Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Studies A Level > 2. Marketing > Flashcards

2. Marketing Flashcards

1
Q

What is a product positioning chart/ market map?

A

Plotting a grid where each product sits on scales based on 2 important features of a market. It can be used to identify gaps/decide where to position products in a market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a product portfolio?

A

A large range of products produced by a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the use of a product positioning chart/market map in relation to a product portfolio?

A

It can be used to analyse a business’ own portfolio to ensure they have covered the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Use of a market map to a business?

A

Can identify a gap in the market. (However, it must ensure that this is a worthwhile gap. A position with many products in, shows there is demand and so may be worth considering.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why would a business want to ensure that it has multiple product s on sale within the market?

A

+ To increase sales
+ To meet the needs of multiple groups of customers
+ To compete with rivals
+ Reduce risk
+ Increase visibility and therefore enhance recognition of the brand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the Boston matrix?

A

A grid that enables the categorisation of products within a business’ product portfolio into 1 of 4 categories, based on market share and market growth. It can then be used to decide how to allocate investment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 4 groups of the Boston matrix?

A

Stars
Cash cows
Problem child/question marks
Dogs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is meant by stars on the Boston matrix?

A

High growth products competing in markets where they are strong compared with the competition.
Often require heavy investment to sustain growth.
Eventually, growth will slow and assuming they keep their market share, they become cash cows.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is meant by cash cows on the Boston matrix?

A

Low growth products with a high market share.
Mature, successful products (require little investment)
Require management for continued profit so that they continue to generate strong cash flows (needed for the stars)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is meant by problem children/question marks on the Boston matrix?

A

Low market share in high growth markets.
Have potential, but may need substantial investment to grow market share.
Require consideration: worthwhile?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is meant by dogs on the Boston matrix?

A

Products with low market share in a low growth market.
Not worthy of investment.
May generate enough to break even.
Usually withdrawn.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The Boston matrix is useful because…

A

+ it can identify stars to invest in
+ can identify cash cows to reduce investment in
+ can identify which question marks to invest in and which to “dump”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The Boston matrix isn’t useful because…

A
  • There are other important factors which are aspects of the industry’s attractiveness
  • Cash cows still requiring advertising
  • Judgement is still required which may be incorrect
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is meant by the 4 P: place

A

This refers to how the product is distributed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a distribution channel?

A

A distribution channel provides a link between production and consumption. The number of layers varies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which is the distribution channel which maximises profit?

A

Producer –> Consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a producer?

A

A manufacturer of a product/creator of a service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a retailer?

A

Retailers are responsible for selling the final product to the consumer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the 5 types of retailer?

A 
Multiples (e.g. M&S)
Department stores (e.g. John Lewis)
Convenience stores 
Independents
Franchises
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is a wholesaler’s role?

A

The role of a wholesaler is to act as a “third party” and to break bulk, between the manufacturer and the retailer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Wholesalers may be important to producers of a product because…

A

it is difficult to deal directly with every shop that sells its products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Wholesalers help small shops because…

A

it means they do not need to store large quantities of goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Wholesalers can move goods around the country using their own logistics, reduces ______ and valuable ____ for other ________.

A

costs
time
businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The manufacturer and the retailer can focus their efforts on their ______ skills

A

specialist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is an agent?

A

The agent is a third party who negotiates between the producer and the buyer.

26
Q

Agents…
tend to operate in the t_______ sector
sell the products and services in return for a c________
don’t hold s____
significantly reduce the cost of m_______ for the producer

A

tertiary
commission
stock
marketing

27
Q

What is the recent change in retail?

A

Rise in out of town retail parks

28
Q

What is distribution channel 3 also known as?

A

Direct marketing

29
Q

Outline what is meant by direct marketing?

A

A sale happens face to face

e.g. farmer to passers by

30
Q

How has direct marketing been affected by computers?

A

Computers have allowed direct sales when you buy directly from the manufacturer’s website

31
Q

What are the main 2 changes in distribution?

A
  1. Increased use of channel 3, due to internet

2. Retailers realise they can go to producer itself direct and bulk buy, and then reduce prices.

32
Q

What is meant by online distribution?

A

This refers to a tangible product being purchased online and then delivered to the customer by means of physical distribution.

33
Q

What are the advantages of online distribution?

A

+ Geographical reach to customers increased
+ Overheads lower
+ Can be open at all times

34
Q

What are the disadvantages of online distribution?

A
  • Shipping and returns can be complicated and costly
  • Initial capital investment high
  • Customers may want to physically see/try it on
  • Opens up businesses to security problems
35
Q

What is meant by digital distribution?

A

This refers to the downloading method being used to deliver a good to the customer

36
Q

What are the advantages of digital distribution?

A

+ Customers can buy and consume 24h a day
+ Cost saving to business and customer (no delivery)
+ Removes the need for storage

37
Q

What are the disadvantages of digital distribution?

A
  • Not applicable to all products
  • Cost (which are often ongoing) are incurred through security
  • Customers need internet
  • Illegal streaming providers make it difficult to operate
38
Q

What does physical distribution refer to? (2 marks)

A

The way in which goods are transported. (e.g using shipping or air transport)

39
Q

What is the most common method of moving goods in the UK?

A

Road transport

40
Q

State 3 environmental concerns relating to road transport

A

Noise pollution
Carbon and diesel emissions
Deforestation to build roads

41
Q

When is air transport most appropriate?

A

For products which are perishable (e.g foods with an expiry date)

42
Q

What does service marketing refer to?

A

Concerns how a business meets the customer wants and needs of an activity that it provides to customers.

43
Q

What are the additional 3 Ps?

A 
People (those who make contact with customers in delivering the product)
Process (systems and processes that deliver a product to a customer)
Physical Evidence (elements of the physical environment the customer experiences)
44
Q

What are the 3 names for the extra Ps added to the 4Ps of marketing?

A

Extended marketing mix
Service marketing
Additional 3 Ps

45
Q

Name the 2 marketing techniques which are additional to above and below the line promotion

A

Viral and drip

46
Q

Viral marketing involves…

e.g. taking photos of doughnut burger example

A

social media (customers share product info with others)

47
Q

Viral content must…

A

encourage people to share it with others (i.e. contain amusing/unique content - supply audience with something of value for free)

48
Q

Pros and cons of viral marketing

A

+ Not an invasive method (choice to share)

- Cannot guarantee it will go viral

49
Q

Drip marketing involves…

A

multiple emails sent at specific times/dates upon subscription

50
Q

Pros and cons of drip marketing

A

+ Keeps customers updated
+ Eventually customer may make a purchase
- Customer fustration

51
Q

What does AED stand for?

A

Advertising Elasticity of Demand

52
Q

What does AED show?

A

The extent to which spending on advertising affects demand.

53
Q

What is the AED formula?

A

% in demand / % change in advertising spend

54
Q 
When interpreting AED calculation results:
Over 1 = 
Under 1 = 
1 = 
0 =
A

Over 1 = elasticity in relation to advertising spend ( i.e. responsive)
Under 1 = inelastic in relation to advertising spend (i.e. not responsive)
1: spend = demand change
0: no change in sales

55
Q

AED is useful to calculate because… (3)

A

+ it shows which advertising spends are worthwhile
+ allows comparisons between options
+ can compare AED results to target figures

56
Q

AED is NOT useful to calculate because… (3)

A
  • it’s difficult to isolate an increase in demand down to one advertising spend
  • change in demand is an estimate
  • advertising spend may be to increase brand awareness
57
Q

What is a SWOT analysis and what is it used for?

A

Framework that allows an assessment over its current position in order to make the best decisions for its future strategy.

58
Q

SWOT stands for…

A

Strengths
Weaknesses
Opportunities
Threats

59
Q

What are the advantages of using SWOT?

A

+ Logical structure
+ Encourages analysis of external environment
+ Forward looking tool
+ Starting point

60
Q

What are the disadvantages of using SWOT?

A
  • Too often lacks focus
  • Can quickly become out of date (external environment changes constantly)
  • Those in charge are most likely to do SWOT - they may be (avoiding) the weakness

Business Studies A Level (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions