Brainscape's Knowledge GenomeTM

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


See full index

Business > 3 Decision making to improve marketing performance > Flashcards

3 Decision making to improve marketing performance Flashcards

1
Q

what is sales value

A

units sold x average selling price

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

what is sales volume

A

no of units sold by a business

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

market size volume

A

average no of units sold in market

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

market size value

A

total units sold in market x average selling price of each unit

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

what is market growth

A

(current - original / original) x 100

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

market research is

A

the process of collecting data about customers and competitors to make informed decisions

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

types of marketing decisions include

A
  • effective promotion
  • product development
  • setting sales/performance targets
  • budget allocations for r&d, promotions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

disadvantages of quantitative data

A
  • doesn’t explain the ‘why’
  • relies on honest answers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

advantages of quantitative data

A
  • allows for numerical breakdowns such as graphs
  • allows for patterns to be easily identified
  • allows for large amounts of data to be analysed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

advantages of qualitative data

A
  • allows for follow up questions to be asked
  • reasons for consumer behaviour can be asked
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

disadvantages of qualitative data

A
  • relies on honesty
  • time consuming
  • difficult to breakdown
  • small sample groups may not be representative of a large population
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

market mapping is

A

a way of analysing the level of competition using the characteristics of the brands

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

benefits of market mapping

A
  • help identify competitors
  • help identify customer perception of competitors
  • help identify gaps in the market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

weaknesses of market mapping

A
  • depends on opinions of creator of the map
  • oversimplifies complex markets
  • doesn’t consider consumer demand
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

sampling is

A

a group of consumers representative of the entire market

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

what is random sampling

A

where everyone has an equal chance of being chosen

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

stratified sampling is when

A

the sample group has a key characteristic that the overall market has

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

benefits of sampling

A
  • time effective
    -cost effective
  • can be used for both qualitative and quantitative data
  • generalised conclusions can be reached quickly
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

weaknesses of sampling

A
  • is it truly representative of the whole market?
  • bias if the sample isn’t random?
  • does the sample even use your products?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

the effectiveness of sampling depends on

A
  • size of sample
  • budgets available
  • skill of research team
  • how quickly the information has been used
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

correlation occurs when

A

there’s a relationship between two sets of data

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

confidence intervals are

A

the level of confidence you have that the information you have gathered is accurate

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

confidence intervals depend on

A
  • size of sample
  • budget
  • skill of research team
  • level of deviation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

benefits of extrapolation include

A
  • allows to identify patterns
  • quick
  • cheap
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

weakness of extrapolation include

A
  • relies on accuracy of past data
  • future is unpredictable
  • doesn’t account for seasonal changes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

how can you use technology in market research

A
  • spreadsheets
  • loyalty cards
  • data storage software
  • social media
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

benefits of using technology in market research

A
  • relatively cheap
  • collect large data samples
  • effective analysis of data
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

drawback of using technology in market research

A
  • loss of reliability on ‘hunch’
29
Q

ped is

A

% change in demand / % change in price

30
Q

price inelasticity is when the value is …. than 1

A

less

31
Q

price elasticity is when the value is …. than 1

A

more

32
Q

influences on ped include

A
  • no of substitutes
  • habitual purchases
  • consumer perception
33
Q

inferior goods have a …. YED

A

negative

34
Q

normal goods have a YED that is

A

between 0 and 1

35
Q

luxury goods have a YED that is

A

more than 1

36
Q

Segmentation is

A

dividing a mass market into subgroups w similar characteristics

37
Q

markets can be segmented by

A
  • demographics
  • geographical
  • income
  • behavioural
38
Q

benefits of segmentation

A
  • used to identify gaps
  • can target their specific target
  • allows for specialised products can be created
39
Q

drawbacks of segmentation

A
  • difficult to accurately categorise consumers
  • risk of not identifying target market correctly
40
Q

targeting is the…

A

process of deciding the groups of customers a company will decide to sell their products too

41
Q

a mass market is

A

as much of the market as possible

42
Q

advantages of targeting a mass market

A
  • economies of scale
  • greater brand awareness
  • lower advertising costs per unit
43
Q

disadvantages of targeting a mass market

A
  • high competition
  • fewer premium products so less scope to add value
  • low levels of consumer satisfaction
44
Q

a niche market is

A

a small sub section of a mass market w similar needs

45
Q

advantages of targeting a niche market

A
  • usp and differentiation
  • charge higher prices
  • build brand loyalty
46
Q

disadvantages of targeting a niche market

A
  • lack of economies of scale
  • what if the niche changes
47
Q

positioning is

A

how you communicate w your target market

48
Q

influences on stp

A
  • core competencies and usp
  • competitors usp
  • budgets
  • ability to reach target market
49
Q

value of stp

A
  • identify gaps in the market
  • identify future trends
  • differentiate from competition
50
Q

marketing mix

A

how the business goes about achieving a specific brand identity using the elements of the marketing mix

51
Q

an example of why an integrated marketing mix is important

A

if your promotion claims a product to be of high quality, the price should reflect that

52
Q

price skimming is when you have a ____ which maximises _____ _____ _____.
Eventually prices should _____, in order to atttract a ______ _____.

A

high initial price
short term profits
drop
wider market

53
Q

price skimming is often used in the

A

technology market

54
Q

benefits of price skimming include

A
  • attracting ‘early adopters’
  • business gaining a premium price from customers who are prepared to buy it
  • good for inelastic products
55
Q

drawback of price skimming is that

A

the high initial price may put of many potential customers

56
Q

price penetration is setting a _____ initial price in order to attract _____ and gain _____ _____. Eventually you will _____ prices.

A

low
attention
market share
increase

57
Q

price penetration is usually used in

A

mass markets like the magazine market
elastic products

58
Q

benefits of price penetration include

A
  • gain interest and market share
59
Q

drawback of price penetration is that

A

consumers may not be willing to pay the higher price later

60
Q

ped is

A

the sensitivity of demand is compared to price

61
Q

PED/YED below 1 is

A

inelastic

62
Q

PED/YED above 1 is

A

elastic

63
Q

PED is calculated

A

% change demand/% change price

64
Q

price elastic means that change in

A

change in quantity demanded is greater than change in price

65
Q

price inelastic means that change in

A

change is quantity demanded is less than change in price

66
Q

why will the PED coefficient always be negative

A

inverse relationship

67
Q

normal good has a —– YED between ….

A

positive
0 and 1

68
Q

inferior good has a —— YED

A

negative

69
Q

luxury goods have a —– coefficient

A

+1

Business (11 decks)

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