Marketing Flashcards
What is the purpose of market research?
Market research is research carried out by a business to look into a new market for their product. This could include identifying the target market and competitors.
What is the purpose of marketing?
To notify consumers of a product’s existence or of information related to the product.
What is a primary market research method?
A research method that the business conducts on its own accord and using its own sources.
What is the difference between qualitative and quantitative data?
Qualitative data is based on ideas and opinions, which quantitative data is based on figures and statistics which may be analysed on a larger scale.
What is the importance of Price?
A price sets how much revenue a business will earn, and it being too high or too low may cause a loss. Consumers will not pay for items that are too expensive while a gross profit may not be made if price is set too low.
What is the importance of Place?
A business that is not based near/accessible to their target market will not be able to sell their products due to lack of consumers. A business in the wrong place can fail just because of poor positioning.
What is the importance of Product?
A business must sell products that are desirable, else no consumers will buy them. Products must generally have a unique quality as well - this gives consumers an incentive to buy them. If a business cannot sell its products it will, obviously, fail.
What is the importance of Promotion?
A business must attract consumers before it can even try to sell its products. Promotion is important because it allows a business to ensure their target market is aware of them, so that they can sell their products. Without attracting consumers, a business cannot sell its products and will consequently fail.
Examples of primary research methods?
- Newspapers
- Magazines
- Census
- Websites
- Internal data
What is market segmentation?
Market segmentation is how the business splits and segments its target market depending on specific characteristics.
How are products developed?
To develop a product you need to first come up with an idea, then design and innovate it, and finally you can produce it.
What are the 4 stages of the product life cycle?
- Introduction (product’s start)
- Growth (product grows exponentially)
- Maturity (product levels off)
- Decline (product starts to die, extension can be applied)
What is price skimming?
When a product is priced very high, as it is unique and new to the market. This happens mainly when a product only has little to no competition.
What is cost plus pricing?
When a product is priced by increasing the total cost by a percentage to calculate the price. This ensures a gross profit.
What is penetration pricing?
When a product is initially priced very lowly to encourage sales, and then is priced reasonably after it has established itself in its market.
