marketing

what is the purpose of market research?

• understand customer needs and wants

• identify gaps in the market

• inform nusiness decisions.

advantages of primary market research

relevant to business, detailed, up to date, not available to other businesses.

disadvantages of primary market research

expensive and time consuming due to needing to hire a specialist market research agency, researchers can guide respondents answers,

examples of primary research

interviews, questionnaire/surveys, focus groups, test marketing, observation

advantages of secondary market research

quick, cheap, more info can be gathered

disadvantages of secondary market research

• not tailored to business needs

• can be out of date

• available to other businesses

examples of secondary market research

market reports, articles, books, newspapers, internet

production orientation

based on what the business is good at

marketing orientation

based on customer needs and wants

mass market advantages

• straightforward as everyone is targeted

• large volume of sales means high revenue

• opportunity for growth due to large potential sales

mass market disadvantages

• lots of competition

• being price competitive can lower profit margins

• products need to marketed very well which could be expensive

niche market advantages

• easier to target customers - meet their needs, increased loyalty, repeat customers

• charge premium prices

• less competiton than mass markets

niche market disadvantages

less competition than mass markets, very risky as demand may not be constant, small market and therefore limited sales growth

market segmentation groups

• gender

• socioeconomic

• location

• lifestyles

penetration pricing

low to high prices

skimming pricing

high to low prices

stages of product development

1. generating ideas

2. analysis

3. development

4. test marketing

5. commercialisation and lauch

extension strategies

• updating packaging → new image

• adding different features → differentiate product from rivals

• changing target market

• increased advertisement

question mark

new product may have potential

star

higly invested to sustain growth & has lots of competitors

dog

not worth investing in, low market share and market growth

cash cow

less competitors, mature, successful product with little needs of investment

reasons to promote

• tell customers about new products

• remind customers about existing products

• reach target audience that is spread over a wide area

• reassure customers about products

• show customers that rival products are not as good

• improve/develop image of business

above the line promotion

advertising in the media e.g. television

below the line promotion

doesnt involve advertising e.g. discount, coupon

sales promotion

used to attract more customers, encourage them to buy more, or try new products. It’s a kind of special offer to make people want to buy something.

product trial

companies give out free samples or let people use their products for a short time so they can see if they like them

sponsorship

a way for companies to promote themselves and for the person, team or event to get the support they need

public relations

making an impression on the public and managing how people feel and think about a company or person

branding

Companies use it to show what they stand for and to help people recognize and remember them. Creating an image or identity.

viral advertsing via social media

engaging with customers via social media

e newsletter

create an email address list to promote products & to build a deeper connection with potential customers