Marketing Flashcards
Personal interview is…
Personal interview is conducted personal by an interviewer and respondents
Personal interview advantages are…x3
Two way communication
Researcher can encourage respondent to answer
Mistakes and misunderstandings can be responded quickly
Personal interview disadvantages are…x3
Expensive
Research has to be collected and researchers have to be trained
Home interviews are unpopular
Postal surveys are…
Paper-based surveys which are distributed by post which recipients fill out and send back
Postal survey advantages are…x2
Inexpensive
No training needed
Postal survey disadvantages are…x3
Questions must be simple and easy to answer
Response rates are low so incentives may be needed
Long process as replies take long time to come back
Online surveys are…
Questionnaires carried out on the Internet
Online survey advantages are…x3
Inexpensive
Time effective
Large sample sizes
Online survey disadvantages are…x3
Reliant on websites and links to work to access them
Reliant on pope, taking time to answer
Limited access to people on the internet
Telephone surveys are…
Surveys that I conducted over the phone by asking respondents list of questions
Telephone survey advantages are…x3
Can you call people from all over the country instead of just one area
Doesn’t cost anything and his time effective
Any size of business can carry out the surveys
Telephone survey disadvantages are…x3
Hard to truly engage with someone
Response rate is low as people view it as nuisance calls
Asks limited questions which could be bore respondent
Social networking is…
Monitoring peoples behaviour and social media to identify trends and patterns
Social networking advantages are…x3
Fast method is people are always on social media to respond
It’s affordable as most social media is free
Reaches wide audience
Social networking disadvantages are…
Many Me skip through posts
Not high quality
Easy to leak private info
Hall tests are…
Conducted where respondents try or taste the product or service and offer instant feedback
Hall test advantages are…x3
Can receive good quality feedback
Feedback is received immediately
Inexpensive
Hall test disadvantages are…x2
Customers may be too positive feel obliged to give favourable opinion
Customers opinions and feelings may be difficult to analyse
Focus groups are…
Discussions between a select number of people and an interviewer who ask for their views on specific topics
Focus group advantages are…x3
Researchers can analyse attitudes and customer reactions as they’re face-to-face
More interactive feedback due to small number of people
Allow for quality of information from opinions feelings and attitudes
Focus group disadvantages are…x3
Can be difficult to analyse qualitative information
Expensive due to facility rentals and stuff wages
Long time to arrange and organise
Consumer panels are…
Gathering data from shoppers in order to gain insight into their attitudes behaviour and purchasing habits
Consumer panel advantages are…x2
Detailed feedback can be gathered on products
Quick and efficient
Consumer panel disadvantages are…x2
Expensive as participants receive payment
May be inaccurate or incomplete therefore unhelpful
Observations are…
A method of market research conducted by watching consumer behaviour
Observation advantages are…x3
Real life papers and action
Up-to-date quantitive information gathered
Simple method as very minimal knowledge is required
Observation disadvantages are…x3
Consumers cannot be questioned
Samples of random and not representative of all customers
Shows actions but not feelings or attitudes
EPOS is…
A computerised system for recording sales taking payments monitoring stock and generating reports
EPOS advantages are…x3
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
EPOS disadvantages are…x3
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
research and development stage is when…
there are no sales or profit as product isn’t on the market
costs are very high
designed and prototype made
price is set
introduction stage is when…
product launches onto market
no brand loyalty = low sales, no or little profit
costs are high e.g. promotion, advertising
growth stage is when…
high sales and highest profit due to little competition
sales increase quickly
heightened awareness for product
maturity/saturation stage is when…
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
decline stage is when…
profits and sales reduce
product is unfashionable e.g. trends, new products
cost plus pricing is when…
a percentage mark up is added to unit cost of producing an item
cost plus pricing advantage is…
ensures that total costs are covered and profit is generated
cost pricing disadvantage is…
doesn’t cover indirect costs e.g. rent
destroyer pricing is…
sustained low prices designed to drive a competitor out of the market and is illegal in the UK
destroyer pricing advantage is…x2
competitors are forced out of the market, then prices can increase again
increases market share
destroyer pricing disadvantage is…
may incur losses if it doesn’t monitor sales of other items positioned alongside loss leader.
price skimming is when…
new products start at a high price to meet high demand. as the popularity decreases, the prices will drop to skim the market
price skimming advantage is…
hype around products and little competition enables higher prices to be charged
price skimming disadvantage is…
high initial prices can put customers off
loss leader is when…
prices are set below cost price to attract customers
loss leader advantage is…
allows business to influence the way customers view a product without needing to change the product
loss leader disadvantage is…
can only be used by larger orgs as they can afford to may losses when prices are low
psychological pricing is…
setting the price just below whole number to make the customer think the product is cheaper
psychological pricing advantage is…
creates greater footfall
psychological pricing disadvantage is…
causes customers to feel they are being manipulated
penetration pricing is when…
pricing is initially set low to gain foothold in market and attract customers. once customer loyalty is established, prices can go up
penetration pricing advantage is…
encourages customers to try new products
penetration pricing disadvantage is…
very little profit generated in low price period
competitive pricing is when…
prices are set in line with competitors
competitive pricing advantage is…
encourages competition which improves the market as a whole
competitive pricing disadvantage is…
other elements of marketing mix must be better than competition to ensure sales
promotional pricing is…
setting the price lower for a set amount of time
promotional pricing advantage is…
useful to clear off unwanted or unsold stock
promotional pricing disadvantage is…
business makes a loss during promotional period
price discrimination is…
charging different prices to different customer groups for the same item
price discrimination advantage is…
ensures product appeals to different market segments
price discrimination disadvantage is…
harder to budget for sales
PR is…
the act of controlling the image of a business that is perceived by the public
PR is used when…x4
launching product
repositioning old products
defending org that has encountered public problems
building corporate image
press conferences are when…
+/-
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
press release is a…
+/-
written account of businesses activities or products
sends a clear positive message
no direct selling or advertising edge
donations to charities…
+/-
promotes CSR and creates positive image
good reputation as it shows they care
decreases profits therefore dividends
sponsorship is when…
+/-
businesses pay for an event/team, popular in sports
increased popularity due to wide geographical area
very expensive for well-known events
company visits are when…
+/-
the business opens up factories to the public
see exactly what company is like
must accommodate for visitors so arrangements are required
promotional merchandise is…
free stationery, keyrings, with company name and logo
exposure reminds people of brand
usually looks cheap
product placement is…
paying for products to appear in TV, films and video games
product placement is…
+/-
paying for products to appear in TV, films and video games
lots of exposure of product
very expensive for manufacturer
product or celeb endorsement is…
+/-
using celebrities to promote a product
linked to well known celeb increases exposure
if celeb receives bad publicity it can decrease sales
Extension Strategies are…x6
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
Stages of Boston Matrix are…x4
Cash cow
Star
Dog
Question mark
Stars have…x5
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
Dogs have…x5
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
Question marks have…x5
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
Cash cows have…x4
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
Market share is…
The percentage of sales in the market
Market growth is…
Phonetically for the product to expensive growth in its market
Product portfolio is…
The range of products a firm may have
e.g. Virgin have CDs, banking, flights, insurance
Advantages to broad product portfolio are…x6
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
Disadvantages to a broad product portfolio are…x3
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
Disadvantage of Boston Matrix is…
Dogs can drain the business of its profits unless they are divested
Advantages of Boston Matrix are…
1 for each stage
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
The extended marketing mix are…
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
Physical evidence is the…
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
Examples of physical evidence are…x3
Layout and design- old fashioned
Ambience- lighting, smell, tidy or messy
Websites- clear, tidy, links work
People are those…
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
Process is the…
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
Examples of process are…x3
Sleep service, FAQs, short waiting times
Examples of people are…x4
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
Methods of advertising are…x8
Radio
TV
Billboards
Internet adverts
Direct mail or flyers
Cinema
Social media and apps
Newspapers and magazines
Examples of sales promotions are…x10
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
Product is when…
A business can adjust the features, appearance and packaging of a product to create competitive advantages
Price considers…
Production costs, competition and demand costs when deciding on a pricing strategy
Place is when a…
Business needs to decide where is best to sell/distributions their product
Promotion is when…
Businesses use promotion method to make customers aware of their products and services
Product-led approach is when…
A product is developed and marketed intensively afterward to customers- sometimes driven by technology
Market-led approach is when a business…
Provides what they know the customer wants that will satisfy their needs by finishing out what they want
Difference in customers for product and market-led approaches is…
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
Difference in market research for product and market-led approaches is…
Product- is not seen as important and R+D costs are high
Market- high levels of market research to determine customer wants
Different is competition for product and market-led approaches is…
Product- new technology with little/no competition often produced
Market- companies in market-led often exist in highly competitive markets
Difference in adaptability or change in product and market-led approaches is…
Product- is often unresponsive to changing external factors
Market- the marketing mix will be responsive to change in external facotes and consumer behaviour.
Routine/habitual purchases are…
Buying something out of habit and happens without much thought
Impulse purchasing means…
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
Informed purchases are…
Buying something that requires some thought e.g. piece of clothing, items for a house
Types of purchasing are…x3
Routine/habitual
Impulse
Informed
Field research is…
Primary, new information which is gathered by the business
Desk research is…
Secondary information which is already gathered and analysed and researched by a business
Differences between desk and field research are…x4
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
Into the pipeline means…
Sales promotions are offered by the manufacturer to the retailers to encourage them to purchase and stock items
Out of the pipeline means…
Sales promotions are offered by the retailer to encourage customers to purchase
Into the pipeline promotion examples are…x5
Sale or return
Point of sale displays
Dealer loaders
Promotional gifts
Staff training
Sale or return means…
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
Point of sale displays are…
Posters, window displays that are provided by manufacturer free of charge to display products
Dealer loaders are when…
The retailers are offered an inducement to attract more orders e.g. ten boxes for the price of nine
Promotional gifts are…
Given to retailer to keep them loyal e.g. diaries, pens etc
Staff training is if…
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
BOGOF is used for…
Limited time frame to encourage customers to purchase selected products. This can be sued to get rid of excessive stock
Competitions are when…
Customers have to buy the product to allow them to entered prize draws and competitions. This is promoted on the packaging
Money off coupons and vouchers are when…
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
Free samples of…
The product are offered to customer. This allows customers to try product before they buy
E.g. perfume or food tasting
Out of the pipeline examples are…x4
BOGOF
Competitions
Money off vouchers and coupons
Free samples
Use of the internet in marketing is…
Market research- both desk and field
Online surveys can be completed on company website and are cost effective and easy to develop
Use of databases in marketing is…
Storing customer details- email, addresses
Use if email in marketing is…
Used to send surveys or promotional offers to customers and is quick
Advertise new drops
Use of social media in marketing is…
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
Word can be use in marketing to…
Create and type a sale report
Type a press release
Apps can be used in marketing to…
Give customers easier access to products and services
Text alerts can inform customers of promotions
PowerPoint can be used in marketing as…
Open days use PP to promote and present to customers and retailers to purchase product
Excel is used in marketing to…
Collate sales and success of marketing campaign, costs of marketing campaign which can be analysed through graphs made on excel
Sampling is…
Choosing a representative group of the population who are used to carry out market research
What affects the sample chosen? X5
Finance
Technology
Target market
Product
Response rates (face-to-face v self completed)
Random sampling is when…
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
Quota sampling is when a…
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
Features of random sampling are… x4
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
Features of quota sampling are…x3
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
Distinguish between quota and random sampling x4
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
3 channels of distribution are..
Manufacturer - wholesaler - retailer -customer
Manufacturer - retailer - customer
Manufacturer - customer
Factors affecting the channels of distribution are… x6
Finance available
Image of product
Shelf life of product
Legal restrictions
Stage of product life cycle
Technical qualities
Finance available means it is…
Dependent on how much finance they have e.g. enough finance to set up e-commerce (direct selling)
Image of product means…
If manufacturer creates luxury items, they should be sold in specific stores e.g. not online as they might not meet target market.
Shelf life of product means that…
Perishable items need to get to customer quickly
Legal restrictions are a factor affecting channels as..
Certain items can only be sold via a specific channel e.g. prescribed medicine
Stage of product life cycle affects channels as…
In introduction, item could be exclusively available in specific store but in maturity the product is more readout available elsewhere e.g. TK Maxx
Technical qualities affect channels as…
May need a demonstration and require some direct selling
Roles of wholesaler are…x5
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
Roles of retailer are…x4
Located near customers
To promote products to encourage customers to buy
Use sales assistant
Buy in bulk if it’s a larger retailer
Types of retailers are…x6
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
Direct mailing is…
When the product goes directly from the manufacturer to the consumer.
Direct mailing advantages are…x3
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
Direct selling costs are…x2
Increase costs due to advertising, storing stock and administration
Time and costly incurred in organising product delivery
Selling via wholesaler means that…
The wholesaler buys bulk orders from the manufacturer and divide them into smaller amounts to sell onto the retailer or consumer
Selling via wholesaler advantages are…x3
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
Selling via wholesaler costs are…x3
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
Selling via the retailer means that….
Some larger retailers will buy in bulk in smaller quantities than the wholesalers
Selling via the retailer advantages are…x3
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
Selling via the retailer disadvantages are…x3
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
Mail order is when…
Goods are ordered through a catalogue
Advantages to mail order are…x3
Customers can use credit facilities
Money is saved on shop rental
Customers can shop from home
Disadvantages to mail order are…x3
Catalogues and advertising can be expensive
Can incur high levels of bad debt
High levels of returns
E-commerce (direct selling) involves…
The buying and selling of products over the Internet
Advantages to e-commerce are…x4
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
Disadvantages to e-commerce are…x3
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
Personal selling (door to door) is when…
A company posts letters or advertising leaflets to consumers with details of their products
Personal selling advantage is…x1
Specific market segments can be targeted directly
Personal selling disadvantage is…x1
Very low response rate as many customers will perceive leaflets as junk mail
Tv shopping channels are…
TV channels that are used specifically for selling e.g. QVC
Advantages to tv shopping channels are…x2
Demonstrations/modelled items
Customers are encouraged to buy on impulse/short-term promotion
Disadvantages to tv shopping channels are…x2
Customers need to switch on channel
Customers need to wait for delivery/delivery costs
Personal selling is when…
A sales person will come to your door or sell to you over the phone
Advantage to personal selling is…x1
Allows for the product to be demonstrated to the customer
Disadvantage to personal selling is…x1
High staffing and administration costs
