose and is used by another
give an example of field research
telephone survey
postal survey
personal interview
give an example of desk research
financial reports
government publications
general publications
what are the 4 P’s
Product
Price
Place
Promotion
what is product
this is the actual item (good or service) which the organisation produces and sells
what is price?
this is how much an organisation charges for each product/service
what is place?
this is where the organisation makes its goods and services available to its customers
what is promotion?
this is how the customer is made aware of the product and the ways they are encouraged to buy it. it consists of more than just advertising and includes other forms of promotion
what are risks with developing new products?
customers might not want the product (ie there is no demand for it) and therefore not buy it
the money invested into developing the product would be wasted and this could put the business into financial difficulty
the reputation of the business could be damaged if it produces a product nobody’s wants or that is of poor quality
external factors (eg competition or the economy might impact upon the success of the product
the product life cycle includes…
Introduction
Growth
Maturity
Decline
what is introduction?
high costs for research and development, advertising and promoting
low sales and profits
few competitors
relatively high prices
what is growth?
sakes rise rapidly, profits show and price softens
competition appears
unit cost declines and mass market emerges
what is maturity?
sales rise but more slowly
profits begin to level as competition grows
prices become very competitive and may even fall
what is decline?
market becomes saturated - supply greater than demand
Customer tastes change and more advanced products are launched
sales decline permanently and profits are low or zero
product is withdrawn
what is branding?
the business chooses a word or symbol, or both, then registers them so that they can only be used on its products. using branding, you can create a form of product differentiation
what are some advantages of branding?
instant recognition of the product by the customer.
brand loyalty is build up, as the customer knows, trusts and likes the brand
consumers believe that the product will be better than its competitors, and so the manufacturer can change the premium (higher) prices
brand-holder can launch new products using the brand name, or even enter the market in other countries
what are some disadvantages of branding?
it takes a great deal of time to establish a brand
a single bad event with bad publicity can affect the whole range of same-brand products
you have to be able to protect your brands name world wide
describe price
price is the actual amount paid for the product/service by the consumer to the seller.
when are pricing decisions important?
introducing a new product
when the life-cycle is to be extended
when placing existing products into a new market
during periods of rising costs
when competitors alter other aspects of their marketing mix
when balancing prices between individual products in a product line
