Business Report Questions Flashcards
Business Report Questions
What is the strategic role of Marketing?
The strategic role of Marketing is to generate money to fund the whole range of business activities and to make a profit.
What is the interdependence of Marketing with Operations
Successful marketing activities and campaigns can increase the demand of good, which will need to be managed by Operations
What is the interdependence of Marketing with Finance
If sales begin to decline, Finance will look towards Marketing to increase sales by altering the marketing mix in order to generate funds
What is the interdependence of Marketing with Human Resources
Human Resources must ensure that the adequate amount of staff is recruited to meet requirements and deadlines set by Marketing (such as release day)
What is the Production Approach
Businesses focusing on mass production of standardised goods/services revolving around the motto, “if we make it, they’ll buy it”
What is the Selling Approach
The Selling Approach emphasised sales because of increased competition and businesses could no longer rely on mass-production and selling all it produced due to increase in competition.
What is the Marketing Approach
The Marketing approach focuses on finding out what customers want through market research and then satisfying their needs ultimately placing the customer at the centre of all marketing activities
What is Corporate Social Responsibility (CSR)
External pressure from customers and environmental organisations to prioritise the protection of the environment and its resources
What is Customer Orientation
The process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests. The customer relationship does not end after the sale, it only begins there.
What is Relationship marketing
Businesses can not only focus on attracting new customers, they need to focus on keeping existing customers satisfied. High priority on customer retention and continual satisfaction.
What is the acronym for the Types of Markets
NIIMCR
Name the Types of Markets
Niche, Intermediate, Industrial, Mass, Consumer, Resource
What is the Resource Market
Agricultural businesses such as mining, forestry and fishing
What is the Intermediate Market
Wholesalers and retailers buying and selling for profit (dropshippers)
What is the Industrial Market
Secondary and tertiary businesses that purchase products to use in the production of other products (Example: Bakers Delight purchasing flour to bake bread)
What is the Niche Market
Small target market such as magazines for niche markets like gardening, toys, bodybuilding, etc.
What is the Consumer Marker
Individuals and households, who plan to use or consume the products they buy.
(Don’t intend to sell or make other products)
What is the Mass Market
Vast numbers of individuals, the Model T Ford mass produced.
What is the acronym for Factors Influencing Customer Choice
PEGS
What are the Factors influencing Customer Choice
Psychological, Sociocultural, Economic and Government
What are Psychological influences on Customer Choice
Are influences within an individual that affect his or her buying behaviour.
Acronym for Psychological Influences
LAMPPS
What are the Psychological Influences
Learning, Attitudes, Motives, Perception, Personality and self-image
What is the Psychological Influence Learning
Learning refers to change in an individual’s behavior caused by information and experiences (Such as experiencing Coca-Cola for the first time)
What is the Psychological Influence Attitudes
A person’s attitude is their overall feeling about an object or activity.
What is the Psychological Influence Motives
Motives are an individual’s reason for doing something.
What is the Psychological Influence Perception
Perception is the process in which people select, organise and interpret information to create meaning.
What is the Psychological Influence Personality and Self Image
An individual’s personality is the collection of all behaviours and characteristics that make up that person.
Acronym for Sociocultural Influences
SCCSFRRG
What are Sociocultural influences on Customer Choice
Social Class, Culture and Subculture, Family and Roles, Reference (peer) Group
What are Sociocultural influences on Customer Choice
Sociocultural influences are forces exerted by other people and groups that affect and individual’s buying behaviour.
What is the Sociocultural Influence Social Class
One’s social class refers to and is determined by a person’s relative rank in society, based on his or her education, income or occupation.
What is the Sociocultural Influence Culture and Subculture
Culture influences buying behaviour by determining what people wear, what and how they eat and where and how they live.
What is the Sociocultural Influence Family and Role
Individuals occupy different roles within the family and wider community, these roles influence one’s buying behaviour (Woman buys healthcare products, food and laundry supplies)
What is the Sociocultural Influence Reference (peer) Group
A reference group is a group of people with whom a person closely identifies with, adopting their attitudes, values and beliefs as well as buying behaviour.
Acronym for Economic Influences
BR
What are Economic influences on Customer Choice
Boom and Recession
What are Economic influences on Customer Choice
Economic Influences influence a business’s capacity to compete and a customer’s willingness and ability to spend money.
What is the Economic Influence Boom
A Boom is a period of low unemployment and rising incomes. Businesses and customers are optimistic about the future.
What is the Economic Influence Recession
A Recession sees unemployment reach high levels and income falls dramatically. Customers and businesses lack confidence in the economy resulting in significantly lowered spending.
What are Government influences on Customer Choice
Government Influences are policies that directly or indirectly influence the level of business activity and customers’ spending habits.
What is the acronym for Consumer Laws
DWIP
What is the influence of Consumer Laws
Consumer Laws restrict what businesses can do and sometimes force them to take steps to comply with the laws, such as disclosing information.
What do Consumer Laws protect against
Consumer Laws are designed to protect consumers against unfair trade and credit practices.
What falls under Consumer Laws
Deceptive and misleading advertising, price discrimination, implied conditions and warranties
What is Deceptive and misleading advertising
Unfairly creates an inaccurate impression in the mind of the customer about some features of the product.
What is Price discrimination
When different prices are set for the same product in different markets to take advantage of customers who are willing to pay more.
What is Implied conditions
The unspoken and unwritten terms of a contract and are assumed to exist regardless of whether they are mentioned or written into a contract
What is Warranties
A promise made by the business that they will correct any defects in the goods they produce or services they deliver.
What is Consumer Guarantee
Providing the consumer with the tight to certain remedies from retailers where goods purchased fail to comply with the consumer guarantee provisions in the ACL.
What is Acceptable quality
Means the product must be safe, lasting and with no faults, look acceptable and do all the things someone would normally expect it to do.
Acronym for Ethical dot point
TAGPES
What does TAGPES in Ethical mean
Truth, Accuracy and good taste in advertising, products that may damage health, engaging in fair competition and sugging
What is Truth and Accuracy in Advertising
- Untruths due to concealed facts - customers do not perceive advertisements to be honest
- Exaggerated claims - Claims that cannot be proven, such as that one shampoo is better than another.
What is Good Taste in Advertising
Usually a common agreement as to what society considers acceptable and marketers must be aware of community sensitivities.
What is Products that may damage health
Such as marketing of junk food, which is often portrayed as an essential part of a balanced diet.
What is engaging in fair competition
Businesses compete against each other to attract the greatest number of customers to increase revenue and profit.
What is Sugging
Selling Under the Guise of a survey. Being asked to complete a survey only to find out they are trying to sell you something.
Acronym for Role
PITS
What does PITS stand for
- Production, selling, marketing approaches
- Interdependence between KBF’s
- Strategic role of marketing
- Types of markets
Acronym for Influences
FEC
What does FEC stand for
- Factors influencing Consumer Choice
- Ethical
- Consumer Laws
Acronym for Processes
SMEIDI
What does SMEIDI stand for
- Situational Analysis
- Market Research
- Establishing Market objectives
- Identifying target markets
- Developing marketing strategies
- Implementation, Monitoring and Controlling
What 2 forms of analysis are in a Situational Analysis
SWOT Analysis and Product Life Cycle (PLC)
What are the Internal Influences in the SWOT Analysis
Strength + Weakness
What are the External Influences in the SWOT Analysis
Opportunity + Threat
What are the four stages of the Product Life Cycle
- Introduction
- Growth
- Maturity
- Decline
What is Market Research
Market Research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem
What are the 3 steps of Market Research
- Determining information needs
- Data collection - from primary and secondary sources
- Data analysis and interpretation
What is Step 1 of Market Research?
- Determining information needs
- The problem is clearly stated to determine what needs to be measured and the issues involved.
What is Step 2 of Market Research?
Data collection - from primary and secondary sources
- Collecting facts and figures relevant to the marketing problem
What is Primary data in Market Research
Primary data are facts and figures collected from the original source for the purpose of the specific research problem
What is Secondary data in Market Research
Secondary data are facts and figures already collected by some other people or organisation, for example research reports and Australian Bureau of Statistics
What are the two types of Secondary data?
Internal Data and External Data
What is Internal Data
Refers to information that has already been collected from inside the business
What is External Data
Refers to published data from outside the business, such as the Australia Bureau of Statistics
What is Step 3 of Market Research?
- Data analysis and interpretation
- Determining what the data actually means. Facts by themselves do not always provide a solution to a marketing problem > they need to be interpreted and analysed through cross-tabulation.
What is Marketing objectives
Marketing objectives are the realistic and measurable goals to be achieved through the marketing plan.
What are the 3 common marketing objectives
- Increasing market share
- Expanding the product range/mix
- Maximising customer service
What is + Importance of Market Share
Market Share refers to the business’s share of the total industry sales for a particular product. Small market gains can translate to large profits.
Importance of Expanding the product range/mix
Businesses are keen to expand product mix as this will increase profits in the long-term and the same product mix will not remain effective as customers preferences change over time.
What is + Importance of Maximising customer service
Refers to how well a business meets and exceeds expectations of customers. High levels of customer service will result in customer satisfaction.
What is a target market
Target market is a group of potential customers to which a business intends to sell its products.
What’s the difference between a Primary and Secondary Target Market
Primary is the market segment at which most of the marketing resources are directed towards, whereas Secondary is usually smaller and a less important market segment.
Importance of Identifying and selecting a target market?
So the business can direct its marketing strategies to that group of customers. This allows the business to better satisfy the needs of the targeted groups
What are the three approaches to choosing a consumer target market?
Mass Market Approach, Market Segmentation Approach and Niche Market Approach
What is a Mass Market Approach
The MMA seeks a large range of customers by mass-producing, mass-distributing and mass-promoting to all buyers
What is a Market Segmentation Approach
When the total market is subdivided into groups of people who share one or more common characteristics. E.g: Some people only want a 4WD, whilst others only want a sports car, the business needs to direct its effort to a particular segment.
What is a Niche Market Approach
Is a narrowly selected target market segment, in other words it is a segment of a segment. Needs of a niche market often neglected by large businesses, as they rarely find it profitable to alter their marketing mix to cater for niche markets.
What is the Marketing Mix
It is the combination of the four elements of marketing, the four Ps - Product, Price, Promotion, Place - that make up the marketing strategy.
What Syllabus dotpoint are the 4 Ps under?
Developing Market Strategies
What is the ‘Product’ in the 4 Ps?
A good or service that can be exchanged for money.
The business need to determine the product’s quality, packaging, labelling, design and guarantee.
What is the ‘Price’ in the 4 Ps?
Price of the product. It refers to the method or strategy used by the business to determine the price.
What is the ‘Promotion’ in the 4 Ps?
Describes the methods used to inform, persuade and remind customers about a business’s products
What is the ‘Place’ in the 4 Ps?
The element that deals with the channel of distribution: the ways of getting the product to the customer
What is Implementation
The process of putting the Marketing Strategies into operation
What is Monitoring
The process of measuring actual performance against planned performance
(Financial forecast)
What is Controlling
Comparison of planned performance against actual performance with corrective action and revision to the Marketing Mix to enhance performance
What does the Implementation Stage do?
- Implementation involves the daily, weekly and monthly decisions that have to be made to make sure the plan is effective
- Implementation stage is the how, where and when it has to be done
What does the Monitoring Stage do?
Requires marketing department personnel to gather information and report on any important changes, problems or opportunities that arise during the life of the marketing plan
What does the Controlling Stage do?
Involves the comparison of planned performance against the actual performance and taking corrective action to make sure the objectives are attained.
What are the steps in the Controlling Stage?
- Identify Key Performance Indicator (KPI) that will be compared
Example: Increase monthly sales by 5% - Compare actual performance against the KPI
What does the Controlling Stage ultimately do?
Verifies and evaluates the effectiveness of the marketing plan
What is a Financial Forecast
It is the business’s predictions about the future in terms of its finance
What are the steps to create a Financial Forecast
- Estimate expected cost of Marketing plans
2. Estimate expected revenue to be generated from Marketing plans
In what 3 ways can planned results be compared to actual data
- Sales Analysis
- Market Share Analysis
- Marketing Profitability Analysis
What is a Sales Analysis
It is the comparison of actual sales with the Finance Forecast sales to determine effectiveness of marketing strategy/plan.
What does the Market Share Analysis show
Whether changes in total sales, either increases or decreases, have resulted from the business’s marketing strategies or due to some uncontrolled external factor
What is the Marketing Profitability Analysis
It is a method in which the business breaks down the total marketing costs into specific marketing activities.
What is Revising the market strategy mean
In the Controlling Stage, based on the information from the Monitoring Stage, the marketing plan can be revised/modified
What are examples of potential changes to the 4 Ps (Changes in the Marketing Mix)
- Production: No product is perfect, continually upgrading products can lead to a competitive advantage.
- Price: May need to be revised in response to changes by rival businesses
- Promotion: Initially, promotion costs can be high. During later stages they can be altered.
- Place: Distribution channels need to be expanded to cater for growing market.
What is New Product Development
As a business, developing new products continually.
What is Product Deletion
To maintain an effective product mix, a outdated products may been to be eliminated as it can create an unfavourable image for the business.
