Marketing

• Whats the first step in marketing?

  Identifying customer needs
• Whats the second step of marketing?

  Advertisement and promotional methods
• What is the main aim for marketing?

  Remind, inform and persuade
• what is the final step of marketing?

  Continuously finding ways to increase sales
• define the term market research.


  The collection of data of customer needs to help the business make informed decisions
• 4 main purposes of market research is...

  Identifying the gap in the market, identifying customer needs, reduce risk, pricing strategies etc
• advantages of quantative data

  Makes analyse easy, ideal for a new business, more cost effective
• Disadvantages for quantitative data.


  Might not have enough detail to make important decisions
• What is quantitative data

  data represented numerically
• What is qualitative data


  Data not numerically but information and concepts
• advantages of qualitative data:


  Data can be collected in more depth, specific questions can be asked
• Disadvantages of qualitative data:

  Not cost effective time consuming so less sales are made
• Define market segmentation 


  the process of splitting groups to find the most suitable target market
• Ways a business can segment a market is (Hint GAILL)

  Gender, Age, Income, Lifestyle, Location
• Benefits of market segmentation is...

  Targeting one audience, Business can achieve customer needs
• Drawbacks of market segmentation,

  Only small area targeted, not cost effective,no guarantee target audience will purchase product/service
• Name the 5 pricing strategies

  Price skimming, Penetration pricing, cost plus pricing, competitor pricing, promotional pricing
• What is price skimming?

  A product priced high firstly then drops as there is less demand #
• What is penetration pricing?


  Setting a product/service starting at a low cost
• What is cost plus pricing?

  Cost plus pricing is a pricing strategy where a company adds a markup to the cost of producing a product to determine its selling price.
• What is competitor pricing?

  Competitor pricing is setting prices for products or services based on the prices charged by competitors in the same market.
• What is promotional pricing?

  A product offered at a discount for limited time
• What are the 4 stages of product life cycle?

  Introduction, growth, maturity, decline
• What are the 4p's

  Product, price, place, promotion
• What are the 4 point of sale promotion's?

  Price reduction, Competitors, Loss leaders, free samples
• Explain Price reduction


  Selling old stock at lower prices
• Explain competitions promotion 


  A consumer buys a product and has a chance of winning a prize
• explain loss leaders promotion:

  Goods sold at a low cost to attract customers
• Explain free samples promotion

  Customers offered a free sample to entice them to buy the actual product
• Name the 5 advertising strategies

  Social media, Websites, TV, Print media, Radio
• Name an example of social media advertisement:


  A product sold on twitter
• Name an example of advertising on websites:


  A product sold on ebay
• Name an example of advertising on TV 


  An advert on a popular show after or prior e.g the world cup
• Name an example of advertising on print media 


  A product shown on a newspaper
• Name an example of a product being advertised on radio

  A broadcasting centre playing an audio of the product
• Name 4 factors affecting the price of a product

  The price charged by a competitor, The amount of footfall, the initial cost of production, the income of target market
• show the business selling a product directly:

  Producer -> Consumer
• Show a product being sold through a retailer:

  Producer -> Retailer -> Consumer
• Show a product being sold through wholesales:

  Producer -> Wholesaler -> Retailer -> Consumer
• Name 3 advantages of digital distribution.

  Customers can access products whenever they want, goods are available quicker, no physical product to deliver so its faster