Chapter 1 Flashcards
What is mass market?
Attempting to sell to the whole market is called mass marketing
Niche market
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
What are benefits of mass marketing?
Huge number of customers, higher production levels, allow economies of scale/lower production costs, can use mass media advertising
Benefits of niche marketing
Meeting consumer needs more precisely allows higher prices to be charged, higher profit margins, easier to enter for firms with limited financial resources
What is dynamic marketing?
The understanding that no businesses can afford a standstill because markets are dynamic they tend to change over time
What does Pestle stand for?
Political, economic, social, technological , Legal, environmental 
Why would some firms like to change earlier than rivals?
Because it gives them a competitive advantage
How would an increase in level of competition Freed there is pressures for businesses
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.
What is the difference between risk and uncertainty?
Risk is quantifiable But uncertainty causes a lack of certainty in future events
What is product Orientation
Wallet orientation is an approach to making decisions that considers internal factors before worrying about changes in the market
What is primary and secondary research
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 
Advantages of primary research
Addresses the specific issues, the businesses interested in, data is up-to-date, can help to understand customer psychology
Primary research disadvantage
Expensive, risk of bias, questionnaire, or interviewer, 
Secondary research advantage
Often free, provides a good market overview, usually based on large-scale reliably produced research
Secondary research disadvantage
Information may be out of date, not tailored to suit your particular needs, can be expensive to buy
Give me some examples of secondary research methods
The Internet, governments are cystic’s, trade press, pass internal sales figures
Give me some examples of primary research methods
Surveys, retail research, observations, group or individual discussions
What is quantitive data?
This is data, often numerous of data that aims to be statistically representative of the whole market
Qualitative data
Contains opinions are usually not reliable and is designed to give an insight into why customers behave the way they do
Limitations to market research
Sample size is too small, sample, bias
The Tukey judgements required and successful market mapping are?
Choosing the right variables to place on each access, please sing rival brands in the correct place on the map
What are the two major generic routes to find their competitive advantage?
Be the lowest cost producer, find a suitable point of differentiation
Give me some actual product differentiation
Design, different functions, taste, performance
Give me some perceived product differentiation
Branding, advertising, sponsorship, celebrity endorsement
Definition of product differentiation
Product differentiation means attempting to make a product seem different in the minds of consumers to any other rival in the market
Definition of adding value
Added value is the difference between the cost of bought in goods and services and the selling price of the product
Give me some ways to add value
Creating a great design, finding a way to produce, and for cheaper manner, added value, through perception, advertising, branding
How does price affect demand?
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
Can lowering prices affect demand
Yes, lower prices may change consumers, perceptions of quality
Give me examples of complimentary goods
Tennis, rackets and tennis balls
If incomes rise, what will happen to normal and luxury goods
Normal goods will experience an increase in demand and luxury goods demand will rise even faster
What are inferior goods?
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
Give me an example of how fashion tastes and preferences can affect Demand
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 
How can advertising and branding affect demand
Successful advertising can lead to major short time increases in demand
How can demographics affect demand?
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.
What are external shocks?
Natural disasters, which I have huge damaging impact on demand for small or large businesses
List all the things which can affect demand
Fashion tastes and preferences, advertising, and branding, demographics, external shocks, seasonality,
What are indirect taxes?
Indirect taxes or tax, leave it on goods and services rather than on incomes or profits
What are government subsidies?
A subsidy is a benefit given to an individual business or institution, usually by the government
What are external shocks?
External shocks or unexpected events that originate outside of the country is a corner. Me and Ken have a significant impact on it.
What is price elasticities of demand?
What is the Leicester City of demand measures the responsiveness of demand for a product to a change in the price?
How to calculate PED?
PED equals percent change in demand divided by percent change in price
If the price elasticity of demand is between zero and -1, is the product, elastic or inelastic?
Inelastic
If PED is a negative number greater than one is The product, elastic or inelastic 
Elastic
Factors influencing price elasticity
Degree of product differentiation, availability of direct substitutes, branding, and Brand loyalty
How can PED be useful for managers?
PD can help in forecasting sales, PED can give knowledge to the manager to help decide on the best pricing strategy for increasing revenue
Income, elasticity of demand definition
Income, elasticities of demand measures the responsiveness of demand for a product to change your real income
Formula for yed
Yed Equals percent change in demand divided by percent change in real income
What yed will Inferior goods, have, normal goods, have, luxury goods have?
Inferior, good to have negative elasticity, normal goods will have elasticity between zero and one luxury goods will have elasticity is greater than one
Factors affecting income, elasticity
If it is a necessity or want
Significance of income, elasticities
Sales forecasting, Financial planning
(Marketing mix)What are the four p’s?
Product, place, promotion, and price
What labels goes on the design mix triangle?
Aesthetic’s, function/quality and economic manufacture
Benefits of a good design mix?
Can add value,
can provide a point of differentiation,
can reduce manufacturing costs,
boosting, profit margins,
improves brand, image,
may boost Browne loyalty
Give me some examples of changes in the design makes to reflect social trends
Sustainability, design for waste minimisation, recycling
Types of Long-term promotion
Persuasive advertising, public relations
Types of short-term promotion
Buy one get one free, seasonal price cutting
Types of Branding
Individual brand, brand family, corporate brand,
What is individual brand?
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
What is the Brand family?
This is a brand name that is used across a range of related products with Cadbury being a prime example
Corporate brand
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
What are things a firm might need to do or have to build its brand
Advertising, unique selling point, sponsorship, digital media
What are changes in branding and promotion to reflect social trends?
Viral marketing, social media, emotional branding
What type Of pricing should new Products use 
Price skimming And penetration pricing
What is price skimming?
Price skimming involves launching a brand-new product at a high price while the product is unique
What is penetration pricing? it
This involves launching a new product at a very low price to entice customers to try it
Advantages of price skimming
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 
Disadvantages of price skimming
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 
Advantages for price penetration
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
Negatives of price penetration
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
