U2 AOS1 Flashcards
(35 cards)
What is marketing
The action or business of promoting and selling products or services
What is a customer base
A group of people who keep buying your products or services
What is a business objective
A goal that the organisation wants to achieve
Connection between marketing, customer base and business objective
Once a business, has worked out their objectives, they will create a customer profile to help build a customer base. Then they will use various aspects of marketing to make sure that the customers buy their product.
What is brand identify
how the business wants to be perceived by customers
Internal environment
factors that the business has control over from within the business. They include things such as managers, employees, location, policies
External environment
made up of both the operating and the macro environment. The operating environment is (CCSI) and the Macro is (PEST)
Why is market research important
So that when a business releases a new product/service they can gather a good idea of whether it is likely to be successful for not
Steps in market research
- Work out what you need
- Collect the primary and secondary data
- Analyse and interpret the information
Examples of secondary data
can be divided into internal methods and external methods.
Internal – annual reports, company records, financial statement, customer feedback, or sales reports.
External – newspaper reports, magazines, trade associations etc.
Primary data
Facts and figures collected by the business itself
Secondary data
Information that has already been collected by someone else for another purpose
Examples of primary data
- Surveys
- Experiments
- Taste tests
What is market dimensions
Size of the market that the business has to advertise to
What are two types of market dimensions
Mass market - Products that are offered to every customer and promoted through mass media or mass retailers. eg McDonalds/Pepsi
Niche market - a smaller market with similar characteristics
What is market segmentation?
The dividing up a total market into particular groups who share characteristics
What are the different ways to divide up a market into segments
- Demographic – Age, gender, income, occupation, education, nationality, family size etc
- Geographic – climate, where the customers work/live, urban/rural, size of the city
- Behavioural- regular product user, why do they want this product (quality/service/speed of delivery/price), purchasing (daily/weekly/monthly)
What are consumer trends?
What consumers are looking for in the market
What are the 7 Ps of marketing
Product, price, place, promotion, people, physical evidence and process
What is product in terms of the 7 Ps
A product is a good or service that can be offered in an exchange for the purpose of satisfying a need or want.
A product can be tangible or intangible: tangible means that the product has a physical substance. Whereas intangible means a product that cannot be seen or touched.
What is price in terms of the 7 Ps
Amount of money that the customer pays to be able to enjoy a certain product
What is place in terms of the 7 Ps?
Making the product available to the customer, whether the customer chooses to purchase it or not. Place uses distribution channels which are the routes taken to get the product from the factory to the customer.
What are the four traditional distribution channels?
- Producer to customer
- Producer to retailer to customer
- Producer to wholesaler to retailer to customer
- Producer to agent to wholesaler to retailer to customer
What are the three cannel choices for market coverage?
- Intensive distribution: saturate the market, for convenience goods.
- Selective distribution: moderate proportion of all possible outlets, for clothing, furniture and electrical.
- Exclusive distribution: only 1 retail outlet for a product in a large geographic area, for exclusive, expensive products.
