Marketing

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  • Created by: Krishna_
  • Created on: 11-12-16 11:22
What's Maket Research?
Market Research is the collection of data on cutomer habits to help decision making in marketing
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Why do businesses carry out market research?
-Know about a gap in the market, -Know who customers are, -Know what products may bring a profit
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Primary Research
Data collected first hand, sometimes referred to as field research e.g. Questionaires, Surveys, Focus groups etc.
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Advantages of Questionaires
-Practical, -Less time, -Less effort, -Easier to calculate the answer
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Disadvantages of Questionaires
-Information isn't detailed, -Could be slightly expensive, -People might have their own interpretations
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Advatages of a Telehone Survey
-Less time consuming, -High level of anonymity means a greater chance of receiving valid answers
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Disadvantages of a Telephone survey
-Limited complexity of questions, -Less control, -Product is intangible - May become annoying
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Advantages of Supplier Feedback
They might give an insight of future trends, -Can find out what competitors are doing and better them
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Disadvantages of Supplier Feedback
-They might be biased, -They might refuse to give you information, -They could give your information to others
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Advantages of Customer Feedback
-Up-to-date feedback,- Good impression, -You know what your customers want
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Disadvantages of Customer Feedback
-Privacy issues (over the phone), Not everyone would answer (e-mail
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Advantages of a Focus Group
-Face-to-face interactions, -Detailed information, -Lots of opinions, -Picking the right target audience
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Disadvantages of a Focus Group
-Expense, - The opinions might be biased
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Secondary Research
Data collected using research or information provided by others, often referred to as desk research e.g.Magazines, Internet Research, Newspapers etc.
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Advantages of Internet Research
-Cheap, -Flexibility and accesibility of working at home/work, -You can find out a lot of information
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Disadvantages of Internet Research
-The content might not be completely true, -It doesn't give you a specific answer, -The information might be biased
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What does e-commerce mean?
Internet selling, an internet based business e.g. asos
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Advantages of e-commerce
-Less hassle, -Less effort, -Always open
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Disadvantages of e-commerce
-It won't be as well-known, -It could get hacked, -Products aren't tangible
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What is the marketing mix and what is it used for?
They are four major variables for which decisions need to be made - Product, Price, Place and Promotion
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Product
Product differentiation can be created by making the USP clear, establishing a strong brand image and offering a better location, appearance, functions, design, features and selling price than rival products
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Price
Price affects customers as may increase or decrease demand, competition as the price charged by rivals is taken into account and costs as you can ensure profit by using cost plus pricing for example adding a 50% mark up - bought for £2, sold for £3
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Penetration pricing
Penetration pricing is when the price is set lower than the competitors's prices in order to be able to enter a new market
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Promotional pricing
This is when a product is sold at a relatively low price for a short period of time to get customers interested in the product
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Price skimming
Price skimming is setting a relatively high price to boost profits, it's often used by well-known businesses launching new, high quality procucts
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Place
Place is the point where products are made available to customers, this involves choosing the best channel of distribution - potential methods include Retailers, Wholesalers, selling e-commerce and telesales/mail order (an example of direct selling)
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Promotion
Promotion refers to the methods used by a business tomake customers aware of the product, businesses use an overall promotional combination of the following strategies can be used: Personal selling, Advertising, Sales Promotion and Direct Marketings
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Personal Selling
Using fac-to-face communication, e.g. employing a sales person or agent to make direct contact with customer
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Advertising
Where a business pays for messages about itself in mass media such as T.V. or newspapers. Advertising is non-personal and is also called above-the-line promotion.
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Sales Promotion
They encourage customers to buy now rather than later. For example, 2-for-1 offers, free gifts, samples, coupons or competitions
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Direct Market
This takes place when firms make diect contact with individual customers using tactics such as 'junk' mail and weekly 'special offer' emails
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Advantages of Direct Mail
-It's informative, -You control where they go
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Disadvantages of Direct Mail
-People see it as junk mail and often ignore it which means it's a waste of money for small businesses
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Advantages of a Website
-It makes the company look more professional, -You can be bias, -Any FAQs will be answered
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Disadvantages of a Website
-People might not be abke to find your website, -Expensive (maintence)
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Advantages of Banners and pop-ups
--It's highly visible so it'll be remembered
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Disadvantages of Banners and pop-ups
People might get annoyed and develop a negative opinion
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Advantages of Personal selling
-They have your attention,-Can answer your questions
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Disadvantages of Personal selling
-People see them as a nuisance and might ignore them
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Advantages of advertising in a local newspaper
-You don't need a lot of money to for local people to see it
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Disadvantages of advertising in a local newspaper
-It depends on how many people read the newspaper
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Advantages of Free Publicity
It's free so you don't have to be a big company
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Disadvantages of Free Publicity
-People might blame the company or bad-mouth
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Advantages of Word-of-mouth
-It's free, -You could get a lot of customers if one person prefers your company
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Disadvantaged of Word-of-mouth
-It could be negative
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Other cards in this set

Card 2

Front

-Know about a gap in the market, -Know who customers are, -Know what products may bring a profit

Back

Why do businesses carry out market research?

Card 3

Front

Data collected first hand, sometimes referred to as field research e.g. Questionaires, Surveys, Focus groups etc.

Back

Preview of the back of card 3

Card 4

Front

-Practical, -Less time, -Less effort, -Easier to calculate the answer

Back

Preview of the back of card 4

Card 5

Front

-Information isn't detailed, -Could be slightly expensive, -People might have their own interpretations

Back

Preview of the back of card 5
View more cards

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