Marketing Flashcards
What are the 4 Ps of the marketing mix?
Product, Price, Place, Promotion.
What is market research?
The process of gathering, analysing, and interpreting information about a market, including potential customers and competitors.
What are the two main types of market research?
Primary research (first-hand data) and secondary research (existing data).
Name three methods of primary market research.
Surveys, focus groups, and observations
How can businesses use market research?
To identify customer needs, improve products, set prices, and develop effective marketing strategies.
What are the two main types of markets?
Mass market (large audience) and niche market (specific, smaller audience).
What are the five stages of the product lifecycle?
Development, Introduction, Growth, Maturity, Decline.
What are extension strategies?
Methods used to prolong the life of a product, such as updating designs, rebranding, or targeting new markets.
What is a product portfolio?
The range of products a business sells, often analysed using the Boston Matrix.
What are the key stages in product development?
Idea generation, market research, prototype development, testing, and launch
Why is product differentiation important?
It helps businesses stand out from competitors and attract target customers
Name four pricing strategies.
Cost-plus, competitive, penetration, and price skimming.
What are some common promotional methods?
Advertising, sales promotions, public relations, and sponsorships.
What is direct marketing?
Promotion that targets customers directly, such as emails or leaflets.
What are the main distribution channel
Direct (producer to consumer) and indirect (using retailers or wholesalers).
What is e-commerce?
Buying and selling goods and services online.
Name three benefits of e-commerce for businesses.
Lower costs, wider audience reach, and 24/7 availability.
Explain the 4 Ps of the marketing mix and how they interrelate.
Product – The goods/services offered, including branding, quality, and USP.
Price – How much the product is sold for, influenced by demand, costs, and competition.
Place – How the product is distributed to consumers (e.g., online, retail stores).
Promotion – The methods used to raise awareness (e.g., advertising, PR, sales promotions).
Interrelation: A change in one P often affects the others; for example, a premium-priced product requires high-quality promotion and distribution to match customer expectations.
Define market research and explain its role in reducing business risk.
Market research is the systematic process of gathering, analysing, and interpreting data about consumers and competitors.
Helps businesses make informed decisions (e.g., pricing, demand forecasting).
Reduces the risk of product failure by understanding customer needs.
Identifies market trends and opportunities for expansion.
What is a Problem Child (Question Mark) in the Boston Matrix, and what decisions must businesses make?
Problem Child: A product with low market share in a high-growth market (e.g., electric scooters in early stages).
Uncertain future – can become a Star with investment or fail and turn into a Dog.
Businesses must analyse market potential and decide whether to invest or drop the product.
What is a Dog in the Boston Matrix, and what are the strategic options for businesses?
Dog: A product with low market share in a low-growth market (e.g., DVD players).
Typically low profitability and may be a financial burden.
Businesses may choose to divest (discontinue), reposition, or niche-market the product.
What is a Star in the Boston Matrix, and why is it important for business growth?
Star: A product with high market share in a high-growth market (e.g., Tesla’s Model Y).
* Requires heavy investment in marketing and production to maintain dominance.
* Can turn into a Cash Cow when market growth slows but dominance remains.
What is a Cash Cow in the Boston Matrix, and how should businesses manage it?
Cash Cow: A product with high market share in a low-growth market (e.g., Coca-Cola).
* Generates steady revenue with low investment needs due to brand loyalty.
* Businesses should maximise profits and use revenue to invest in other products (e.g., Stars or Problem Children).
Compare quantitative and qualitative data. How do businesses use both together?
Feature Quantitative Data Qualitative Data
Nature Numerical, measurable Opinion-based, descriptive
Example “60% of customers buy product A” “Customers feel product A is outdated”
Collection Surveys, sales reports Focus groups, interviews
Use Identifies trends, measures performance Understands customer preferences
* Together, businesses use quantitative data for measurable insights and qualitative data for deeper understanding, creating a more effective marketing strategy.
