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national 5 business > marketing > Flashcards

marketing Flashcards

1
Q

how does a business segment their market?

A

age, gender, income, location

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2
Q

what are purpose/benefits of market segmentation?

A

allows the business to create products that customers will want to purchase, allows the business to sell the product in an appropriate place, allows the business to use targeted promotions to encourage customers to purchase, allows the business to set an appropriate price for their product/service.

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3
Q

what is market research?

A

market research aims to find out customers needs/wants, how a business could improve their product/service and to stay a head of competition.

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4
Q

what is field research?

A

gathering new information. This is primary information. A business could carry out surveys, interviews and focus groups.

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5
Q

what are advantages of field research?

A

new and up-to date information, specific to business needs, not available to competitors

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6
Q

what are disadvantages of market research?

A

expensive to carry out, time consuming to carry out which may stop decisions being made quickly, people may need to be trained to carry our market research.

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7
Q

what is desk research?

A

gathering information that already exists. This is secondary information. They could use sales records, the internet and newspapers.

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8
Q

what are advantages of desk research?

A

cheap to obtain as desk research is usually free, readily available at anytime

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9
Q

what are disadvantages of desk research?

A

may be out of date, may be biased, may not be relevant to business needs

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10
Q

Field Research Methods - what is a personal interview

A

this involves a face to face interview. A personal interview can be held in the street or by visiting homes.

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11
Q

advantages of personal interview?

A

allows a 2 way communication, the researcher can encourage the respondent to answer, mistakes and misunderstandings can be dealt with

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12
Q

disadvantages of personal interviews?

A

takes a lot of time and can be expensive, interviewers may need to be trained

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13
Q

Field Research Methods - telephone survey

A

This involves a market researcher telephoning people at home and asking them questions.

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14
Q

advantages of telephone survey?

A

relatively inexpensive, the response is immediate, a large number of people can be surveyed very quickly

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15
Q

disadvantages of telephone survey?

A

many people do not like strangers phoning them and asking questions, some people refuse and just hang up

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16
Q

Field Research Methods - postal survey

A

This involves a market researcher sending a questionnaire out through the post.

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17
Q

advantages of postal survey?

A

inexpensive as it does not require a trained interviewer

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18
Q

disadvantages of postal survey?

A

questions must be simple and easy to answer, the response rate is very low as people tend to treat them as ‘junk mail’ and destroy them, free gifts may have to be offered as an incentive to encourage people to complete them

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19
Q

Field Research Methods - focus group

A

This involves specially selected groups of people to come into the business to give their opinions and be asked questions. It is lead by a manager who puts forward points to encourage discussion.

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20
Q

advantages of focus group?

A

This provides an opportunity to collect qualitative information in the form of opinions, feelings and attitudes.

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21
Q

disadvantages of focus group?

A

qualitative information can be very difficult to analyse, time consuming to arrange a focus group

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22
Q

Field Research Methods - hall test

A

This involves a product being give to customers to try and then obtain their opinions and views on it. Customers get to try the products and so can give good feedback.

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23
Q

advantages of hall test?

A

fairly inexpensive to carry out, customers may feel obliged to give positive feedback they the company wishes to hear

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24
Q

disadvantages of hall test?

A

again difficult to anylase qualitative information

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25
Q

Field Research Methods - observation

A

This involves watching something and recording what happens- it could be that the observer has to count how many times something happens.

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26
Q

advantages of observation?

A

Those being observed may be aware so respond in a natural way, quantitive information is gathered which is easier to analyse than qualitative information

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27
Q

disadvantages of observation?

A

Those being watched cannot be asked or give an explanation as to why they did or did not do something

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28
Q

Field Research Methods - online survey

A

electronic/online surveys involve creating and then sending a questionnaire via email to consumers

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29
Q

advantages of online survey?

A

again inexpensive to carry out, can send to large amounts of people

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30
Q

disadvantages of online survey?

A

May be ignored by customers, answers may lack detail/depth, customers cannot ask questions if there’s a question they’re unsure of

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31
Q

Marketing Mix - product

A

this is the actual item (good or service) that the business makes and sells on the market. The product must be what customers want, market research helps identify this.

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32
Q

Marketing Mix - price

A

and this is how much money the business charges the customer to buy the product. The product must be a suitable price for the customer to buy.

33
Q

Marketing Mix - place

A

this is the way the business makes the product available to the customer and where the product is sold. Places include shops, online websites and apps.

34
Q

Marketing Mix - promotion

A

this is how customers are told the products exist and how they are encouraged to purchase.

35
Q

what are some product development activities?

A
  1. Market research may be carried out to see what the customer wants.
  2. Ideas for products are generated based on the market research information.
  3. A model of the product might be created - this is know as a prototype (This lets people see what the product would look like and how it works).
  4. Changes might then be made to the prototype based on feedback received
  5. The method of production then needs to be chosen
  6. The price, place and promotion elements of the marketing mix also then need to be decided.
36
Q

what is a product lifecycle?

A

It shows the different stages that a new product passes through over time and the sales that can be expected at each stage.

37
Q

what is the introduction of the product lifecycle?

A

Product first launched onto the market, low customer awareness, sales are low, no profit being made, advertising costs are high.

38
Q

what is the growth of the product lifecycle?

A

Sales starting to rise, more people become aware of the product, may start to re-coup advertising costs, profit may be made.

39
Q

what is the maturity of the product lifecycle?

A

Sales at their highest, profits at their highest, product well known on the market, increasing competition.

40
Q

what is the decline of the product lifecycle?

A

Sales are falling, profit may not be being made anymore, competition too strong on the market as newer more up-to-date products being released, product may be taken off the market.

41
Q

what are the advantages of branding?

A

In the long term, a business can save money on marketing once the product becomes a household name, higher prices can be charged as the brand may give off image of quality increasing profits, easy to launch new products or new versions of products with the same brand name, loyal customers who will continue to use the business

42
Q

what are the disadvantages of branding?

A

Poor brand may affect the whole range of products produced by the same manufacturer, some brands are easier to copy and so fake versions may appear and this can be expensive for a business to fight against, it takes time to establish a brand, advertising costs may be high when first launched to get the product well known.

43
Q

what is the purpose of own brands?

A

The purpose of own brands is to increase sales and awareness of the business. They may target different market segments e.g. Tesco finest and Tesco Value.

44
Q

what are advantages the of own brands?

A

target a new/wider audience, increased sales, increase awareness of the business

45
Q

what are the disadvantages of own brands?

A

May be seen as lower quality, may have a lot of competition in the market

46
Q

what are the advantages of packaging?

A

Protects product from damage meaning lower chance of complaints, can catch customers eye if it is well designed which can encourage them to purchase, can be used as a marketing tool

47
Q

what are the disadvantages of packaging?

A

May feel pressure to use recycled packaging which may look poor quality, may take time to design eye-catching packaging

48
Q

what are some factors of pricing?

A

how much competition charge, the image of the product the business wants, how much it costs to make the product, how much profit the business want to make, how much their market segment are willing to pay

49
Q

what is the premium pricing strategy?

A

Prices set higher than competitors. This gives the image of high quality

50
Q

what is the competitive pricing strategy?

A

prices set similar to competitors. this avoids a price war and allows the business to compete on different aspects such as quality

51
Q

what is the low pricing strategy?

A

prices set lower than competitors. this may target a lower income group.

52
Q

what is the destroyer pricing strategy?

A

prices are set so low that the business forces all competition out the market, prices rise when competition leave, this can only be done by large businesses.

53
Q

what is the psychological pricing strategy?

A

the price charged by the business makes the customer think it is cheaper than it actually is. e.g. £9.99 instead of £10.

54
Q

what is the promotional pricing strategy?

A

price is lowered for a short period of time.

55
Q

what is the competition factor when choosing a business location?

A

a business might want to set up as far away from competition as possible or as close as possible in order to increase their market share.

56
Q

what is the availability of resources factor when choosing a business location?

A

employees may be needed to work for the business therefore suitable candidates in that area with the correct skills must be available.

57
Q

what is the costs factor when choosing a business location?

A

how much the factory or shop costs to buy or rent must be within budget.

58
Q

what is the government incentives factor when choosing a business location?

A

sometimes the government will offer grants to encourage a business to set up in that area.

59
Q

what is the transport links factor when choosing a business location?

A

the location of the business must be close to public transport and have parking facilities for customers for ease of access.

60
Q

what is the e-commerce factor when choosing a business location?

A

a business may choose not to have a physical store but to sell online instead to reduce rent costs.

61
Q

what are the advantages of e-commerce?

A

target a worldwide audience, customers can buy 24/7 increasing sales, online discounts can be given, whole product range can be shown on a website.

62
Q

what are the disadvantages of e-commerce?

A

expensive to set up and maintain a website, goods cannot be seen or handled before purchase which may lead to high returns, technical issues may occur when buying a product.

63
Q

Methods of Distribution- road

A

products may be delivered via road. this is often cheaper than other methods and it provides a door to door delivery. delivery is often quick. however it is difficult to transport large goods, might not be environmentally friendly and roadworks may cause delays.

64
Q

Methods of Distribution- train

A

products may be delivered via train. this allows large goods to be transported and large quantities can also be transported. however there may not be a train station in every location and it is not a door to door delivery. breakdowns will slow down delivery.

65
Q

Methods of Distribution- aircraft

A

products may be delivered via aircraft. products can be transported quickly and worldwide and large amounts of small products can be transported. however large goods cannot be transported, products need to be taken to an airport and loaded onto aircraft which may be time consuming and expensive.

66
Q

Methods of Distribution- boat

A

products may be delivered via boat which means large goods can be transported worldwide. however it is slower than aircraft.

67
Q

Advertising- tv

A

large audience can be targeted, adverts can be targeted towards specific segments, demonstrations can be given, costa can be high, people may not watch tv adverts

68
Q

Advertising- newspapers

A

adverts can be kept for reference later, lots of information can be communicated if advert is large, no sound or video is available, not all newspapers are printed in colour

69
Q

Advertising- apps

A

don’t have to be at a laptop or computer(can use on the move), can offer targeted promotions on apps, people need a smartphone which can be expensive, training needs to be given to employees on how to design and maintain an app

70
Q

Advertising- text messages

A

customers received message instantly, large amount of customers can be targeted, cheaper than some other methods of advertising, need to have mobile number of customer, customers may receive a large amount of texts and be annoyed

71
Q

Advertising- email

A

customers can sign up to mailing list therefore only those interested will sign up, emails can be sent worldwide and have little cost, email may go into spam folder, customer may feel annoyed if they get lots of emails

72
Q

coupons

A

when a customer receives a voucher to get money off certain products or services.

73
Q

loyalty cards

A

this is when customers are given a card that they scan each time they purchase. points build up for the customer and they are then rewarded with money off vouchers or free gifts for example. the business can use this to track customer spending and target specific promotions to them.

74
Q

competitions

A

this is when customers purchase a product they can be entered into a competition draw to win a star prize.

75
Q

free gifts

A

this is when the customer buys a product and gets something free along with it.

76
Q

microsoft word?

A

can be used to create attractive advertising posters.

77
Q

desktop publisher?

A

can be used to create advertising leaflets or brochures.

78
Q

database?

A

can be used to store customer details to make to make it easy to e access when contacting them about promotions.

79
Q

emails/text messages

A

can be sent to customers to offer them special offers or promotions.

national 5 business (6 decks)

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