Business Studies: Marketing Mix, Market Research, and Product Development

Vocabulary practice flashcards covering the marketing mix, field and desk market research methods, and the stages of new product development.

Market Research

The gathering, recording, and analysing of data about an organisation's products and its customers.

Desk Research

Research carried out by a researcher using secondary information from published sources (such as newspapers and government reports) produced by someone else.

The Marketing Mix

The combination of four key elements—Product, Price, Promotion, and Place—designed around the target market.

Product (Marketing Mix)

An element of the marketing mix specifying that the product must be what the customer wants, or no one will buy it.

Price (Marketing Mix)

An element of the marketing mix stating that the product must be set at an amount the customer will pay, and not be too high or expensive.

Place (Marketing Mix)

An element of the marketing mix that refers to how a business makes the product available to customers and where the product is sold.

Promotion (Marketing Mix)

An essential element of the marketing mix used alongside product, price, and place to reach and communicate with customers.

Personal Interview

A field research method involving a face-to-face discussion in which the interviewer asks questions and records answers.

Personal Interview (Advantages)

Interviewers can encourage participants to answer, ask follow-up questions for clearer and more detailed responses, and observe body language and facial expressions.

Personal Interview (Disadvantages)

Very time-consuming, expensive due to the need for trained interviewers, and typically has a smaller sample size that makes results less reliable than surveys.

Focus Group

A field research method where a group of people participate in a recorded discussion about products or services and are given the opportunity to ask questions.

Focus Group (Advantages)

Researchers can observe body language and facial expressions, clarify unclear points instantly, and encourage opinions through group discussion.

Focus Group (Disadvantages)

Time-consuming to organise and conduct, and expensive because researchers must be trained to lead the group effectively.

Postal Survey

A field research method where a list of questions is sent through the post, often accompanied by a pre-paid envelope to encourage responses.

Postal Survey (Advantages)

Cheaper than interviews and focus groups because no trained staff are needed, can reach a large number of people over a wide geographical area, and allows participants to respond in their own time and space.

Postal Survey (Disadvantages)

Recipients may ignore the survey or take long to respond, there is no opportunity to clarify points, and misunderstood questions can reduce reliability.

Stages of New Product Development

The seven-step process consisting of: Market Research, Generate ideas, Select the best ideas for further development, Select single idea for final development, Develop prototype, Test marketing, and Product launch.

Generate Ideas (Product Development)

The second stage of new product development where ideas are created based on information gathered from market research.

Prototype

A model of a product created during development that lets customers see what it would look like and how it would work.

Test Marketing

The development stage where customers get to try out the product and provide feedback prior to commercial launch.