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
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
3
Q
what is desk research
A
collecting secondary data
researching and analysing information
4
Q
advantages of desk research(3)
A
- quick to gather information
- does not require costly procedures
- already existing so easy to access
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
6
Q
what is field research
A
- collecting primary data which is suitable for the businesses exact needs
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
8
Q
disadvantages of field research (3)
A
- requires trained and paid interviewers
- time consuming
- costly
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.
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.
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
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
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
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
15
Q
research and development impact on sales and profit
A
no sales
product makes a loss
16
Q
Introduction impact on sales and profit
A
sales are slow
high promotional costs means a loss may still be made
17
Q
growth impact on sales and profit
A
sales rise rapidly due to reduced prices and lack of competition
profits begin
18
Q
maturity impact on sales and profit
A
sales peak
profits are good but start to fall
19
Q
saturation impact on sales and proft
A
sales fall as competition is too high
profits fall rapidly
20
Q
decline impact on sales and profits
A
sales fall rapidly and the product is removed from the market
profits fall to nothing
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
22
Q
how does lowering the price of a product extend its life
A
makes product more affordable therefore appeal to more market segments
23
Q
how does changing a place a product is sold extend its life
A
making the product more available increases potential customers
24
Q
how does altering promotion increase the life of a product
A
raise sales as awareness is created
25
how does developing variations of a product increase it life (2)
- can appeal to different market segments
- updating the product can utilise latest technologies which may make customers want it again
26
how does rebranding the product increase its life
changing the name of a product can create a hype that appeals to new and more market segments
27
how does changing packaging of a product increase its life
appeals to new market segments
28
how does changing the use of a product increase its life
appeals to new market segments or suits seasonal change
29
what are product line portfolio
having a variety of similar products on sale
30
what is diversified product portfolio
involves having products for sale from across
different market segment. the variety spreads the risk across different markets in case one fails
31
what is the Boston matrix used for
analysing the market share and market growth of a product
32
stars on the Boston matrix type and impact
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
33
cash cows on the Boston matrix type and impact
products that have a high market share but a low growth potential
cash cows require less expenses due to lack of competition
34
problem child in the Boston matrix type and impact
products that have low market share in a market with high growth potential
problem child can be invested in due to growth potential
35
dogs in the Boston matrix type and impact
products that have a low market share and low growth potential
dogs can affect profits and removed from the market
35
advantages of a product port folio (5)
- 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
36
product portfolio disadvantages (3)
- 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
37
cost plus pricing strategy, advantages and disadvantages
increasing price of a product
advantage
- profit is made
disadvantage
- doesn't take external factors into consideration
38
competitive pricing strategy, advantages and disadvantages
price is set based on competitors price
advantage
- improves the market
disadvantage
- something has to be better then the competitors to ensure sales
39
skimming pricing strategy
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
40
penetration pricing strategy
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
41
price discrimination pricing strategy, advantages and disadvantages
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
42
destroyer/predator pricing strategy, advantages and disadvantages
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
43
loss leader pricing strategy, advantages and disadvantages
price is set unprofitable
advantage
- bring customers to the business
- encourages repeat purchase
disadvantages
- companies may only buy the loss leader which impacts profits
44
psychological pricing strategy
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
45
what are channels of distribution
possible routes taken by the product from the manufacturer to reach the customer
46
factors that affect the channel of distribution (6)
- finance available
- image of the product
- shelf life of product
- legal restrictions
- stage of the product life cycle
- qualities of the product
47
how does the finance available affect channels of distribution
manufacturers may not have available finance to set up ecommerce so using wholesalers or retailers are the only option
48
how does the desired image of the product affect channel of distribution
some products have images that dictate where they can be sold
49
how does the shell life of a product affect channels of distribution
some products need to be shipped to retailers fast as they will go out of date
50
how do legal restrictions affect the channel of distribution
some products can't be sold through certain channels
51
how does the stage of a product life cycle affect the channel of distribution
products may be sold in exclusive outlets at the beginning of the product life cycle
52
how does the technical qualities of a product affect the channel of distribution
they may need to be demonstrated so the personal selling is the ideal
53
what is direct selling and two benefits
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
e-commerce advantages (4)
- 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
e-commerce disadvantages (4)
- 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
personal selling advantages (2)
- allows demonstration and explanation of the product to be given
- feedback can be gathered
57
personal selling disadvantage (2)
- 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
shopping channels on tv advantages (2)
- customers can see products being modelled and demonstrated
- customers are encouraged to buy on impulse due to short term bargains
59
shopping channels disadvantage (2)
- 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
advantages of selling through retail (4)
- located close to customers
- often promote the product for the manufacturer
- staff employed to help sell the product
- bulk buy
61
retailers disadvantage (3) for wholesalers
- 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
why would a company use market research (4)
- 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
different types of retailers (5)
superstores
convenience supermarkets
online retailers
discount stores
department stores
64
Superstores advantages (2) and disadvantages (1)
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
convenience supermarkets advantages (1) and disadvantages (2)
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
online retailers advantages (2) and disadvantages (2)
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
discount stores advantages (1) and disadvantages (2)
made in response to recessions
- products sold at rock bottom value attracting customers
- limited product range
- customers may dislike image of store
68
department stores advantages (2) and disadvantages(1)
sell a variety of items
- location can attract customers
- can benefit from impulse buying
- closing due to high rent charges
69
advantages of manufacturers using wholesalers (4)
- 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
what is stratified random sampling
splitting the population into different segments then a random sample is chosen from each segment in proportion of the overall population
71
what is quota sampling and 2 advantages and 1 disadvantage
a group of people is chosen with certain characteristics.
advantages
- quick and easy
- reflect targeted market
Disadvantage
- researcher may give a bias.
72
what is random sampling
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
competitors website as a from of research
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
trade credit advantages (2) and disadvantages (1) for retailer
- 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
sales of return advantages and disadvantages (1 each)
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
dealer loaders advantages and disadvantages for retailers. 2 each
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
staff training advantages (2) and disadvantages (1)
- staff become expertise in the product impressing customers
- motivation of staff improved
- training willi take time and disrupt other areas of the business
78
into the pipeline promotions (4)
- trade credit
- sale or return
- dealer loaders
- staff training
79
out of the pipeline promotions (7)
- special offers
- free gifts
- vouchers and coupons
- loyalty schemes
- interest free credit
- free trials
- competitions
80
special offers advantages and disadvantages for customers. 1 each
- encourages customers to try new products
- customers may feel pressured to buying more than they need resulting in waste
81
free gifts advantages and disadvantages. 1 each
- encourage repeat purchase if stamps are required
- hard to find gifts appealing to markets and customers
82
Vouchers and coupons advantages and disadvantages for customers. 2 each
- 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
loyalty schemes advantages and disadvantages. 1 each
- information on customers habits and preferences can be gathered
- time consuming and expensive
84
interest free credit advantages and disadvantages. 1 each
- customers can pay later
- bad debt can be created
85
free trials advantages (2) and disadvantages (2)
- 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
competition advantages and disadvantages. 2 each
- 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
what are public relations
the act of controlling business image perceived by the public
88
press conference advantages (2)
- 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
press conference disadvantages (2)
- may have to face difficult questions
- business may make a situation worse infront of press if unprepared
90
press release advantages (2)
- can used to contract bad publicity
- business can send out messages and updates without questioning
91
press release disadvantages (1)
- may take a long time to ensure wording is perfect especially if pressure is high
92
what is a press conference
the media is invited to a business presentation where they are given information and news
93
what is a press release
media is provided with written accounts of business
94
donations to charity advantages (2)
- promoted CSR or the company making them seem ethical
- business achieves a positive image
95
donations to charity disadvantages (1)
- some shareholders may prefer money to be invested ingrowing the business
96
Sponsorship advantages (2)
- business can benefit from success of those they sponsor
- helps business become popular with customers who visit or support sponsored event
97
sponsorship disadvantages (2)
- it can be costly to sponsor big events
- if event or team suffer then business willi be associate with it
98
what are company visits
a company can open up factories to the public for limited time
99
company visits advantages (1)
- customers can get a sense of what the business is like
100
company visit disadvantages (1)
- dedicated staff member or team willi have to show visitors around affecting productivity elsewhere
101
promotional merchandise advantages (3)
- 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
promotional merchandise disadvantages (2)
- can be expensive to provide with no immediate return
- cheap looking gifts can affect business negatively
103
product endorsement advantages (5)
- 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
product endorsement disadvantages (4)
- 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
product placement advantages (3)
- 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
what is product placement
when a company pays for products to appear in films, tv shows, video games
107
product placement disadvantages (4)
- 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
factors affecting promotion (4)
- targeted market
- finance available
- marketing mix
- ethical practices
109
what does people refer too
Representing a business or brand. employees giving an image and reputation for the business
110
people method and justification (4)
- 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
process methods and justification (5)
- 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
physical evidence methods and justification (4)
- 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
social media for promotion advantages (5)
- 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
social media for promotion disadvantages (4)
- 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
advantages of an app promotion (5)
- 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
Disadvantage of an app promotion (3)
- 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
product life cycle stages (6)
- development
- introduction
- growth
- maturity
- saturation
- decline
118
how does the target market affect methods of promotion
businesses must promote product where it can be seen by targeted audience
119
how does finance affect methods of promotion
the more finance available the better promotions can be. such as promoting at the world cup finals
120
how does the marketing mix affect methods of promotion
- methods are more effective if they work together
121
how does ethical practices affect methods of promotion
- promotions must be ethical to avoid upsetting others by:
- giving misleading information
- make false claims
122
what are into the pipeline promotions
promotions offered by manufacturers to retailers
123
what are out of the pipeline promotions
promotions offered by retailer to customers to encourage sales.
124
disadvantages of manufacturers using wholesalers (3)
- 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
advantages for retailers when using wholesalers (3)
- 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
Disadvantages for retailers when using wholesalers (3)
- 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.
