UNIT 2 BUSINESS

What is marketing?

Marketing is finding out the needs and wants of customers

What is market research?

how a business collectd information in order ti determine whether or not the product will sell

two ways of market research?

• primary and secondary

primary research exmaples and defneition?

Primary research is information that hasnt been collected before, like questionaires,websites etc.

secondary resrach exmaples and denfetion

secondary research is the collection of data that has been collected beofre like magazines and census data

qualitive data?

data based on others opinions

quantative data?

data based on facts or numbers

market segmentation?

selecetion of that market where buyers have similar interests

segmentation of a market could be:

• income

• age

• lifesyle

• gender

• location

• etc

the 4 p’s of the marketing mix

• product

• place

• price

• promotion

THE PRODUCT LIFECYCLE?

1. introduction

2. growth

3. maturity

4. decline

extension strategies?

• adveristing

• selling to a new market

• reducing price

promotional pricing

temporlaiy reducing the price of a product or service to attract customers

• advanages-revneue growth, introducing new cusomters to your service

• disadvnatges-customers may question quality

skimming

when the price is high then graudally lowes to attrect cusotmers

• advantages-generating reveneue quickly, attracing

• disadvantages-not a great strategy in crowded markets

penetration priicng

attracts customers to a new product or service by offering a low price at its initial growth time

• advnatages-easy to impmement

• dis-short term cost pressure

competitor pricing

when business bases its seeling prices on its comepetitor priicng rather than its

• advnatages-low risk and quick results

• dis-calcuations arent complicated

cost plus priicng-

Cost-plus pricing iby which the selling price of a product is determined by adding a specific fixed percentage to the product's unit cost.

• advnatges-simple to use, reliable

• disvantages-can reduce efficiency

3 methods of physical distrbution

Method 1-distrubting products directly to the customer and deal with each customer personally

method2-the producer sells to a retailer who then sells to the customer

method3-the producer sells to a wholesaler, who sells to retailer who sells to cusomters.

busieness use promotion to:

• persuda customers to buy a proct or service

• inform customers of a new product or service and remind customers of the benefits of a service

market data-

refers to information that a busines sneeds to know about the characterists of a particular market.