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business > 1.1 > Flashcards

1.1 Flashcards

1
Q

what is a market?

A

a place where buyers and sellers come together to exchange goods or services
-doesn’t have to be physical

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2
Q

what is mass marketing?

A

attempt to create products & services that have universal appeal

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3
Q

what is niche marketing?

A

a small segment of a much larger market, which targets specific customer needs

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4
Q

what are pros of mass marketing?

A

-large scale production means economies of scale lower average unit cost, can become more competitive due to lower prices and can get higher profit margin
-very simple, everyone targeted equally, simpler research
-large volume of scales = high revenue
-high revive can be put into research & development

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5
Q

what are cons of mass marketing?

A

-loss of competition
-products need differentiation, can be costly
-high volume production not flexible to changes in demand

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6
Q

niche marketing is a _____ of the main market which addresses a _______ ____/____
eg _______ ______

A

subset
specialist needs/wants
wedding cakes

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7
Q

what are pros of niche marketing?

A

-premium prices can be charged
-targeting customers is easier
-small scale production can be flexible & follow trends
-less competitive than mass market

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8
Q

what are cons of niche marketing?

A

-very risky as demand can be unpredictable & not constant
-higher cost per unit required

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9
Q

what are pros of online retailing?

A

-reduced costs, from not store & reduced workers
-much larger group of customers can be reached

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10
Q

what are cons of online retailing?

A

-barrier between business and customers
-can be hard to stand out, marketing can be expensive

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11
Q

the demand for a product determines the _______ of the ______

A

size
market

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12
Q

what can be the size of a market be measured in terms of?

A

volume- quantity of goods purchased
value- amount spent by customers on volume sold

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13
Q

market size matters because it is the basis for ________ _____

A

calculating trends

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14
Q

market growth occurs when the _____ of the market ____

A

size
increases

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15
Q

if the market is growing this may mean that there are more ___ ________

A

sales opportunities

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16
Q

it is helpful for fines to know the market share of all other _______ _____ in the market

A

existing firms

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17
Q

what is market share?

A

the market share of a firm/brand is the percentage that it has of market sales

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18
Q

if the total sales in the market remain the same but the firm _______ its own sales then its market shares will increase

A

increases

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19
Q

if the firm maintains the same _____ __ _____ when the market grows its share will fall

A

level of sales

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20
Q

what is a dynamic market?

A

one which implies short product life cycles and is highly competitive & is rapidly changing
eg fashion industry

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21
Q

what are four key factors when considering dynamic markets?

A

-online retailing
—> dynamic & unpredictable, markets growing fast
-how markets change
—> all markets will change & evolve overtime, can change due to affluence (income), can create greater demand, consumers becoming more socially aware, changing population
-innovation
—>new idea to market, may help gain market share or spur growth within market
-adapting to change
—> consumer tastes change, proactive, jump before you’re pushed, research can be expensive, development = expensive, advertising = expensive, research time consuming, life cycle short so have to do it all again, risky

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22
Q

features of dynamic markets?

A

-competition
-changing customer needs & wants
-technological development

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23
Q

what is product orientation?

A

when the business focuses on what it is best at producing and selling

24
Q

what is the problem with product orientation?

A

it maintains the status quo (the business continues to do what it always does
-this does not anticipate changes in consumers needs, thus may fall behind competitors

25
Q

what is market orientation?

A

when a business finds out what the demand is & then meets those needs
-the firm may focus on creating “gimmicks” rather than the reliability or quality of original product & hence lose sales

26
Q

what are pros of market orientation?

A

-responding to needs & wants of customers leads to revenue being more healthy
-product may not have to be marketed as heavily, word of mouth with market orientated businesses as its meeting needs

27
Q

what are cons of market orientation?

A

-market research to find customers needs and wants is time consuming
-new substitute products may come out which may decrease revenues if the market orientated business

28
Q

what is market research?

A

the process of gathering, analysing and producing data relevant to the marketing process
-it gathers info about consumers, competitors, trends & distributors within a firms target market

29
Q

market research can enable the entrepreneur to move quickly, ______ and _______, to get to where they want

A

efficiently
effectively

30
Q

what is market research typically used for?

A

-identifying market opportunities
-assessing the alternative options open to the business to meet its customer needs
-assessing the effectiveness of different marketing actions

31
Q

what is primary research?

A

-research when you collect data that has not been collected before

32
Q

what are pros of primary research?

A

-business able to tailor research to what they want to know
-info is available exclusively to that business & competitors can’t access it
-primary research can help businesses understand customer psychology and get an in depth understanding of them

33
Q

what are cons of primary research?

A

-can be very expensive, external agencies may have to be hired and it can cost thousands for high quality in depth info
-can be time consuming & strict deadlines may have to be imposed to meet targets
-if research method flawed, research may be inaccurate, can be faded by leading questions or bias interviewer
-research found may not be reflective of the whole market, especially if a small sample size is used

34
Q

how can primary data be gathered?

A

-through observation
-through experiment/ test marketing
-through retailers
-surveys/questionnaires
-interviews
-loyalty cards
-focus groups
-consumer panels

35
Q

what is secondary market research?

A

research that used data that already exists

36
Q

what are pros of secondary market research?

A

-can be cheap or free
-quick and easy to collect
-can date back in time which can be useful for spotting trends and changes
-can provide a good market overview
-data can be checked across multiple sources to verify reliability

37
Q

what are cons of secondary market research?

A

-info may be out of date or irrelevant
-bias may play part in research and there is no way to tell as research methods and researchers can be unknown
-some market reposts can be very expensive to buy

38
Q

what are methods of secondary research?

A

-the internet
-trade press
-government produced data
-annual reports
-news
-internet gallery
-EU statistics

39
Q

what is quantitative data?

A

data expressed in numerical form

40
Q

what is qualitative data?

A

data about opinions, attitudes and feelings

41
Q

quantitative data is usually collected from _____ scale research

A

large

42
Q

how can qualitative data be found?

A

-focus groups
-depth interviews
-sampling

43
Q

what is random sampling?

A

people from target population are selected randomly

44
Q

what are advantages of random sampling?

A

-lack of bias
-simple & less complicated than other sampling methods

45
Q

what are disadvantages of random sampling?

A

-may not be representative
-time consuming to generate lists of the population, potentially a sign numbers to everyone
-can be costly, potential for sampling errors

46
Q

what is quota sampling ?

A

target population is segmented into groups that share the same characteristics like age and gender

47
Q

what are advantages of quota sampling?

A

-fairly easy to conduct and administer
-cost effective
-representative, can be generalised

48
Q

disadvantages of quota sampling

A

-result of research may be inaccurate as many factors affect
-may be biased

49
Q

what is stratified sampling?

A

involved the division of a population into smaller sub groups

50
Q

advantages of stratified sampling

A

-lack of researcher bias
-produces a representative sample that can be generalised to a population

51
Q

disadvantages of stratified sampling

A

-cannot reflect all differences
-time consuming
-costly

52
Q

what IT is used to support market research and find a great wealth of info on?

A

-websites
-social media
-databases

53
Q

market research is never 100% accurate and should always be treated with _____

A

caution

54
Q

-market research may not tell us anything meaningful, as may not see potential ______ _______ in a market

A

leaps forward

55
Q

what are the main issues with market research?

A

-sample size
-sample bias

56
Q

sample size:
-a low number (eg __) will have high change of ______ so may be meaningless
-a mid range number (eg____) should be more meaningful & should be more statistically _____
-sample size of _____ should lead to more statistically ______ results, but would be expensive
-businesses should consider the size of the firm when finding a sample size

A

10
variation
100
viable
1000
reliable

57
Q

sample bias:
-even with a large sample size it is possible to get inaccurate findings
-firm will need to ensure it finds a sample that is truly representative of target market chosen
what are things that may affect the bias?

A

-demographics
-affluence of the area
-are the people representative

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