Marketing

• Marketing How are markets segmented? Market Segmentation Definition: Involves dividing the market ( target / niche markets) into parts which have specific characteristics e.g. age / gender / income / socio-economic group. • Socio-economic ➔ people in different jobs ➔ with different lifestyles ➔ related to affordability • Location ➔ where people live / residential areas ➔ work. • Income/cost ➔ how much can be afforded ➔ e.g. it may be cheaper to have one item over another. •Lifestyle ➔ e.g. increase in leisure ➔ increase in demand of item. • Time/purpose/use/interests/hobbies • Ethnic and cul...
• Marketing Why do businesses segment in the market? the division of mass markets; to target the right products at the right people; to satisfy customer needs; to increase sales and profits.
• Marketing What is market research? Definition: The way in which information and data is gathered about consumers, competitors and market trends.
• Marketing What is primary research? and give examples, and list the advantages and disadvantages: Definition: (field research) ➔ collecting primary data ➔ collecting information that does not already exist ➔ it is collected for a specific purpose. Examples: Questionnaires, focus groups, personal interviews, IT based research such as email surveys, telephone interviews, postal surveys, observation, consumer panels, test marketing. Advantages: ☑ Up-to-date ➔ gathered first-hand ➔ collected by the researcher (yourself) ☑ Specific to a business’ own needs / accurate ☑ Provides answers to exact q...
• Marketing What is secondary reaseach? and give examples, and list the advantages and disadvantages: Definition: (desk research) ➔ involves using information which already exists ➔ this can be collected internally or externally. Examples: • Newspapers/magazines • Trade journals • Internal data e.g. company reports/business records/ financial data • Census data • Published research/ internet. Advantages: ☑ It is inexpensive to collect and quick to obtain ☑ Enables cost-effective analysis of several data sources. Disadvantages: ☒ Often out of date ☒ Might not be available ☒ Little control over qu...
• Marketing What is qualitative data? Qualitative Data Definition: Is descriptive information found by experiences or in textbooks or newspapers or reports. It can include opinions and cannot be quantified by numbers. Focus groups, participant observation and interviews are common methods used to collect qualitative data. • Researcher may only know roughly in advance what he/she is looking for. • Recommended during earlier phases of research projects. • Can be time consuming to collect and may be difficult to draw general conclusions. • Information gathered is often open to high degree of in...
• Marketing What is quantitative data? Quantitative Data Definition: Deals with measurements and figures perhaps shown in tables and graphs. It includes numerical data that can be given values and its easier to interpret and evaluate compared to qualitative data. Surveys and the use of government publications/existing statistics are common methods of collecting quantitative research data. • Researcher uses tools, such as questionnaires and surveys to collect numerical data. • Researcher knows clearly in advance what they are looking for. • Recommended during latter phases of research projects...
• Marketing What is the marketing mix? Definition: The combination of factors which help a business to sell its products. It is usually considered to involve the 4Ps of product, price, promotion and place.
• Marketing What is the difference between a mass market and a niche market? Mass Markets Definition: A large market of customers which is undifferentiated and that sells products and services to suit a large number of people. Niche Markets Definition: A smaller part of a large market, with products tailored to specific customer needs. All marketing efforts for a particular product are aimed at that market.
• Marketing What is the functions of the marketing department? Market Research ➔ carry out market research to find out what customers want. • Product ➔ identify and source potentially successful products for the marketplace. • Price ➔ setting the right price that the product will be sold at that customers are willing to pay. • Promotion ➔ overseeing advertising and promotion campaigns to ensure that the product is promoted in a way which creates maximum customer awareness and persuades potential customers to make the decision to purchase the product. • Place ➔ making the product available in the...
• Marketing What is the product life cycle? Definition: The stages a product passes from its earliest development until it is no longer available on the market.
• Marketing What is product? A product is any good or service offered for sale to customers.
• Marketing What is product portfolio? Definition: The collection/ range of all the goods and services offered by a business.
• Marketing What is product differentiation? Definition: This involves distinguishing a product or service from others. By making a product different or appearing to be different from similar products sold by rivals, a business will hope to attract more customers.
• Marketing What is USP (unique selling point)? Definition: What makes a product different from ones sold by competitors. It may involve the lowest price, the best quality, or the first of its kind. • May help a business to gain a competitive advantage over its rivals. • Can help to justify why a premium price may be being charged. • Likely to attract more customers.
• Marketing State and explain the stages of the product life cycle: 1. Introduction/launch - The products are introduced to the market. 2. Growth - The part of the early stage of the product life cycle when sales and profits are rising. 3. Maturity - The point in the product life cycle where sales reach their peak and start to level off. 4. Saturation - The point in the product life cycle where the market is full as competitors introduce similar products. 5. Decline - Is the point in the product life cycle where sales fall and many eventually cease.
• Marketing List the different pricing strategies used by businesses Cost plus Competitive Penetration Skimming Psychological Loss leaders Price discrimination
• Marketing The 7 pricing strategies in detail including advantages and disadvantages: "Penetration Pricing Setting a low price for a new product to encourage sales. The price may be reduced later with increased customer loyalty and market share. The goods have a low price to attract customers who may then stay with the business. When prices rise people may not be willing to purchase – questions over quality. Price Skimming Selling a product at a high price in order to earn high initial profits. Profits may be reduced later to increase sales at the lower prices. Attracts early adopters e.g. new...
• Marketing What is price? Definition: The amount of money a business wants to receive in order to sell a good or service or the amount of money the consumer is willing to pay to buy that product.
• Marketing What is promotion and what are the reasons that businesses use promotion? Promotion Definition: Involves information and techniques used by businesses to make consumers aware of products and to persuade them to buy those products now and in the future. Reasons for promotion: • Create or increase awareness • Inform/remind customers about the product • Create or change the image of the product • Persuade customers to buy the product
• Marketing What are the promotional methods used by businesses? Advertising - Advertising includes any paid messages sent to customers about a business or its products. Sales promotion - Sales promotion is an attempt to give a short-term boost to sales. Direct marketing - A business can profile customers and build up a database of information that they can then use to directly target specific groups who may be attracted to their products or services.
• Marketing The media available to businesses when advertising their products and services: Local and national press (newspapers, magazines and journals)  Online Radio Television Cinema Point of sale Leaflets Directory listings
• Marketing How technology has impacted on the promotional activities of businesses: Including the use of social media, blogs, search engine advertising, pop-up adverts, digital adverts and mobile advertising
• Marketing What are the different distribution channels used by businesses? Manufacturer- Wholesaler- Retailer-Consumer Manufacturer - Retailer - Consumer Manufacturer - Consumer
• Marketing What is place? In the context of the marketing mix, this is where the product is available for the consumer to purchase. Place could include shops, markets, telephone sales, the internet and so on.
• Marketing Whats e-commerce? E-Commerce Definition: (or electronic commerce) involves the buying and selling of goods and services via the internet.
• Marketing What's m-commerce? M-Commerce Definition: (or mobile commerce) involves buying goods and services through hand-held mobile devices such as smartphones.
• Marketing What is multi-channel distribution? Definition: Involves a business using more than one channel to distribute its goods perhaps through traditional shops and catalogues and online.
• Marketing Whats an extension strategy? Involves a number of methods businesses might use to prolong the life cycle of their products. These will be related to marketing mix strategies. Examples include: • New feature • Change brand name / packaging • New flavour • Produce different quality • Market in different places e.g. the internet, geographically in different areas or countries • New promotions
• Marketing What are the reasons for a fall in the product life cycle? A fall in sales will generally happen with product life cycle ➔ people are buying alternatives. • Same quantity of goods sold ➔ at lower price so value fallen. • Goods available from alternative suppliers ➔ supermarkets etc. ➔ internet • Recession ➔ loss of jobs ➔ fall in purchasing power ➔ all goods fallen in demand. • Technological change ➔ e.g. downloading. • Products already owned ➔ don’t need any more. • Products last longer ➔ don’t need to buy them as often.
• Marketing how has technology impacted ont the promotional activities of businesses? Online advertising on websites has rapidly grown to become a major medium of choice for businesses. There are many different types of online advertising including: • Adverts on search engine results pages • Pop-ups • Adverts on social networking sites • Directly to email, often called spam Internet advertising is relatively cheap and is effective at reaching specific target groups searching for a particular site. There is clearly a wide range of advertising methods available to businesses, but they should ...
• Marketing whats a wholesaler? Buys goods from the manufacturer and sells these goods in smaller quantities to retailers.
• Marketing Factors to consider where to locate a store: Closeness of shop to market ➔ plenty of customers • Availability of shop ➔ town centre or out of town • Suitability of shop ➔ size, facilities • Cost of shop ➔ to buy or rent • Ease of access ➔ for customers and for deliveries • Business area/passing trade ➔ plenty of customers • Nearness of similar shops ➔ as competition, as attraction • Planning permission ➔ can the area be developed?