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AQA A-level Business > Marketing > Flashcards

Marketing Flashcards

1
Q

What is a market ?

A

A market occurs when there are buyers and seller eg the housing market

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2
Q

What is a market?

A

A market occurs when there are buyers and sellers, for example the housing market

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3
Q

What is marketing?

A

Provides a link between customer and business
Identify, anticipate satisfy customer needs and once
Maintain customer relationship and inspire loyalty

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4
Q

Define relationship marketing

A

Company seeks to build long-term relationship with customers by providing consistent satisfaction focuses on customer retention rather than one off sales

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5
Q

Describe the marketing process

A

Set marketing objectives
Gather marketing data
Analyse data
Select plan
Implement plan
Review effect

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6
Q

What are marketing objectives?

A

Marketing target
SMART
Helps achieve corporate objective

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7
Q

How important are marketingobjectives?

A

Compass market due to globalisation on the Internet therefore understanding customers and creating trusting relationships is vital

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8
Q

Define market orientated

A

One where the customers placed at the heart of everything that organisation does. Everyone in the business thinks about decisions from the customers perspective.

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9
Q

What are the types of marketing objectives?

A

Sales volume target
sales growth
sales value target
market growth
market share
brand loyalty
products differentiation

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10
Q

Define sales volume

A

The volume of sales is measured in terms of the number of units sold for example sales of 5 million cartons of drinks

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11
Q

Define sales value

A

The value of sales is measured in terms of how much is spent on a product for example sales of £30,000

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12
Q

Define market size by volume

A

The total units of sales of all the firms in a given market

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13
Q

Define market size by value

A

Multiplying the number of units sold by the selling price

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14
Q

Define sales growth

A

The percentage change in sales volume or value over a given period

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15
Q

Sales growth calculation

A

Change in sales/existing sales x100

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16
Q

What does it what does it mean if the sales growth the growth rate is negative?

A

Sales are falling

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17
Q

Define market share

A

Measure sales of business as a percentage of total sales on the market

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18
Q

Define market growth

A

Measures the change in size of market of time

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19
Q

Calculate market share

A

Market share=sales of firm A /total market size x 100

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20
Q

Calculate market growth

A

(New market size-old market size)/old market size x100

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21
Q

What is marketing

A

provides the link between customer and business
Identify anticipate satis

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22
Q

Define market research

A

Market research involves the gathering and analysis and evaluation of research to help support the implementation of marketing process

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23
Q

What is the purpose of marketing research?

A

It provides in-depth insights, allowing companies to better understand the market and identifies customers needs and preferences

Allows you to know more about the market itself

Find out about competition

Analyse existing position of the business

Decide in possible marketing objectives

Identify actions you want to take

Assess how effective previous marketing decisions have been

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24
Q

What does market research provide insight to?

A

Needs once and expectations of customers and how they are changing

customers behaviours and their market trends as well as a competitive landscape and who customers may prefer to purchase items from the income of the customer

what influences the decision to buy
do they buy it online or in person?

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25
Q

Define competitiveness and how does market research allow businesses to be competitive

A

Competitiveness is the extent any organisation to give good value for money relative to its competitors. A business is competitive if it offers better value for money than rivals market research provides businesses with information that helps them to make good marketing decisions for example what products to develop

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26
Q

Define primary research

A

Data collected firsthand for a specific research purpose for example, focus groups observation surveys telephone interviews test marketing experiments

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27
Q

What are the pros of primary research?

A

Directly focused to research objective

Kept private – not publicly available

More detailed insights – particularly into customer views
Up to date

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28
Q

Cons of primary research

A

Time-consuming and costly to obtain risk of survey bias
sampling may not be representative

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29
Q

Define secondary research

A

Dates that already exist in which has been collected for a different purpose for example publish market research oppose internal transaction data Google trade associations, media reports, newspaper, benchmark data and sensor

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30
Q

What are the pros and cons of secondary research?

A

Pros:
Often free and easy to obtain
Good source of market insight
Quick and easy to use
Usually based on actual data and large samples

Cons:
Quickly become out of date, possibly
Not tailored to businesses needs
Specialist reports is often quite expensive
Can be biased

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31
Q

Why is it important to conduct primary and secondary research

A

It’s important to conduct both because it can fill any knowledge gaps as well as optimise the value and accuracy of research results

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32
Q

How to primary and secondary research which one should be conducted first

A

Secondary research should be conducted first gain abroad and understanding of the topic at hand followed by primary research and narrow down the topics and enhance knowledge in the topic and make it more personalised

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33
Q

Define qualitative data

A

Data that is based on views and opinions, more in-depth research into the motivation behind attitudes and buying habits of customers for example group discussions

34
Q

Define quantitative data

A

Data that is based on hard data and can be numerical for example questionnaires

35
Q

Why is it important to conduct quantitative and qualitative data

A

Using both data pieces can improve evaluations by ensuring the limitations of one of those data are balanced by the strength of another which shows understanding. Qualitative data raises issues that can be looked at in more depth with quantitative analysis and vice versa.

36
Q

Why is it important to conduct quantitative and qualitative data

A

Using both data pieces can improve evaluations by ensuring the limitations of one of those data are balanced by the strength of another which shows understanding. Qualitative data raises issues that can be looked at in more depth with quantitative analysis and vice versa.

37
Q

Define market capitalisation

A

The value of a company that’s traded on the stock market calculated by multiplying the total number of shares x share price

38
Q

Who buys shares?

A

UK individuals , banks,pension funds, insurance companies buy shares

39
Q

In the UK how many shares do individuals own(%)

A

In the UK individuals own less than 15% shares

40
Q

How many shares do foreign investors own in the uK (%)

A

Foreign investors own more than 50% of shares in the UK

41
Q

Benefits of buying shares

A

Receive a share of profits via dividends
Increase in share price will increase value owned

42
Q

Risks of buying shares

A

Share prices can fall for a variety of reasons
Low profits =low dividends

43
Q

What happens in a recession?

A

Demand for goods and services falls -> lower sales-lowered revenue-less dividends -shareholders may sell shares

44
Q

What is the share price of a private company ?

A

Initially set when shareholders subscribe for their shares

There after only determined when shares are bought/sold

No active market in the shares of a private company -so hard to juggle current value

45
Q

Describe the share price of public company

A

Highly transparent -displayed publicly in real time
All trades are disclosed (how many bought /sold and for what’s price)
Share prices widely published and tracked

46
Q

What are the factors that affect the share price of a public company within the company’s control?

A

Financial performance (eg profit gravity)
Dividend policy (how profits are distributed to shareholders
Relationship with key investors (including communication)
Managers

47
Q

What are the factors that influence the share price of a public company out of company controls ?

A

State of economy

General market sentiment

Whether the company is a takeover target

Alternative investment in the company’s sector

48
Q

What do index numbers show?

A

index numbers show percentage changes in data

49
Q

What are business ethics?

A

Morals/values which help businesses decide which actions re right or wrong

50
Q

What are examples of business ethics?

A

Should we advertise products to children?

Ahold we produce harmful products eg alcohol?

Should we charge a high price for a New medical drug because there’s no competition ?

Should a sweet shop be located near a school?

51
Q

define correlation

A

Looking at an apparent link between 2 variables eg promotional spending and number of sales

52
Q

Define positive correlation

A

An increase in one variable increases another variable and vice versa

53
Q

Define negative correlation

A

As one factor goes up another goes down and vice versa

54
Q

Define no correlation

A

No apparent relationship between variables

55
Q

What does correlation usually look at ?

A

Correlation usually looks at sales rather than profits

56
Q

How can managers predict demand?

A

If managers can identify key factors which determines demand they can estimate what is happening to these factors and predict demand

Essential when deciding on pricing policy

57
Q

Define correlation value

A

Given as a value between -1and +1

Higher figure regardless of sign The stronger the correlation

58
Q

Describe a strong correlation

A

Means there’s little room between data points and line
If data suggests strong correlation the. The relationship might be used to make marketing predictions

59
Q

What indicates the strength of correlation?

A

Line of best fit indicates the strength of correlation

60
Q

Describe a weak correlation

A

Means the data point are spread quite wide and far away from the line of best fit

61
Q

What is extrapolation?

A

Looking at what happened to figures in the past and continuing this trend into the future

62
Q

How do you conduct extrapolation?

A

Identify the trend

Draw line of best fit

Continue into the future

Use it to make predictions

63
Q

Why might a trend not continue in terms of extrapolation?

A

Extrapolation is useful provided the identified trend continues into the future many markers are very dynamic and change rapidly

64
Q

What are examples of why a trend in extrapolation may not continue ?

A

Technology
Economy
New competitor
Social change(becoming unfashionable)
Health scare

65
Q

What do confidence levels do

A

Give an indication of how certain researchers are of the results

Eg 76% confidence level means researchers are 76% certain than their results are reliable and represent the population as a whole

66
Q

What does degree of confidence depend on?

A

Size of sample
How the sample was constructed eg was it random?
The margin of error ie the confidence interval

67
Q

Define confidence interval

A

Possible range of outcomes a given confidence level

68
Q

Describe confidence intervals

A

Researchers could say 95% confident sale are between £200000 and £350000 -big margin of error

69
Q

Define random sampling

A

Every member of the population has an equal chance of selection

70
Q

Advantages of random sampling

A

Simple to design
A random sample is relativist quick to survey giving quick results
Lack of bias
It is a useful method if the firms unaware of the type of customers it will/does attract as a method with survey a range of people

71
Q

Disadvantages of random sampling

A

It assumes all people are equally important so it’s less useful if the product is targeted at a specific market segment

A large sample is usually required meaning it can be expensive

72
Q

Define stratified sampling

A

The population is divided into subgroups or strata based on specific characteristics such as age income and apgender ? Random samples are then taken from each subgroup giving everyone in the group equal chance of selection

When stratifying researchers tend to make sure that the proportions from each strata represent the population as a whole

73
Q

Advantages of stratified sampling

A

It ensure representation from all relevant subgroups

It should provide results that are suited to the businesses needs as the people can match the background of the target markets

If buying behaviour is very different between different types of consumer thus method allows the business to examine. This

Lack of bias in selection

74
Q

Disadvantages of stratified sampling

A

Time consuming and it requires detailed knowledge of the population structure

75
Q

Define quota sampling

A

A sampling technique where specific quotas (numbers) or proportions are selected from each strata

76
Q

What is quota sampling similar to?

A

Stratified sampling -as the population is divided in subgroups or stratified based on specific characteristics, however the required number of resoindents is then drawn from each group - this selection is not random the researchers choose who to sample

77
Q

What is the value of sampling ?

A

Sampling saves time and money however there is a risk because the results are only based on a same,e and if the research was conducted badly then the sample won’t be representative of the target population

78
Q

What does the value of sampling depend on ?

A

How the sample was selected eg only asking your friends or only asking men when women also buy the product .
the sample must represent the target population

How the same,e is conducted eg leading question

The sample size the smaller the smaller the less the results will reflect the target population

79
Q

What do researchers need to consider when gathering data ?

A

When gathering data researchers need to consider whether their actions are ethical

Eg

Should they ask permission before filming shopping

Should they ask permission permission before tracking inline purchase then recommending ?

80
Q

Why does market research not guarantee success?

A

Changes in the market eg new competitor/ technology meaning unfair is out of date

Secondary research may be in the wrong format

Sample may not reflect target population

Lack of finance to conduct thorough research

Decisions following research could still be poor

AQA A-level Business (10 decks)

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