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Business > Marketing > Flashcards

Marketing Flashcards

1
Q

What is a market?

A

A market consists of all the sales of one particular group of goods and services.
E.g grocery market, housing market or stock market.

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2
Q

Purpose of marketing?

A

Identify and satisfy customer needs.

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3
Q

Why do businesses need to work hard to identify and satisfy customer needs? (3)

A

Avoid costly mistakes.
Increase Sales
Provide a product/service that a customer would buy.

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4
Q

What is the marketing mix?

A

All the activities influencing whether or not a customer buys a product. The elements of the mix can be analysed using the 4 ps - price, product, promotion, place.

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5
Q

What is segmentation?

A

When a market is divided into different groups of needs and wants which allows businesses to focus on individual groups e.g men/women, age groups or geographic location.

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6
Q

Why do businesses do segmentation?

A

We can understand the different groups of consumers we might be targeting. It affects the way we design products, choose a price, advertise and more.

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7
Q

What are the benefits of Segmentation? (2)

A
  • Understand specific customers better -> predict what they’d want in the future.
  • Maximise profit from each group -> e.g charging at a higher price as we know many people have no choice but to use the train at a certain time.
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8
Q

Disadvantages of segmentation? (2)

A
  • Detailed research required -> this can be expensive.
  • Can be very difficult to accurately predict what a customer will like or dislike.
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9
Q

What is market research?

A

The process of gathering, analysing and processing data relevant to marketing decisions.

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10
Q

Purpose of market research?

A

So businesses can work out - demand, competition, target market.

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11
Q

Different methods of market research? (3)

A

Interview
Questionnaires
Surveys

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12
Q

Advantage and Disadvantage of Questionnaires and surveys?

A

Easy/cheap to produce
Difficult to get responses

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13
Q

Advantage and Disadvantage of Interviews?

A

Detailed information as they’ll have more time to ask further questions.
Time consuming and expensive.

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14
Q

2 Advantages and Disadvantage of Focus group?

A

Opportunity for discussion and more detailed responses.
Time consuming

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15
Q

What is a focus group?

A

A group of people that are chosen from their target market to discuss a product.

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16
Q

2 Advantages and Disadvantage of Internet Research and Printed Media?

A

Lots of information available.
Cheap (secondary research)
Information can be misleading
Since its secondary research, it may not be suited to the business’s purpose.

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17
Q

What is place?

A

The different channels of distribution a business uses to get their products to the customers.

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18
Q

Give 2 examples of producer –> consumer?

A

Producer -> Wholesaler (people that buy in bulk to sell to retailers) -> Retailer -> Consumer.

Producer -> Retailer -> Consumer.

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19
Q

4 different ways of buying a product?

A

Traditionally - via a shop or office.
E - commerce/M - commerce - sales via a website or an app.
Modern Retail - Using technology to improve the process (self-checkouts)
Telesales - sales made by phone direct to the customer.

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20
Q

What is the decision of choosing a price based on?

A

Internal and external factors.

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21
Q

Give 3 examples of what decided on a price needs to be based on?

A

Nature of the market
The stage a product is at its lifecycle
Costs associated with the product.

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22
Q

What is price skimming?

A

Setting the product at a higher price when it first enters the market.

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23
Q

Potential impact of price skimming?

A

The business can try to take advantage of the excitement around the release of the product. Some customers will be willing to pay more to get the product sooner thus the company can recover some of its Research and Development costs.

24
Q

What is price penetration?

A

Setting a price lower than the competition for a short time to achieve fast sales.

25
Q

Potential impact of price penetration?

A

Business can attempt to increase their share of the market.
If the product is new or if they are entering this market for the first time, customers may be encouraged to try the product or switch from a competing product.

26
Q

Describe a product life cycle?

A

Development -> Introduction -> Growth -> Maturity -> Decline

27
Q

What is competitive pricing?

A

Pricing alongside or similarly to the competition.

28
Q

Potential impact of competitive pricing?

A

Customers will see the price as the ‘normal price’.

29
Q

What is loss leader?

A

Setting a price for a product that means a loss is made on each sale.

30
Q

Potential impact of loss leader?

A

A very low price on a product may encourage people to go to the business and subsequently buy other items that make a profit.

31
Q

What is cost plus pricing?

A

Adding a percentage profit to the cost of producing/selling a product.

32
Q

Potential impact of cost plus pricing?

A

Each unit they sell will make them a profit.

33
Q

What will a business consider when developing a new product? (3)

A

The design
The cost of production and development
The expected sales

34
Q

What is a USP?

A

Key feature of a product that differentiates it from the other products in the same market.

35
Q

Stages of new product development?

A

Generate the idea -> Check the idea -> Develop the product -> Trial the product -> Launch

36
Q

What is a product portfolio?

A

The collection of products that a firm produces.

37
Q

What is promotion?

A

The name given to all of the business activities that encourage the customer to buy a product.

38
Q

Why do businesses promote? (3)

A

To inform/remind customers of the product.
Create or increase sales.
Persuade customers to try or buy the product.

39
Q

How do businesses choose a method of promotion? (3)

A
  • Finance available to spend
  • The type of good or service the product is
  • Who the target market are
40
Q

3 ways of promoting a product?

A

Advertising
Sales Promotion
Social media

41
Q

What is advertising?

A

The type of adverts seen on TV, radio, newspapers, billboards and the internet.

42
Q

What is Public Relations Events?

A

The ones that change how we think about a business. E.g some give to charity.

43
Q

What is sales promotion?

A

Special offers and displays. 2 for 1, free gifts, coupons, samples and competitions.

44
Q

What is sponsorship?

A

Businesses often sponsor football teams or sporting events. The same as they might sponsor a good cause such as a school.

45
Q

What is social media?

A

Interacting with customers via social media to modernise the business. It involves the customer in the brand.

46
Q

What does zero level mean?

A

There is no intermediary between the producer and the customer. The maker of the product sells it to its final buyer.

47
Q

Advantages of using intermediaries in the distribution channel?

A

Intermediaries help sell the product widely and can save the manufacturer costs of trying to distribute directly to many different customers in many different places.

48
Q

Disadvantages of using intermediaries in the distribution channel?

A

The intermediaries will want to make a profit so the price is increased at each stage. The final product will be more expensive than if the producer sold it right to the customers.
By selling the product to intermediaries, the producer loses control. The producer may not approve of their displays, descriptions or their store layout.

49
Q

What is Boston Matrix?

A

Analysing a product’s share and growth in their market

50
Q

What is a complementary product?

A

A product sold alongside another that may be of use or of interest to the customers. E.g extended warranties alongside the checkouts at Currys PC world.

51
Q

3 Extension strategies?

A

Special offers
Advertising
Price reduction

52
Q

What is secondary research?

A

Using sources of information that have already been published.

53
Q

What is sales volume?

A

Number of items sold.

54
Q

What is sales value?

A

Revenue generated from the sales.

55
Q

What is quantitative market research?

A

Collecting information in a numerical manner. Statistical analysis is easier.

56
Q

What is qualitative market research?

A

Collecting information about customers’ thoughts and opinions about a product that they can describe in detail.

Business (5 decks)

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