-4 'P's: Price, Promotion, Place, Product.
-Markets are where sales happen.
-Mass Markets: Selling ordinary things to large numbers of people at reasonably cheap prices.
-Niche Markets: Serve specialist consumers, usually small businesses, can afford to spewnd lots of time on productionn which for a larger firm would be unprofitable.
-Markets are segmented into different groups of people: Age (teenage market, 'grey' market etc.), Social class (Class A [Professionals] to Class E [Unemployed] etc.) Loaction (selling jellied eels in London, selling Haggis in Scotland etc.) Culture or Religion (different groups have different unique products eg. crucifixes, bagels etc.) Gender (e.g. Yorkie and Flake = Man and Woman etc.)
Field Research (Primary Research) is doing your own research:
1. Useful for finding our new information, and getting customers views on your products,
2. Questionnaires, telephone surveys, product testing and working with consumer groups are all methods of Field Research.
A: Up to date, relevant, specific to your products.
D: Expensive to collect, time consuming, needs large sample size to be accurate.
Desk Research (Secondary Research) is looking at other people's work.
Useful for looking at whole market, and analysing past trends to predict the future.
A: Cheaper then field research, data is easily found and instantly available.
D: Not always relevant to your needs, not specifically to your products, could be out of date.
-BE MARKET DRIVEN, NOT PRODUCT DRIVEN. Market driven firms use research to target what the public wants. Product-driven firms design a new product and try to sell it without any research as to what the public want.
-SWOT - Strengths, Weaknesses, Oppertunities and Threats!
-GET THE DETAILS OF THJE PRODUCT RIGHT: Design of product must be fit for it's purpose, unique, catchy name, packaging needs to be attractive.
-Make a product with a long lifecycle.
-Make your product different to the competitions.
-Demand - Quantity of a product the customers are able and willing to buy.
-AS THE PRICE INCREASES, THE DEMAND WILL FALL.
-Supply - The quantity of a product producers are willing and able to make for sale.
-AS THE PRICE INCREASES, THE QUANTITY SUPPLIED INCREASES.
-Equilibrium - the selling price where products and consumers agree.
Price Elasticity of Demand - shows how much demand changes in response to changes in price.
Price elasticity of Demand = % change in quantity demanded
% change in price.
-Penetration pricing: Starts off low to get people interested, then rises.
-Skimming: Starts off high, so people assume it is a good quality product, and impresses people with large incomes, making it more desirable.
-Destroyer pricing: Charge extremely low prices that they know their competition would find unprofitable, then once competitors are driven out, price increases.
-Price discrimination: Firms charge different prices to different consumers.
-Competition pricing: Firm charges similar prices to other firms.
-FOUR REASONS: To make consumers aware of new products, to remind consumers of existing products, to persuade consumers to switch from rival products, to improve image of the business.
-ADVERTISEMENTS DEPEND ON 3 THINGS: Target audience, size of market, size of advertising budget.
-ADVERTS CAN BE INFORMATIVE OR PERSUASIVE!
-Advertising media includes television, radio, newspapers, magazines, posters, billboards, cinemas, leaflets/junk mail, internet.