MARKETING Flashcards
1
Q
Customer base
A
group of customers the business sells product to
2
Q
Market
A
all customers who are interested in buying product and have financial resources to do so
3
Q
Target market
A
individuals identified by a business as the consumers of its product
4
Q
consumer market
A
markets for goods and service bought by the final customer
5
Q
industrial Market
A
markets for goods and service bought by other businesses to use in their production process
6
Q
business environment
A
combination of internal and external factors that influence the operation of a business
7
Q
Free trade
A
no barriers existing that might prevent trade between countries
8
Q
Niche marketing
A
developing products for a small segment of market
9
Q
mass marketing
A
selling same product to the whole market
10
Q
Market segment
A
part of whole market in which customers have specific characteristics
11
Q
market SEGMENTATION
A
dividing whole market into segments by consumer characteristics then targeting different product to each segment
12
Q
what are the marketing department sections
A
SALES DEPARTMENT; responsible for selling product
MARKET RESEARCH DEPARTMENT: find customers needs, market changes and impact of competitors behavior
PROMOTION DEPARTMENT: advertising product
DISTRIBUTION DEPARTMENT: transport product to market
13
Q
what are the roles of marketing
A
identify customers needs
satisfy customers needs
maintain customer loyalty
gain info about customers
anticipate changed in customers needs
14
Q
why consumer pattern change?
(2 price, 3 change, 1 structure)
A
- price of competitor product
- price of product
- change in taste
- change in consumers income
- change in technology
- structure of population
15
Q
why competition increases?
A
Government
development of e-commerce
growth of free trade
16
Q
what does the government do to increase competition
A
DEREGULATION:removing government controls
FINANCIAL ASSISTANCE
LEGAL CONTROLS: preventing firm from dominating market
17
Q
how to respond to competition?
A
- KEEP COST LOW use resourceS efficiently to reduce average cost
- DEVELOP PRODUCT, add features
- INCREASE PROMOTION to convince to buy
- MAINTAIN CUSTOMER RELATIONSJIP
- LOOK FOR NEW MARKET
18
Q
disadvantages of mass market
A
more competition
customers look for something different which leads to division of whole market
18
Q
what are the advantages of mass market
A
changes of consumer pattern won’t affect firm
. enjoy economies of scale
.potential for high sales
19
Q
advantages of niche market
A
less competition
charge a high price
if market succeeds it may expand in future
20
Q
disadvantages of niche market
A
changes in consumers spending habits can affect firm
no economies of scale
21
Q
types of market segmentation
A
GEOGRAPHIC location
DEMOGRAPHIC age, gender,ethnic background
PSYCHOLOGICAL lifestyle and personality
22
Q
benefits of market segmentation
A
goods and service designed to meet consumers needs, increasing sales
reduce waste of sources
charge higher price
23
Q
WHATS MARKET RESEARCH
A
process of collecting, recording,analyzing data about customers and competitors for a product
24
what's a unique selling point
special feature of a product that sets it apart from competitors product
25
MARKET ORIENTED
products are developed based on consumers demand as. identified by market research
26
PRODUCT ORIENTED
the firm decides what to produce and then tries to find buyers for product
27
primary research
collection of first hand data for specific needs of the firm
28
secondary research
collection of second hand data sources
29
quantitative research
collection of numerical data that can be analyzed using statistical techniques
30
qualitative research
the collection of information about consumers buying behavior ND THEIR OPINION ABOUT PRODUCT
31
sample
a representative sample of the target market selected to take part in market research
32
why is market research important?
1. helps business find out what consumers like and dislike about their product
2. identify consumers. taste and preference
3.identify competitors main unique selling point
3. know size of market
4. decide on best promotion methods
5. predict demand of product and how it'll change
33
what are the benefits of Market orientated business
1. lower risk of product failing
2. product that meet needs of customers will last longer in market
34
sources of secondary data
newspaper, internet, libraries, market research agencies, government publications, business records
35
benefits of secondary research
cheap to obtain
easier and quicker to obtain
36
limitations of secondary research
may not be up to date
may not be reliable of useful as it may not have been collected for the same purpose required by business
37
benefits of primary research
1.up tp date data
2. data is directly relevant to business
3. info not. available for other businesses(competitive advantage)
38
limitations of primary research
1. costly
2. time consuming
3. answers may be biased
39
what are focus groups
type of primary research, group of consumers are invited to discuss topics about product
40
advantages and disadvantages of FOCUS GROUPS
can provide detailed information about consumers opinion HOWEVER time consuming and expensive, peoples opinions may be influenced
41
what are observations?
takes form of recording watching and audits
42
advantages and disadvantages of observations
inexpensive HOWEVER, numerical data gathered so no explanation to behavior
43
what is test market
Limited amount of product is produced and sold in selected areas
44
advantages and disadvantages of test market
1.less waste and lower cost
2. identifying and solving problems in test market increases chance of a more successful intro to main market
HOWEVER, collecting info is expensive, takes longer to get to main market
45
advantages of sampling
helps saves time to father info about whole population
save cost as it is done in smaller group
46
what's random sampling
every member of population has equal chance of being chosen
47
advantages and disadvantages . of. random sampling
not bias HOWEVER sample. may be unrepresentative
48
what's quota sampling
people selected based on certain characteristics like age, gender,income, researchers choose who to interview.
49
what's marketing mix
includes all activities and decisions that go into making the product, known as the 4 PS
50
PRODUCT
goods and service produced to satisfy customer wants and needs
51
BRAND
name, image or symbol that distinguishes product from competitors product
52
BRAND IMAGE
general impression of a product held by consumers
53
product life cycle
pattern of sales of product from intro to its withdrawal from market
54
extension startegies
marketing activities to extend maturity stage of product
55
PRICE
amount payed by customer to supplier when buying goods or service
56
product quality
product meets needs and expectations of customers
57
what's market skimming
setting a high price for a new product that's unique or different from any other product in market
58
what's penetration pricing
setting very low prices to attract customers
59
what's competitive pricing
setting a similar price to competitors price for a product that's already established in market
60
what's price leadership
smaller firms setting price based on price set by dominant firm in the industry
61
what's loss leader pricing
setting price of a small number of products below costs to attract customers into outlet, hoping that they will buy other products to earn profit
62
what's cost plus pricing
setting price by adding a fixed amount to the cost of making or buying product
63
what's demand
quantity of goods and service consumers are willing and able to buy
64
revenue
price of product times quantity sold
65
what's price elasticity of demand
measures by how much demand for a product changes when there is a change in price
66
what are the features of a successful product
1. satisfies customers needs
2. not expensive to produce
3.design performance, quality match brand image
4. unique selling point
67
BENEFITS of new product development
1. in fast changing markets like hi tech, a business won't survive unless it meets changing needs of customers
2. increase potential sales and revenue
3.develpping new product before competitors will give business a competitive advantage
4. economies of scale
68
COSTS of new product development
1. market research needs to be carried out which is expensive
2.if investment of product if financed by borrowing and product fails, business is at survival risk
3.requires large capital expenditure
4. no garuntee product will succeed
69
why is brand image important
1. customers can recognize product easily
2.once customer loyalty is gained, business can charge higher prices
3. easier to launch new products under same name
70
role of packaging
1. can influence consumers choice
2.packaging costs business money, increase final price
3.poor packaging may indicate poor product
71
why's packaging important
1. product product
2. easier transportation of product
3. helps provide information about product
4. helps recognize product
5.keep product fresh once opened
72
introduction stage of product cycle
product introduced to market, low sales, business might make. loss
73
growth stage of product cycle
product becomes famous, sales increasing, product starts to earn profit
74
maturity stage
sales are no longer growing, most profitable stage
75
decline stage
sales start to fall, product is unprofitable
76
what are some extension strategies
1.introduce new variations to product
2. introduce new and improved version
3.sell thru other retail outlets
4. look. for other markets
5. improve packaging
6.oncrease advertising
77
phycological pricing
price set based on customers perception of product, HIGH PRICE INDICATING HIGH STATUS
NOT USIJG WHOLE NUMBERS
78
channels of distribution
how a product gets from producer to final customer
79
wholesaler
business that buys product in bulk from producer and sells it to retailers
80
retailer
shops and other outlets that sells products to final customers
81
middlemen
intermediaries in channels of distribution
82
direct selling
product is sold by producer directly to customer without middlemen
83
promotion
marketing activities to communicate with customers to inform them and persuade them to buy product
84
informative advertising
information about product communicated to customers to create awareness and attract interest
85
persuasive advertising
communication with customers aimed to get the to buy their product instead of competitors product
86
below the line promotion
promotion not paid for but uses incentives to encourage customers to buy
87
sales promotion
incentives used to increase short term sales or repeat purchase
88
personal selling
sales staff communicate directly with customers to achieve a sale and form long term relationship between firm and consumer
89
direct mail
printed materials sent directly yo address of customers
90
sponsership
payment by a business to have its name or product associated with an event
91
market budget
amount of money made available by a business for its marketing activities during. a period of time
92
e-commerce
use of internet and technologies by a business to sell goods and service
93
advantages of direct selling
1. all profit earned by producer
2.producer controls all parts of marketing mix
3.producer has direct contact with consumer, useful market opportunities
4. fastest method
94
disadvantages of direct selling
1. consumers won't always see or try product before buying
2.all promotional activities financed and carried out by producer
3. high delivery costs
4. storage payed byr producer
95
factors that determine which method od distribution
1. costs
2. mature of product
3market
96
Advantages of retailer method of distribution
1.consumers see and try product before buying
2.cost of inventories payed by retail
3.retailer pay for promotional activities
4. retailers more conveniently located
97
disadvantages of retailer methods of distribution
1. retailer takes part of profit
2. takes part control of marketing mix
3.producer pay delivery cost
4. retailers sell competitors product swell
98
Aima of promotion
1. persuade to buy product
2. explain how product is better than competitors
3.create and develop brand image
4. encourage wholesalers and retailers to stock product
5.reassure customers if there's a problem with product
6. attract attention pf customers by making them aware of product or reminding them
99
100
types of promotion
1. advertising
2. sales promotiom
3. sponsership
101
whats a marketing strategy
plan to achieve marketing objectives using a given level of resources
102
legal controls
laws that control the activity of businesses
103
barriers to trade
usually taxes, quotas, bans that a country places on goods of other countries to prevent or increase cost of them entering country
104
domestic market
market for goods and service that business owns
105
joint venture
agreement between two or more businesses to work together on a project
106
what are the common legal controls
1. protect customers from faulty and dangerous goods
2. prevent businesses from using advertising to mislead consumers
107
impact of legal controls on marketing strategy
1. increase costs on business
2. advertising may have to be withdrawn
3. large company that dominates market may face legal; controls
108
problems of entering foreign markets
1. difference in language and culture
2.economic difference
3. difference in legal controls
4. lack of market knowledge
109
