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buisness flashcards (Y9, Y10, Y11) > Buisness unit 3.1, 3.2, 3.3, 3.4 > Flashcards

Buisness unit 3.1, 3.2, 3.3, 3.4 Flashcards

1
Q

what is marketing?

A

identifying customer wants and satifying them probitability

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2
Q

what are the 4 roles of marketing?

A
  • identifying customer needs
  • satisfy customer needs
  • maintain customer loyalty
  • building customer relationships
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3
Q

why do customers spending patterns change? (why do they buy different products than before?) (4)

A
  1. customer tastes and fashions might change
  2. chinges in technology
  3. changes in income
  4. ageing population
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3
Q

why do some markets have become more competitive? (3)

A
  1. globalisation meant that businesses can now sell to other countries –> more competition
  2. transportation –> easier to ship products to other countries
  3. improved technology has led to e-commerce –> increasing competition as people can buy from other countries
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4
Q

how can businesses respond to changing spending patterns and increased competition? (4)

A
  1. maintain good customer relationships
  2. keep improving their existing products
  3. bring out new products
  4. keep costs low
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5
Q

what is a niche market?

A

a small specialized version of a larger market

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6
Q

what is a mass market?

A

where the products are designed for a large number of customers

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7
Q

what are examples of niche marketing? (2)

A

hiking boots
wedding dress

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8
Q

what are examples of mass marketing? (2)

A

coca cola
washing powder

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9
Q

what is market research?

A

is the process of gathering, analysing, and interpreting information about a market

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9
Q

what are examples a buisness can find out from market research? (4)

A
  • how much customers are willing to pay
  • where would they like the product to be sold
  • what type of promotion would be effective
  • who their main competitors are
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10
Q

what does product orientated mean?

A

producing the product first and then a market for it

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11
Q

what does market orientated mean?

A

when businesses carry out market research to find out consumer wants before a product is developed and produced

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12
Q

what are the two types of market research?

A

primary and secondary research

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13
Q

what is primary research?

A

collection of new data involves direct contact with potential or existing customers

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14
Q

what are the methods of primary research?

A

questionnaires, online surveys, interviews, groups

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15
Q

what are the benefits of postal questionnaires? 2

A
  • opinions of customers on open ended questions
  • detailed information about the price customers are willing to pay
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16
Q

what are the drawbacks of postal questionnaires? 2

A
  • gathering and collating results is time consuming
  • bias could occur if they do not question a fair sample
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17
Q

what are the benefits of online surveys? 3

A
  • can find out what the customers want
  • quick responses
  • easy to complete
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18
Q

what are focus groups?

A

group of people provide information through a group discussion with a researcher present

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18
Q

what are the drawbacks of online surveys? 2

A
  • answers may be too brief as the interviewer is not there
  • consumers may rush the survey so inaccurate results
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19
Q

what are the benefits of interviews? 2

A
  • detailed information can be gathered about preferences
  • interviewer can answer the questions in detail so consumers answer them correctly
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20
Q

what are the drawbacks of interviews? 2

A
  • very time consuming
  • interviewer might prompt the consumers with the answers they want to hear
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21
Q

what are the benefits of focus groups? 2

A
  • provides detailed information about customers tests and preferences
  • quicker and cheaper than individual
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22
Q

what are the drawbacks of focus groups? 2

A
  • feedback could be uneven ad people might be influenced by the opinion of others
  • time consuming
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23
Q

what are the two methods for sampling? 2

A
  • a random sample (people are selected at random)
  • a quota sample (are selected on specifically)
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24
Q

whats are the methods for secondary research? 3

A
  • government statistics
  • newspapers
  • market research agencies
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25
Q

what are the disadvantages of primary research?

A
  • more expensive as you need to pay interviewers and researchers
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25
Q

what are the advantages of primary research? 2

A
  • up to date information so more accurate
  • more specific and accurate as it’s produced by the business itself
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26
Q

what are the advantages of secondary research? 2

A
  • cheap/free
  • easy and quick to obtain
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27
Q

what are the disadvantages of secondary research? 3

A
  • more likely to be out of date, could be inaccurate
  • not collected for the business itself so not specific
  • rival firms have access to same sources
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28
Q

what is the marketing mix? (product)

A

a term which is used to describe all activities which fo into marketing a product or service (4 ps)

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29
Q

what are the four marketing mix things? (product)

A

product
price
place
promotion

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30
Q

what are the benefits of developing new products? 2 (product)

A
  • will give th ebuisness USP
  • allows business to expand into new business markets
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31
Q

what are the drawbacks of developing new products? 3 (product)

A
  • will have to carry out market research before launching new product
  • brand image could be damaged –> fails to meet customer needs
  • expensive
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32
Q

what is brand image? (product)

A

image or identity given to the product which gives personality of its own and blocks it out from competitors

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33
Q

what are the benefits of a strong brand image? 3 (product)

A
  • will give buisness unique selling point
  • customers are more likely to be loyal –> increase in sales
  • allow business to charge premium price
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34
Q

what are the two functions of the role of packaging? 2 (product)

A
  1. it has to be suitable for the product to be stored
  2. used for promoting the product (eyecatching)
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35
Q

what are the product life cycle stages? 6 (product)

A
  1. development
  2. introduction
  3. growth
  4. maturity
  5. saturation
  6. decline
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36
Q

what is development (product life cycle stages) (product)

A

market research is carried out and the prototype is tested before the product is launches (no sale)

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37
Q

what is introduction (product life cycle stages) (product)

A

lots of capital is spent on advertising the product, prices are high

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38
Q

what is growth (product life cycle stages) (product)

A

sales grow rapidly, prices are high, profits start to be made

39
Q

what is saturation (product life cycle stages) (product)

A

prices have to be reduced as competiotion is big , advertising may be high

39
Q

what is maturity (product life cycle stages) (product)

A

competiton starts to get intense, prices are reduced to gain competitive advantage, lots of advertising is used to maintain sales and profiys

40
Q

what is decline (product life cycle stages) (product)

A

sales decrease as competition is high, product may have gone out of fashion, product is withdrawn from the market

41
Q

what are some of the extension strategies? (5) (product)

A
  1. sell to new markets
  2. modify the packaging
  3. use a new advertising campaign
  4. introduce the new improved version of the old one
  5. sell through additional retail outlets
42
Q

what is e-commerce?

A

buying products and services online

43
Q

what are the benefits of using e commerce to a business? 4

A
  • easy access for customers –> more sales for business
  • website can be used to promote business, cheap
  • customers can buy all over the world
  • dynamic pricing can be used
44
Q

what are the drawbakcs of using e commerce to a business? 5

A
  • more competitors
  • some customers like to try the product before buying
  • no face to face contact with consumers –> lack of customer service
  • customers may not use internet
  • shipping costs are expensive
45
Q

what are the drawbacks of using the internet and social media networks for promotion?

A
  • customer find adverts annoying, they will ignore them
  • customers might not use social media
  • people may give bad reviews on the business page –> impacting brand image
45
Q

what are the benefits of using the internet and social media networks for promotion?

A
  • reaches target market
  • ads can be updated
  • cheap to use as can advertise their own business page
46
Q

what is a distribution channel? (place)

A

when a product is passed from the producer to the customer

47
Q

what is a producer in a buisness? (place)

A

the company that makes the good

48
Q

what is a wholesaler in a business? (place)

A

buys from producers in large quantities and sells in smaller quantities to retailers

49
Q

what is a retailer in a buisness? (place)

A

buys goods from either the producer or the wholesaler and sells to consumers

50
Q

what is an agent in a buisness? (place)

A

sells products on behalf of the producer

50
Q

what are the two types of promotion (promotion)

A
  • advertisements (above the line promotion)
  • sales promotion (below the line promotion)
51
Q

what are the aims of promotion? 4 (promotion)

A
  1. to increase brand awareness and to increase sales
  2. to introduce new products to the market
  3. to compete with competitors products
  4. to improve the company image
52
Q

what are the two types of advertising? 2 (promotion)

A
  • persuasive (persuading customer they need it)
  • informative (giving info on the product)
53
Q

what are the advantages of using TV for advertising your business? (promotion)

A
  • targets a large audience
53
Q

what are the disadvantages of using TV for advertising your business? 2 (promotion)

A
  • expensive
  • not many people watch tv
54
Q

what are the advantages of using the radio for advertising your business? (promotion)

A
  • use a specific song so the ad will be remembered increasing bad awareness
55
Q

what are the disadvantages of using the radio for advertising your business? (promotion)

A
  • no visual messages
56
Q

what are the advantages of using the newspapers for advertising your business? (promotion)

A
  • permanent on paper so people can look back increasing brand awareness
57
Q

what are the disadvantages of using the newspapers for advertising your business? (promotion)

A
  • no one uses newspapers anymore
58
Q

what are the advantages of using magazines for advertising your business? (promotion)

A
  • niche market can advertise their product specifically to their target market
59
Q

what are the disadvantages of using magazines for advertising your business? (promotion)

A
  • magazines are not published often
60
Q

what are the advantages of using billboards/posters for advertising your business? 2 (promotion)

A
  • cheap
  • seen often
61
Q

what are the disadvantages of using billboards/posters for advertising your business? 2 (promotion)

A
  • many people ignore them
  • not a lot of detail or information on the business
62
Q

what are the advantages of using ads in the cinema before movies for advertising your business? (promotion)

A
  • effective to pinpoint target marker
63
Q

what are the disadvantages of using ads in the cinema before movies for advertising your business? 3 (promotion)

A
  • expensive
  • seen in only a limited time
  • many people stream at home other than cinemas
64
Q

what are the advantages of using leaflets for advertising your business? 3 (promotion)

A
  • cheap
  • can be delivered to door
  • adverts can be kept
65
Q

what are the disadvantages of using leaflets for advertising your business? (promotion)

A
  • may be ignored and dumped away
66
Q

what are the disadvantages of using the internet for advertising your business? 2 (promotion)

A
  • customers will have direct link to buy it
  • email ads can be sent to existing customers
67
Q

what are the disadvantages of using the internet for advertising your business? 2 (promotion)

A
  • some customers may not use the internet
  • customers may ignore emails
68
Q

what is the marketing budget? (promotion)

A

specifies how much money is available to advertise and promote the product

69
Q

what are examples of below the line production? 4 (promotion)

A
  • free gifts
  • price reductions
  • free samples
  • point of sale displays
69
Q

what is cost plus pricing? (price)

A

estimating how many products will be sold, calculating the total cost of making these products and then adding a percentage markup for profit

70
Q

what are the advantages of cost plus pricing? (price)

A
  • each product earns profit for the business
  • easy method to apply
71
Q

what are the disadvantages of cost plus pricing? (price)

A
  • the buisness could lose sales if the selling price is too high compared to competitors
  • the costs are passed off to the consumer in the form of a higher price so there is o incentive to reduce costs
72
Q

what is competitive pricing? (price)

A

setting prices in line with your competitors or just below them

73
Q

what are the advantages of competitive pricing? (price)

A
  • product is not overpriced than competitors so sales increase
74
Q

what are the disadvantages of competitive pricing? (price)

A
  • higher quality products need to be at higher prices for higher quality image
  • if cost of production is higher than competitors, then a competitive piece can lead to losses being made
75
Q

what are the advantages of penetration pricing? (price)

A
  • useful for new products to encourage customers to buy the product
  • will lead to an increase in sales and an increase in market share
76
Q

what is penetration pricing? (price)

A

when the price is set lower than the competitors’ prices in order to be able to enter a new market

77
Q

what are the disadvantages of penertration pricing? (price)

A
  • it is sold at a low price, profit per unit will be low
  • might not be good for a product with reputation for quality
  • customers might get used to the low prices and when the business wants to increase the price, it could lead to customer dissatisfaction
78
Q

what is price skimming? (price)

A

a high price is set for a new product on a market

78
Q

what are the advantages of price skimming? (price)

A
  • helps to make the product be seen as high quality
  • research and development costs can be recouped form the profit made on the product at the high price
79
Q

what is promotional pricing? (price)

A

when a product is sold at a very low price for a short period of time

79
Q

what are the disadvantages of price skimming? (price)

A
  • as it is high price customers will not want to buy it
  • the high profits the business is making may encourage other competitors to enter the market, this could result as a decrease in sales
80
Q

what are the advantages of promotional pricing? (price)

A
  • useful to get rid of stock that will not sell
  • it can help to renew interest in the product if sales are failing
81
Q

what are the disadvantages of promotional pricing? (price) 2

A
  • the revenue will be lower per unit because the price of the product has been reduced
  • might lead to a price war –> competitors also reducing their prices, and customers will go to them
82
Q

what is the price elasticity of demand? (price)

A

the responsiveness of demand to a change in price

83
Q

what is price elastic? (price)

A

when consumers are very sensitive to a change in price, if price increases, demand will decrease

84
Q

what is price inelastic? (price)

A

consumers are not very sensitive to a change in price, if the price of a product increases, demand will not decrease

85
Q

what is a marketing strategy?

A

a plan to combine all four Ps to achieve the objectives of the business

86
Q

what are the opportunities of entering new foreign markets? 2

A
  • more growth potential as they have access to more customers
  • home markets might be saturated –> limited opportunities for growth
87
Q

what are the problems of entering new foreign markets? 4

A
  • lack of knowledge of foreign market
  • cultural differences
  • exchange rates may negatively impact customers
  • transport costs may be higher
88
Q

what are the methods to overcome problems when entering foreign markets?

A
  1. joint ventures
  2. licencing
  3. franchising
  4. localising existing brands
89
Q

what are the benefits and disadvantages of joint ventures? (1,2)

A

benefits =
- can gain more important local knowledge about the culture in the country so they adapt the product
disadvantage =
- need to share profits between two firms
- management conflicts between two businesses

90
Q

what are the benefits and drawbacks of licencing?

A

benefits =
- goods do not have to be transported to the new market which saves time and transport costs
drawbacks =
- unexperienced licence could damage brand and reputation
- people now have access to how the product is made, so they might become a competitor and develop a better version

91
Q

what are the benefits and drawbacks of franchising?

A

benefits =
- local knowledge is used to know where to place the store
drawbacks =
- same drawbacks of franchising

92
Q

what are the benefits and drawbacks of localising existing brands?

A

benefits =
- metts local customr needs increasing customer satidfaction
drawbacks =
- expensive to change packaging/advertising/develop

buisness flashcards (Y9, Y10, Y11) (6 decks)

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