Business 4 Flashcards
what are the 7 steps of marketing (Don’t worry too much about this!)
define problem-design research-design data collection forms-specify the sample-collect the data-analyze the data-right research reports.
what are the three types of sampling in marketing? Describe them
Random sampling, choosing people completely at random. Quota sampling , choosing people within a particular market segment eg. 20% males. stratified random sampling choosing people at random and it particular market segment from a list. less biased than quota sampling where a similar group may be picked
Define Marketing
marketing is a process of finding out a customers wants and needs, and providing them. It can follow three step process, identifying needs, anticipating needs, meeting customer needs.
What is the difference between social and private benefits and costs?
Private = group or individual benefits from a business activity Social = benefits to community - all private benefits as a whole
What are the four elements of the marketing mix?
Price
Product
Place
Promotion
Three ways to encourage product trial
Advertising, Public Relations, Viral Marketing, Free Samples, Lower Price
3 Benifits of product trial?
Save money + prevent damage to brand name so less risk, good way to introduce new products to consumers word of mouth advertising, gives customer feedback for improvements
Two methods to encourage repeat purchase?
Product innovations, reminder adverts
What is meant by repeat purchases
To get a customer to buy a product again after a trial, this could be encouraged by reminder adverts
What are the four/five stages of product life cycle
(Research and development), introduction, growth, maturity, decline.
Describe the introduction and growth in a product life cycle
introduction, the product is released on to the market, net cash flow negative. Growth, if the launch successful sales increase sharply and the product may make a profit for the first time, net cash flow positive but small.
describe the maturity in a product lifecycle
sales growth slows down, but repeat customers continue to buy and customers become loyal the market becomes saturated as rivals bring out competing products. Net cash flow positive, at peak
describe the decline in a product lifecycle.
The product is outdated and there is a big fall in sales leading to withdrawal. At this point a business may try extension strategies as they start to experience cash flow issues.
describe extension strategies
when a product stops to getting to decline advertising or other strategies are used so that the product appeals to a different target market or market segment, giving it a boost in sales
describe the product portfolio/mix
This is a range of products that business sells. Analyzing a product portfolio (using a Boston matrix) helps a business make decisions about which products to keep, invest in or withdraw.
what are the four areas of a boston matrix
Star, Cash cow, question, dog.
describe a star in the Boston matrix
(High growth, High Sales) very successful product, but growth has to be funded to keep up with demand and cash flow therefore may be a problem
describe a cash cow in the Boston matrix.
(Low growth, high share) Little growth, but an established and profitable product that can support others
Describe a question in a boston matrix
(High growth, low share) most products starts out as this, it presents a problem as to whether it is invested in or withdrawn.
Describe a dog in the Boston matrix
(low growth, low share) few prospects but should be considered to keep the business continue to sell if it is profitable and funds products.
Describe the Boston Matrix
A product portfolio analysis tool used to plan the development of products. It can be closely linked to the product lifecycle, and be used to choose which products to invest in and which to withdraw.
name three extension stratagies.
change packaging, find a new use, new ingredients, new flavors, new advertising, target New market.
What is corporation tax?
Tax on a companies profits
What is branding
An image for consumers created around products or a business so that it may appeal to a target market. This could be utilised through a logo or slogan and advertising of that.
