Management of Marketing Flashcards
What is marketing
Marketing is about communication between producers and consumers who, under normal circumstances, would never meet face to face
What four things does marketing involve
The needs and wants of consumers the price consumers are prepared to pay Who the customers will be The quanitity of the product needed to meet demand
What are four example of market research
Questionarres and surveys Interviews Observations Focus Groups
What four things does satisfying consumer needs include
Developing/modifying the product Making people aware of the product through promotion Making the product avaliable to consumers in the right place Offering the product for sale at the right price
What is the marketing mix
Product Promotion Place Price People Process Physical environment
What are four marketing objectives
To increase sales and therefore profitability To maintain or increase market share To maintain or improve the brand, product or image of the organisation To target a new market or a new market segment
What are three advantages of product oreiented marketing
The business can concentrate on producing a quality product Forward planning is easier as they do not have to take into consideration consumer needs and wants There is less money spent on market research, so money can be invested into developing the product
What is a disadvantage of product oriented marketing
High risk that consumers needs will not be met which might impact sales and profitability
What are two advantages to market orientation
The business will be better placed to meet the needs of different market segments Will be able to predict future sales more accuratley
What are two disadvantages to market orientation
High costs for market research and responding to consumer demands Profits will be impacted by operating in highly competitive markets
What is differentiated marketing
Products are aimed at specific groups of consumers Products are altered to suit the varied needs of different groups of consumers
What is market segmentation
Dividing up the market into groups of consumers who share similar characteristics Different products will be offered to satisfy the different needs of different groups
What are four benefits of market segmentation
Needs and wants of different groups`can be identified Products can be adapted to suit the needs of different groups Greater sales and profits Promotions can be targeted towards particular groups so that resources are not wasted
What is market share
This is the percentage of the total consumers in the market which a supplier has
What are the four goals of market share
finding out how they view exisiting products finding out what their wants are for future products finding out who their customers will be identifying new markets
What are four benefits of market research
Informed marketing decisions can be made Risks can be reduced Future trends can be identified Size of the market can be identified
What are four ways in which market research aids decision making
It can help to indicate the size of the market avaliable It can help to forecast future market growth It can help to provide information to provide the best marketing mix It can help to keep ahead of competition
What are the 2 types of market research
Field research Desk research
What are four methods of field research
Survey Hall test Focus groups Observation
What is the definition of a product
The good or service which a business produces in the hope of selling
What is a core product
A product which satsifies the basic needs of the consumer
What is an augmented product
A product with additional features than those required for the core product
What is a product line
When a business produces a range of products which have similar uses and have similar characteristics
What are four advantages of having a product line
Spreads the risk Gives consumers the impression that the business is a specialist producer of that line of products Builds consumer loyalty and as a result, consumers will be willing to try new products The addition of new products will increase profitability
What are two disadvantages of having a product line
Bad publicity for one product could affect the sales of other products Production processes can become very complicated with lots of different machinery etc required for each of the different products
What is the product range/mix
The product range refers to the combination of the different types of product produced and sold by a business
What is the boston matrix
Products are placed on the matrix depending on their potential for market growth (increasing total number of customers in market) and potential for growth of market share (taking customers from competitors)
Boston matrix categories
Stars - High market share and High growth Question Marks - Low market share and high growth cash cows - high market share and low growth Dogs - low market share and low growth
what are the 6 stages of the product life cycle
Research development Launch/introduction Growth Maturity Saturation Decline
What are four extension strategies to halt the decline stage
Improving the product Find new uses for the product Altering the packaging Changing the channel of distribution
What are 5 stages of product development
Generating ideas Analysis of ideas Development of product Test marketing Commercialisation and launch
What are four constraints of product development
Avaliability of finance and resources Cost Market constraints Legal constraints
What are four methods of promotion
Advertising Sales Promotions Public relations Exhibitions and Trade Fairs
What are the four methods of advertising
Informative Persuasive Corporate - Used to promote the whole organisation Generic - When organisation pull together to promote the whole industry rather than individual products
What is above the line promotion
Avertising aimed at a large range of people (the mass market) and includes advertising in newspapers, magazines, posters on billboards, cinema adverts, TV and radio advertising where a wide range of consumers can see it
What is below the line promotion
Promoting products to a particular market segment whose customers are known to be interested in the product/service
What are the two factors influencing choice of advertising
Target advertising Cost of advertising media
What are into the pipeline sales promotions
Manufactures to wholesalers/retailers
What are out of the pipeline promotions
Retailers to consumers
What is public relations
public relations refers to the way in which an organisation communicates with the public as a whole. It is all about enhancing the image of the organisation.
What are four considerations for packaging
Shape and weight Protection needed Convenience Design
What four things does good merchandising include
Good window displays In-store posters Layout of products in store Position
What are four factors impacting price
Competitors prices The position of the product in the product life cycle The cost
What is inflation
Inflation is a sustained increase in the average price levels in an economy
What is deflation
This occurs when there is a sustained fall in the average prices in an economy. This is basically negative inflation
What are four pricing strategies
Penetration Pricing Destroyer pricing Competition based pricing price discrimination
What is penetration pricing
A price lower than that of competitors is set when first trying to penetrate a new market
What is destroyer pricing
Prices are lowered in order to force competitors to lower their prices
What is competition based pricing
Organisations set similar prices for similar products. This can help prevent a price war
What is price discrimination
Different prices are charged for the same product/service either at different times of the day, month, or year or for different market segments
What four things impact the channels of distribution
The product being sold How reliable the parties in the distribution channel are The desired image for the product Any legal restrictions
What are three methods of direct distribution
Internet sales Mail order Personal selling
What are four advantages of internet sales
Allows a business to reach a global market Customer information is easily collected to target offers and promotions Customers can order from the comfort of their own home Sales can be achieved 24/7
What are four disadvantages of internet sales
Many customers have a fear of using the internet and purchasing online as some sites are not secure Some products can be more expensive to purchase online due to cost of postage The customer is unable to see and handle the goods before buying Cost of setting up and maintaining a good quality website can be high
What are three advantages of mail order
Convenience of shopping from home with credit facilities Mail order companies save costs as few sales staff required and tend to not require expensive high street premises Some mail order products are exclusive
What are four disadvantages of mail order
Lack of personal contact High delivery charges Companies may incur high advertising and administrative costs If a credit facility is given, customers may end up with a high level of debt
What are two advantages of personal selling
Allows for the product to be demonstrated and technical details can be explained Feedback can be recieved from the customer
What is a disadvantage of personal selling
Customers may not like sales people going to their doors
Four advantages of distribution via retailers
Provide a source of market resaerch Often located close to the customer Provide an after-sales service Retailer may offer credit facilities
Two disadvantages of distribution via retailers
May not have specialist product knowledge Product is more expensive to buy for the customer
What are four advantages of distribution via wholesalers
Provide a source of market research Saves the manufacturer from making small deliveries to retailers, saving on transport costs Saves the manufacturer on high storage costs due to the wholesalers purchasing in bulk Saves the manufacturer having money tied up in stock and being left with stock if consumer trends change
What are two disadvantages of distribution via wholesalers
Control of after-sales is handed over to the wholesaler Wholesaler has limited specialist knowledge
What are four requirments of ethical marketing
Not be misleading Do what it says it can do Use adverts that are not offensive or obscene Not offend consumer beliefs
What four things does the ASA ensure adds are not
Misleading Harmful Offensive Illegal
What are four reasons why adverterisers comply with advertising codes
Making sure that consumers are not misled, harmed or offended by adverts helps to maintain consumer confidence in advertising Advertising that is welcomed by consumers is good for business It maintains a level playing field amongst businesses. It is important for fair competition that all advertisers play by the same rules Maintaining the self-regulatory system is much more cost-effective for advertisers than paying the legal costs of a court case.
What two things does OFCOM try and ensure
People who watch television and listen to the radio are protected from harmful or offensive material People are protected from being treated unfairly in television and radio programmes, and from having their privacy invaded
What are four areas of marketing which use technology
Market research Promotion Sales Pricing
