Marketing

• What is marketing?


  The management process responsible for identifying, anticipating and satisfying customer requirements profitably
• What is the primary goal for marketing?

  To satisfy the needs and wants of customers, which is vital to help a business survive
• Define customer

  Someone who buys a product from a business
• Define consumer


  someone who uses goods and services from a business
• Why is identifying customer needs important?

  increase sales, avoid costly mistakes , to be more competitive , to select the correct marketing mix
• Define Product


  The products the customer wants
• Define Price

  at a fair price relative to the product
• Define place


  in the right place or location
• define promotion

  presented in a way that makes it attractive
• How do you focus on the demand or products in the market?

  The size of the market, The growth of the market
• What is Segmentation?

  Dividing a market into distinct/different groups based on similar characteristics or needs.
• If business produce the wrong products what could happen?

  Loss of customers, decreased sales, withdrawing the prodcut, damages the brand name(reputation) and potential bankruptcy
• What are the segmentation methods?

  age, gender, income, location, stage someone has reached in there lifecycle
• Benefits of segmentation

  develops products that fit customer needs more closely, targets customers more precisely and sets the price appropriately
• Drawbacks of segmentation

  Promotional costs may be high, the compnay has to market a variety of products, can’t take advantages of marketing economies of scale
• What are the two types of data?

  The two types of data are qualitative(english-questions) data and quantitative(numbers)data.
• What is market research?

  The process of gathering and analyzing information about a market, including customers, competitors, and trends, to make informed business decisions.
• Market research helps managers understand:

  • demand-size of market,growth
  • market share-% of total sales
  • competition-number of firms and their growth
  • target markets- how large some segments are
• How do you calculate market growth?

  new sales - old slales over old sales then x 100
• How do you calculate market share?

  Market share is calculated by dividing a company's sales or revenue by the total sales or revenue of the entire market and multiplying by 100.
• How do you calculate volume?

  add together the total sales of all the business in the market
• What is primary research?

  Original data collected directly from the source.
• How can primary data be gathered?

  Surveys, observations, experiments.
• What is price skimming?

  Price skimming is a pricing strategy where a company sets a high initial price for a new product and then gradually lowers it over time.
• Hight starting price - high demand, low supply, high price- maximises revenue and profits and has unique selling point
• What is market penetration?

  A marketing strategy used by businesses to attract customers to a new product or service by offering a low price when first released
• Low Starting Price: The starting price is set low to attract customers, gains the business more market share, and increases the number of sales.
• What is competitive pricing?

  Setting prices for products or services based on the prices of competitors.
• Competitive pricing: Pricing strategy that aims to be the lowest price in the market but can be priced closely to competitors, cudtomers judge a product on non price factors e.g. quality of service
• what is loss leader?

  A pricing strategy where a product is sold at a loss to attract customers.
• loss leader pricing: business mat not make a profit on the product but will make a profit on the sales as customers will want to come back
• cost plus pricing is when the selling price is set at a fixed percentage above the cost of production
• cost plus pricing: often used in retailing where the business can calculate the exact value of an item
• What is a product?

  A product is a physical good,service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as necessaary.
• When developing new products, A business must consider what?

  Design, Price , Expected sales and cost of development
• What is an image?

  this is how a product presents or appears to customers
• What does having a good image do?

  A positive and up to date product image will increase sales, increase revneue and increase profit
• Whats is product differentation?

  Product differentiation is the process of distinguishing a product or service from others in the market by highlighting unique features, benefits, or qualities.
• What are the ways of making your product different?

  Unique features, branding, packaging, pricing, customer service, marketing strategies, quality,location
• What happens during the development stage of the product life cycle?

  Product design and testing, market research analysed to produce a satisfactory product , and initial production occur during the development stage of the product life cycle.