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Business Studies > march 2021 revision - unit 2 > Flashcards

march 2021 revision - unit 2 Flashcards

1
Q

what does marketing involve? (4p’s)

A
  • price
  • product
  • place
  • promotion
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2
Q

What information does market research aim to find out?

A
  • age
  • economic status (rich, poor)
  • culture (motivation and what they enjoy)
  • where they live (urban / rural )
  • what they want (style, function, large, hot)
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3
Q

Good market research helps a business to be successful and avoid successful and avoid expensive mistakes by finding out:

A
  • product / services wanted
  • price willing to pay
  • design to be attractive
  • how to target customers (media, message)
  • where and how to sell ( online, high street etc.)
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4
Q

Any information gathered through market research must be interpreted correctly to:

A
  • understand its significance to the business

- what best meets the needs of their target market

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5
Q

Primary research methods

A
  • questionnaire
  • interview
  • focus groups
  • trialling
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6
Q

Advantages of questionnaires

A
  • cheap

- easy to target customers

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7
Q

Disadvantages of questionnaires

A
  • may not understand questions

- uninterested - may answer dishonestly / not at all

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8
Q

Advantages of interviews

A
  • questions can be explained

- easy to target customers

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9
Q

Disadvantages of interviews

A
  • expensive

- not everybody likes being interviewed

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10
Q

Advantages of trialling

A
  • good way to see if it is liked

- reduces risk

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11
Q

Disadvantages of trialling

A
  • people tested must be representative of whole market
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12
Q

Advantages of focus groups

A

people chosen will be representative of potential customers

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13
Q

Disadvantages of focus groups

A
  • small group

- usually costly

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14
Q

Advantages of UK census data

A
  • info from almost whole population

- already collected and analysed, reduces costs

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15
Q

Disadvantages of UK census data

A
  • info not specific to business

- needs careful interpretation

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16
Q

Advantages of data from newspapers and magazines

A
  • up to date
  • cheap
  • good source of ideas
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17
Q

Disadvantages of data from newspapers and magazines

A
  • info not specific to business
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18
Q

Advantages of data from websites

A
  • cheap

- helps decision making on products/services and prices

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19
Q

Disadvantages of data from websites

A
  • careful interpretation needed
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20
Q

Advantages of internal data

A
  • cheap
  • readily available
  • specific to business
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21
Q

Disadvantages of internal data

A
  • old data (what HAS happened not WILL happen)
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22
Q

what does a business need to consider when segmenting market

A
  • price
  • promotion of products
  • location of shops
  • product differentiation
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23
Q

Ways of segmenting a market are

A
  • age
  • gender
  • income
  • lifestyle
  • location
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24
Q

what are the processes involved in producing a product/service

A
  • design
  • invention
  • innovation
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25
Q

what is design of a product

A

planning of what a product will do (its function) and its style

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26
Q

What is the invention of a product

A

a totally new product /service

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27
Q

what is innovation of a product

A

improving an already existing product

28
Q

What are the 4 point of sale promotions

A
  • price reductions
  • competitions
  • loss leaders
  • free samples
29
Q

What are price reductions (‘sales’)

A
  • a way to sell off old stock (new season or old models)

- will make less profit ( loss ) than of sold at higher price

30
Q

What is competition in point of sale promotion

A

A person who buys a product is also entered into a competition, e.g voucher for free holiday included in crisps.

31
Q

What is loss leaders

A

Goods are sold at a loss to encourage customers to come to the shop in the hope they will do all their shopping there. E.g Tesco may sell petrol cheaply to attract customers & will make profits on the groceries those customers by

32
Q

What are free samples

A

Tempt people to buy the product, e.g customers may be offered small pieces of cheese in a supermarket so they can try it

33
Q

What are different types of advertising

A
  • social media
  • websites
  • TV
  • print media
  • radio
34
Q

Advantages of social media as a way of advertising

A
  • cheap (not free)

- customers more likely to take notice as they have shown an interest (follwed)

35
Q

disadvantages of social media as a way of advertising

A
  • hire someone to operate it
  • needs updating
  • not everyone uses it
36
Q

Advantages of websites as a way of advertising

A
  • send particular messages to buyers

- videos/diagrams to show detail of product

37
Q

disadvantages of websites as a way of advertising

A
  • costly to keep up to date
38
Q

advantages of using tv as a way of advertising

A
  • reach wider audience

- know what channels & programmes potential customers watch

39
Q

disadvantages of using tv as a way of advertising

A
  • expensive

- only suitable for larger businesses

40
Q

advantages of using print media as a way of advertising

A
  • local newspapers are low cost and reach one area
  • national newspapers reach a wider range of audience
  • magazines are ideal to target its market (through interests)
  • leaflets can be targeted at correct customers
41
Q

disadvantages of using print media as a way of advertising

A
  • not many people reed newspapers
  • leaflets are often ignored
  • national newspapers are expensive
42
Q

advantages of using radio as a way of advertising

A
  • reach large audience
  • cheaper than tv advertising
  • portable so can listen anywhere
43
Q

disadvantages of using radio as a way of advertising

A
  • product cannot be seen

- listeners may skip adverts

44
Q

What will a business by influenced by when promoting a product

A
  • what the business can afford
  • the target audience - who and how many
  • aim of promotion - sell of old stock, tempt new customers etc.
45
Q

Advantages of channel 1 of product distribution

A

by missing out wholesalers and consumers, the producer makes more profit, rather than sharing it with the wholesaler and/or retailer

46
Q

Advantages of channel 2 of product distribution

A

Directly to retailer means the producer can benefit from keeping some of the profit that would have been made by the wholesaler, while being confident the retailer will able to market the goods to customers

47
Q

Advantages of channel 3 of product distribution

A

A wholesaler can break up bulk stock and offer retailers the goods in the quantities that they can afford, and which they can sell, so more retailers are willing to sell the goods

48
Q

When making decisions about the marketing mix, businesses must consider

A
  • type of product
  • cost
  • stage of product life cycle
  • target market
  • funds available
49
Q

What will happen to the product during the introduction of the life cycle

A

will be introduced

50
Q

What will happen to the product during growth of the life cycle

A
  • product will not change

- process of innovation and designing a new model will begin

51
Q

What will happen to the product during the maturity of the life cycle

A
  • new styles to attract a wider range of customers

- continue designing and development process

52
Q

What will happen to the product during the decline of the life cycle

A
  • new features introduced

- ready to introduce a new model if sales can no longer be extended

53
Q

What will happen to the price of a product during the introduction of the life cycle

A
  • price skimming
54
Q

What will happen to the price of a product during the growth of the life cycle

A
  • reduce price (maintain sales)
55
Q

What will happen to the price of a product during the maturity of the life cycle

A
  • maintain a stable price
56
Q

What will happen to the price of a product during the decline of the life cycle

A
  • promotional ‘reduced’ pricing (to extend sales)
57
Q

What will happen to the place of the product during the introduction of the life cycle

A
  • sell through exclusive shops to stress product’s quality and to be able to sell at a high price
58
Q

What will happen to the place of the product during the growth of the life cycle

A
  • sell through a wider range of shops

- sell online to increase custom

59
Q

What will happen to the place of the product during the maturity of the life cycle

A
  • continue sales through a wide range of outlets
60
Q

What will happen to the place of the product during the decline of the life cycle

A
  • continue sales through a wide range of outlets but reduce sales in outlets that aren’t selling as many
61
Q

What will happen to the promotion of a product during the introduction of a product

A
  • use targeted advertising to generate interest in the product
  • stress the quality & exclusivity to people who are interested in the product range
62
Q

What will happen to the promotion of a product during the growth of a product

A
  • advertise widely to stress the benefits of the product to a wider market
63
Q

What will happen to the promotion of a product during the maturity of a product

A
  • continue to advertise to highlight differences of the product to its competitors
64
Q

What will happen to the promotion of a product during the decline of a product

A
  • advertise to raise awareness of price reductions

- give special offers to encourage sales

65
Q

it is possible to judge the effectiveness of a marketing mix by asking the following questions:

A
  • have the total sales increases and if so, by how much?
  • has the stock of the products been sold off?
  • has the business been able to increase the price or has it been reduced?
  • has the number of people who buy the product/service increased and if so, how many

Business Studies (8 decks)

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