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Higher Business Managment > Marketing > Flashcards

Marketing Flashcards

1
Q

Market Skimming

A

Price is high then lowers over time eg. iPads or iPhones

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2
Q

Penetration

A

Low price then increases over time eg. ‘trial prices’ on new chocolate bars

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3
Q

Destroyer pricing

A

An illegal practice were the price is deliberately set extremely low for a period of time to force out competitors.

Other companies physically can’t compete with the low prices

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4
Q

Competitive pricing

A

Prices are set similar to the competitors. Eg. Fuel prices
Avoids a price war and encouraged competition.

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5
Q

Loss leaders

A

A promotional price on one or more products which are set so low in order to entice customers in to buy other normally priced products

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6
Q

Price descrimination

A

Prices change depending on a discriminatory factor eg. Child tickets are cheaper than adult tickets on buses and trains.

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7
Q

Cost plus

A

Calculate the unit cost of a product then add a percentage mark up for profit.
Eg. Unit cost £50, 50% markup for profit, therefore they sell the product for £75.

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8
Q

Psychological

A

The price of a product is set just below the next rounded number eg £49.99 instead of £50.
Makes the customer think the product is much cheaper than it actually is.

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9
Q

Trade credit (into- the-pipeline)

A

Manufacturers/suppliers offer retailers credit to pay for goods at a later date.

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10
Q

Point-of-sale (POS) materials (into-the-pipeline)

A

Free posters and display materials are given to retailers to display products to customers.

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11
Q

Sale or return (into the pipeline)

A

Suppliers give retailers the option to return goods that do not sell.

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12
Q

Dealer loaders (into the pipeline)

A

discounts used to encourage retailers to stick up on a product eg. Buy 10 boxes get one free.

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13
Q

Staff training (into the pipeline)

A

Suppliers can offer retail staff free training to give them the knowledge and skills to sell the product.

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14
Q

Special offers (out of pipeline)

A

Short term promotions set on selected items. This can include BOGOF, buy one get one free.

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15
Q

Free gifts (out of the pipeline)

A

Used to tempt customers to buy a product again or for the first time eg. Toy in children’s cereal.

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16
Q

Vouchers and coupons (out of pipeline)

A

Usually given in newspapers or magazines to give customers money off future purchases.

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17
Q

Loyalty schemes (out of pipeline)

A

Allow customers to collect points by making purchases, which at a later date can be exchanged for discounts or free products in the future. Eg. Tesco club card

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18
Q

Interest free credit (out of pipeline)

A

Retailers offer customers credit to pay for goods at a later date.

19
Q

Free trials (out of pipeline)

A

Services like Netflix and audible offer a free trial for a month. Customers can try the product then if they like it, will purchase it at full price.

20
Q

Competitions (out of pipeline)

A

Businesses can use competitions to encourage customers to buy something in order to take part
Eg. Monopoly at Mc Donald’s

21
Q

Trade shows and events (out of pipeline)

A

Attending industry trade shows or events such as the Royal Highland Show to give out samples and to engage with the public.

22
Q

Advantages of Varied Product Portfolio

A

Spreads risk over difference markets.

Range of products increases awareness of the brand as a whole.

Easier to launch new products with a large existing portfolio.

23
Q

Disadvantages of Varied
Product Portfolio

A

Bad publicity surrounding one product can affect the whole portfolio negatively.

High marketing costs to promote so many varied products.

High costs in researching and developing so many products.

24
Q

Random Sampling

A

Sample is picked randomly eg. Using a telephone directory or a list of customers.

25
Q

Adv of random sampling

A

No bias is shown by shown by the researcher.

Saves time in selecting the sample

26
Q

Disadv of random sampling

A

Sample may not reflect the target market.

Can overrepresent a certain segment eg. All males could be chosen at random accidentally

Can be expensive as many calls may have to be made if customer lists are not up to date.

27
Q

Quota sampling

A

Researches chooses from a group of people with certain characteristics eg. Males 20+

28
Q

Adv quota sampling

A

Quick and easy method as group lists are pre made.

Can select customers that reflect the target market.

29
Q

Disadv quota sampling

A

The exact sale from each group is not randomised so researcher bias could be involved.

30
Q

Desk research adv

A

Timely - deals info is quick to gather

Cost effective - does not require trained and paid interviewers or research companies.

Available - already exists to easy to look up

31
Q

Desk research

A

Involves researching and analysing info that has already been gathered.

32
Q

Desk research disadv

A

Not objective - collected and presented by someone else, could be biased

Not appropriate- may not be fit for exact purpose and may have to be altered to fit the businesses needs

Not concise - the researcher may have to read through a lot of info to get what is needed.

33
Q

Field research

A

Involves gathering brand new info that is suitable for the business’s exact needs.

34
Q

Field research adv

A

Complete - no parts of the info is missing

The info is up to date

Appropriate - fit for the purpose it is needed for

Accurate - information should be correct as it can be validated

35
Q

Field research disadv

A

Costly - requires trained and paid interviewers or expensive research companies

36
Q

Online survey

A

Field - a website or email is used to ask customers questions

37
Q

Telephone survey

A

Field - a market researcher telephones customers usually at home, and asks them questions.

38
Q

Postal survey

A

Field - a survey is sent to customers through the post and is posted back once completed.

39
Q

Personal interview

A

Field - often conducted as a street survey or by ‘cold calling’ customers’ homes and asking them questions.

40
Q

Hall tests

A

Field - a product is given to customers to try and their feedback is gathered

41
Q

Focus groups

A

Field - a group of customers is brought together and asked to answer and discuss questions put forward by a market researcher

42
Q

Test marketing

A

Field - a new product is launched in a regional area and the reaction is monitored. Successful products are then launched to a wider market.

43
Q

Electronic point of sale (Epos)

A

Field - Information on customer preferences and habits is gathered as their loyalty cards are swiped through electronic told. Used in conjunction with loyalty schemes to match purchasing information with customer details.

Higher Business Managment (5 decks)

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