Marketing

• Definition of market segmentation

  • The selection of the groups of people who would be most interested in a particular product
• How might the market be segmented?

  • Age
  • Gender
  • Ethnic
  • Region
  • Income
  • socio - economic class
• What is primary/ field research?

  • Getting new/1st hand information about customers and competitors
  • Done by making direct contact with consumers & public ( potential customers )
• Advantages of field research

  • Up to date info
  • info easily analysed
  • Competitors don't have access to this info
  • Discover exact info business needs
• Disadvantages of Field research

  • Slow
  • Specialised work - expensive
  • By time info used - could be out of date
• Methods of primary research

  • Questionnaires + interviews
  • Consumer panels
  • testing
  • observation
• Advantages of Questionnaires + interviews

  • Find out exact info bus needs
  • Accurate as info taking directly from consumers
• Disadvantages of questionnaires + interviews

  • Some resent being stopped in street
  • Some misunderstand - inacurate
  • Postal Qs not always returned
• Observation advantages


  • Cheap
  • Consumers don't need to know
• Disadvantages of observation


  • Less accurate
  • not suitable for all products
• Advantages of consumer panels

  • V detailed info
  • panel members skilled and not biased
• Disadvantages of consumer panels

  • V expensive
  • Only for large companies
• Testing advantages


  • straightforward to organise
  • Consumer's 1st hand opinions given
• Testing Disadvantages


  • May not test cross section of public
  • not suitable for all products
• What is secondary / desk research?

  • Research where the bus uses data & info which was already collected previously ( old / 2nd hand info )
• Methods of secondary reseach

  • Government + publications
  • newspaper & journals
  • firm's internal records
  • Internet
• Advantages of desk research

  • Info is cheap to obtain
  • available immediately
  • Info is from a reliable source
  • Data available covers a wide range of sources
• Disadvantages of desk research

  • Data not collected for same purpose - not meet bus exact needs
  • Info may be out of date
  • Info is available to competitors
• Definition of marketing


  • Process responsible for identifying, anticipating and satisfying customer requirements profitably
• Definition of sampling


  • Part of field research, instead of asking opinion from a large number of people- question a selection or sample of people
  • For accuracy
• What is random sampling?

  • Where people are randomly selected & asked for their opinions on a product
• Advantages of random sampling

  • Personal opinions given
  • everyone has a chance of being chosen
  • easily organise
  • cheap
• Disadvantages of Random samplign

  • Not v accurate unless v large sample used
  • Unsuitable for some products
  • doesn't always reach appropriate people
• What is quota sampling?

  • Where interviews are held with a set number of people who fall into pre - determined categories & reflect the type of product. eg 50% males and 50% females
• Advantages of Quota sampling

  • Results more accurate than random sampling
  • More likely to reach appropriate people
  • personal opinions given
  • everyone in a particular category has a chance of being chosen
• Disadvantages of Quota sampling

  • Harder to find sample with pre - determined characteristics eg gender
  • Unsuitable for some products
  • composition of area needs to be known to get correct proportions to be interviewed
• What is the marketing mix

  • Describes as the key activities used in marketing a business's products. Referred to as the 4ps
• 3 pricing policies


  • Skimming
  • Penetration
  • Competitor - based pricing
• What is skimming pricing?

  • When a company charges a high initial price and later reduces the price as more competitors enter the market
  • Most often used with a new product and little competition
• What is penetration pricing

  • Offering a low price initially to gain entry into existing market then price increases once place is secured in market
  • Used by new bus trying to penetrate a market with other well establish competitiors
• What is competitor - based pricing?

  • When a bus accepts competitors price then price at the same or slightly lower to gain some advantage
  • Used in a competitive market
• Factors which affect price demand

  • Demand
  • Cost of production
  • need to make a profit
  • competition in market
  • price market can bear
  • seasonality
  • Quantity of stock held
• Relationship between price and demand

  • Price increase - demand decrease
• 5 stages of product life cycle

  1. Research + development
  2. Introduction
  3. Growth
  4. Maturity/saturation
  5. Decline
• Strategies to help extend product life cycle

  • Modifying the product
  • Altering packaging
  • Reducing the price
  • exporting product
  • increase ads
  • introduce new varieties
  • rebranding
• What are legal constraints on products

  • The government has imposed legal constraints designed to protect consumers from faulty or unsafe products
• What is the consumer Rights Act 2015

  • Good supplied must be of satisfactory quality
  • Goods must be fit for purpose
  • Must be as described
  • service is reasonable- if unsatisfactory- service provider re-do at no extra cost