How may a business use its profits?

·         -Expansion

·         Better quality products

·         More outlets

·         Becoming share holders into different businesses

·         Dividend costs

·         Enhance ways of Distribution

·         Increase employees ways

·         Provide training/financial motivation for employees

·         Develop products into new market

·         Product diversification

·         New products into the same market

·         Publicity/Promotion (Above the line)

·         Expand Abroad/Multi National

·         Pay back loans/debts

·         More variety of products

·         Improve production – suppliers

Sample

·         A sample is a group which is intended to represent the overall population. By interviewing a sample a firm would hope to get an impression of what all people of this age group would think.

·         Confidence level – is a  measure of the reliability of findings of primary research

·         Random Sample – occurs when each member of the population has an equal chance of selection

·         Quota Sample – individuals are selected to meet given criteria

Marketing Orientation

·         Bases their firm on customer needs/customer feedback (Almost tailor made for the customer)

·         Monitors environment, and customer wants, what competitors offer and the occurring changes in the market.

·       Firm ensures that their products/service that they provide matches it customers needs

Product Orientation

·         In comparison to marketing orientation

·         Less likely to succeed than marketing orientation

·         Firm focuses more on what it can produce and hope that it will fit customer requirements – risky approach (Firm may end up producing something customers don’t need)

·         Doesn’t allow customer consideration

Asset – Led Marketing

·         A wise firm may adopt an approach which looks for market opportunities and matches these to the firm’s own strengths

·         Focuses on the most appropriate opportunities rather than what the market wan

Adding Value

·         The value of something depends on the benefits it offers compared with the price

·         Value is linked to the price of the product and its use

Market Research

-Involves the gathering, analysing and presenting of information relevant to the marketing process.

·         Primary Research (Field Research) – new information that has been collected first hand.

·         Secondary Research (Desk Research) – information that is already collected, obtained from outside the firm (not always relevant.)

Advantages & Disadvantages of Primary Research

·         Up to date

·         Specific to the firms needs (And could be kept confidential)

·         May be expensive to collect

·         Not available immediately, as it takes time to collect

·         More reliable

·         Time consuming

Advantages & Disadvantages of Secondary Research

·         May be out of date or in an inappropriate format

·         Available to other firms; may be very general

·         Normally cheaper than primary research

·         Quicker to gather than primary research

·         Less time consuming

How could the gathered primary/secondary information be used for?

·         Developing new products – linking to customer needs/wants

·         Attempt to increase market share

·         Meets needs of the market

·         Establishes place in the market

·         Identifies areas of opportunities

·         Help finds gaps in the market

·         Identifies demands

·         Finding right location for customers

·         Investigate competitors – pricing strategies

·         Current Trends

·         Consumer loyalty

·         Sends out messages to banks/lending organisations

·         Identifies USP

·         Identifies target audience