Topic 5- Marketing Flashcards
(103 cards)
What is the point of marketing?
- Generate profits
- Promoting their brand to the public
- Making awareness of their product
What is marketing?
A management process of identifying, anticipating and satisfying customers wants profitably.
Why do market research?
- get advice from public, eg. How much they’d pay
- satisfy customers (meet demand)
- see competition
- to get more awareness
What are the two different ways of doing market research?
Primary and secondary research
What is primary research?
Gathering information yourself by using surveys and questionnaires
What is secondary research?
Using existing information, data that has already been gathered, eg. Online or from competitors
What is quantitative market research?
It’s numerical, the data collected is easy to analyse and put into a graph, eg. 90% of people prefer milk chocolate
What’s qualitative market research?
Non numerical research. It is about people’s OPINIONS, eg. I prefer dark and white chocolate in the same bar.
List 2 Advantages of primary research
- Up to date, so it is reliable
- they are tailored to meet the business’ needs
List 2 Disadvantages of primary research
- Takes time
- Hard to do, lack of expertise (may do it incorrectly)
List 2 Advantages of secondary research
- Very quick to access, saves time, productivity up
- Free of charge, not damaging to the business, saves money
List 2 Disadvantages of secondary research
- May not be accurate (outdated), some markets change very rapidly, business may make the wrong decisions
- May not be specific to you, may not be according to your specific target market
Why do businesses often do experiments before launching their product?
Because launching a new product is often costly they do experiments to check that they are likely to succeed.
What are the 4 p’s of marketing?
Product
Price
Place
Promotion
What is product differentiation?
A marketing process that gives a business an advantage by making their product unique and stand out from other competitors.
List 4 methods to differentiate?
- Quality ( offer a higher quality to others)
- Price ( offer a cheaper price than competitors)
- Technology ( a phone with more advanced technology to other brands)
- Experience (yo sushi)
How does dyson differentiate?
Through innovation. This leads to a larger target market which will lead to higher sales figures. This allows them to explore into different markets (e.g. hairdryers) because of the incomes capital.
What is the plc?
The product life cycle
What are the 6 stages of the plc?
Research and development, Introduction, growth, maturity, decline, decontinued
On the plc what is the stage where it is starting to go down hill and what happens there?
Extension strategy, this is where it is trying to stay alive.
What is happening in the research and development phase of the plc?
No sales, negative profit, product is innovative and being designed
What is happening in the Introduction phase of the plc?
Low sales, high promotion, neutral profit, high price
What is happening in the Growth phase of the plc?
Sales increasing, thinking of innovation, medium promotion and price, positive profit
What is happening in the Maturity phase of the plc?
Peak sales, innovation, low promotion, high distribution, positive profit