Marketing Flashcards
What is the difference between marketing and advertising?
marketing identifies customer needs to meet them whereas advertising promotes the company and its products through a paid channel
what are the 4 marketing objectives?
- sales volume and value
- market share
- sales growth
- market size and growth
what is the difference between correlation and causation?
correlation is when there is a statistical association between variables whereas causation is when a change in one variable cause a change in another
what is statistical significance?
a way to measure if results of studies are due to chance or a factor of interest
what is the difference between primary data and secondary data?
primary data is collected and gathered first hand but secondary data is collected by someone else other than the current researcher
what is confidence interval?
Measuring a sample of the questioned matter to get an average estimate of the entire matter
what is extrapolation?
taking incomplete data and using it to predict future outcomes
what does price elasticity do?
it measures how much demand for a product changes in relation to the change in price
what is the difference between price elastic and price inelastic?
price elastic means a small change in price has caused a huge change in demand (e.g. -2)
whereas…
price inelastic means the change in demand is smaller than the change in price (e.g. -0.5)
what does income elasticity do?
measures how much demand for a product changes in relation to fluctuations in the income levels of customers
what are inferior goods?
when you buy less of the product when you have more money or buy more of the product when you have less money (e.g. branded and store made products)
what are the 7 p’s of marketing?
- product
- price
- place
- promotion
- people
- process
- physical evironmemt
what are the 4 sections of market segmentation?
- demographic
- geographic
- psychographic
- behavioural
what does STP stand for?
segmentation, targeting markets, positioning
what are the four stages of the product life style?
- launch
- growth
- maturity + product extension
- decline
what are 5 ways to product extension?
- advertising
- price reduction
- adding value
- explore new markets
- new packaging
what is cost plus pricing?
where once total costs are added up a marked - up % is added to ensure profit is made
what is penetration pricing?
when products are sold at a low initial price, before increasing once sales have peaked
what is price skimming?
setting a high initial price when there isn’t a lot of competition and people who are willing to pay the price will buy the product, then when competition enters, the price is lowered to keep up sales
what is premium pricing?
when a business deliberately sets high prices to make their product seem the most reliable/best quality against other competitors with lower prices
what is loss leader pricing?
when a business sets prices lower than their costs to attract more customers are prices are much lower than competitors
what is destroyer pricing?
when a company sets really low prices to drive competitors out of business
what is psychological pricing?
using offers and discounts to encourage buyers
