Unit 3 - Key terms for Marketing

MARKET RESEARCH – The process of finding out consumer preferences

PRIMARY/FIELD RESEARCH - Finding information out ‘first hand’ from surveys, questionnaires, ‘cold calling’ etc.

SECONDARY/DESK RESEARCH – Using existing resources such as CD ROMS, census returns,

THE MARKETING MIX; THE 4P’s:

PRODUCT – Producing a product that is different from what else is available
PROMOTION – Different ways of advertising and selling the product
PLACE – The business must find a suitable location
PRICE – Pricing strategies such as:
- PENETRATION PRICING – Selling at a low price in order to break into the marke
- CREAMING - Selling at a high price to indicate that the product is of high quality – ‘snob appeal’
- COST PLUS PRICING – Adding up the costs and putting on a margin for profit

PRODUCT LIFE CYCLE – Shows how sales change over time.