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IB Business > 4 - Marketing > Flashcards

4 - Marketing Flashcards

1
Q

Marketing

A

The management process of identifying, anticipating and satisfying customer requirements

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2
Q

Market

A

A place where buyers and sellers come together

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3
Q

Market size

A

The total number of potential buyers of a product or service within a given market and the total revenue these sales may generate

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4
Q

Market growth

A

The increase or decrease in the size of the market of a product or service over time

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5
Q

Product orientation

Advantages and disadvantages

A

When companies prioritize research and development over market research. ( sole traders do this)

Advantages

  • products are innovative and can apply for patents
  • it’s a USP
  • better quality product
  • economies of scale
  • investment in technology

Disadvantages

  • branding is narrow
  • expensive
  • opportunities misses you
  • little threat for competition
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6
Q

Market orientation

A

Companies adopt a market orientated approach and the needs of customers are put above everything else

Advantages
- repeat custom is likely

Disadvantages

  • products are less unique
  • more competition
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7
Q

Types of marketing

A
  1. Commercial marketing - seek to influence purchasing decisions
  2. Social marketing - seeks to influence behavior for the good of the community ( dumb ways to die reduced railways in Australia)
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8
Q

Market share

Calculation

A

The % of total sales revenue that a business had in a specific market

Formula:

Items sold / Items in market x 100

Product sales / maker share x 100

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9
Q

Market leader

A

A company with the largest market share in an industry

Advantages:

  • brand and product recognition
  • price leadership
  • economies of scale
  • easy access to channels of distribution
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10
Q

Marketing objectives

A

Is a goal that is set for part or the whole business, they should be SMART

Specific 
Measurable 
Agreed 
Realistic 
Time focused
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11
Q

Marketing objective for a profit organization

A
  • custom loyalty
  • growth targets
  • market share
  • sale targets
  • brand recognition
  • customer satisfaction
  • product development
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12
Q

Objectives of nonprofit organizations

A
  • political action
  • fund raising
  • improve awareness
  • reduction in harmful products
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13
Q

The evolution of marketing

A
  • innovation
- ethical considerations 
. Selling green products 
. Treating workers fairly 
. Ethical treatment of suppliers 
. Sourcing from ethical suppliers
  • cultural differences
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14
Q

Marketing plan

A

A plan of action that details a company’s marketing strategies

  • allows companies to develop a focused marketing strategy
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15
Q

Elements of a marketing plan

A
  • market objective
  • marketing budget
  • segmentation of the target market
  • market research
  • market strategies
  • control tools
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16
Q

Marketing cycle

A

An ongoing process by which plans are continuous IMG set and met in a marketing plan

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17
Q

The 4 P’s of the marketing mix

A

1) place
2) product
3) price
4) promotion

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18
Q

Segmentation

A

Invokes splitting population groups with similar needs / characteristics

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19
Q

Types of segmentation

A
  1. Geographical segmentation - diving customers based on their location
  2. Demographic segmentation - involves diving consumers according to characteristics (age, family)
  3. Psychographic segmentation - divides to population according to lifestyle and personal j treats
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20
Q

Target markets

A

Strategy where you segment the market and then chose the appropriate segments which the products will be offered to

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21
Q

Customer profile

A

A description of a consumer based on things they have in common

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22
Q

Technology adoption life cycles

A
  • innovators
  • early adopters
  • early majority
  • late majority
  • laggards
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23
Q

Types of promotions

A
  1. Below the line promotion
    - smaller, highly targeted campaigns
  • personal selling
  • direct mail
  • sales promotion
  • discount
  • coupons
  1. Above the line promotion - larger, teachers large markets
  • television
  • radio
  • internet
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24
Q

Niche marketing

A

A specific subsection of the market focused on providing a specific and specialized product or service

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25
Q

Mass marketing

A

Mass market products are undifferentiated. High quality of sales and have larger markets. Large competition can lead to price competition.

  • Coca Cola
  • dove soap
  • toothpaste
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26
Q

Product positioning map / perception map

A

A visual representation of how the various competitors attempt to position their brands in the eyes of the consumer

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27
Q

Strategic group

A

Companies that are very similar and have the same customers

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28
Q

Unique selling point (USP)

A

Is a feature of a product that makes the products stand out from its competitors

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29
Q

Ways to differentiate a product so it has a USP

A
  1. Differentiation by product
  2. Differentiation by price
  3. Differentiation by promotion
  4. Differentiation by place
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30
Q

Time series

A

Statistics recorded over time

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31
Q

Trend

A

A pattern that’s happening over time

32
Q

Calculating a 3 year moving average

A

“Calculate the tree year moving average for 2008”

Take the sales for 2008, the pervious one 2007 and the one next year 2009 and calculate the mean

33
Q

Variation calculation

A

Variation = sales - 3 part moving average

34
Q

3 types of variations:

A

1) seasonal variation - products that experience higher sales volume at certain parts of the year (Christmas toys)
2) Cyclical variation - sales affected by the economic cycle, such as the product life cycle.
3) random variation - these may occur at any time for any reason (natural disasters, sporting events)

35
Q

Quarterly report

A

Report over a three month period

36
Q

Calculate the 4 year moving average

A

If u want to find it for 2014, you take 2014 sales and the three previous years. Since it’s the total you just add them

37
Q

Market research

A

Allows companies to get up to date information and relevant information on customers, competitors and other external stakeholders

38
Q

Primary / field research

Examples

A

Leads to the creation of new information, focusing on a specific research question

  • surveys
  • interviews
  • Focus groups
  • observations
39
Q

Focus groups

A

An interview conducted with a group on individuals, usually with similar characteristics

40
Q

Secondary research

Examples

A

Uses information that is already available, also known as desk research

Examples

  • market analysis
  • academic journals
  • Government publications
  • media articles
41
Q

Ethical considerations of market research

A
  1. leading questions - don’t influence sometimes answer
  2. Voluntary involvement - respondents don’t have to do it
  3. Venerable groups - extra careful
  4. Purpose of use - only used for what it’s said to be used for
  5. Reporting results - reported accurately
42
Q

Quantitative

A
  • details with numbers and statistics
  • small amount of info from a lot of respondents
  • multiple choice
43
Q

Qualitative

A
  • deals with words and meanings
  • key question is why
  • lengthy answers
44
Q

Sampling

A

A sub group of the population that can be used to conduct research on rather than researching the entire population

45
Q

Sampling methods

A
  1. Convenience sampling - using people that are easiest to obtain
  2. Random sampling - anyone had a chance of being selected
  3. Cluster sampling - population is broken into clusters
  4. Quota sampling - population is broken down then convenience sampling is used
  5. Stratified sampling - population broken into smaller groups then is selected randomly
  6. Snowballing - research involves interviewing people with specialized knowledge and skills
46
Q

Results of data collection

A
  • bar graph
  • histogram
  • line graph
  • pictogram
  • pie chart
  • table
  • scatter plot
47
Q

Product life cycle

A

A model designed to help managers make strategic decisions concerning products marketing mix

1- research and development (flat)

2- introduction (slight rise)

3- growth (most rise)

4- maturity (curves off)

5- decline

48
Q

Fad

A

Is a product tat is sold in high volumes for short period of time then quickly loses popularity

  • angry birds
49
Q

Extension strategies

Examples

A

A cost effective way of ensuring long term sales for a company

  • new product
  • product update
  • new market
50
Q

The Boston consulting group

A

A tool to help companies with multiple product decide their marketing strategies. The table is based on market share and market growth being low or high

  • stars
  • cash cows
  • problem child
  • dogs
51
Q

Stars

A
  • high market share, high market growth

Market leaders in a rapidly growing market l. Requires investment to maintain growth, focuses on attracting new customers.

52
Q

Cash cow

A
  • high market share, low market growth

Successful products in mature markets, high sales and established customer bases. High customer loyalty and less money needed for marketing

53
Q

Problem child

A
  • low market share and high market growth

- products launched in response to rapidly growing competitors

54
Q

Dog

A
  • low market share and low market growth

Product at the end of its life cycle

55
Q

Brand

A

A name, symbol or design that is used to identify a product or company

56
Q

Aspects of branding

A
  • awareness
  • development
  • loyalty
  • value
57
Q

Packaging importance

A
  • protect the product
  • communicate information
  • make product easy to use
  • promote the product
58
Q

Pricing strategies

A

1) skimming - initially high price than gradually lowers it
2) Penetration - offering a low price to attract new customers
3) cost plus (mark up) - selling price is determined by adding a specific mark up cost to it
4) Psychological - setting prices just lower than the whole number
5) Loss leader - a product sold at low prices so it’s at a loss to attract new customers
6) Price discrimination - When businesses change the price for different consumers for the same product
7) a dominant company sets prices which is followed by others
8) predatory pricing - low prices at set that competitors cannot compete and are force to leave the market

59
Q

Promotional mix

A

A combination of different kinds of promotional tools used by a firm to advertise and sell its products

60
Q

Guerrilla marketing

A

Unconventional methods used in order to boost sales or attract new customers for the brand

  • sushi tire over on a suchi delivery van
61
Q

The impact of technology on promotional strategies

A
  • loyalty cards
  • advertising online
  • direct marketing
  • virtual marketing
  • social media marketing
  • social networking
62
Q

Virtual marketing

A

Occurs when a advertising message is self replicated like a virus

63
Q

Distribution

A

How products travel from producers to consumers

64
Q

Wholesalers

A

A company who have large stock of producer goods, storing it in large quantities and sell them to resalers at low prices

65
Q

Retailers

A

Purchase good from wholesalers and producers and sells them to final consumers

66
Q

Distribution channels

A

The oath the product takes when it travels from product to final customer

67
Q

Forms of distributions

A

1) Direct distribution ( producer to consumer)
- no intermediates
- no commission
- control their prices

  1. Indirect distribution ( producer - retailer - consumer)
  2. Indirect distributions ( producer - retailer - retailer - consumer)
  3. Agents are added after producer
68
Q

Agents

A

May be used to aid any distribution channels above. Agent promotes product but doe not own it

69
Q

Broker

A

Similar to agents and usually use their expertise to find suitable customers for various products

70
Q

The extended marketing mix

A
  • people
  • process
  • physical evidence
  • place
  • promotion
  • product
  • price
71
Q

Methods of entry into international markets

A
  • exporting
  • agents
  • franchising
  • strategic alliances
  • joint ventures
  • direct investment

-> in order of easy to hard

72
Q

Advantages and disadvantages of international markets

A

Advantages:

  • larger target market
  • economies of scale
  • access to global markets
  • spreading risk
  • brand reputation increases
  • rapid growth

Disadvantages

  • economic differences
  • social and cultural differences
73
Q

International marketing strategies

A
  1. Pan global strategy - a single brand image is represented like luxury brands. Products are not tailored to meet customers
  2. Global localization - goods and services are used to need local demands (fast food)
74
Q

E commerce

A

Is the buying and selling goods online

75
Q

The difference between the following types of e-commerce

A

1) Business to Business
2) Business to consumer
3) Consumer to Consumer

IB Business (6 decks)

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