Marketing (Unit 3) Flashcards
(25 cards)
what is quantitative research
research in numerical form
what is qualitative research
not in numerical form, usually provides insight into people’s feelings/opinions about something
what is sampling
selecting a group of people to represent a target population
what is the value of sampling
- provides insight into a market
- if the group are selected carefully it will avoid bias
- the bigger the sample, the more accurate it will be
what is market research
market research involves gathering and analysing data relevant to the marketing process to help a business analyse its existing market position; set market objectives; identify marketing activities and assess past marketing decisions
what is a market map
a market map analyses market conditions; to identify position of one product or brand relative to others in the market, in terms of any two criteria
what are the benefits (3) and drawbacks (3) of market mapping
BENEFITS:
1. helps identify a firm’s closest rivals
2. can be used to understand customers better
3. helps spot gaps in the market
DRAWBACKS:
1. often said to be an oversimplified statement of a business position
2. can be subjective
3. apparent market gaps may only exist beacuse they aren’t desired
what is a correlation
an apparent (statistical) relationship between two variables
what is extrapolation
using previous patterns of numerical data in order to predict values in the future
explain confidence intervals
Because it is not possible to predict with 100% accuracy, an interval of values will be given, with the larger the interval the larger the certainty, or confidence level
what are the three sampling methods + define
Random Sampling - research not aimed at any specific group of consumers, but just choosing customers so that they all have an equal chance to be chosen
Stratified Sampling - subsets of the population are created so that each subset has a common characteristic, then random sampling is applied to each one
Quota Sampling - stratified sampling, but each subset is chosen in proportion to how much of the business’ market that they make up
what is a market
a market is a physical or virtual place in which there are buyers and sellers of goods and services. They can be local, international or national.
what are the marketing objectives(5)
- Maintaining/increasing market share
- Meeting customer needs
- Develop new products
- Entering new markets
- Gaining competitive advantage
what is market share and the equation
the percentage of the sales in a market which a business is responsible for
market share (%) = sales of business/
total sales in the market
what is market share and the equation
the percentage of the sales in a market which a business is responsible for
market share (%) = sales of business/
total sales in the market
what is market segmentation
breaking down a market into various target markets each sorted by a characteristic of the customer
what is the value of market segmentation(3)
1.better understanding of customers
2.less expensive to cater for a segment of one market than the mass market
3.can help extend products into new markets
what is targeting
choosing which segment of a market that a business want to operate in
what is niche marketing
targeting a product or service at a particular/small market segment where customers have more specific needs and wants
what features does a business operating in the niche market have (4)
- differentiated in some way
- the niche has clear identifiable wants and needs
- focus on quality or exclusivity
- can charge higher prices as a result
what are advantages (5) and disadvantages(3) of niche marketing
Advantages:
less competition
clear focus
greater customer loyalty
suitable for small businesses
can charge premium prices
Disadvantages:
dependant on that market
successful niches may attract large company’s into the market
if production costs rise, risk of lower profits
what is mass marketing
aiming a product at all or most market segments where there are many similar products on offer
what are features of a business operating in the mass market(3)
many start as niches
many concentrate on large geographical areas
products are often standardised, giving little room to modify
what are advantages(4) and disadvantages(3) of mass marketing
Advantages:
1. economies of scale
2. high revenue due to sale volume
3. barriers to entry prevent smaller firms from entering and compromising market share
4. brand awareness/popularity
Disadvantages:
1. higher fixed costs due to larger factories etc
2. standardised products means less scope for higher prices
3. in boom periods there is a risk of customers switching to niches
