Marketing Flashcards
describe the advantages and disadvantages of product led strategies
-businesses can focus on the quality of their products/take time in production
-the business can invest in technology and apply it to their products
disadvantages
-the needs of the market is completly ignored
-any changes in style/fashion is not accounted for
describe the advantages and disadvantages of market led strategies
-the business will be confident in its products launch as it knows the market inside and out
-strong position to deal with any competition as it will know how the market operates
disadvantages
-market-led research is incredibly expensive
-future can be unpredictable meaning by nature the business has a high chance of failing
what is field and desk research
Field research is carrying out information gathering using tactics such as surveys and questionaires
Desk research is information that has already been found such as in a book
Different types of field and desk research
Field research
-Questionaires,surveys,interviews,product testing
Desk research
websites,books journels,
advantages and disadvantages of desk Research
Desk research
Advantages
-Decisions can be made quickly as information is already supplied
-easy to obtain as research is already there
disadvantages
-Information may be outdated/not been researched recently leading to poor decisions
-information could be biased
Advantages and disadvantages of Field research
Field research
-more up to date
-gathered for specific purpose/will be relevant due to being gathered in a specific niche
Disadvantages
-can be expensive/money wont be used elsewhere
-time consuming/slow
What is Random and Quota sampling
Random sampling is when a business takes random individuals and for example gives them a survey using a computer or electoral register
Quota sampling is when people are selected using characteristics to answer questions
Advantages and disadvantages of random sampling
advantages
-Random sampling can not be biased meaning all the information is random
-saves time as the business doesn’t need to select individuals
Disadvantages
-could completely not represent the market when choosing individuals
-could over represent certain groups in the characteristics skewing results
Quota sampling
-Quick and easy method as lists are already made up
disadvantage
-Research bias could happen as each group isnt random
what are all the stages of the product life cycle
-Development
-Introduction
-Growth
-maturity
-Saturation
-Decline
What would happen to a product as it moves through the cycle
R&D Finance would be raised and there would be no loss/profit as the product hasnt been released
Introduction
-Very low to no profits would be made here as the product is getting heavily promoted
Growth
-Profits would start to increase as customers are informed about the product
Maturity
-profits would peek as customers are aware of the product as its established
Decline
-The product sales decline as the product becomes obsolete on the market
Product portfolio Advantages and disadvantages
-lower risk of failure as products are spread out onto different markets
-Increased customer loyalty if a customer believes one product is good they may go for another product by the same company
-higher profits as the products reach a variety of different markets
-easier to launch new products as the brand is known in many different markets
-If the brand perhaps gets a bad reputation due to selling a bad product it may impact sales on all departments
Disadvantages of Product portfolio
Higher costs of research and development as products need to be researched into different markets
-Bad publicity in one market or on the brand affects the brand in every market meaning potentially lower customer consumption/purchasing
-resources will be spread thin as one product may affect sales on all products
Boston matrix layout
StarProblem child
Cashcow dog
Describe Star and problem child
High growth large market share
Problem child
High growth,Low market share
Describe cash cow and dog
Dog
low market share low growth
Cash cow
Low growth large market share
What are all the Pricing strategies
-Cost plus
-Low price
-market/competitive pricing
-High/premium pricing
-Market skimming
-Destroyer pricing
-Penetration pricing
-Promotional pricing
-Loss leader
-Discriminatory pricing
-Psychological pricing
Cost plus
A-profits are predictable,since your setting your markup price at a specific precentage
D-doesnt take into external factors
Low price
A-Increased sales due to low cost
D-Diminish brand reputation low cost=low quality
Market/competitive pricing
A-Maintain market share/portion attract customer who will pay slightly less
D-need to watch market super closely to see what competitors are doing
Premium pricing
A-profit margins way higher charge more than manufacturing cost
D-only works if consumers see brand as high value
Market skimming
A-hype around a product allows it be sold at a much higher price at the start of its product life cycle which can enable higher profts
D-high initial costs can put customers off
like Gucci
Penetration pricing
A-Quickly get customers
D-not sustainable in the slightest
Destroyer pricing
A-forces competitors out of market then prices can increase resulting in company having greater market share
D-Illegal/not aloud as it breaks business fair play rules and regulations
promotional pricing
A-Sales are boosted due to low price
D-only works in short term resulting in profit margins eroding over time
Loss leader
A-brings customers to the business in hopes they buy more i.e greater footfall/encourages repeated purchases
D-customer may only buy the loss leader resulting in lower profits
Discriminatory pricing
A-selling the same product but in a different market segment resulting in higher product appeal in specific places
D-harder to budget for profits/sales revenue
psychological pricing
A-sell more by slightly altering price
D-customer may not fall for the trick
Sales promotion
Into the pipeline-pipeline-out of pipeline meaning
Into-Distribution system(manufacturer to wholesaler)
Out of pipeline-Encourages more sales(retailers-consumers
Into pipeline tactics
since its manufacturer to wholesaler
deals such as 20crates for 5 free in order to encourage buying in bulk
promotional gifts i.e Alcohol
out of pipeline tactics
BOGOF/loyalty schemes
Channel distribution
what are some of the reasons for choosing different channels
-The Nature of the product i.e does it need to be freshed/cooled
-Available finance having own retail outlets carries additional costs use of wholesalers cuts costs
-Legal restrications-I.e medicine only sold in pharmacy
-reliability of wholesaler-consistent and fast if not could impact sales
Methods of distribution
Car
Train
Air
boats
advantages and disadvantages of car/road
A-Cheap method/direct delivery
D-carbon emissions/Road works could impact speed signifcantly
Advantages and disadvantages of Rail
A-Transport a large amount of crates/freight
D-rail works could impact business speeds
Air
A-global access
d-expensive
Sea
A-large products can be sent around the world
D-Longer waiting time/takes ages
Direct sellers/e-commerance Advantage and disadvantage(customer)
Advantage
-up 24/7
-customer reviews could leave positive reviews
Disadvantage
-requires internet
-could be fake sites/get scammed
e-commerance (seller)
Advantages and disadvantages
advantage
-Available 24-7 sales at any time
-fairly inexpensive to set up
Disadvantage
-staff turnover i.e firing of staff can cause staff needing to be trained
-can be expensive and time consuming to make a website
Explain the advantages of using an app to promote a product
-app can be used anywhere as its up 24-7
-allows customers worldwide to be targeted for promotion material
-information about products can be updated quickly and efficiently meaning customers are up to date constantly and instantly with produtcs
