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Higher business > management of marketing > Flashcards

management of marketing Flashcards

1
Q

what is the purpose of marketing

A

to help raise awareness of products/services

help raise organisation’s profile on market

encourage customers to buy

target new customers and existing ones

allow an organisation to know what customers want

allow an organisation to meet its strategic objectives eg increase profits, increase market share, extend life of a product

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2
Q

what do different organisations use marketing for

A

private sector businesses would want to increase profitability

charities may want to increase donations/raise awarerness

police would want to raise awareness of certain campaigns

NHS would want to raise awareness if campaigns eg anti smoking

local authorities may want to increase use of certain facilities

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3
Q

what is product led

A

this is where the organisation manufactures the product and then tries to sell it off ti customers. they don’t do any market research. product research and product testing is key

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4
Q

what is market led

A

where the business puts the customers needs at core of business. market research and market testing is key

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5
Q

what are the advantages of market led

A

more likely to produce products that customers want

more able to anticipate and meet changes in customer demands

more able to make changes

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6
Q

what is market segmentation

A

the process of breaking down the market into groups of customers who have similar characteristics

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7
Q

how can you segment a market

A 
into; 
age 
gender 
marital status 
religion
music taste
income 
occupation 
hobbies 
sports
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8
Q

what are the advantages of market segmentation

A

if you know who your target market is then you can use appropriate sampling for market research, which will allow you to finds out effectively tailor your product to their needs/services

the organisation can offer its products/services within an affordable price range for its target audience

be able to use appropriate method of distribution

highlights gaps in the market

segmentation means that organisation doesn’t have to waste money in advertising on promotional activities that don’t reach their audience

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9
Q

what is market research

A

systematic gathering, recording and analysing of data about an organisation’s products/services and its target market

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10
Q

what is the need for market research

A

able to anticipate changes in market

identify changes in customers tastes

identify who is buying the product

help stay ahead of competitors

identify if promotion is appropriate

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11
Q

what are the two types of market research

A

primary (field) research

secondary (desk) research

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12
Q

what are the sources of information

A

internal

external

primary

secondary

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13
Q

what are the advantages and disadvantages of primary information

A

adv

sources are more reliable

carried out for a specific purpose of business therefore more relevant

disadv

time consuming to collect, gather and analyse

expensive as you might need to pay for interviewer and materials

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14
Q

what are the advantages and disadvantages of secondary research

A

adv

more widely available to collect than primary
less cost effective than primary

disadv

collected for another business’s purpose so might not be as relevant
might be biased therefore inaccurate

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15
Q

what are the advantages and disadvantages of internal research

A

unique to org therefore relevant
source is known - reliable

disadv

info may not be up to date therefore unreliable

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16
Q

what are the advantages and disadvantages of external research

A

more info can be accessed through sources

disadv

source might not be known - unreliable
info may be out of date - unreliable

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17
Q

what are the types of information`

A 
written 
oral 
graphical 
pictoral 
numerical
quantative 
qualitative
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18
Q

what are the advantages and disadvantages of written

A

kept for future reference
facts can be passed onto oral

disadv
may be unable to obtain clarification

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19
Q

what are the adv and disadv of oral

A

immediate response given
questions can be asked
body language can be monitored

disadv
points misinterperted
requires careful listening skills

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20
Q

what are the advantages and disadvantages of pictoral

A

info presented attractively
sig points - highlighted

disadv
complex info - not communicated
factual info not communicated easily

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21
Q

what are the advantages and disadvantages of graphical

A

comparisons made easily
complex info communicated effectively

disadv
user needs to be able to interpret info easily

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22
Q

what are the advanatages and disadvantages of numerical

A

financial info easily calculated
calculations can be carried out

disadv
requires numeracy skills

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23
Q

what are the advantages and disadvantages of quantative

A

info can be compared and measured

disadv
doesnt take into account internal and external factors

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24
Q

what are the advantages and disadvantages of qualitative

A

can provide deeper info for user

disadv

can be difficult to measure two people’s opinions

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25
Q

what is secondary research

A

carried out by a researcher using secondary info in form of published sources

originally produced by someone else other than researcher

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26
Q

what is the advantages of secondary research

A

wide range of info that can be accessed - making decisions more informed

info is cost effective to collect

comp’s information is available

saves a lot of time compared to field research

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27
Q

what are the disadvantages of secondary research

A

info not unique
info can be out of date
difficult to test accuracy of info
info may be biased `

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28
Q

what is primary research

A

carried out by a researcher for a specific purpose. first hand information

researcher goes out to conduct research themself

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29
Q

what are the advantages of primary

A

info is reliable - collected first hand
info more relevant as you have collected it for specific purpose
up to date

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30
Q

what are the disadvantages of primary

A

can be expensive to carry out as you might have to pay for interviewer

can be very time consuming as it has ti be created, generated and analysed

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31
Q

what is a personal interviewer

A

face to face interview

can be held in street or home

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32
Q

what are the advantages and disadvantages of personal interviews

A

two way communication
researcher can encourage respondent to answer
mistakes and misunderstandings can be clarified

disadv
can be expenisve
low response rate

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33
Q

what is a focus group

A

involves specially selected groups of people

led by experienced chair person

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34
Q

what are the adv and disadv of focus group

A

qualitative information in form of opinions
feelings and attitudes gained

disadv
can be difficult to analyse qualitative info

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35
Q

what are telephone surveys

A

involves market researcher phoning home numbers

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36
Q

what are the adv and disadv of telephone surveys

A

cheap to undertake
response immediate

disadv
many people think of these as an intrusion and so don’t respond

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37
Q

what is a postal survey

A

involves market researcher sending questionnaires through post

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38
Q

what are the adv and disadv of postal surveys

A

inexpensive as it doesn’t require trained interviewer

disadv
questions must be simple and easy to answer
response rate - low

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39
Q

what is a customer audit

A

certain customers issued a diary and asked to record some/all purchases

monitored by market research company

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40
Q

what are the adv and disadv of customer audit

A

accurate info can be gained if diaries kept properly
info can indicate customer trends

disadv
can be expensive method as participants usually recieve payment
can be inaccurate/incomplete

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41
Q

what is sampling

A

a group of customers selected from population who participate in market research

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42
Q

what are the 3 types of sampling

A

random
quota
stratified random

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43
Q

what is random sampling

A

respondents are picked at random from list

interviewer must interview all people who are on the list

can be time consuming as all on list must be interviewed

44
Q

what is quota sampling

A

set number of people with certain characteristics must be interviewed

researcher must find people who meet criteria

45
Q

what is stratified random sampling

A

sample divided into segments based on how population is divided up and then respondents are randomly selected from each sub group

researchers able to obtain sample which represent the population as a whole

gives better representation of population therefore returns more accurate results

46
Q

what is included in the marketing mix

A 
product
place 
price 
people
process
physical evidence 
promotion
47
Q

what is product

A

sales levels at research, introduction, growth, maturity, saturation, decline phases at a product’s life cycle

48
Q

what do extension strategies do

A

used to enhance products sales and profits

49
Q

what is incluxed in the development stage

A

idea generation, design product, produce prototype, test product, conduct test marketing and apply for trademark

50
Q

what are the stages of the product life cycle

A

research and development, introduction, growth, maturity, saturation, decline

51
Q

whats the development stage

A

r and d of prod
no sales/profits
high costs

52
Q

what is the introduction stage

A 
product launched 
heavy advertising 
sales being to rise 
sales low 
costs high 
revenue used to pay R+D costs so no profit
53
Q

what is the growth stage

A

product gained customer awareness and sales begin to grow at faster rate.
profits grow at faster rate

54
Q

what is the maturity stage

A

sales move toward a peak, rate of sales growth slows

high sales and high profits

55
Q

what is the saturation stage

A

sale growths levels out neither increase/decrease

profit and sales are at highest point

56
Q

what is the decline stage

A

still making sales but they are falling, eventually leading to withdrawal from market
profits fall with sales - losses are incurred

57
Q

what are extension strategies

A

these are to help stop the product from falling into the decline stage eg
improve the product
change the packaging
change channel of distrubution

58
Q

what is the product portfolio

A

firm produces what is known as the product portfolio. a successful business will have a varied product portfolio as:

it can appeal to different market segments
spreads its risk
dominate the market
can increase potential sales revenue

59
Q

what is the boston matrix

A

used to plot range of products that an organisation offers. can help identify where products might need to be introduced/changed

60
Q

what is each quadrant in terms of the product life cycle

A

dog - introductory stage
problem child/???? - growth
star - maturity/saturation
cashcow - decline

61
Q

what do star products have

A

high market share in a fast growing market

62
Q

what do cashcow products have

A

high marketshare in slow growing market

63
Q

what do problem child products have

A

low market share in fast growing market

64
Q

what do dog products have

A

products low market share in slow growing market

65
Q

what are the disadvantages of a varied product portfolio

A

costs of promoting and advertising lots of different products therefore could impact profit

if one product has a bad rep, then it could impact rep of other products

maintaining varied product portfolio will involve a cost of R+D

staff require training on various features of products which can be time consuming and expensive

66
Q

what is branding

A

name, logo, symbol that sets the business’s product apart from competitors

67
Q

what are the advantages of branding

A

easier to launch new products with an established branded name

higher prices can be charged

customers become brand loyal

brand manufacturers can save money on marketing

68
Q

what are the disadvanatages of branding

A

can be susciptable to fakes
one product reputation could affect all other products
advertising and R+D costs can be high

69
Q

what is public relations

A

concerned with managing communication between an organisation and its stakeholders.

70
Q

what are some examples of better public relations

A

improving product image and image of organisation
supporting and promoting charity
sponsoring sporting cultural events

71
Q

what is the advertising standards authority

A

ASA is organisation that monitors all advertising sales, promotions and direct marketing to ensure they operate at the correct standard

72
Q

what is the trades description act

A

this act states that a product must be advertised in an honest way which is not misleading to customers

73
Q

what is people in the marketing mix

A

company’s employees are important in marketing because they are the ones who deliver the service. Thorough research is important to discover whether there are enough people in your target market that is in demand for certain types of products/services

74
Q

what is process

A

systems and processes of organisation affect execution of service

tweaking and enhancements can come later to ‘tighten up’ a business to minimise costs + max profity

75
Q

what is physical evidence

A

physical presence of business and establishment concept is branding

your immediately know what their presence is in market place as they usually marketleaders and have established physical evidence as well as psychological evidence in their marketing

76
Q

what is own labels/own brands

A

own label/brand refers to a retailer’s own product which may be the retailer’s own name eg tesco value, asda smart price

77
Q

what are the advantages of own brands

A

requires little advertising

tend ti be cost effective

78
Q

what are the disadvantages of own brands

A

seen to be inferior qualities to branded quality

79
Q

what is price

A

these are the pricing strategies and factors that influence an org to use these strategies

80
Q

what are the pricing strategies

A 
cost - based 
loss leaders
skimming 
penetration
promotional
destroyer
premium 
competitive 
discrimination
81
Q

what are the factors influencing price

A 
competitors prices 
cost of production 
where product is sold 
market segment
state of economy
profit expected
82
Q

what is cost based pricing

A

cost of making each unit is considered before adding a % as profit. covers cost of production and ensures a profit on each unit sold

83
Q

what is competitive pricing

A

price lower than competitors, so it entices customers to buy their product instead of competitors

84
Q

what is skimming pricing

A

high price is charged when product is launched into market . after a while they will lower price to match competitors. large profits can be made due to lack of competiton in area

85
Q

what is penetration pricing

A

low price is charged when product is just launched. After a while business raises price to be in line with competition. allows prod to gain attention and loyalty before increasing

86
Q

what is promotion pricing

A

firm lowers price for limited period of time then raises it again to previous level. helps to attract customers and loyalty before raising price

87
Q

what is discrimination pricing

A

different price offered for product as times change. Allows firm to take advantage of higher profits at different times

88
Q

what is destroyer pricing

A

large companys drop price so low that competitors cant compete with, so then those businesses fall out of the market. after this happens, then the company raises price to make profit. tis illegal

89
Q

what is loss leader pricing

A

firms lower certain prices so low that they are making a loss on each unit of output. Entices customers to buy other products at a higher price. Hopefully gains customer loyalty and allow business to off set loss by making higher profits

90
Q

what is place concerned with

A

how product gets from manufacturer to customer

91
Q

what are the 3 channels of distribution

A

direct selling,
retailer function,
wholesaler function

92
Q

what does the channel of distribution depend on

A

product being sold
finance of busines
desired image of product
product’s life cycle

93
Q

what is the wholesaler function

A

buy large quantaties off manufacturuer than sell in bulk to retailer sometimes directlu to customer

94
Q

what are the adv and disadv of wholesaler

A

storage costs reduced as you buy in bulk
may label and package goods which also reduces cost
dont have to worry about excess stock not selling therefore reduced risk

disadv

manufacturer loses control over presentation of product
relationship with customer hard to develop
difficult to notice buying patternd
less profit for manufacturer as they need to sell at lower price to allow for wholesaler/reatiler to make profit

95
Q

what is the retailer function

A

retailer has own distribution network and buy straight from manufacturer. big supermarkets use this function

96
Q

what are the adv and disadv of retailer

A

established customer base across country - saves you effort n distribution
established online presence
will deal w/ after sales service

disadv

lose out on profoits as they have to buy it off you at a cheaper price
lose direct relationship with customer
lose control of presentation of product

97
Q

what is direct selling

A

carried out in number of ways - e tailing, s tailing, personal selling, direct mail, mail order

98
Q

what are the adv and disadv of direct

A

get to keep all of profits
keep control of how product is presented
easier to track buying patterns
close relationship with customer

disadv
expenisve for holding all stock incurr all packaging costs

99
Q

what is promotion

A

3 aims - persuade people to buy
inform customers
reminding product exists

100
Q

what are the 2 types of promotion

A

above line - tv newspapers to reach mass audience
lot of waster

below line - directly controlled by business
sales promotion

101
Q

what is above the line

A

different ways org use adverts

102
Q

what are the examples of above the line

A

informative adverts - use to persuade customers to buy product /service and to inform people of service

product placement - firm pays its product to be used in films/tv

product endoresemennts - celebrities paid to use product

103
Q

what is below the line

A

into and out of pipeline

104
Q

what is into pipeline

A

promotions manufacturer will offer to retailer/wholesaler to sell stock

105
Q

what is outof pipeline

A

retailer offers promotions to encourage consumer to purchase products

106
Q

what are examples of into pipeline

A

point of sale material - display material given to retailer such as posters and stands to make it more attractive

sale/return - distributor will take back any unsold stock/ reduces costs and risk

staff training - particularly with tech and machinery so retailer feels confident dealing w/ customers

107
Q

what are examples of out of pipeline

A

free samples - allow customers to try product before committing to larger purchase

loyalty schemes - to entice return custom where customers can work towards something free.

vouchers - can entice customers to return

special offers - bogof or short term reductions in price.

Higher business (11 decks)

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