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BUSINESS STUDIES > 3: MARKETING > Flashcards

3: MARKETING Flashcards

1
Q

define marketing

A

The process of identifying, predicting and satisfying customer needs profitably.

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2
Q

What type of objective is a marketing one?

A

A functional ( more specific than corporate )

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3
Q

Why set marketing objectives?

A
  • Focus for decision making
  • track progress
  • measure success to motivate
  • functional consistent with corporate objectives
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4
Q

Problems with marketing objectives

A

contrast to financial objectives
affected my external environment (PESTLE) so may be ambitious
may conflict eg cost vs new product

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5
Q

Internal influences on marketing objectives

A

HR (employees), finance, corporate objectives, leadership culture, operational objectives and capacity,product portfolio, market share, brand strength

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6
Q

External influences on marketing objectives

A

Economy, competitors, social needs, dynamic PESTLE, technology

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7
Q

What is market size?

A

Potential sales of a firm that’s measured by units and value

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8
Q

What is market growth?

A

Percentage change in the volume or value of sales of all the brandish the product category.

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9
Q

What is market share?

A

The split among competitors that a business has. high provides competitive advantage

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10
Q

Market share formula

A

sales / entire sales of market X100

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11
Q

What are the 7 P’s of the marketing mix?

A

Product
Price
Place
Promotion
People
process
physical environment

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12
Q

Why is it called a marketing mix?

A

Each element is related to eachother and they work together to meet desired objectives

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13
Q

Define marketing mix

A

Elements of a firms approach to marketing that enables satisfaction of customers

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14
Q

What is the role of the marketing mix

A

Delivering the marketing strategy
satisfy customers by choosing the audience and figuring how to serve them

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15
Q

What are the 4 main marketing mix P’s?

A

Place, product, promotion and price.

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16
Q

define market research

A

Gathering and analysing research to support a marketing strategy

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17
Q

what is primary research?

A

The data that you collect yourself

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18
Q

what is secondary research?

A

The data that already exists from other sources (blogs, websites, books, reports)

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19
Q

Benefits of primary research

A

Specific to needs, reliable, unique, customisable, up to date

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20
Q

Drawbacks of primary research

A

Takes time, costly, may not represent whole market

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21
Q

Benefits of secondary research

A

Accessible, low cost, efficient, info gathered quickly

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22
Q

Drawbacks of secondary research

A

may not be specific, old, can’t control quality of responses and unreliable, can’t analyse the findings as well

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23
Q

What’s quantitative data and the benefits of it?

A

Data based on statistics which is easy to compare and run with a larger sample size

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24
Q

Quantitative data drawbacks

A

limited responses, less deep opinions, no extra questions asked

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25
Q

What’s qualitative data and the benefits of it?

A

Opinion based, answering why, what questions
insightful, In depth responses, open questions = analysis

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26
Q

qualitative data drawbacks

A

reduces privacy for customers, challenging to collate responses, vary = hard to meet conclusions, not quick, opinions

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27
Q

Name 3 types of primary data

A

Focus groups, surveys, telephone interviews, observations, test marking and experiments

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28
Q

Name 3 types of secondary data

A

Publishes reports, websites, google stats, media reports, competitor material, international transactional data.

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29
Q

what is test marketing?

A

Primary research method that enables a business to target a demographic to do a small launch of product before big launch

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30
Q

Test marketing benefits

A

don’t waste recourses, less risk, understand audience, help to develop

31
Q

Test marketing drawbacks

A

expensive, time consuming, gives time for competitors to come to market = miss gap, small market reach, can tarnish reputation if test fails

32
Q

What is sampling

A

gathering data from a respondent sample which should be representative of the population

33
Q

benefits of sampling for market research

A

provides useful insights with lower time, flexible, quick, helps reduce cost and risk of decisions

34
Q

drawbacks of sampling for market research

A

risky if sample isn’t representative, bias of questions asked, less useful in dynamic opinion markets

35
Q

What are the 3 types of market sampling?

A

Random, quota and stratified

36
Q

what is random sampling?

A

Names being picked randomly so the population all have equal chance of being selected = low bias

37
Q

What is quota sampling?

A

People in a particular demographic so the category is highly specific. Not as random because people don’t have equal chance of being selected

38
Q

What is stratified sampling?

A

Random customers split into quotas (sub-catagories) then selected randomly within it proportionally to the amount of the market that are in that category
eg. 80% target market = female = 80% People asked are female

39
Q

what is market mapping?

A

A model that helps to analyse key distinguishing factors between businesses or products

40
Q

influences on sampling types

A

Budget, time, product type, focus of target market, lifecycle stage of product

41
Q

Define price

A

What a customer has to give up for a product or service

42
Q

What are steps a business might take to determine the price of a good?

A
  • develop pricing objectives and strategies
  • Assess target market demand
  • Analyse cost, demand, revenue relationship.
  • Evaluate competitors
  • select a pricing strategy
43
Q

What are some financial objectives that may influence pricing?

A
  • The will to maximise profit or reach a level of sales
  • To improve cash flow
  • Maximise sales revenue
44
Q

What are some marketing objectives that may influence pricing?

A
  • To improve or maintain market share
  • Increase sales
  • build a brand
  • to beat competitors
45
Q

What is the difference between a pricing method and strategy?

A

A method is how the actual price is set but a strategy is adopted overtime to meet marketing objectives

46
Q

What are pricing tactics?

A

A short-term approach to pricing designed to deal with a short term threat or opportunity

47
Q

What are pricing strategies?

A

Long-term goal regarding pricing

48
Q

What is a pricing method?

A

The calculations done by a firm to decide the price of a good or service.

49
Q

What are factors that influence pricing?

A

Competitors, market share, stage of life cycle, elasticity of demand, costs.

50
Q

What’s the difference between a price taker and a price maker?

A

Takers have to charge the ruling market price but makers are able to fix their own price as a result of competitive advantages, first mover etc

51
Q

what’s the difference between a price leader and a price follower?

A

Leaders change their price, then competitors follow this
Followers follow the leaders price changing lead

52
Q

Factors that impact the price charged

A

Competitors, state of economy, costs, economies of scale, market conditions, brand image, location of business ( eg regent street charge more, houses in city centre charge more) , price elasticity of demand

53
Q

What is penetration pricing?

A

When a product is launched at a low price to gain market share and customers. prices may later be raised.

54
Q

What is price skimming?

A

A new/innovative good is sold at a high price when it first enters the market and is reduced over time

55
Q

When is price skimming adopted?

A

A market with high volume of early adopters
An exclusive brand that wants a luxury reputation.

56
Q

What is price leadership?

A

the business is first to the market so it sets the price so that small firms follow.

57
Q

how can a larger firm operate at lower overhead costs?

A

Economies of scale = lower cost per unit

58
Q

What is predator pricing?

A

A strategy that deliberately lowers prices to an unprofitable level to force out small corporation competitors. Immoral.

59
Q

What is premium pricing?

A

When goods prices are set higher than competitors to indicate a high quality brand image

60
Q

What is seasonal pricing?

A

Raising prices in peak seasons for example ice cream up in summer due to positive price elasticity of demand

61
Q

What is physcological pricing?

A

Making the customer believe that goods are cheaper than it is. Eg £9.99

62
Q

What is loss leaders pricing strategy?

A

Where products are sold unprofitably below cost price to entice customers into the store and buy full price items

63
Q

What is price discrimination?

A

Where products or services are sold at different prices depending on the customer for example: children tickets on the bus are cheaper

64
Q

What is dynamic pricing?

A

It changes with the time eg: underground more expensive at peak times

65
Q

What is cost-plus /mark up pricing?

A

Costs and adding a percentage on top to figure how much profit you want to make from it

66
Q

Define Boston matrix

A

A method of analysing brands in a firms product portfolio I terms of market share and market growth. Brenda are classified as stars, problem children/question marks, dogs, cash cows.

67
Q

Define confidence levels

A

The probability that the research findings are correct. This is expressed as a percentage of confidence that are findings are accurate.

68
Q

Define correlation

A

A statistical technique used to establish the strength of a relationship between two sets of values.

69
Q

What is a distribution channel?

A

ways of getting the products to where the customer can buy them.

70
Q

What is an extension strategy?

A

Attempts to raise sales when products are reaching the end of their life cycle and have been declining. eg. repackaging, changing use.

71
Q

What is extrapolation?

A

Using previous patterns of numerical data to estimate future values

72
Q

What is market segmentation?

A

Dividing up market into groups of potential customers, each with different characteristics.

73
Q

what is niche marketing?

A

Targeting a small specialised part of an overall market

74
Q

What are the 6 stages of the product life cycle?

A

Research and development
introduction
growth
maturity
Saturation
Decline

BUSINESS STUDIES (8 decks)

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