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Business Theme 1 > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

What is mass market?

A

Attempting to sell to the whole market is called mass marketing

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2
Q

Niche market

A

Some businesses select a segment of the market and sell products specifically to suit the needs of consumers, and that segment this process is called niche marketing

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3
Q

What are benefits of mass marketing?

A

Huge number of customers, higher production levels, allow economies of scale/lower production costs, can use mass media advertising

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4
Q

Benefits of niche marketing

A

Meeting consumer needs more precisely allows higher prices to be charged, higher profit margins, easier to enter for firms with limited financial resources

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5
Q

What is dynamic marketing?

A

The understanding that no businesses can afford a standstill because markets are dynamic they tend to change over time

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6
Q

What does Pestle stand for?

A

Political, economic, social, technological , Legal, environmental 

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7
Q

Why would some firms like to change earlier than rivals?

A

Because it gives them a competitive advantage

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8
Q

How would an increase in level of competition Freed there is pressures for businesses

A

The need to drive down costs. The need to maintain competitiveness prices. The need to develop innovative products and services that need to maintain high quality products and services.

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9
Q

What is the difference between risk and uncertainty?

A

Risk is quantifiable But uncertainty causes a lack of certainty in future events

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10
Q

What is product Orientation

A

Wallet orientation is an approach to making decisions that considers internal factors before worrying about changes in the market

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11
Q

What is primary and secondary research

A

Primary research His research which is carried out for the first time, secondary research is research that uses data that has already been gathered for some other purpose 

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12
Q

Advantages of primary research

A

Addresses the specific issues, the businesses interested in, data is up-to-date, can help to understand customer psychology

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13
Q

Primary research disadvantage

A

Expensive, risk of bias, questionnaire, or interviewer, 

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14
Q

Secondary research advantage

A

Often free, provides a good market overview, usually based on large-scale reliably produced research

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15
Q

Secondary research disadvantage

A

Information may be out of date, not tailored to suit your particular needs, can be expensive to buy

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16
Q

Give me some examples of secondary research methods

A

The Internet, governments are cystic’s, trade press, pass internal sales figures

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17
Q

Give me some examples of primary research methods

A

Surveys, retail research, observations, group or individual discussions

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18
Q

What is quantitive data?

A

This is data, often numerous of data that aims to be statistically representative of the whole market

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19
Q

Qualitative data

A

Contains opinions are usually not reliable and is designed to give an insight into why customers behave the way they do

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20
Q

Limitations to market research

A

Sample size is too small, sample, bias

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21
Q

The Tukey judgements required and successful market mapping are?

A

Choosing the right variables to place on each access, please sing rival brands in the correct place on the map

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22
Q

What are the two major generic routes to find their competitive advantage?

A

Be the lowest cost producer, find a suitable point of differentiation

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23
Q

Give me some actual product differentiation

A

Design, different functions, taste, performance

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24
Q

Give me some perceived product differentiation

A

Branding, advertising, sponsorship, celebrity endorsement

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25
Q

Definition of product differentiation

A

Product differentiation means attempting to make a product seem different in the minds of consumers to any other rival in the market

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26
Q

Definition of adding value

A

Added value is the difference between the cost of bought in goods and services and the selling price of the product

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27
Q

Give me some ways to add value

A

Creating a great design, finding a way to produce, and for cheaper manner, added value, through perception, advertising, branding

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28
Q

How does price affect demand?

A

Higher prices lead to lower affected demand since few customers going forward to pay but also having a higher price may perceive to the consumer that the product is better value for price tells a lot about the product

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29
Q

Can lowering prices affect demand

A

Yes, lower prices may change consumers, perceptions of quality

30
Q

Give me examples of complimentary goods

A

Tennis, rackets and tennis balls

31
Q

If incomes rise, what will happen to normal and luxury goods

A

Normal goods will experience an increase in demand and luxury goods demand will rise even faster

32
Q

What are inferior goods?

A

That’s the name is Jess and very good tend to be cheaper alternative normal goods which consumers can switch to in order to save money when their incomes are falling

33
Q

Give me an example of how fashion tastes and preferences can affect Demand

A

If there is a trend of people trying to not eat as much sugar products which have sugary ingredients, will experience a major impact Of decrease in demand 

34
Q

How can advertising and branding affect demand

A

Successful advertising can lead to major short time increases in demand

35
Q

How can demographics affect demand?

A

In the UK, there has been a growing population of over 60s and rising birth rates. All these groups of people provide opportunities for increased demand for carefully targeted products.

36
Q

What are external shocks?

A

Natural disasters, which I have huge damaging impact on demand for small or large businesses

37
Q

List all the things which can affect demand

A

Fashion tastes and preferences, advertising, and branding, demographics, external shocks, seasonality,

38
Q

What are indirect taxes?

A

Indirect taxes or tax, leave it on goods and services rather than on incomes or profits

39
Q

What are government subsidies?

A

A subsidy is a benefit given to an individual business or institution, usually by the government

40
Q

What are external shocks?

A

External shocks or unexpected events that originate outside of the country is a corner. Me and Ken have a significant impact on it.

41
Q

What is price elasticities of demand?

A

What is the Leicester City of demand measures the responsiveness of demand for a product to a change in the price?

42
Q

How to calculate PED?

A

PED equals percent change in demand divided by percent change in price

43
Q

If the price elasticity of demand is between zero and -1, is the product, elastic or inelastic?

A

Inelastic

44
Q

If PED is a negative number greater than one is The product, elastic or inelastic 

A

Elastic

45
Q

Factors influencing price elasticity

A

Degree of product differentiation, availability of direct substitutes, branding, and Brand loyalty

46
Q

How can PED be useful for managers?

A

PD can help in forecasting sales, PED can give knowledge to the manager to help decide on the best pricing strategy for increasing revenue

47
Q

Income, elasticity of demand definition

A

Income, elasticities of demand measures the responsiveness of demand for a product to change your real income

48
Q

Formula for yed

A

Yed Equals percent change in demand divided by percent change in real income

49
Q

What yed will Inferior goods, have, normal goods, have, luxury goods have?

A

Inferior, good to have negative elasticity, normal goods will have elasticity between zero and one luxury goods will have elasticity is greater than one

50
Q

Factors affecting income, elasticity

A

If it is a necessity or want

51
Q

Significance of income, elasticities

A

Sales forecasting, Financial planning

52
Q

(Marketing mix)What are the four p’s?

A

Product, place, promotion, and price

53
Q

What labels goes on the design mix triangle?

A

Aesthetic’s, function/quality and economic manufacture

54
Q

Benefits of a good design mix?

A

Can add value,

can provide a point of differentiation,

can reduce manufacturing costs,

boosting, profit margins,

improves brand, image,

may boost Browne loyalty

55
Q

Give me some examples of changes in the design makes to reflect social trends

A

Sustainability, design for waste minimisation, recycling

56
Q

Types of Long-term promotion

A

Persuasive advertising, public relations

57
Q

Types of short-term promotion

A

Buy one get one free, seasonal price cutting

58
Q

Types of Branding

A

Individual brand, brand family, corporate brand,

59
Q

What is individual brand?

A

These are single product brands, where the firms that manufacture these brands make little or no attempt to push the company name focusing instead on the single brand like marmite and penguin biscuits

60
Q

What is the Brand family?

A

This is a brand name that is used across a range of related products with Cadbury being a prime example

61
Q

Corporate brand

A

Using the company name of the brand in the way that nest orders to convince consumers that all products across the entire range has similar benefits or negatives

62
Q

What are things a firm might need to do or have to build its brand

A

Advertising, unique selling point, sponsorship, digital media

63
Q

What are changes in branding and promotion to reflect social trends?

A

Viral marketing, social media, emotional branding

64
Q

What type Of pricing should new Products use 

A

Price skimming And penetration pricing

65
Q

What is price skimming?

A

Price skimming involves launching a brand-new product at a high price while the product is unique

66
Q

What is penetration pricing? it

A

This involves launching a new product at a very low price to entice customers to try it

67
Q

Advantages of price skimming

A

High prices, hope to create a desirable image for the product, early adopters will pay the high price in return for exclusivity, High prices generate rapid profit 

68
Q

Disadvantages of price skimming

A

Will deter some customers with price seen as a rip-off, early buyers may be frustrated once price starts to fall. Image me suffer when the price begins to fall 

69
Q

Advantages for price penetration

A

Low price encourages lower risk, product sampling, low price, boost sales volumes, cutting production costs, high volumes, me, persuade retailers to buy the product, boosting distribution, encouraging customers to develop the habit of buying the product

70
Q

Negatives of price penetration

A

Products, image may be immediately cast as cheap, your market retailers may be unwilling to stock, the product, likely to create price sensitivity among customers

Business Theme 1 (1 decks)

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