Marketting

Collection, presentation & analysis of information relating to marketing and consumption of goods and services

- To identify consumer needs and wants
- To identify gaps in the market
- To reduce the risk of product failure
- To inform business decisions eg. pricing

P: The gathering of 'new' information which does not already exist
S: The collection of data that is already in existence

Qualitative: Information about the attitudes, beliefs and intentions
Quantitative: Information that can be quantified, that is, expressed in numbers.

Questionnaires
focus groups,
observations,
Test marketting

Advantages: directly related to need, extremely detailed, accurate and relevant info/data, results in new information,
Disadvantages: time consuming, requires extensive planning, expensive

Business websites, Competitors, media, internal data, commerical publications, government publications, media

Advantages: requires less time, lower costs
Disadvantages: out of date, inaccurate, collected for different purpose

part of the whole market where particular group has similar characterisitics

Geographical: location, where customers live
Demographic:age, class, gender, religion, income
psychographic: lifestyles organic food for environmentally friendly people

Businesses that produce different products for different market segments increase revenue, charge higher prices for different groups
Increased customer loyalty, design specifically
Avoid wasting promotional resources by not targeting customers that aren't interested

Elements of a firm's marketting that are designed to meet customer needs. Product, Price, Place, Promotion

1. Idea generation:: idea for the new product
2. Idea screening/analysis: suitable fit? costs?
3. Feature specification: details? features?
4: development: models, samples, experiments
5. testing: lab tesing, sold to small section of market
6: commercialisation/launch: final touchs, put on market

shows the levels of sales at the different stages through which a product passes over time

Development: research, design, testing. Sales = 0
Introduction: launched, less awareness, money spent on marketing, low sales, price skimming/penetration
Growth: increased awareness, sales, covers costs

Maturity: sales at the peak, well-known product, cost decrease, revenue increases
Saturation: high competition, some might leave out, sale decreases, extensive strategies
Decline: customer lose interest, sales decrease, product off market

new technology
customer taste changes
newetter products appear in the market

extend the life of the product before it goes into decline
advertising, price reduction, adding value(new features), new packaging, exploring new markets

-Environment
-Cost efficient
- Information
-Design
-Convenience
- Protection

The range of products or brands provided by a business

2x2 matrix that descirbes products according to the market share they occupy or wether the market has any potentiol for growth. enables businesses to place their products into different categories according to maket share and position in the lifecycle

- Are valuable products for a business
- High market share
- High chance of potential growth
- profitable
- growth maturity stage

- High market share
- But market share is not likely to grow
- They generate steady flow
- maturity stage

- Low market share
- But there is potential for growth
- If the right action happens these products could do well
- maturity

- Low end of the life cycle - decline stage
- Low market share and it probably won't grow
- Dogs are normally replaced with new products

advertising using the media

-newspaper
-magazines
-advertising on radio and tv

this is any other form of promotion that doesn't involve using the media

-press releases
- point of sale display
-merchandising
- coupons

- Improve or develop the image of the business
- Show consumers that rival products are not as good
- Reassure customers about products
- Remind customers about an existing product
- Tell consumers about a new product

- Large audiences
- Opportunity to target your target market specifically
- Creative impact have great impacts

- Very expensive
- Message may be short lived
- Some viewers may avoid television adverts

- National and local reach
- Reader can refer back
- relatively cheap
- Articles can link to advertisement

-No movement or sound
- Rival products may be adversited as well

-Big impact with a big screen
-Specific age groups can be targeted

-Limited audience
-Message may only be seen once

- Sound can be used
- Cheap production
- Can target youngsters

-No visual
-May be ignored
-May lack impact
-Can irritate listeners

-Can produce national campaigns
-Seen repeatedly
-Good for shot sharp messages

-Posters can be vandalised
-Only limited information is seen
-Hard is evaluate effectiveness

-Possible tech problems
- Some pop up adds are irritating

-Can be updated
-Can be targeted
- Cheap and easy to set up

they are incentives to encourage people to buy products in hopes that once they try them they will continue to by them

BOGOF, free gifts, coupons, loyalty cards

by arranging the products in a store to catch people's eyes, through product layout, display materials and ensuring that shelves are fully stacked

communicating with stakeholders

to increase sales by improving the image of the company

-Press release
-Press conference
-Sponsorship
-Donations

-Online targeted adverting
-Viral advertising
-Social media
-Enewsletters

-strategy that encourages people to pass on messages to other electronically

communication used to motivate consumers to take action and buy the product

marketting mix, costs, consumer's preception, competition, taxes, objectives

I - when people need to know exact facts
P- when there is a lot of competition

- Market objectives
-Target market
-Coverage required
-Type of product
-Marketing budget
-Product life cycle
-Competition promotion methods

- cost plus pricing
- competition based pricing
- Promotional pricing
- price skimming
- price penetration

selling price set by evaluating variable costs and adding a mark up percentage
+ ensures costs are covered, profits are made
- does not allow us to respond to market changes, ignores competiton

is when a company launches a new product into a market charging a high price for a limited time and them decreases the price
+ higher profit, revenue, cover design and testing costs
- opportunity for competitors to launch at low price, discourage customers from buying as its high price

product launched is offered at a low price then higher price
+ helps build customer base attract customer, if good experience they will buy products at higher price
- if price not raised on time, can go into debt, difficult to build customer loyalty, lose opportunity to attract customerrs

lower prices for a short period of time to draw customers in
+ get rid of old stock, generate cash solve cash flow problems, renew interest in the product, win large market share
- affect customer perception, doubt quality, affect loyalty once risen. (discount, sales, psychological, loss leaders)

based on prices charged by competitors
+ price war avoided, you can be a price leader, respond to market changes, candrive out competitors by lowering price (predertory pricing), gain market share
- have to attract customers in other ways,affects customer loyalty , low profits, cannot cover costs

The route taken by a product from the producer to the customer

Persons or businesses that buy goods from manufacturers and sell them in smaller qualities to retailers.

Businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to customers

When large quantities of good are bought from a manufacturers and wholesalers sell small quantities to customers

Channel 1: Producer ->consumer
channel 2: producer -> retailer -> consumer
Channel 3 -> Producer -> wholesaler -> consumer
channel 4: Producer -> agent -> wholesaler ->retailer ->consumer

+ pofit is earned by the producer
+ The producer controls all parts of the marketing mix
+ Quickest method of getting the product to the consumer
- Consumers not able to see or try the product
All/Delivery costs/storage/promotional costs are high, must be paid for by the producer

Consumers can see and try the product before buying it
The cost of holding inventories of the product is paid by the retailer
The retailer will pay for advertising and other promotional activities
Retailers are usually more conveniently located for consumers

The retailer takes some of the profit away from the producer
Producers lose some control of the marketing mix
The producer must pay for delivery costs to the retailers
Retailers usually sell competitors' products as well

The wholesaler buys in bulk from the producer
Wholesalers will advertise and promote the product to retailers
The transport cost to the retailer is paid by the wholesaler
Wholesalers pay for transport costs
Wholesalers pay for storage costs

Another middleman so more profit is taken away from the producer
The producer loses even more control of the marketing mix

+ The agent has specialist knowledge of the market
- Another middleman is added so even more profit is taken away from the producer

Cost of transportation
Nature of the product
The market

- it is cheaper because online retailers often have lower costs
- Consumers can shop 24/7
-There is generally a huge amount of choice
- People can shop from anywhere if they access to the internet

- E-tailers may have to meet costs of operating stores
-Lower start up costs as both fixed and variable costs are lower
- Business can serve their customers 24/7

- Consumers can't touch or look at goods before purchase
- If a consumer doesn't have internet access or a credit card they may be excluded
-Consumers may receive poor sales service

-Business will have increasing competition as selling is a cheaper method of distribution
- There is a security risk as computers can be hacked

To improve or develop the image of the business.
To tell customers about a new product.
To remind customers about an existing product.
To reach a widely geographically dispersed target audience.
To reassure customers about products

Above the line promotion: involves advertising using media
Television, Newspapers and Magazines, Cinema, Radio, Posters and billboards, Internet (know the ads and disads)

is any other form of promotion that does not use the media.
Sales promotion, Merchandising and Packaging, Direct mailing, Direct selling/personal selling, Exhibitions/trade fairs

an attempt by a business to communicate with interested parties
The main purpose of public relations is to increase sales by improving the image of a business and reinforcing an established brand

official statement delivered to members of the new media for the purpose of providing information, creating an official statement or making an announcement directed for public release. Press release are also considered a primary source, meaning they are original informants for information

Eg. a company announcing that they have created 100 new jobs.
+ Cheap
+ accurate as the business gives out the information, has control

A press conference is where representatives face the media and present the information verbally.
+ Direct interaction with media and public
+ Can answer any questions
- TIme consuming
- Need to be informed

Sponsorship is making a financial contribution to an event in return for publicity
Advantages for event organiser (olympic games)
Increases trustworthiness, increases the event recognition, Stretches your budget
Advantages for a sponsor: Reach a new audience
Increase your market share, Communicate a message

Donations: donate to charities, giving money, necessities to charities
+ Donate to charities of the local community to improve their image, A large donation form a business is likely to be reported in the media, Public attention, Customer's attention - Only for large businesses as a small donation will not get media coverage

involves giving a product a name, sign, symbol, design or any feature that allows customers to instantly recognise the product and differentiate it from its competitors

- Differentiate the product
- Create customer loyalty
- Help recognition
- Develop an image
- Raise prices when the brand and image becomes strong

Market: allows buyers and sellers to communicate and trade goods/services
Marketting: process of identifying customer needs and satisfy them profitably

Satisfy customer needs
Building customer relationships
Keeping customer loyalty

Product orientation: is where a business focuses on the design and manufacture of a product itself rather than the needs of customers.
MO: is where a business focuses on the needs of consumers when developing products.

Customer needs change
Changing customer spending patterns
Increased competition

sells the same product to all consumers and markets this product in the same way.
+ Costs may be lower as the production method is standardised - economies of scale, product appeals to a very large audience, Customer needs and wants are more general making marketing easier
- Increased competition, Can be over dependent on one market

sells a product to a small consumer group. In a market which is often untouched by larger businesses.
+ Reaching customer needs, loyal customers, Less competition than a mass market, Saves on advertising because they target on specific groups
- Likely to attract competition if doing well, Relying on a small customer base