Unit 3 - Marketing Flashcards
Benefits of market research
To find out the size of the market - may not be financially profitable if market is small
To gather information on consumer wants/needs - marketing mix can be adapted to ensure products/services can be tailored.
To gather information on consumer behaviour- most effective processes can be adopted
To gather information on the competitive environment- proactive in ensuring their products are better than rivals
Reduces risk of launching new products - business can be sure its products have a potential market before launch
Types of market research
Desk research - gathers secondary information from existing sources such as websites, newspapers, market research agencies.
Field research - gathers primary information direct from the consumer through personal interviews, surveys, observation
Types of information
Quantitative - represented as numbers/statistics, contains measurable data, easy to compare and interpret.
Qualitative - expressed as opinions/ideas, more detailed and can give a. Enter understanding of a situation. Difficult to interpret and measure.
Reliability of Information
Appropriate - appropriate to research Available - easy to obtain Accurate - is it reliable Cost-effective - was it expensive/cost effective Concise - is it short and to the point Complete - all information required is there Objective - it is not bias Timely - up to date
Methods of sampling
Random sampling
Done by choosing a random sample of the population from a database source such as the electoral roll. Random however after respondents have been selected they must be contacted.
Methods of sampling
Stratified random sampling
Sample is chosen based on a defined criteria meaning responses will come from appropriate consumers who match the criteria.
Methods of sampling
Quota sampling
Sets a defined number of respondents from particular segments such as 100 males aged 18-25 and 50 females aged 26-34
The extended marketing mix
People - the people involved in manufacturing and selling the product
Process- the systems which manufacture and sell products
Physical environment - branding, store layouts etc
The marketing mix
Product - design, technology, value
Place- retail, wholesale, online, ordering
Price - strategies: skimming, cost-plus
Promotion - special offers, adverts, free gifts
Benefits of a wide product portfolio
A wide range of products allows the business to meet the needs of a variety of customers
The risk is spread amongst the products
However
Products can be spread too wide causing the business to lose focus
Risk of damage to all products if one product has a bad reputation
Pricing strategies
Premium pricing - high prices are charged and maintained
Competitive pricing - organisations set similar prices for products to prevent price wars and they compete on non-pricing factors such as promotions and packaging.
High price - used by business offering premium products, high prices can be charged by well
known brands.
ICT in marketing
Market research
Internet websites - wide range of material available such as govt statistics, rival websites. This can help them to monitor trends and adapt their marketing mix.
MS/Google Forms - surveys can be created and sent to anyone quickly and cost effectively. The software can analyse and prepare data into charts and graphs. This allows the business to gather specific and exclusive data to help with new product developments.
ICT in marketing
Promotion/Sales
Database - can store info on customers, can target them with btl promotions.
Apps - customers can shop from their phone, research products, this maximises sales.
QR Codes - business can give more info on products, consumer can gain detailed information on products and reduces the text needed on adverts.
Website - gives information on products and company, offers a 24/7 system which will maximise sales.
Emails - can be used for advertising and promotions which makes it more efficient and reduces advertising spending.
Social media - complex algorithms track users and target adverts to them based on what they ‘like’ and view on social media, making advertising this way effective as it is more targeted and personal therefore it is more likely to maximise sales.
