3.3

• Role of marketing is the process of identifying, anticipating and satisfying customer needs profitably
• Sales volume is the number of units sold, this could be for a specific product or a range of products
• Sales value is revenue generated from products
• Market research is when a business wants information about a market or customer wants
• Businesses to market research to get a public view on new products
• Primary research is data obtained by yourself
• Secondary research is existing research
• Qualitative data
• Quantitative data
• Sampling is the process of creating a small unbiased population to be used in a test or experiment
• Random sampling is created by chance, luck of the draw and could be done by a computer program
• Stratified sampling is a division into subgroups that have shared attributes e.g gender
• Quota sampling mimics the characteristics of the market and a researcher will choose characteristics they wish respondents have
• Random sampling is quick and has no bias. But is not representative of whole population and is expensive
• Stratified samping is time consuming, complex, bias but it meets the target population
• Quota sampling is cost effective, lacks randomisation, is not representative and you obtain similar opinions
• Correlation looks at strength of a relationship between two variables
• A confidence interval is a range of values describing an estimates uncertainty
• Extrapolation refers to the process of anticipating future trends, outcomes, values based on existing data or trends. It makes educated guesses about what might happen next using historical or current data as a guide.
• Market segmentation involves dividing market into parts that reflect different customer needs and wants
• Demographic segmentation is dividing a market based on demographic variables e.g gender
• Income segmentation is often bases of socio economic grouping
• Behavioural segmentation is based on different ways customers use or respond to products and the benefits they seek
• Geographical segmentation is different geographical units e.g. nations or cities
• Mass marketing (undifferentiated) is targeting a whole market, the product focuses on customers needs in common not how they differ
• Segmented (differentiated) is products designed to target segments the business wishes to target
• Concentrating( differentiated) focuses on a niche market, specialized.
• Market mapping illustrates range of positions product can take in a market
• Market positioning occupies customer minds relative to competing products
• Factors to consider when setting price

  Competition, cost of production, state of market for product, state of economy
• Penetration pricing is used by businesses when introducing a new product into a market
• Penetration pricing involves offering product at a low price to get customer attention
• Penetration pricing captures market share, increases brand loyalty, pulls customers from competitors, lowers costs
• Penetration pricing can lead to price wars and poor brand reputation
• Price skimming involves setting a high price the product and then gradually lowering over time
• Price skimming is often used for the launch of a new product which faces little or no competition, usually due to some tech features
• Price skimming maximises profits, creates a perception of value of those products, helps recover development costs quicker, offers organic word or mouth advertising
• Price skimming may decrease value of product as justifying a high price can be disappointing, high initial prices may deter price sensitive customers for buying products and competitors
• Social media marketing is cost effective, shared on widespread social media platforms, public is engaged and interactive, able to use data and analytics to track performance of marketing campaigns in real time
• Viral marketing relies on individuals to spread a marketing message rapidly through social media or word of mouth