UNIT 3: MARKETING MIX

• What is the definition of marketing?

  Marketing is the management process responsible for identifying, anticipating, and satisfying consumers’ requirements profitably.
• What is one role of marketing?

  Identifying customer needs through market research.
• How does marketing maintain customer loyalty?

  By building customer relationships through methods like loyalty card schemes and discounts.
• Why is it important for a firm to gain information on customers?

  It helps the firm develop and sell better products in the future.
• What must a business do to anticipate changes in customer needs?

  Keep looking for changes in customer spending patterns.
• What are some reasons customer spending patterns may change?

  Changes in tastes and preferences, technology, income, and an ageing population.
• How does globalization affect market competition?

  It increases the number of competitors in the market.
• What impact does improved transportation infrastructure have on markets?

  It makes it easier and cheaper to distribute and sell products everywhere.
• How has the internet changed market competition?

  It allows customers to buy products from anywhere in the world.
• What is one way businesses can respond to changing spending patterns?

  Maintain good customer relationships to gather market research information.
• What is a mass market?

  A market where there is a very large number of sales of a product.
• What are the advantages and disadvantages of selling to a mass market?

  **Advantages:**

  • High total sales
  • Economies of scale
  • Risk spread across product variations
  • Opportunities for business growth

  
  

  **Disadvantages:**

  • High competition
  • High advertising costs
  • Standardized products may not meet all customer needs
• What is a niche market?

  A small, usually specialized segment of a much larger market.
• What are the advantages and disadvantages of selling to a niche market?

  **Advantages:**

  • Reduced competition with larger businesses
  • Focused customer needs leading to loyalty

  
  

  **Disadvantages:**

  • Limited sales potential
  • Risk of failure if the product is no longer in demand
• What is a market segment?

  An identifiable sub-group of a whole market with similar characteristics or preferences.
• What are the benefits of market segmentation?

  • Cost-effective marketing
  • Higher sales and profits
  • Identification of unmet needs for increased sales
• What are some ways to segment a market?

  • Socio-economic group
  • Age
  • Region/Location
  • Gender
  • Use of the product
  • Lifestyle
• What is a product-oriented business?

  A firm that produces the product first and then tries to find a market for it.
• What is a market-oriented business?

  A firm that conducts market research to see what consumers want before producing goods and services.
• What is a marketing budget?

  A financial plan for the marketing of a product or product range for a specified period of time.
• What is market research?

  The process of collecting, analyzing, and interpreting information about consumer needs and wants.
• What is quantitative research?

  Research that involves numerical data.
• What is qualitative research?

  Research that involves opinions and judgments.
• Why do businesses carry out market research?

  To find out customer needs and create products to meet those needs.
• What is primary research?

  The collection of original data directly from existing or potential customers.
• What are the advantages and limitations of primary research?

  **Advantages:**

  • Up-to-date and relevant
  • First-hand data
  • Specific to business needs

  
  

  **Limitations:**

  • Expensive
  • Time-consuming
  • Potential for interview bias
• What are some methods of primary research?

  Questionnaires, online surveys, interviews, and focus groups.
• What is secondary research?

  The collection of information that has already been made available by others.
• What are the advantages and disadvantages of secondary research?

  **Advantages:**

  • Cheaper than primary research
  • Quicker to obtain
  • Can assess total market size

  
  

  **Disadvantages:**

  • Data may be out of date
  • Available to all businesses
  • May not be relevant to specific needs
• What are some sources of secondary data?

  **Internal Sources:**

  • Sales department records
  • Customer records

  
  

  **External Sources:**

  • Government statistics
  • Newspapers
  • Market research agencies
• What is the marketing mix?

  The different elements involved in the marketing of a good or service.
• Why is the marketing mix important for organizations?

  It provides a structured approach for developing marketing strategies.
• What are the 4 P's of marketing?

  Product, Price, Place, Promotion.
• What is a product in the marketing mix?

  A good or service being produced and sold in the market.
• What is a unique selling point (USP)?

  A special feature that differentiates a product from competitors.
• What is brand loyalty?

  When customers keep buying the same brand instead of choosing a competitor’s brand.
• How does product quality affect customer satisfaction?

  High-quality products foster trust and repeat purchases.
• What is the product life cycle (PLC)?

  • Stages a product goes through from introduction to decline
  • Includes introduction, growth, maturity, and decline phases
• What is the definition of price in the marketing mix?

  The amount of money producers are willing to sell or consumers are willing to buy the product for.
• What is dynamic pricing?

  Changing product prices depending on demand or market segments.