Marketing

• What is a target market?

  A target market is a group of people who will eventually use the product.
• How can a target market be defined?

  A target market can be defined by age, gender, interests, lifestyle, and location.
• What are market segments?

  Market segments are different categories used to describe a target market.
• What is niche marketing?

  Niche marketing involves identifying a specific group of customers and targeting a product to meet their specific needs.
• What are the advantages and disadvantages of niche markets?

  Advantages:

  • Less competition
  • Market expertise
  • Customers may pay higher prices

  
  

  Disadvantages:

  • Can be expensive (low volumes)
  • Success will attract competition
  • Product may not be popular
• Give an example of a niche market product.

  A good example would be a camping stove.
• What does a brand consist of?

  A brand consists of all the impressions and experiences associated with a company or product.
• What are some components of branding?

  Components of branding include reputation, attitude, logo, products, and customer service.
• What is brand loyalty?

  Brand loyalty is when consumers relate to brands and develop a preference for them.
• What is brand identity?

  Brand identity is the consistent and recognizable image created by a company.
• What is technology push?

  Technology push is achieved through product evolution and new product development using advances in technology.
• What is market pull?

  Market pull occurs when demand is created for a product to fulfill a need or want.
• What happened when bagless vacuum cleaners were first introduced?

  They were very expensive, leading to a gap in the market for more affordable options.
• What are some marketing techniques companies can use to promote their products?

  • Special offers (e.g., BOGOF)
  • Celebrity endorsement
  • Advertisement (poster/TV/Internet)
  • Sponsorships
• What does the marketing mix consist of?

  The marketing mix consists of the Four P's: Product, Price, Place, and Promotion.
• What is the definition of a product in the marketing mix?

  A product is anything that can be offered to the market to satisfy a want or need.
• What is the definition of price in the marketing mix?

  Price is the amount charged by the company or exchanged by the consumer for a product.
• What does place refer to in the marketing mix?

  Place refers to all the company’s activities that make the product available to the consumer.
• What is promotion in the marketing mix?

  Promotion is any activity that will advertise the product and its benefits to potential buyers.
• What are the stages of the product life cycle?

  1. Product Development: Design phase, costly.
  2. Introduction: Product launch, high pricing.
  3. Growth: Established in the market, rising profits.
  4. Maturity: Lowest price, increased advertising needed.
  5. Decline: Sales drop, interest decreases.
• What occurs during the product development stage of the product life cycle?

  It involves the design phase, which costs the company millions for research and development.
• What happens during the introduction stage of the product life cycle?

  The product is launched and priced high to recoup design and advertising costs.
• What occurs during the growth stage of the product life cycle?

  The product becomes established, profits rise, and prices may fall as competitors enter the market.
• What characterizes the maturity stage of the product life cycle?

  The product is available at its lowest price and may require increased advertising to maintain market share.
• What happens during the decline stage of the product life cycle?

  Sales drop off, interest decreases, often due to technological advances or changes in fashion.