Marketing Flashcards

Question

Observations are…

Answer 1

A method of market research conducted by watching consumer behaviour

Answer 2

Real life papers and action Up-to-date quantitive information gathered Simple method as very minimal knowledge is required

Answer 3

Consumers cannot be questioned Samples of random and not representative of all customers Shows actions but not feelings or attitudes

Answer 4

A computerised system for recording sales taking payments monitoring stock and generating reports

Answer 5

Increases efficiency as it processes sales quicker which means staff can take orders and payments easily Eliminates human error as calculated and automated Large volumes of stock control neatly

Answer 6

Maybe expensive to pay upfront If use daily may need maintenance and updated frequently Staff will need extra training in order to operate it which increases training costs

Answer 7

there are no sales or profit as product isn't on the market costs are very high designed and prototype made price is set

Answer 8

product launches onto market no brand loyalty = low sales, no or little profit costs are high e.g. promotion, advertising

Answer 9

high sales and highest profit due to little competition sales increase quickly heightened awareness for product

Answer 10

sale at max then levels out as customers only need to buy one, profits at peak and start to fall more competition enters the market

Answer 11

profits and sales reduce product is unfashionable e.g. trends, new products

Answer 12

a percentage mark up is added to unit cost of producing an item

Answer 13

ensures that total costs are covered and profit is generated

Answer 14

doesn't cover indirect costs e.g. rent

Answer 15

sustained low prices designed to drive a competitor out of the market and is illegal in the UK

Answer 16

competitors are forced out of the market, then prices can increase again increases market share

Answer 17

may incur losses if it doesn't monitor sales of other items positioned alongside loss leader.

Answer 18

new products start at a high price to meet high demand. as the popularity decreases, the prices will drop to skim the market

Answer 19

hype around products and little competition enables higher prices to be charged

Answer 20

high initial prices can put customers off

Answer 21

prices are set below cost price to attract customers

Answer 22

allows business to influence the way customers view a product without needing to change the product

Answer 23

can only be used by larger orgs as they can afford to may losses when prices are low

Answer 24

setting the price just below whole number to make the customer think the product is cheaper

Answer 25

creates greater footfall

Answer 26

causes customers to feel they are being manipulated

Answer 27

pricing is initially set low to gain foothold in market and attract customers. once customer loyalty is established, prices can go up

Answer 28

encourages customers to try new products

Answer 29

very little profit generated in low price period

Answer 30

prices are set in line with competitors

Answer 31

encourages competition which improves the market as a whole

Answer 32

other elements of marketing mix must be better than competition to ensure sales

Answer 33

setting the price lower for a set amount of time

Answer 34

useful to clear off unwanted or unsold stock

Answer 35

business makes a loss during promotional period

Answer 36

charging different prices to different customer groups for the same item

Answer 37

ensures product appeals to different market segments

Answer 38

harder to budget for sales

Answer 39

the act of controlling the image of a business that is perceived by the public

Answer 40

launching product repositioning old products defending org that has encountered public problems building corporate image

Answer 41

the media is invited to a business presentation giving info on product allows the press to cross-examine the business can be made worse by spokesperson which damages brand

Answer 42

written account of businesses activities or products sends a clear positive message no direct selling or advertising edge

Answer 43

promotes CSR and creates positive image good reputation as it shows they care decreases profits therefore dividends

Answer 44

businesses pay for an event/team, popular in sports increased popularity due to wide geographical area very expensive for well-known events

Answer 45

the business opens up factories to the public see exactly what company is like must accommodate for visitors so arrangements are required

Answer 46

free stationery, keyrings, with company name and logo exposure reminds people of brand usually looks cheap

Answer 47

paying for products to appear in TV, films and video games

Answer 48

paying for products to appear in TV, films and video games lots of exposure of product very expensive for manufacturer

Answer 49

using celebrities to promote a product linked to well known celeb increases exposure if celeb receives bad publicity it can decrease sales

Answer 50

Lower the price Changing the place product is sold- some don’t shop at expensive shops so make it more available Changing the use of the product e.g. seasonal change Rebranding the product/changing packaging Altering methods of promotion e.g. celeb endorsement ,social media Developing variations e.g. enlarges product portfolio which can target more market segments

Answer 51

Cash cow Star Dog Question mark

Answer 52

High market growth High/increasing market share Allows firm to be market leader Overtime will decline to cash cow/question mark Need constant investment in marketing to keep ahead of competition

Answer 53

Low market share and growth Should be divested due to lack of market share Cannot be turned into stars May be withdrawn in a recession Can adversely affect profits

Answer 54

Low market share High sales growth Also known as problem child Show potential for the future Need development of strong marketing mix to turn into stars which is costly and may produce negative cash flow

Answer 55

Low market growth High market share Require little/no marketing due to lack of competition Funds generated can help strengthen stars and improve riskier ventures

Answer 56

The percentage of sales in the market

Answer 57

Phonetically for the product to expensive growth in its market

Answer 58

The range of products a firm may have e.g. Virgin have CDs, banking, flights, insurance

Answer 59

Spreads risk of failure Increases sales and profit Easier to launch new products Overcome seasonal flu cations Can appeal to different market segments Increases brand awareness

Answer 60

High R+D costs due to number of products Increased marketing costs Bad publicity from one product can be reflected onto others which can reduce sales

Answer 61

Dogs can drain the business of its profits unless they are divested

Answer 62

CC can fund other riskier ventures Star allow business to become market leader which improves brand image Question marks give businesses opportunities to grow Dogs can be divested to reduce losses

Answer 63

Geared towards the marketing of the service that customers receive which applies to all businesses but especially those in the tertiary sector e.g. hotels, banks, restaurants Physical evidence, people, process

Answer 64

Elements of physical environment that contributes to customer experience. This is the tangible aspect of experience by the customer like the layout/design of premises, website layout and ambience

Answer 65

Layout and design- old fashioned Ambience- lighting, smell, tidy or messy Websites- clear, tidy, links work

Answer 66

Representing the brand or business by providing a service E.g. managers, employees, those who make contact with customers in delivering the product, customer facing who make a substantial impact on firm reputation- good/bad

Answer 67

System and processes that deliver a product to a customer which ensures that staff know what to do and how to do it. This guarantees the level and quality of products and services to customers is consistent E.g. FAQs, short waiting times, self services

Answer 68

Sleep service, FAQs, short waiting times

Answer 69

Managers Employees Those who make contact with customers in delivering the product Customer facing who have a substantial influence on org reputation- good or bad

Answer 70

Radio TV Billboards Internet adverts Direct mail or flyers Cinema Social media and apps Newspapers and magazines

Answer 71

BOGOF- buy one get one free Loyalty cards Free samples New customer offers Like and share competitions Discount/voucher/coupon Free delivery Flash sale e.g. Black Friday Exchanges e.g. part exchange like cars Free gift

Answer 72

A business can adjust the features, appearance and packaging of a product to create competitive advantages

Answer 73

Production costs, competition and demand costs when deciding on a pricing strategy

Answer 74

Business needs to decide where is best to sell/distributions their product

Answer 75

Businesses use promotion method to make customers aware of their products and services

Answer 76

A product is developed and marketed intensively afterward to customers- sometimes driven by technology

Answer 77

Provides what they know the customer wants that will satisfy their needs by finishing out what they want

Answer 78

Product- procures what they believe customers will want and convince them to buy it Market- the business develops products based on what the customer wants

Answer 79

Product- is not seen as important and R+D costs are high Market- high levels of market research to determine customer wants

Answer 80

Product- new technology with little/no competition often produced Market- companies in market-led often exist in highly competitive markets

Answer 81

Product- is often unresponsive to changing external factors Market- the marketing mix will be responsive to change in external facotes and consumer behaviour.

Answer 82

Buying something out of habit and happens without much thought

Answer 83

Buying something on the spur of the moment without thinking about it The customer may be influenced to buy from promotion e.g. money off vouchers, BOGOF

Answer 84

Buying something that requires some thought e.g. piece of clothing, items for a house

Answer 85

Routine/habitual Impulse Informed

Answer 86

Primary, new information which is gathered by the business

Answer 87

Secondary information which is already gathered and analysed and researched by a business

Answer 88

D not as in-depth or specifically focused on your business which means info may be vague F appropriate and relevant for your search Anna’s it fully answers specific questions about product D it’s quick to gather as info already exists F takes a long time to gather D old because it may not be collected recently F up to date D might not be suitable or contain bias info F very accurate as firm can get more info from survey

Answer 89

Sales promotions are offered by the manufacturer to the retailers to encourage them to purchase and stock items

Answer 90

Sales promotions are offered by the retailer to encourage customers to purchase

Answer 91

Sale or return Point of sale displays Dealer loaders Promotional gifts Staff training

Answer 92

Any unsold stock can be returned to the manufacturer. This can encourage retailers to stock new products as it removes risk of having unpaid stock

Answer 93

Posters, window displays that are provided by manufacturer free of charge to display products

Answer 94

The retailers are offered an inducement to attract more orders e.g. ten boxes for the price of nine

Answer 95

Given to retailer to keep them loyal e.g. diaries, pens etc

Answer 96

Products require technical explanation or demonstrations, the manufacturer will offer staff training e.g. car manufacturer will provide training to staff promoting cars in technical specifications and customer service

Answer 97

Limited time frame to encourage customers to purchase selected products. This can be sued to get rid of excessive stock

Answer 98

Customers have to buy the product to allow them to entered prize draws and competitions. This is promoted on the packaging

Answer 99

Customers are offered money off future purchases and can be made available in many different ways e.g. bus tickets, direct mailing and newspapers Often used to encourage loyalty

Answer 100

The product are offered to customer. This allows customers to try product before they buy E.g. perfume or food tasting

Answer 101

BOGOF Competitions Money off vouchers and coupons Free samples

Answer 102

Market research- both desk and field Online surveys can be completed on company website and are cost effective and easy to develop

Answer 103

Storing customer details- email, addresses

Answer 104

Used to send surveys or promotional offers to customers and is quick Advertise new drops

Answer 105

Can interact with customers Products can be advertised at any time and can be accessed by a wide range of customers Competitions on social media

Answer 106

Create and type a sale report Type a press release

Answer 107

Give customers easier access to products and services Text alerts can inform customers of promotions

Answer 108

Open days use PP to promote and present to customers and retailers to purchase product

Answer 109

Collate sales and success of marketing campaign, costs of marketing campaign which can be analysed through graphs made on excel

Answer 110

Choosing a representative group of the population who are used to carry out market research

Answer 111

Finance Technology Target market Product Response rates (face-to-face v self completed)

Answer 112

People are selected from a pre-selected list E.g. telephone book, customer database, electoral roll From this selection, an interviewer chooses individuals to contact who are chosen entirely by chance

Answer 113

Sample is divided into groups based on a particular characteristic e.g. gender, hobbies, occupation Quota is decided for each group Market researchers are required to interview people in each group up to the quota

Answer 114

Less bias as researchers choose randomly Need a large number to meet specific sample numbers, to resent population/segment Sample may not fully represent target market Large sample required to ensure it represents the segments, therefore expensive

Answer 115

If people decline questions others can be asked until quota is met Less expensive than random as specifically represents segment Can be bias as researcher chooses who to interview

Answer 116

Quota sampling is when an interviewer is left to find the popes who fit certain categories whereas in random sampling, pre-selected individuals are asked Quota sampling anyone fits the criteria can be asked whereas in random, once pre-selected, these individuals must be interviewed Quota is less expensive as interviewer can use their judgement to find people to interview whereas random is an expensive method as pre-selected must be interviews and contacted until they are available In quota interviewer bias can occur due to being able to choose who is interviewed whereas random sampling limits bias as everyone is chosen entirely by chance

Answer 117

Manufacturer - wholesaler - retailer -customer Manufacturer - retailer - customer Manufacturer - customer

Answer 118

Finance available Image of product Shelf life of product Legal restrictions Stage of product life cycle Technical qualities

Answer 119

Dependent on how much finance they have e.g. enough finance to set up e-commerce (direct selling)

Answer 120

If manufacturer creates luxury items, they should be sold in specific stores e.g. not online as they might not meet target market.

Answer 121

Perishable items need to get to customer quickly

Answer 122

Certain items can only be sold via a specific channel e.g. prescribed medicine

Answer 123

In introduction, item could be exclusively available in specific store but in maturity the product is more readout available elsewhere e.g. TK Maxx

Answer 124

May need a demonstration and require some direct selling

Answer 125

Take a cut of profit Offer packaging and point of sale display Buy in bulk to distribute to different retailers- less deliveries and reduces costs Carries the risk of product goes out of fashion To promote to the retailer to convince them to stock products

Answer 126

Located near customers To promote products to encourage customers to buy Use sales assistant Buy in bulk if it’s a larger retailer

Answer 127

Supermarkets/hypermarket e.g. Tesco and Asda Convenience store- situated locally e.g. Spar Out of town retail parks e.g. fort Online retailers who use e-commerce e.g. Amazon Discount stores- very popular e.g. Aldi Department stores- high end e.g. John Lewis

Answer 128

When the product goes directly from the manufacturer to the consumer.

Answer 129

Products can be tailored to the consumers special requirements Cuts out the middleman which increases profits for the manufacture Manufacturer has more control over how product is marketed

Answer 130

Increase costs due to advertising, storing stock and administration Time and costly incurred in organising product delivery

Answer 131

The wholesaler buys bulk orders from the manufacturer and divide them into smaller amounts to sell onto the retailer or consumer

Answer 132

Reduces transport cost for manufacturer as wholesalers buy in bulk Wholesalers take on risk and cost of storing stop Wholesaler can re-package and label products in smaller quantities meaning less to work and costs for manufacture

Answer 133

Manufacturer will lose some profit to the wholesaler Manufacture loses control of how the product is sold and marketed The wholesaler may damage the reputation of the manufacturer if the product is not sold correctly

Answer 134

Some larger retailers will buy in bulk in smaller quantities than the wholesalers

Answer 135

Convenient as retailers are located close to customers The retailer displays and markets the goods for the manufacturer and offers after sale service Retailers can provide customers with information about the product

Answer 136

Manufacturer will lose some profit to the retailer Products in retailers are often displayed next to the competition Manufacturer loses control of how the product is sold and marketed

Answer 137

Goods are ordered through a catalogue

Answer 138

Customers can use credit facilities Money is saved on shop rental Customers can shop from home

Answer 139

Catalogues and advertising can be expensive Can incur high levels of bad debt High levels of returns

Answer 140

The buying and selling of products over the Internet

Answer 141

Customers can access 24/7 Allows access to customers in different countries Customers can shop from home Wide range of products shown on company website

Answer 142

Time delay between order and delivery Customers are unable to see and try goods before purchase Can be time-consuming and expensive to make an attractive site

Answer 143

A company posts letters or advertising leaflets to consumers with details of their products

Answer 144

Specific market segments can be targeted directly

Answer 145

Very low response rate as many customers will perceive leaflets as junk mail

Answer 146

TV channels that are used specifically for selling e.g. QVC

Answer 147

Demonstrations/modelled items Customers are encouraged to buy on impulse/short-term promotion

Answer 148

Customers need to switch on channel Customers need to wait for delivery/delivery costs

Answer 149

A sales person will come to your door or sell to you over the phone

Answer 150

Allows for the product to be demonstrated to the customer

Answer 151

High staffing and administration costs