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EDUQAS A-Level Business Studies > 1.3: Marketing > Flashcards

1.3: Marketing Flashcards

1.3.1: Marketing 1.3.2: Product Life Cycle 1.3.3: Boston Matrix 1.3.4: Product 1.3.5: Price 1.3.6: Promotion 1.3.7: Place 1.3.8: Decisions about the Marketing Mix 1.3.9: New Technology and Marketing

1
Q

What is Market Orientation and what are the benfits and drawbacks

A

Focused on the findings of market research, the benefits include a First Mover Advantage, Rapid Revenue and Sales, but Gaps in the market are short, Key decisions are made on quality of market research and Needs are ever-changing

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2
Q

What is Product Orientation and State the benefits and drawbacks

A

Inward Looking considering the firm’s own strengths and weaknesses, the benefits include Economies of Scale, High Quality, and Loyal Customers but Danger of overlooking the consumers, cant meet the change in demand quickly and unlikely to survive in a long mass market

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3
Q

What is Asset-Led Marketing

A

Match the market needs with the strengths of the business

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4
Q

What happens to a firm when a new product is developed

A

Research is undertaken, at a cost, no sales money = big dent to company finances so cash flow is negative

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5
Q

What happens to a firm when a new product is being introduced to the market

A

Initial losses due to high R&D and high promotional costs because awareness is low so cash flow is negative

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6
Q

What happens when a product has hit growth within the market

A

They still need to repay high r&d costs plus continued costs of promotion to reinforce the brand image. Prices may start to fall. Cash flow becomes positive during late growth

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7
Q

What happens to a product when it enters maturity in the market

A

Profit and Sales are maximized at this point. Intense competition and promotion may be needed and the possibility of extension strategies being introduced so cash flow is positive

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8
Q

What happens to a firms product when it becomes saturated within the market

A

Few New customers, looking to reduce costs so sales might fall and profits likely to decline so cash flow is positive

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9
Q

What happens to a product when it goes into decline

A

Fast decline in sales, cutting of costs and profit will decline until the product is discontinued so cash flow will decline alongside the product

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10
Q

What type of extension strategies could a business implement

A

Changing elements of the marketing mix, new promotion methods targeting a different audience and encouraging more frequent use

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11
Q

Evaluate the Product Life Cycle

A

Helps a company launch new products, identify when extension strategies are necessary, and can identify other marketing strategies but decline could be due to poor management, market change is rapid and the diagram could become self-fulfilling

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12
Q

What is The Boston Matrix

A

An example of Product Portfolio Analysis, it shows the market share of each of the firms product and the rate of growth

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13
Q

What is a Star

A

High Market Growth and Market Share, it requires heavy promotional spending, they are for the future to become a cash cow

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14
Q

What is a Cash Cow

A

High Market Share and Low Market Growth it is a product that is purely milked for profit which of that money can be used to reinvest in new product ideas

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15
Q

What is a Problem Child

A

Low Market Share and High Market Growth, it requires large promotional activity to stimulate additional demand, these products can turn into cash cows or stars but need to improve their market share and success

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16
Q

What is a Dog

A

Low Market Share and Growth, they have limited potential and use up too much time and resources so if they become unprofitable they will be withdrawn from the market

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17
Q

State the benefits and drawbacks of the Boston Matrix

A

Benefits: A snapshot of the firm’s position, Shows if the firm has a balanced portfolio and a good basis for marketing planning
Drawbacks: mangers still need to make the right decisions, Matrix is constantly changing and depends upon finances and competition

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18
Q

What is Clicks and Bricks

A

Clicks and is online and Bricks is a physical presence

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19
Q

How does Social Media play a role in Marketing

A

Influencer Marketing which involves an influencer endorsing the use of a product showing it off to their audience

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20
Q

What is M-Commerce

A

Mobile Commerce which means having your retail outlet in your consumers pocket

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21
Q

How does the internet affect pricing

A

A comparison of prices has become a great deal easier for customers by using websites like Money Supermarket on the internet

22
Q

What is E-Tailing

A

Electronic Retail which allows consumers to buy good or services from a seller over the internet like eBay for example

23
Q

What are the Objectives of Promotion

A

AIDA: Attention/Awareness, Interest, Desire and Action

24
Q

What are Above the Line Promotional Strategies

A

Mass Media is used to promote brands and reach out to target customers through TV, Radio, Papers, Internet, Cinema and Magazines

25
Q

Analyse all the Above the Line Promotional Strategies

A

TV out of budget for most, Magazines allow targeting of specific niches, Cinema for local advertising, internet is cost-effective and consider if national or local newspapers would be effective and why

26
Q

What factors do businesses have to consider when choosing the right form of media

A

Target Market, Is Promotion Informative or Persuasive?, Cost and The Product

27
Q

What are Below the Line Promotional Strategies

A

They target consumers directly like Trade Fairs, Sales Promos, Direct Selling, Sponsorship, PR and Direct Mail

28
Q

Does Promotion Matter?

A

Communicates something about your business, it shows if it is reaching your intended audience and crucially it helps build a relationship between you and the consumer (it is also necessary to complete the marketing mix)

29
Q

What is Place

A

Place refers to the means of distributing a product from the manufacturer to the consumer

30
Q

What are the key influences on distribution

A

Producer Considerations: Market Coverage, Minimise Costs, Marketing Aims, Legal constraints and Type of Product
Consumer Requirements: Convenience, Accessibility, Speed of Service and Easy exchange of goods

31
Q

State three ways you can increase consumer outlets

A

POS Displays, Generous Commission (encourages sales staff to sig up new customers) and Brand Variety

32
Q

What are the distribution channels

A

Direct: Producer to consumer
Modern: Producer to retailer to consumer
Traditional: Producer to wholesaler to retailer to consumer

33
Q

What are the factors businesses have to consider when picking choice of channel

A

Costs, What have stronger links with end consumers and whether there is a reluctancy to deliver to more remote locations

34
Q

What are the benefits and drawbacks of Multi-Channel Distribution

A

Benefits: Reach more customers, Greater flexibility for consumer purchasing and Increases revenue streams
Drawbacks: Complexity in management, High shipping and postage costs and risk of liquidity problems

35
Q

How does the internet impact place

A

E-Commerce, Bricks and Clicks and M-Commerce have rapidly grown in size eliminating physical stores

36
Q

What are the key influences on price

A

Corporate Objectives, Production Costs, The Marketing Mix, Competition, Consumer Perceptions and Laws and Regulations

37
Q

What is the difference between a Price Taker and a Price Maker

A

A price taker is used in a maker that has perfect competition whereas a price maker is when a business decides on the price

38
Q

What are the key influences on Pricing Strategies

A

Type of Product, Level of Competition, Financial strength of the firm and Economic Conditions

39
Q

What is Price Skimming

A

Maximise profit by charging a high price offering something unique, early adopters will repay the high costs of R&D and the selling price will gradually be reduced

40
Q

What is Penetration Pricing

A

Gain market share quickly encouraging large volumes of scales to generate brand loyalty unsuitable for a product with a short life cycle but as it becomes more established prices are raised and sop are profit

41
Q

What is Competitive Pricing

A

It depends upon the power of the business and firms in this position need to establish the brand identity and emphasise the differences between goods

42
Q

What is the difference between psychological pricing and loss leader pricing

A

Psychological pricing is matching what consumers expect to pay whereas loss-leader pricing is sell certain items at a loss and attract customers to buy other goods at full price

43
Q

What is Cost-Plus Pricing

A

Adding a percentage profit amount onto the average cost of producing the good
Markup+ Fixed Cost + Variable Cost = Price

44
Q

What factors do business need to consider when developing a product

A

Usage, Design, Financial Factors and USP

45
Q

What is Product Differentiation

A

The extent to which consumers view your product as different from competitors products (the greater differentiation the lower the price elasticity)

46
Q

State 3 examples of USP’S and Differentiation

A

USP’S: Design, Colour and Technical Specifications
Differentiation: Quality, Packaging and Add-Ons

47
Q

State 3 benefits and 3 drawbacks of Branding

A

Benefits: Reduces Price Elasticity, eases launch of new products, and Encourages repeat purchases
Drawbacks: High Cost, Risk of Copycat ideas and Branding and Brand Contagion (one bad brand can harm others)

48
Q

How does The Marketing Mix work within Global Markets

A

Should the product stay the same? How do customers purchase in the different markets? is the pricing strategy competitive? and Can you reach your message across cultures?

49
Q

State 2 Global Marketing Strategies

A

Reliance on local distribution networks and Develop partnerships with local competitors

50
Q

How does The Marketing Mix work within Local Markets

A

They adapt based on tastes and incomes building a stronger customer relationship base allowing more flexibility in the marketing mix

51
Q

How does The Marketing Mix work within National Markets

A

Need more consistency they will follow a certain corporate marketing strategy as their brand grows

52
Q

How does The Marketing Mix work with Niche Markets

A

They have small customer numbers they focus on quality and they concentrate on the product (limited availability) and the pricing (differentiation)

EDUQAS A-Level Business Studies (10 decks)

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