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management of marketing Flashcards

1
Q

what is meant when a business is market led (4)

A
  • the business develops products based on customers wants
  • high levels of market research are carried out to determine customer wants
  • exist in highly competitive markets
  • responsive to external change
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2
Q

what is meant when a business is product led (4)

A
  • the business produces products that they believe customers will want and tries to convince them to buy them
  • market research is not seen as important although product research and development are.
  • new technologies are usually product led
  • unresponsive to external change
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3
Q

what is desk research

A

collecting secondary data
researching and analysing information

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4
Q

advantages of desk research(3)

A
  • quick to gather information
  • does not require costly procedures
  • already existing so easy to access
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5
Q

Disadvantages of desk research (3)

A
  • information may be bias
  • does not fit the exact purpose
  • reader may have to read through a lot to find what is needed
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6
Q

what is field research

A
  • collecting primary data which is suitable for the businesses exact needs
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7
Q

advantages of field research (3)

A
  • information should be up to date
  • field research is fit for the purpose it is needed for
  • information should be correct/accurate
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8
Q

disadvantages of field research (3)

A
  • requires trained and paid interviewers
  • time consuming
  • costly
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9
Q

internet method of research

A

cheaper than carrying out field research which can help the company reduce costs, quicker than carrying out face to face interviews which allows for quicker decision making. A wide variety of sources are available via the internet which means the company can gather lots of views.

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10
Q

government website as a form of research

A

this information should be factual, allowing the company to understand the market and make decisions regarding their target audience.

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11
Q

newspaper as a form of research

A

this information is likely to be up to date reflecting the current position of the economy for example, can help the company plan for the future

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12
Q

postal survey as a from of research method

A

customers can complete a survey when it is convenient and a large areas can be reached there is also no bias however questions must be simple and some may ignore the survey all together meaning response rate is poor

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13
Q

personal interview as a research method

A

face to face to explanations and additional questions can be made there is an 100% response rate however there may be a bias

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14
Q

telephone survey as a form of research

A

its cheaper and a large area can be sampled however there is not an 100% response rate and it may disturb customers

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15
Q

research and development impact on sales and profit

A

no sales
product makes a loss

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16
Q

Introduction impact on sales and profit

A

sales are slow
high promotional costs means a loss may still be made

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17
Q

growth impact on sales and profit

A

sales rise rapidly due to reduced prices and lack of competition
profits begin

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18
Q

maturity impact on sales and profit

A

sales peak
profits are good but start to fall

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19
Q

saturation impact on sales and proft

A

sales fall as competition is too high
profits fall rapidly

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20
Q

decline impact on sales and profits

A

sales fall rapidly and the product is removed from the market
profits fall to nothing

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21
Q

extension strategies to increase product life (7)

A
  • lowering the price of a product
  • changing the place a product is sold
  • altering promotion
  • developing variations of product
  • rebranding product
  • changing the packaging
  • changing the use of product
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22
Q

how does lowering the price of a product extend its life

A

makes product more affordable therefore appeal to more market segments

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23
Q

how does changing a place a product is sold extend its life

A

making the product more available increases potential customers

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24
Q

how does altering promotion increase the life of a product

A

raise sales as awareness is created

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25
Q

how does developing variations of a product increase it life (2)

A
  • can appeal to different market segments
  • updating the product can utilise latest technologies which may make customers want it again
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26
Q

how does rebranding the product increase its life

A

changing the name of a product can create a hype that appeals to new and more market segments

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27
Q

how does changing packaging of a product increase its life

A

appeals to new market segments

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28
Q

how does changing the use of a product increase its life

A

appeals to new market segments or suits seasonal change

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29
Q

what are product line portfolio

A

having a variety of similar products on sale

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30
Q

what is diversified product portfolio

A

involves having products for sale from across
different market segment. the variety spreads the risk across different markets in case one fails

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31
Q

what is the Boston matrix used for

A

analysing the market share and market growth of a product

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32
Q

stars on the Boston matrix type and impact

A

products that have a high market share and high growth market
stars must be invested in to keep ahead of competition. usually market leaders. overtime stars decline into question marks and cash cows

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33
Q

cash cows on the Boston matrix type and impact

A

products that have a high market share but a low growth potential
cash cows require less expenses due to lack of competition

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34
Q

problem child in the Boston matrix type and impact

A

products that have low market share in a market with high growth potential
problem child can be invested in due to growth potential

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35
Q

dogs in the Boston matrix type and impact

A

products that have a low market share and low growth potential
dogs can affect profits and removed from the market

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35
Q

advantages of a product port folio (5)

A
  • a business can spread the risk over different markets
  • a business can meet the needs of different market segments and appeal to more customers
  • newer products can replace those at the end of their life cycle
  • increase in products can increase the awareness of the brand
  • business can find it easier to launch new products
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36
Q

product portfolio disadvantages (3)

A
  • high costs involved in researching and developing many products
  • high marketing cots are needed to promote products
  • bad publicity surrounding one product can affect the whole publicity
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37
Q

cost plus pricing strategy, advantages and disadvantages

A

increasing price of a product
advantage
- profit is made
disadvantage
- doesn’t take external factors into consideration

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38
Q

competitive pricing strategy, advantages and disadvantages

A

price is set based on competitors price
advantage
- improves the market
disadvantage
- something has to be better then the competitors to ensure sales

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39
Q

skimming pricing strategy

A

price is high to begin with and lowered over time
advantage
- hype over product allows higher prices to be set high
disadvantages
- high initial prices can put off customers
- low initial sales

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40
Q

penetration pricing strategy

A

price is set low and is higher over time
advantages
- customers try new products and gains customer loyalty
disadvantages
- little profit can be generated during low price period
- price war if competitors also set low prices

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41
Q

price discrimination pricing strategy, advantages and disadvantages

A

different prices set for different groups
advantages
- appeal to different market segments
- allows high profit to be made
disadvantages
- loss in revenue from selling at cheap prices

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42
Q

destroyer/predator pricing strategy, advantages and disadvantages

A

price is set low temporarily
advantage
- competitors are forced out the market
- increase in market share
disadvantage
- can only be used by large companies that can afford to make losses

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43
Q

loss leader pricing strategy, advantages and disadvantages

A

price is set unprofitable
advantage
- bring customers to the business
- encourages repeat purchase
disadvantages
- companies may only buy the loss leader which impacts profits

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44
Q

psychological pricing strategy

A

price is set just below the next rounded number
advantages
- makes customers think the product is a lot cheaper
disadvantages
- giving change is more difficult
- many may not take it into consideration so other marketing mix elements have to be

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45
Q

what are channels of distribution

A

possible routes taken by the product from the manufacturer to reach the customer

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46
Q

factors that affect the channel of distribution (6)

A
  • finance available
  • image of the product
  • shelf life of product
  • legal restrictions
  • stage of the product life cycle
  • qualities of the product
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47
Q

how does the finance available affect channels of distribution

A

manufacturers may not have available finance to set up ecommerce so using wholesalers or retailers are the only option

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48
Q

how does the desired image of the product affect channel of distribution

A

some products have images that dictate where they can be sold

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49
Q

how does the shell life of a product affect channels of distribution

A

some products need to be shipped to retailers fast as they will go out of date

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50
Q

how do legal restrictions affect the channel of distribution

A

some products can’t be sold through certain channels

51
Q

how does the stage of a product life cycle affect the channel of distribution

A

products may be sold in exclusive outlets at the beginning of the product life cycle

52
Q

how does the technical qualities of a product affect the channel of distribution

A

they may need to be demonstrated so the personal selling is the ideal

53
Q

what is direct selling and two benefits

A

when a manufacturer sells directly to the customer so there are less middle men taking cuts of the profit. allows a business to retain control of how the product is marketed

54
Q

e-commerce advantages (4)

A
  • global market can be reached 24/7 increases sales
  • an entire range can be shown online
  • online discounts can be offered which attract customers
  • product info and reviews can sway purchases
55
Q

e-commerce disadvantages (4)

A
  • time consuming and expensive to design
  • customers may be wary of giving details online
  • customers need access to wi-fi and internet
  • customers need to wait for product to arrive which could be affected by postal delays
56
Q

personal selling advantages (2)

A
  • allows demonstration and explanation of the product to be given
  • feedback can be gathered
57
Q

personal selling disadvantage (2)

A
  • customers can find this type of selling silly and not listen
  • staffing costs and commission make this method expensive and increasingly unpopular with businesses
58
Q

shopping channels on tv advantages (2)

A
  • customers can see products being modelled and demonstrated
  • customers are encouraged to buy on impulse due to short term bargains
59
Q

shopping channels disadvantage (2)

A
  • customers need to switch onto the channel before they can be targeted
  • customers must wait for products to arrive and may have deliver costs
60
Q

advantages of selling through retail (4)

A
  • located close to customers
  • often promote the product for the manufacturer
  • staff employed to help sell the product
  • bulk buy
61
Q

retailers disadvantage (3) for wholesalers

A
  • retailers take a cut of profits
  • retailers may alter price of product which can damage image of product
  • company will face competition from other products stocked by the retailer
62
Q

why would a company use market research (4)

A
  • to identify what is happening in the market
  • to predict what is likely to happen in the future
  • to discover why there is has been a fall in demand or sales for particular products
  • to investigate new possibilities in the market
63
Q

different types of retailers (5)

A

superstores
convenience supermarkets
online retailers
discount stores
department stores

64
Q

Superstores advantages (2) and disadvantages (1)

A

sell many goods and services under 1 roof
- most are open 24/7
- many offer huge range of products
- lack of competition form high street stores leads to lack of quality

65
Q

convenience supermarkets advantages (1) and disadvantages (2)

A

smaller supermarkets in convenient locations
- price can be higher due to convenience factor
- limited product choice
- high waste levels as customer numbers are hard to predict

66
Q

online retailers advantages (2) and disadvantages (2)

A

many retailers sell through e-commerce websites such as amazon
- products sold worldwide
- sold 24/7
- cant try products before buying
- delivery charges and time can be off putting

67
Q

discount stores advantages (1) and disadvantages (2)

A

made in response to recessions
- products sold at rock bottom value attracting customers
- limited product range
- customers may dislike image of store

68
Q

department stores advantages (2) and disadvantages(1)

A

sell a variety of items
- location can attract customers
- can benefit from impulse buying
- closing due to high rent charges

69
Q

advantages of manufacturers using wholesalers (4)

A
  • packaging and display is done by wholesaler saving time and costs
  • wholesalers buy in bulk saving manufacturers money from making lots of small deliveries
  • wholesalers can promote product saving manufacturer promotion costs
  • wholesalers carry risk of products going out of fashion
70
Q

what is stratified random sampling

A

splitting the population into different segments then a random sample is chosen from each segment in proportion of the overall population

71
Q

what is quota sampling and 2 advantages and 1 disadvantage

A

a group of people is chosen with certain characteristics.
advantages
- quick and easy
- reflect targeted market
Disadvantage
- researcher may give a bias.

72
Q

what is random sampling

A

a sample is selected randomly this ensures there is no bias however there are difficulties with reliability for a small sample
systematic sampling is when every 10th person is chosen on a list

73
Q

competitors website as a from of research

A

using competitors information allows the company to plan ahead, develop a marketing strategy which could give them a competitive edge helps develop marketing strategy for what they will do in the future

74
Q

trade credit advantages (2) and disadvantages (1) for retailer

A
  • no cash is required to stock products good for new and struggling businesses.
  • a retailer can purchase goods and pay for them after they are sold
  • could lead to bad debit if retailers are unable to sell
75
Q

sales of return advantages and disadvantages (1 each)

A

manufacturers give retailers option to return goods
- allows retailers to try new products without risk of unsold inventory
- products may be damaged creating waste

76
Q

dealer loaders advantages and disadvantages for retailers. 2 each

A

discounts used to encourage retailers to purchase
- retailers can save money and make greater profits
- savings can be passed to customers and make product cheaper
- retailers may overstock and not be able to sell
- item may go out of fashion

77
Q

staff training advantages (2) and disadvantages (1)

A
  • staff become expertise in the product impressing customers
  • motivation of staff improved
  • training willi take time and disrupt other areas of the business
78
Q

into the pipeline promotions (4)

A
  • trade credit
  • sale or return
  • dealer loaders
  • staff training
79
Q

out of the pipeline promotions (7)

A
  • special offers
  • free gifts
  • vouchers and coupons
  • loyalty schemes
  • interest free credit
  • free trials
  • competitions
80
Q

special offers advantages and disadvantages for customers. 1 each

A
  • encourages customers to try new products
  • customers may feel pressured to buying more than they need resulting in waste
81
Q

free gifts advantages and disadvantages. 1 each

A
  • encourage repeat purchase if stamps are required
  • hard to find gifts appealing to markets and customers
82
Q

Vouchers and coupons advantages and disadvantages for customers. 2 each

A
  • customers feel they are getting better value of money attracting new customers
  • repeat purchase
  • reduce profits
  • customers may only purchase the value of the voucher which limits sales
83
Q

loyalty schemes advantages and disadvantages. 1 each

A
  • information on customers habits and preferences can be gathered
  • time consuming and expensive
84
Q

interest free credit advantages and disadvantages. 1 each

A
  • customers can pay later
  • bad debt can be created
85
Q

free trials advantages (2) and disadvantages (2)

A
  • customers can try the product and if they like to they may purchase
  • word of mouth can spread creating positive image
  • some only use free trails
  • it is possible to use free trail more than once
86
Q

competition advantages and disadvantages. 2 each

A
  • encourages repeat purchase as customers try to win with more purchases
  • can crate a hype
  • prize can be costly
  • marketing costs can be high
87
Q

what are public relations

A

the act of controlling business image perceived by the public

88
Q

press conference advantages (2)

A
  • business can message or update a wide audience whilst keeping control of what is reported
  • it can help get the media on side and allows the press to question to the business directly
89
Q

press conference disadvantages (2)

A
  • may have to face difficult questions
  • business may make a situation worse infront of press if unprepared
90
Q

press release advantages (2)

A
  • can used to contract bad publicity
  • business can send out messages and updates without questioning
91
Q

press release disadvantages (1)

A
  • may take a long time to ensure wording is perfect especially if pressure is high
92
Q

what is a press conference

A

the media is invited to a business presentation where they are given information and news

93
Q

what is a press release

A

media is provided with written accounts of business

94
Q

donations to charity advantages (2)

A
  • promoted CSR or the company making them seem ethical
  • business achieves a positive image
95
Q

donations to charity disadvantages (1)

A
  • some shareholders may prefer money to be invested ingrowing the business
96
Q

Sponsorship advantages (2)

A
  • business can benefit from success of those they sponsor
  • helps business become popular with customers who visit or support sponsored event
97
Q

sponsorship disadvantages (2)

A
  • it can be costly to sponsor big events
  • if event or team suffer then business willi be associate with it
98
Q

what are company visits

A

a company can open up factories to the public for limited time

99
Q

company visits advantages (1)

A
  • customers can get a sense of what the business is like
100
Q

company visit disadvantages (1)

A
  • dedicated staff member or team willi have to show visitors around affecting productivity elsewhere
101
Q

promotional merchandise advantages (3)

A
  • customers are reminded of the company the time they use item
  • customers feel rewarded
  • merchandise such as pens can be passed to others people meaning repeat exposure to brand name
102
Q

promotional merchandise disadvantages (2)

A
  • can be expensive to provide with no immediate return
  • cheap looking gifts can affect business negatively
103
Q

product endorsement advantages (5)

A
  • customers who like the celebrity willi be likely to purchase products
  • product advertised for free every time celebrity is spotted wearing or using item in public
  • if celebrity gets good media coverage it willi provide positive exposure fro product associated with it
  • higher prices can be used
  • brand loyalty can be created
104
Q

product endorsement disadvantages (4)

A
  • some consumers who dislike the celebrity willi be put of product
  • if celebrity gains bad publicity it willi tarnish image of the products associated with it
  • very expensive to pay celebrity
  • poor performance by celebrity willi result in lower sales for the product endorsed
105
Q

product placement advantages (3)

A
  • awareness of product is generated often to worldwide audiences
  • audience does not know they are watching an advertisement
  • products can be identified with characters liked by customers resulting in sales
106
Q

what is product placement

A

when a company pays for products to appear in films, tv shows, video games

107
Q

product placement disadvantages (4)

A
  • time of exposure can be short and limited meaning customers wont remember
  • can be costly
  • consumers may be put of certain products if they dislike the customer
  • products can appear as part of a negative storyline putting customers off
108
Q

factors affecting promotion (4)

A
  • targeted market
  • finance available
  • marketing mix
  • ethical practices
109
Q

what does people refer too

A

Representing a business or brand. employees giving an image and reputation for the business

110
Q

people method and justification (4)

A
  • training staff effectively with customers can enable staff to be awareness of the business expectations
  • regularly updating staff on product service and development ensures staff appears knowledgeable and can assist customers
  • monitoring staff can ensure employees are representing the business appropriately
  • providing effective after sales service includes having friendly staff ensures customers return to the business and having a good experience after a purchase
111
Q

process methods and justification (5)

A
  • ensures outlets and call centres are well staffed avoiding customer queuing time which can put them off returning
  • offering good service on a businesses website reduces number of queries made by customers
  • train staff to make decisions avoiding further waiting as problems do not need to be passed through manger
  • regularly assessing the process means a business can understand where the problems are
  • introducing latest technology to improve process means it speeds up process
112
Q

physical evidence methods and justification (4)

A
  • keeping stores modern and clean doesn’t ruin a customers opinion on a businesses
  • settings should convey ambience to match service or product sold so customers feel their needs are recognised
  • feedback from previous customers should be promoted in order to provide reference material
  • layout and design of website must be carefully considered to appeal to targeted market
113
Q

social media for promotion advantages (5)

A
  • a targeted market can be contracted directly saves marketing from uninterested customers
  • information on new products, promotions and price changes can be uploaded immediately
  • business can analyse those that like of follow them to find out their location age or gender allowing them to effectively target an audience
  • consumers may leave feedback or comments which can be used to improve
  • social media is free to use
114
Q

social media for promotion disadvantages (4)

A
  • can be hard to engage with new customers as they have to agree to see the businesses updates
  • requires lots of time to use social media effectively
  • negative feedback may be received putting other customers off purchasing
  • negative feedback may be received instantly giving the business no chance to respond and defend themselves
115
Q

advantages of an app promotion (5)

A
  • target users based on browse history
  • app users can share experience on social media giving free promotion to a wider range
  • worldwide sales potential 24/7
  • information on products and offers can be updated quickly keeping customers informed giving the business good communication between customers
  • can promote in a fun and creative way
116
Q

Disadvantage of an app promotion (3)

A
  • requires mobile signal so customers in rural areas can’t be targeted
  • limit information can be displayed on screens
  • cost money to develop apps and are given for free
117
Q

product life cycle stages (6)

A
  • development
  • introduction
  • growth
  • maturity
  • saturation
  • decline
118
Q

how does the target market affect methods of promotion

A

businesses must promote product where it can be seen by targeted audience

119
Q

how does finance affect methods of promotion

A

the more finance available the better promotions can be. such as promoting at the world cup finals

120
Q

how does the marketing mix affect methods of promotion

A
  • methods are more effective if they work together
121
Q

how does ethical practices affect methods of promotion

A
  • promotions must be ethical to avoid upsetting others by:
  • giving misleading information
  • make false claims
122
Q

what are into the pipeline promotions

A

promotions offered by manufacturers to retailers

123
Q

what are out of the pipeline promotions

A

promotions offered by retailer to customers to encourage sales.

124
Q

disadvantages of manufacturers using wholesalers (3)

A
  • manufacturers make less profit as cuts are taken by wholesaler
  • manufacturer looses control of how products are marketed
  • manufacturer looses control of what retailers the product is sold to
125
Q

advantages for retailers when using wholesalers (3)

A
  • retailers can save storage by purchasing small quantities from wholesalers instead of the manufacturer
  • they can benefit from the promotions offered by the wholesalers that they may not get from manufacturers
  • retailers can trial small orders and not be left with large amounts of unsold inventory
126
Q

Disadvantages for retailers when using wholesalers (3)

A
  • more expensive then a manufacturer as wholesalers gain some profit
  • wholesalers offer products to competitors so other marketing mix elements have to be better
  • retailer may miss out on deals by not going to the manufacturer directly.

business (7 decks)

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