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Higher Business Management > Marketing > Flashcards

Marketing Flashcards

1
Q

Desk Research - Description

A

Involves researching & analysing info that has been gathered
- News articles
- Sales figures
- Competitor’s website

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2
Q

Desk Research - Advantages

A

Timely - Desk info is quick to gather

Available - Already exists, easy to look up

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3
Q

Desk Research - Disadvantages

A

Not Appropriate - Desk info not fit for exact purpose may have to be changed to fit a businesses needs

Not Concise - Researcher may have to read lots of info to get what’s needed

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4
Q

Field Research - Description

A

Gathering new info suitable for business’s exact needs

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5
Q

Field Research - Advantages

A

Timely - Info is up to date

Complete - No parts missing

Accurate - Info should be correct as it can be validated

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6
Q

Field Research - Disadvantages

A

Not Cost Effective - Requires trained & paid interviews or expensive companies

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7
Q

Stages of Product Life Cycle

A

Product development - Product being researched & develops changes made after feedback

Introduction - Product is launched, promo activities for hype

Growth - Product been on market for a while, customers aware of it & purchasing it

Maturity - Competition starts to enter market

Saturation - Product suffers from too many competitors

Decline - Product stops being produced

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8
Q

Product Portfolio - Description

A

A range of products on sale

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9
Q

Product Portfolio - Advantages

A

Can spread risk over different markets

A range of products increases awareness of the brand as a whole

Newer products can replace those at the end of their life cycle

Businesses will find it easier to launch new products with a large existing portfolio

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10
Q

Product Portfolio - Disadvantages

A

High costs involved in researching & developing products

High marketing costs incurred to promote so many products

Bad publicity surrounding a product can affect the whole portfolio

Dogs can drain a business of profits unless divested

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11
Q

Pricing Strategies - Competitive

A

Price of product similar to competitiors

  • Avoids price war
  • Encourages competition, improves market
  • Other elements of marketing mix must be better than competitions to ensure sales
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12
Q

Pricing Strategies - Skimming

A

Price set high to begin with & lowers over time

  • Hype around product enables higher prices to be charged, increases profits
  • Lack of competition allows maximum prices to be charged
  • High prices puts people off
  • Results in low initial sales
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13
Q

Pricing Strategies - Penetration

A

Price set low to begin with & increases over time

  • Encourages customers to try new products
  • Business hopes to gain repeat custom once price rises
  • Little profit generated during initial low price period
  • Could result in price war if competitors set lower prices
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14
Q

Pricing Strategies - Destroyer

A

Price set extremely low for a period of time to force out competitors

Competitors are forced out of the market, then prices can increase again
Increases market share

Can only be used by larger
companies that can afford to make losses
Illegal & could breach CMA’s anti-competition rules

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15
Q

Pricing Strategies- Cost Plus

A

Business calculates unit cost & then adds percentage mark-up for profit

Quick way of setting selling price
Ensures total costs are covered & profit is generated

Indirect costs not covered
External factors not taken into account

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16
Q

Pricing Strategies - Price Discrimination

A

Price altered depending on discriminating factor

Ensures products appeal to different market segments
High profit margins on some price brackets

Harder to budget for sales revenue in advance
Loss in potential revenue from selling at cheaper price

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17
Q

Pricing Strategies - Loss Leaders

A

Promo price of 1 or more products set unprofitably low so customers buy other products

Brings customers to business
Encourages repeat purchases

Risk that some customers will only buy loss leaders, impacts profits

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18
Q

Pricing Strategies - Psychological

A

Price set just below next rounded number

Makes customer think product is cheaper than it is
Product fits price band customer has in mind

Calculating total owed can be more difficult
Customers may ignore attempt so rest of marketing mix must convince them to purchase

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19
Q

Press Conferences

A

Media invited to business presentation where they’re given info or news

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20
Q

Press Conferences - Advantages

A

Business can send message to wide audience whilst keeping control of what’s reported

Helps get the media ‘on side’, allows press the opportunity to ask questions directly

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21
Q

Press Conferences- Disadvantages

A

Could face difficult questions & be put on the spot

Business could make situation worse if under-prepared

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22
Q

Press Releases

A

Media provided with written account of business’s newsworthy events

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23
Q

Press Releases - Advantages

A

Can counteract bad publicity

Business can send messages without further questions

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24
Q

Press Releases - Disadvantages

A

Takes time to ensure wording is correct

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25
Q

Donations

A

Some donate anonymously, others make it a PR event

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26
Q

Donations - Advantages

A

Promotes the CSR aims of business & can make it seem ethical

Can help business achieve a positive image

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27
Q

Donations - Disadvantages

A

Some shareholders may prefer money being invested in growing the business

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28
Q

Sponsorship

A

Pay to support an event

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29
Q

Sponsorship - Advantages

A

Can benefit from success of those they sponsor

Can help businesses become popular with customers who support the event

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30
Q

Sponsorship - Disadvantages

A

Expensive

If event suffers bad PR then business will be associated with it

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31
Q

Company Visits

A

Opens factories to public

32
Q

Company Visits - Advantages

A

Customers can get a sense of what the business is like

33
Q

Company Visits - Disadvantages

A

Staff will have to show visitors around which can affect their productivity

34
Q

Promo Merch

A

Giving out free gifts with business details on them

35
Q

Promo Merch - Advantages

A

Customers reminded of company when they use the item

Customers feel rewarded

36
Q

Promo Merch - Disadvantages

A

Expensive

Cheap-looking gifts can affect business’s image

37
Q

Research & Development

A

Sales - No sales yet as product is still being developed

Profits - Making a loss due to development costs

38
Q

Introduction

A

Sales - Slow as customers unsure of product

Profits - High promo costs result in a loss

39
Q

Growth

A

Sales - Rising rapidly due to lack of competition

Profits - Starting to be made

40
Q

Maturity

A

Sales - Peak & levels out

Profits - Starting to fall

41
Q

Saturation

A

Sales - Beginning to fall as customers flocking to competition

Profits - Falling rapidly

42
Q

Decline

A

Sales - Product withdrawn from market

Profits - Continuing to fall

43
Q

People

A

Refers to who is representing a business

Train staff to deal with customers effectively
- Staff informed of business expectations

Regularly update staff on product developments
- Staff appear knowledgeable

Ensure selection methods are rigorous
- Employees suitable to represent business

Monitor staff
- Ensures staff representing business appropriately

44
Q

Process

A

Refers to how a customer receives a service

Ensure outlets & call centres are well staffed
- Avoids long queues

Offer live chat services on website
- Reduces number of queries made over the phone

Empower customer-facing staff to make decisions
- Avoids waiting as queries not passed onto management

Introduce latest tech
- Faster than humans & will speed up processes

45
Q

Physical Evidence

A

Refers to what customers see

Modern & clean vehicles & premises
- Customer’s opinion not ruined by dirty shops or vans

Settings should convey ambiance to match service on offer
- Customers feel needs are recognised even before making a purchase

Feedback from customers should be promoted
- Provides reference materials for new customers

Layout of website should be carefully considered
- Should convey the type of business it is

46
Q

Direct Selling

A

Selling directly from manufacturer to consumer

47
Q

E-Commerce

A

Business selling products using the internet

Entire range can be shown online
Customers reached 24/7
Online discounts offered

Expensive to design high-quality websites
Customers need internet access
May have to pay delivery costs

48
Q

Mail Order

A

Business selling its products using a catalogue

Credit facilities offered to customers
Companies save on staffing & store costs

Glossy catalogues can be expensive to produce
Bad debt may be incurred

49
Q

Direct Mail

A

Business posts letters & letters directly to customer

Specific market segments targeted
Wide geographical area targeted by placing leaflets inside newspapers

Customers may perceive this as junk & may throw this away
Customer mailing lists can quickly become out of date

50
Q

Personal Selling

A

Salesperson sells products directly to customers

Allows demonstration or explanation of product to be given
Feedback on products gathered from customers

Customers may not listen to this type of selling
Staffing costs & commission make this expensive

51
Q

Shopping Channels

A

Business selling products on the TV

Customers see product being modelled
Customers encouraged to buy on impulse

Customers need to switch onto the channel
Long waiting times & have to pay delivery costs

52
Q

Market Led

A

Business develops products off of customer wants

Market research carried out to determine customer wants

Exist in competitive markets

Marketing mix responsive to changes in external factors

53
Q

Product Led

A

Produces products they believe customers want

High levels of product development

New tech often product led

Product unresponsive to changing external factors

54
Q

Need/Want

A

Businesses need to understand different motivations customers have & offer products accordingly

55
Q

Types of Purchases

A

Routine/habitual
Impulse
Informed

Marketing has to raise awareness of products & promotion methods can influence routine purchase

56
Q

Field Research - Quota Sampling

A

Researcher chooses from group of people with certain characteristics

A - Easy as group lists are pre-made
- Can select customers that reflect target market

D - Sample from each group not randomised, researcher could use bias

57
Q

Field Research - Online Survey

A

Website or email used to ask customer questions

A - Customers surveyed over large geo area
- Online software used to easily analyse results

D - Clarification not gained
- Access to internet must be available

58
Q

E-Commerce

A

Selling products online

A - Customers reached 24/7
- Entire range shown online
- Online discounts offered to attract customers

D - Takes time & money to set up website
- Customers need internet access
- Customers wary of providing details online

59
Q

Direct Mail

A

Business posting letters & leaflets to customers directly

A - Specific market segments targeted
- Wide geographical area targeted

D - Customers may perceive as “junk mail” & throw it away
- Mailing lists can become out of date, wastes money

60
Q

Personal Selling

A

Salesperson selling directly to customer

A - Allows demonstration of product
- Feedback gathered from customers

D - Can be seen as a hassle
- Staff costs makes this expensive

61
Q

Wholesalers - Manufacturers

A

A - Packaging of goods carried out by wholesaler which saves manufacturer time
- Wholesalers buy in bulk, saves manufacturer making small deliveries

D - Less profit as cut is taken by wholesalers
- Manufacturer loses control of how product is marketed

62
Q

Wholesalers - Retailers

A

A - Can benefit from promotions offered by wholesalers
- Can trial smaller orders of new products, not left with unsold inventory

D - More expensive than going directly to manufacturers as wholesalers add margin of profit
- Retailers miss deals by not going to manufacturers directly

63
Q

Online Retailers

A

A - Products sold worldwide
- Can be sold 24/7

D - Can’t try product before trying
- Delivery charges off putting

64
Q

Discount Stores

A

A - Products sold for cheap

D - Limited product range
- Some don’t like image of stores

65
Q

Department Stores

A

A - Many target markets catered for
- Central locations attract customers

D - More closing due to high rent
- Staff supervision difficult

66
Q

Trade Credit

A

Manufacturers offer retailers credit to pay for goods later

A - No cash required to stock products
- Can purchase goods & pay once sold

D - Could lead to debt if unable to sell goods

67
Q

POS Materials

A

Free posters given to retailers to display products

A - Enhances look of store
- Can draw customers’ to product display

D - Retailers need to dispose of bulky materials at end of promotion

68
Q

Sale of Return

A

Manufacturers give retailers option to return items that don’t sell

A - Retailers can try new products without risk of unsold inventory
- Improves cashflow

D - Products may be returned in poor condition, creates waste

69
Q

Dealer Loaders

A

Discounts used to encourage retailers to stock up on products

A - Retailers can save on unit cost of products
- Savings passed to customers, increases sales revenue

D - Retailers may overstock
- Products may go out of fashion

70
Q

Staff Training

A

Manufacturers offer retailers free training to give them skills of how to sell product

A - Staff become experts on product
- Staff motivation improved

D - Training done in normal hours, reducing productivity

71
Q

BOGOF

A

A - Encourages customers to try new products

D - Customers feel pressured into buying more than they need

72
Q

Free Gifts

A

Tempts customers to buy products again

A - Requires multiple tokens, multiple purchases

D - Difficult to find gifts that appeals to all markets

73
Q

Vouchers

A

A - Customers getting better value for money, attracting new customers
- Encourages repeat customers

D - Discounts can reduce profits
- Some customers only spend value of voucher, limits sales

74
Q

Interest-Free Credit

A

Customers offered credit to pay for goods later

A - Customers can purchase products & pay when they can afford it

D - Can lead to debt if many customers unable to pay by agreed date

75
Q

EPOS

A

Used to gain market research information

76
Q

Social Media

A

Used to interact with customers

A - Free to use
- Comments left can help improve product

D - Negative feedback can put customers off using business

77
Q

E-mails

A

Can offer promotions to customers

Higher Business Management (6 decks)

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