Business topic 5 - Marketing Flashcards
What is meant by the term “Market Segment”? Name 4 examples.
Involves dividing the market target / niche markets into parts which have specific characteristics e.g. age / gender / income / socio-economic group
What is the difference between primary and secondary research and give examples of each.
Primary (Field research) is data collected first hand. E.g. Questionnaires, Surveys , Polls, Focus groups.
Secondary/Desk research involves using data already collected. E.g. using internet, government statistics, newspapers
What is qualitative market research and give 2 examples
Involves collection of data about attitudes, beliefs and intentions. Focus groups, participant observation and interviews are common methods used to collect qualitative data
What is quantitative market research and give 2 examples.
Involves the collection of data that can be measured. E.g. statistical data such as sales figures and market share. Surveys and the use of government publications/existing statistics.
Name the marketing mix (the 4P’s)
Product
Price
Promotion
Place
What is meant by the term “Brand”?
It is the name / logo / trade mark / image / marque / identity etc. given to a good or service
What does the term “USP” mean and name 3 products that have USPs.
Unique Selling Point
Examples include Toblerone, Polo mints, Terrys chocolate orange
What is meant by the term “Product Life Cycle” and name all of the stages.
The stages a product passes from its earliest development until it is no longer available on the market.
Introduction - Growth - Maturity - Saturation - Decline
Suggest two reasons why packaging is important.
- Protection of the product
- Increased credibility and makes the customer trust your company and the product you sell.
What does the term “extension strategy” mean and give 3 examples.
Involves a number of methods businesses might use to prolong the life cycle of their product. E.g. new flavours, new packaging, new promotions, sell in new markets, new feature
What is penetration pricing?
launching a product with a very low price in order to encourage consumers to try it.
What is skimming pricing?
Charging a high price initially, and then lowering the price over time.
What is cost plus pricing?
Calculating the cost of producing the item and then adding on the percentage profit required by the company
What is psychological pricing?
where a business would charge 99p instead of £1, or £9.99 instead of £10 to make items seem cheaper to customers.
What is discrimination pricing?
Where different customers are charged different prices for the same products or services.
For example train tickets are cheaper for U16s.
What is competitive pricing?
Where a business bases its selling prices on the prices of its direct competitors rather than, for example, its own costs. Usually pricing their products lower than competitors.
What is loss leader pricing?
Where a product or service is sold at a loss (less than it cost them to produce) in order to bring customers to a business
What does above-the-line promotion mean and give 3 examples.
Paid for communication such as advertising that uses the mass media such as television, newspapers, billboards, cinema, radio
What does below-the-line promotion mean. Give examples
an advertising strategy where products are promoted in media other than mainstream radio or television.
Examples - direct mail campaigns, trade shows, catalogs, and targeted search engine marketing.
Describe the different distribution channels used by businesses.
The routes which goods follow between the manufacturer and the consumer.
Manufacturer – Consumer
Manufacturer – Wholesale – Consumer
Manufacturer – Retailer – Consumer
Manufacturer – Wholesale – Retail – Consumer
What is meant by
“E-commerce” and
“M-Commerce”?
E-commerce refers to buying goods and services online via the internet, m-commerce is buying through wireless hand held devices
What is meant by
“The Sales Process”?
Involves a series of steps taken from when the potential buyer meets the prospective seller until after the final sale is made. This includes offering good customer service
