1
Q
What are some examples of market segments
A
age, gender, disposable income, marital status, fashion, social class
2
Q
What are advantages of desk research
A
- it already exists
- it is quick to obtain, as the information is readily available.
- cost effective – relatively cheap way to gather information
2
Q
Why is it important to target a market segment
A
to make sure the product is suitable and specific to the needs of the target group
to make sure that the product is sold in the most suitable place where the customer can get access to it
so that a price can be set that will reflect the market segment
to make sure advertising and promotion campaigns are targeted towards the correct target group.
3
Q
What is desk research
A
Information which already exists and accessible to anyone, this is known as secondary information.
4
Q
What are disadvantages of desk research
A
- data may be out of date
- the information may also be available to competitors
- the information may contain bias.
5
Q
What is field research
A
This involves carrying out research and obtaining information first-hand, this is known as primary information
5
Q
What is the Product Life-Cycle
A
The product life cycle shows the different stages a product will pass through and the level of sales that can be expected at each stage.
6
Q
What are some methods of field research and benefits of them
A
- Personal interviews - points can be clarified
- Focus Group - The feelings and views of people can be observed
- Online Survey - People from all over the world can participate.
- Social Networking websites - Questions can be posed to customers very quickly
7
Q
What are benefits of field research
A
- it is more reliable as it has been gathered first hand
- it is more likely to meet the needs of the organisation as you can ask specific questions
8
Q
What are disadvantages of field research
A
- it is more expensive to use as the information has to be collected and processed
- it takes time to gather the information.
9
Q
What are methods of field research and disadvantages off them
A
- Personal interviews - The interviewer will need training on interview skills.
- Focus Group - The sample of people used may not represent the views of the whole population.
- Online Survey - Relies on people having a connection to the internet.
- Social Networking Websites - Information obtained on the website is not usually private and could be viewed by anyone.
10
Q
What does product mean in the ‘Marketing Mix’
A
The product is the term given to goods or services. The product must meet the needs of the customer and benefit the customer.
11
Q
What are the stages of product development
A
GAPTAP
* Generate Idea
* Analyse the idea
* Produce the Prototype
* Test the Product
* Alter the Product
* Produce the Product
12
Q
What are advantages of packaging
A
- protection during transport.
- customer appeal which can attracts customers to buy your product over others.
13
Q
What are disadvantages of packaging
A
- adds extra costs onto a product.
- too much packaging can be bad for the environment and put some customers off buying the product.
14
Q
What are beneifits of branding
A
- Establishes customer loyalty.
- Instantly recognisable product
- Easier to launch a new product and make changes.
- Consumers will buy brands endorsed by celebrities.
- Higher prices can be charged for brand names.
15
Q
What are disadvantages of branding
A
- Can take time to establish a brand name.
- Can be more expensive – advertising and packaging cost more.
- Open to increased competition and fakes.
- One incident of bad publicity could cause failure.
16
Q
What is the research and development stage
A
- the product is not on the market yet.
- Research and development and testing take place.
- Testing includes product and market testing. Prototypes are built and modified before a product is ready for launch.
- No sales are made
17
Q
What is the introduction stage
A
- customers are first becoming aware of the product
- sales are slow
- marketing costs will be high.
18
Q
What is the growth stage
A
- sales and profits are rising quickly as more customers become aware of the product.
19
Q
What is the Maturity stage
A
- product is fully established
- sales will level off but remain high.
- Increased competition means that lower prices may be introduced.
- This stage can last a long time.
20
Q
What is the decline stage
A
- when competitors join the market
- sales may fall.
- People may turn to other products because of a variety of different reasons
- Some products will be forced out of the market at this stage
21
Q
What is price in the ‘Marketing Mix’
A
The price is what the consumer has to pay in order to obtain the product. The product must be priced so that an organisation covers its costs and can make a profit.
22
Q
A
.
23
What is competititve pricing
This is when rival companies charge similar prices for similar products.
24
What is premium pricing
When a business intentionally sets a high price for a product or service, above competitors' prices, to convey an image of superior quality
25
What is low pricing
When businesses charge lower prices than competitors to increase demand for a product to attract many customers to increase market share.
26
What is place in the 'Marketing Mix'
This is where the product is sold and how is gets to the market or consumer.
27
What are factors to considor when choosing a location
* How close the premises are to their market
* How many potential customers are located nearby
* How expensive the premises will cost to buy or lease
* How close they will be to the material they require
* How good are local roads and transport systems
* How easy it will be to recruit suitably skilled and experienced workers
28
What are benefits/disadvantages of road distribution
**Advantages**
* Often cheaper than other methods
* Delivery is often quick
* Customer receives the product direct to their door
**Disadvantages**
* It is difficult to transport large products
* Not environmentally friendly
29
What are benefits/diisadvantages of Air distribution
**Advantages **
* Products can be transported across the world quickly
* Large numbers of small products can be transported
**Disadvantages**
* Not a door-to-door service
* Large items cannot be transported
* Products have to be taken to an airport to be loaded which could be expensive
30
What are benefits/disadvantages of Boat disribution
**Advantages**
* Larger products can be transported
* Products can be transported across the world
**Disadvantages**
* It is time consuming to transport products across the world
* Not a door-to-door service
31
What are benefits/disadvantages of rail distribution
**Advantages**
* Large products and large quantities can be transported
**Disadvantages**
* Train stations may not be at every location
* Not a door-to-door service
32
What is promotion
The way in which the organisation makes the customer aware of the features and benefits of the products
33
What are the two functions of advertising
* Informative - used by government
* Persuasive - used to persuade customers to buy products
34
What are advantages/ disadvantages of TV Advertising
**Advantages**
* Large audiences can be reached
* Adverts can be targeted towards specific segments
**Disadvantages**
* The cost of TV advertising tends to be high
* People may not watch the adverts and modern technology means that people can skip the adverts
35
What is a celebrity endorsement
Where a celebrity is used to promote a product or a business
36
What is ethical marketing
This is when businesses encourage customers to buy their product by supporting social and environmental issues.
36
What is a loyalty card
Customers receive points when they purchase products. Once they have collected enough points, they can exchange their points for products and services
37
How can businesses be ethical
* Ensuring adverts comply with discrimination laws
* Ensuring advertising does not offend customer’s beliefs.
* Ensuring there are not hidden costs when advertising
* Ensuring that adverts are not misleading.
* Using technology to reduce the amount of paper used.
38
What are some benefits of ethical marketing
* Increase market share.
* Improved reputation which gives a competitive edge.
* Attract new customers and increase customer loyalty.
39
What is E-Commerce
Buying and selling products online
40
What are advantages of E-commerce
* Customers worldwide can be targeted.
* Customers can buy online 24/7 from anywhere they want.
* Online discounts can be given.
* Product information can be updated and accessed quickly.
* Stock availability can be checked instantly.
* Businesses don’t necessarily have to pay for premises to display stock.
* Environmentally friendly compared to printing posters and leaflets.
41
What are disadvantages of E-Commerce
* The goods can’t be seen or handled before buying.
* Customers might not want to disclose personal details on a website.
* Technical problems might occur when purchasing something and the customer is left wondering if their order has been placed.
* No personal contact with the organisation.
* Can be expensive to subscribe to an ISP
* Employees need training to maintain and update the website.
42
What is an app
An application that customers can download on their phone to advertise and promote products.
42
What are advantages/disadvantages of Apps
**Advantages**
* You do not have to be sitting at a computer or laptop to use.
* Can often use free WiFi to access the internet.
**Disadvantages**
* People require a smartphone or tablet which can be expensive.
* Training may be required so that the app can be designed and used easily be users
43
What are advantages/disadvantages of text messaging
**Advantages**
* Customer receives the message instantly and directly.
* Lots of customers can be targeted.
* Cheaper than some other methods of advertising.
**Disadvantages**
* Can only include a small amount of information.
* Customers may not appreciate being sent lots of text messages.
* Need to have customers’ mobile phone numbers.
43
What are advantages/disadvantages of E-mail advertising
**Advantages**
* Customers can sign up to a mailing list so only
* those interested receive email.
* Email can be sent at any time.
* The same email can be sent to many people at once.
* Documents and files can be sent as attachments.
* Email can be sent worldwide instantly at little cost.
* Environmentally friendly.
**Disadvantages**
* Some email providers might filter the email into the spam folder and the user might never receive it.
* Receiving lots of emails from different businesses might become frustrating for the customer.
* Employees may need training on sending emails.
* Viruses can be spread through emails.
Nat 5 - Business
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Decks in class (5)
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