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MJW Year 11 C3 > Component 3 > Flashcards

Component 3 Flashcards

1
Q

What are the 2 broad categories of markets that enterprises target?

A

B2C (business to consumer) and B2B (business to business)

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2
Q

What features differ in a B2B market?

A

A business customer might negotiate price more, a business customer might be buying in bulk, you might need to customise your order for a B2B customer, B2B customers might expect trade credit

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3
Q

What is meant by the term ‘market’?

A

Any place where buyers and sellers meet to trade.

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4
Q

Give examples of tyoes of market

A

Physcial, virtual, local, national, global

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5
Q

What is market segmentation?

A

ividing the market into different sections (segments) to enable the business to specifically target customers with the most appropriate products and promotions

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6
Q

Give 4 types of market segmentation

A

Demographic, Psychographic, Geographic, behavioural

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7
Q

Give 4 characteristics used in psychographic segmentation

A

social class, attitudes, lifestyle and personality characteristics

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8
Q

Name 9 charactersistics used in demographic segmentation

A

age, race, religion, gender, family size, ethnicity, income, education level, socio-economic group

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9
Q

Name 5 characteristics in behavioural segmentation

A

spending, consumption, usage, loyalty status and desired benefits

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10
Q

What type of segmentation looks at the social and economic characteristics of individuals and households?

A

demographic

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11
Q

What classifications are given in socio economic segmentation?

A

A, B, C1, C2, D, E

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12
Q

What type of segmentation looks at consumer’s personality traits?

A

Psychographic

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13
Q

What types of charactersitics are used in psychographic segmentation?

A

people’s attitudes, lifestyles and personality types

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14
Q

Which segmentation technique uses people’s hobbies?

A

Psychographic

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15
Q

Which type of segmentation uses consumers loyalty or product usage or frequency of consumption?

A

behavioural

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16
Q

Give 3 benefits to the enterprise of using market segmentation

A

Able to adapt the product, able to adapt the marketing, able to focus on and dominate one particular segment

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17
Q

Name 5 pricing strategies

A

Cost plus, skimming, premium, penetration and competitive

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18
Q

What is the difference between skimming and pricing stategies?

A

Skimming starts high and then drops the price, premium stays high

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19
Q

What is an advantage of skimming?

A

Gain high revenues to cover development costs

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20
Q

Who does skimming target?

A

Early adopters (people that are open to being the first to try something)

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21
Q

How does cost plus pricing work?

A

Set the price based on the cost + a fixed percentage for profit

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22
Q

Give an advantage and disadvantage of cost plus

A

Adv = predictable rate of profit because the price always has a fixed mark up. disadv = might lose revenue because the price is higher than competitors

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23
Q

Give a disadv of competitor pricing

A

It could result in a price war if competitors try to lower their prices

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24
Q

How does competitor pricing work?

A

Set the price around the level of the competition and then find a different way to differentiate your product

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25
Q

Give an advantage and disadvantage of penetration pricing

A

Adv= should get high sales because the price is low disadv = small profit margins because price is low so very little flexibility if costs go up.

26
Q

What are the 5 stage of the product life cycle?

A

Development, Introduction , Growth, maturity, decline

27
Q

What happens in the development stage?

A

No sales, just research and development. So high costs and no profit

28
Q

What happens in the development stage?

A

Customers try the product so use advertising and sales promotion strategies. Sales not yet high, costs are high

29
Q

What happens in the growth stage?

A

Sales grow rapidly. Businesses try to get loyalty and repeat sales as well as new customers. Advertising high, loyalty cards. Profit is high

30
Q

What happens in the maturity stage?

A

Customers are now loyal but competition increases. Need to retain customers. Bring out new features. Use loyalty.

31
Q

What happens in the decline stage?

A

Sales drop. Some profit still because marketing costs are very low. Decide whether to sell off the brand or extend the product with a relaunch.

32
Q

Why does a business want to know its Product Life Cycle?

A

To help decide what the marketing priorities are at each stage, eg sales promotions in the introduction phase at get customers to try it.

33
Q

What is a brand?

A

the unique and recognisable identitiy of the company. It can include logo, colour, slogan

34
Q

Why is brand important?

A

It helps you to stand out from competitors. Customers get to know what you stand for. You can bring out other products in the same brand for your loyal customers.

35
Q

What is a brand personality?

A

A human characteristic given to the brand eg Chanel is sophisticated

36
Q

What is a USP?

A

Unique Selling Point. An attribute that can’t be copied by a rival eg a patent, your brand, a recipe

37
Q

Name the 5 strategies in the promotional mix

A

Advertising, sales promotion, personal selling, direct marketing and public relations

38
Q

What is the purpose of advertising?

A

To persuade and inform

39
Q

What is the purpose of sales promotion?

A

To offer an incentive to customers

40
Q

What 2 aspects of advertising must be planned?

A

Medium and message

41
Q

What is meant by the ‘medium’ of advertising?

A

The channel used to coummincate

42
Q

What 5 mediums are there for advertising?

A

Digital, audio, ambient, print and moving image

43
Q

Name 6 methods of sales promotion

A

Buy one Get one Free, discounts, coupons, competitions, money off, loyalty incentives

44
Q

Give 4 methods for Personal Selling

A

Face to face, telephone, email, video/web conferencing

45
Q

What is meant by Public Relations

A

promoting a produce/service, brand or enterprise by placing information about it in the media without paying for the time or media space directly.

46
Q

Give 3 methods of public relations

A

Sponsorship, exhibtions or press releases

47
Q

What is direct marketing?

A

Establishing a personal relationship between the enterprise and the customer, addressing the customer by name

48
Q

Name 4 methods of direct marketing

A

Junk mail, catalogues, magazines and telemarketing (telephone)

49
Q

When advertising, what name is given to what an enterprise to trying to communicate

A

message

50
Q

What is the ambient channel of advertising?

A

unusual methods in public spaces eg guerilla advertising

51
Q

Give 6 ways the size of the enterprise will effect the promotional mix

A

size of the market being targeted, amount of finance available to spend on promotion, whether they have a dedicated marketing team, marketing expertise within the enterprise, type of promotional methods used, frequency of promotions

52
Q

What word, beginning with ‘c’ is a limit to this amount of money that therefore limits the promotional methods the enterprise can use?

A

constraint

53
Q

What promtional strategy is more likely to be used in B2B?

A

Direct marketing and Personal Selling

54
Q

How might a local business chose to segment its market?

A

Geographic, choosing to use advertising through local mediums such as local radio and papers

55
Q

What promotional strategies might have high impact on a small budget?

A

guerilla advertising

56
Q

What promtional strategy might be easy to update regularly on a low budget?

A

digital advertising

57
Q

What promotional strategy might be used to support a local cause?

A

Public Relations through sponsorship

58
Q

What promotional strategy might be used to atract local B2B customers?

A

Local trade fairs like the Chamber of Commerce and direct marketing through cold calling

59
Q

What promotional strategies might be suitable for a small, local business targetting tourists?

A

vouchers in local outlets, leaflets distributed in the Tourist Information or local hotels, print advertising on bus stops

60
Q

It is cheaper for an enterprise to keep hold of customers rather than win new customers. How does this influence the promotional mix?

A

Invest in sales promiotions that use loyalty schemes

MJW Year 11 C3 (1 decks)

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