Marketing

• Product led:

  • A product lead approach means the business develops products based on what is good at making or doing, rather than what the customer wants.
• Market led:

  • A market led approach means the business reacts to what the customers want. decisions on the product/ service is based around information on the customers needs. 


  no
• Impulsive Purchases:

  • Buying something without thinking,often unexpectedly
• Routine Purchases:

  • Buying something because its a habit/customers, brand loyal eg buying a loaf of bread.
• Informed customer:

  • Capable of making a sensible decision, Purchase is made based on research.
• What are the two types of market research?

  Desk research

  field research
• What is desk research?

  Involves researching and analysing information that has already been gathered.
• What are methods of desk research?

  
  

  • web pages
  • Magazines
  • Financial statements
  • Sales figures
• Advantages of desk research:

  • Info is quicker to gather
  • Cost effective
  • Information is already available and is easy to find
• Disadvantages of desk research:

  • everyone has access to information
  • May not be appropriate for the needs of the business
  • Could be biased information
• What is field research?

  Involves gathering brand new information suitable for the businesses exact needs
• Examples of methods of field research

  • Telephone survey
  • Online survey
  • Halls tests
  • Postal survey
  • focus groups
• Advantages of Field research:

  • Information is up to date
  • Complete info- has no missing parts
  • Appropriate for the purpose needed
  • The information is accurate
• Disadvantages of desk research:

  • not cost effective
  • Can be time consuming to gather information
• Why do market research?

  • Ask customers their opinions
  • Use feedback from customers
  • Test products to a group of consumers
• Random sampling:

  • Involves producing a random list of individuals to survey. Those picked are generated randomly using a computer, the telephone directory or the electoral register.
• Advantages of random sampling:

  • No chance of bias being introduced when selecting individuals for the sample
  • It is simple to draw up a sample.
• Disadvantages of random sampling

  • It may not be focused on any particular market segment
  • It assumes that all members of the group are the same which is not always the case
  • It is an expensive method to administer and run.
• Stratified random sampling:

  • a sample is selected that is representative of the target market.
• Advantages of stratified random sampling:

  • Will represent the target market
  • No researcher bias as sample is random
• Disadvantages of Stratified random sampling:

  • Sample could be geographically dispersed making the research more expensive.
• What is a Quota sample?

  The researcher chooses from a group of people with certain characteristics eg Age, Income
• Advantages of Quota sampling:

  • Cheaper to operate than random sampling as fewer resources are needed
  • Interviews can substitute someone else if the interviewee is not at home at the time of the visit for phone call.
• Disadvantages of Quota sampling:

  • It is easier to be affected by bias which may affect results
  • Results can be less representative than using the random sampling method.
• What are the 7ps in the marketing mix?

  Product

  Price

  Place

  Promotion

  People

  process

  Physical evidence
• Name the stages in the product life cycle:

  • Development
  • Introduction
  • growth
  • maturity
  • Saturation
  • decline
• Development stage:

  product is still being researched and developed

  No sales as product is still being developed

  The product will be making a loss due to the cost and development no sales.
• Introduction stage:

  • Product is launched. High advertising costs at this stage to raise awareness
  • Sales are slow to begin with. Customers need persuaded to move from competitive products
  • High promotional costs could still result in on overall loss being made of low profit
• Growth stage:

  • Product has been on the market for a while customers are aware of the product and are purchasing it
  • Sales start to rise rapidly.
  • Profits are staring to be made and losses from previous stages are recouped.
• Maturity stage:

  • Product has been on the market for some time. Competition enters the market
  • Sales growth peaks and levels out. Many sales can still be made for a long time at this stage.
  • Profits reach a peak as the product is fully established and then it levels out.
• Saturation stage:

  • The product suffers from too many competitors
  • Sales begin to fall as consumers go elsewhere
  • Competition will take sales away and profits will therefore fall
• Decline stage:

  • Product life cycle is nearing the end the product will stop being produced
  • Sales will fall rapidly and eventually the product will be withdrawn from the market
  • Profits continue to fall eventually the product may just be sold at unit cost to break even.
• Why do businesses carry out research and development?

  Ensure that customers have the product they want

  Have a competitive edge

  Be known as an inventor

  Improve existing products

  Ensure that products are safe.
• Examples of extension strategies:

  • Change the products design or packaging
  • Introduce new variations of the product
  • Change the name of the product
  • Change the method of promotion
  • Change the place the product is sold
• What is a product portfolio?

  It is a range of products that a business creates
• Advantages of a Product portfolio:

  • Spreads risk- if one product fails there are others to rely on
  • Maximise sales- Attracting different market segments
  • Increased market share
  • Easier to launch their new products as brand recognition is high
• Disadvantages of a product portfolio:

  • Advertising costs can be high
  • research and development costs can be high to maintain a variety of products
  • Training staff for each new product can be expensive and time consuming.
• What is the boston Matrix is used for?

  To plot a range of products that an organization offers. It helps them identify where the products might need to be introduced or changed.
• Stars:

  Have high market share in a high market growth.

  Need constent investment
• Cash cows:

  Products that have High market share in a low growth market

  require little marketing and expense due to lack of competition