Marketing Flashcards
1
Q
What is marketing ?
A
Process of identifying, predicting & satisfying customer needs to make profit
2
Q
What are the 2 purposes of marketing ?
A
- Identify & analyse new products for current markets & new markets
- Satisfy customer needs
3
Q
What 2 reasons does marketing matter to businesses ?
A
- Increases customer awareness
- Operations need to use sales forecasts produced by marketing department = plan schedules & staffing requirements
4
Q
What is product orientation ?
A
Business focuses primarily on creating & developing high quality good or service, ignores customer preferences & priorities
5
Q
What is market orientation ?
A
Business aims to provide product or service to meet customers wants or needs
6
Q
What is asset led marketing ?
A
Qualities of the business & products used to meet customer needs by utilising internal strengths
7
Q
What is the marketing mix ?
A
The way a business controls the four P’s
8
Q
What makes a successful marketing mix ?
A
Ensuring mix is well integrated across all 4 elements & creates right image to match marketing opportunity
9
Q
What are the four P’s ?
A
Product
Place
Promotion
Price
10
Q
What is product ?
A
Object or service offered for sale to the customer
11
Q
What is a product portfolio ?
A
Full range of products & brands produced by a business
12
Q
What is a brand ?
A
A name, symbol, or design for a product or service that attempts to make it unique
13
Q
What is the main way to build a brand ?
A
USP
14
Q
What is a USP ?
A
Unique selling point = aspect of a product that differentiates it from others
15
Q
What is product differentiation ?
A
Actual or perceived features of a product or service which convinces customers to buy it against competitors
16
Q
What is an advantage of product differentiation ?
A
Focuses on telling customers what’s different and better = adds value
17
Q
What is added value ?
A
Difference between price of product or service & cost of bought in goods & services
18
Q
What is a disadvantage of product differentiation ?
A
May be more expensive = design & production costs
19
Q
What 3 things does a business need to take into account for having the right products ?
A
- Its own strengths & weaknesses
- Competition
- Stakeholders
20
Q
What is needed to ensure product meets the needs of the target market ?
A
Design mix
21
Q
What is a design mix ?
A
Combination of 3 factors needed to create an effective product
22
Q
What are the 3 factors of a design mix ?
A
- Function
- Aesthetics
- Cost of creating product
23
Q
What is function ?
A
How effectively the product works
24
Q
What is aesthetics ?
A
How product appeals to customers, how it looks, feels & smells
25
What 3 ways can the design mix be adapted ?
1. Social trends
2. Concern over waste management
3. Ethical sourcing
26
What is the product life cycle ?
Stages a product goes through from initial conception to eventual removal from the market
27
What are the stages of the product life cycle ?
1. Introduction
2. Growth
3. Maturity
4. Saturation
5. Decline
28
What is introduction ?
Research, development & launch of product
29
What is growth ?
Sales increasing at the fastest rate
30
What is maturity ?
Rate of growth slowing down
31
What is saturation ?
Everyone who may want product has got it
32
What is decline ?
Final stage of cycle = sales fall
33
What are the 3 steps to constructing a product life cycle diagram ?
1. Draw axis (X = stage, Y = sales)
2. Draw line of stages
3. Add extra line for extension strategies
34
What are 2 extension strategies ?
1. Reformulating product to different market
2. Changing promotional focus
35
What 3 things does the impact of extension strategies depend on ?
1. Competitors
2. Customers
3. Age of product
36
What is the problem of what extension strategies depend on ?
Factors are difficult to judge
37
What is the cash flow in different stages of the product life cycle ?
Introduction = cash flow negative
Growth = cash flow begin to be positive
Maturity = cash flow at highest
Decline = cash flow decreases
Extension strategy = greater cash flow
38
What are 2 advantages of a product life cycle ?
1. Helps business to plan
2. Allows stakeholders to be given data
39
What are 3 disadvantages of a product life cycle ?
1. Difficult to predict
2. Changes in consumer tastes
3. Costly
40
What is the Boston Matrix ?
Analyses a company's product portfolio in relation to the rate of market growth & level of market share
41
What is a cash cow ?
Low market growth, high market share
42
What is a rising star ?
High market growth, high market share
43
What is a dog ?
Low market growth, low market share
44
What is a problem child ?
High market growth, low market share
45
What is an advantage of the boston matrix ?
Helps business to analyse product portfolio = see which generates most revenue & help problem child
46
What is a disadvantage of the boston matrix ?
Inability to predict how products might perform in the future
47
What is price ?
Amount the business charges the customer for the product or service
48
What are the strategies used to determine appropriate price ?
1. Price skimming
2. Penetration pricing
3. Competitive pricing
4. Psychological pricing
5. Contribution pricing
49
What is price skimming ?
Sets high price before competitors come into market or new products believed superior
50
What is an advantage of price skimming ?
Greater profits = customers willing to pay premium price
51
What is a disadvantage of price skimming ?
Strategy breaks down as other competitors enter market
52
What is penetration pricing ?
Sets low initial price to attract new customers
53
What is an advantage of penetration pricing ?
Encourages customers = higher market share
54
What is a disadvantage of penetration pricing ?
Profits likely to be low = hard to establish quality reputation
55
What is competitive pricing ?
Must accept going market price & be price taker
56
What is an advantage of competitive pricing ?
Avoids price competition = allows other competition
57
What is a disadvantage of competitive pricing ?
Price adopted may be low = not cover production costs
58
What is psychological pricing ?
Price intended to make customer believe that product cheaper than it really is
59
What is an advantage of psychological pricing ?
Perception that customers getting good value for money
60
What is a disadvantage of psychological pricing ?
Customers may see marketing gimmick = lose trust
61
What is contribution pricing ?
Set price based on variable costs of making or purchasing product & trying to ensure it covers fixed costs
62
What is an advantage of contribution pricing ?
Making a profit as well as covering breakeven point
63
What is a disadvantage of contribution pricing ?
Price may be higher than competitors
64
What are the 7 factors that affect appropriate price ?
1. USP
2. PED
3. Competition
4. Strength of brand
5. Stage in product life cycle
6. Costs & need to make profit
7. Online sales
65
What 4 reasons is selecting appropriate price important ?
1. Pricing decides if customers buy product
2. Find out how much target market is willing to pay
3. Stage in life cycle
4. May have to adopt a strategy for survival
66
What is promotion ?
The way a business makes its products known to its current & potential customers
67
What is the promotional mix ?
Communicating with customers about product & persuading them to purchase it through a combination of methods
68
What are the 2 methods of promotion ?
1. Above the line
2. Below the line
69
What is above the line promotion ?
Communication that's paid for & aimed at specific audience but can be viewed by anyone, aiming to raise awareness & build brand positioning
70
What is below the line promotion ?
Has direct control over target or intended audience
71
What is advertising ?
Done through media like television, newspapers & social media
72
What is an advantage of advertising ?
Targets large audience = sales increase
73
What is a disadvantage of advertising ?
National adverts = expensive to ensure customer engagement
74
What is viral marketing ?
Creating memorable & attention grabbing advertising for use in social media campaigns, hoping that customers share adverts
75
What is an advantage of viral marketing ?
Costs nothing at all
76
What are 2 disadvantages of viral marketing ?
1. Difficult to create
2. Cant be repeated
77
What is emotional marketing ?
Advertising that aims to appeal to customers needs & aspirations through their emotions
78
What is an advantage of emotional marketing ?
Customer's emotional responses are often powerful motivators in purchasing decisions
79
What is a disadvantage of emotional marketing ?
Emotions are difficult to predict & engage without large amount of research = backfire
80
What is public relations ?
Creating & maintaining a positive image of business or product through sponsorship
81
What are 2 advantages of public relations ?
1. Increase brand awareness
2. Promotes positive image
82
What is a disadvantage of public relations ?
Expensive
83
What are 4 impacts of choosing the right promotional strategy ?
1. Right strategy can enhance product
2. Easier to sell products = high brand loyalty
3. Shareholders = higher share values & dividends
4. Increases time, money & resources
84
What is place ?
How a business gets its products to its customers
85
What are distribution channels ?
Ways to get finished products to customers
86
What is a producer ?
Business that makes, grows or supplies goods for sale
87
What is a wholesaler ?
Business that acts as link between producer & retailer by buying in bulk & selling to resellers rather than customers
88
What is a retailer ?
Business that sells goods & services directly to customer
89
What is producer to wholesaler to retailer to customer ?
Wholesaler buys in bulk from many producers, stores them & breaks them up into small batches to sell to retailers
90
What is producer to retailer to customer ?
Producer sells goods directly to retailer to avoid wholesaler's mark up
91
What is producer to customer ?
Producer sells directly to customer to retain all profits from sale
92
What is multi channel distribution ?
Business uses more than one type of distribution channel
93
What 3 things does a business have to take into account when choosing distribution channel ?
1. Customer choice or convenience
2. Image the business wishes to create
3. Social trends
4. Online distribution
5. Changes from product to service
94
What are the 3 types of branding ?
1. Product logo or packaging
2. Personal associated with celebrity
3. Corporate where advertises positive images about itself & hopes product will have same virtues
95
What is a marketing strategy ?
How the marketing function contributes to the main strategic goals of a business
96
What is global marketing ?
Strategy that aims to increase sales by marketing products or services internationally
97
What 4 ways does marketing make use of technology ?
1. Digital media = adverts increasingly tailored
2. Social media = build relationships
3. E-tailing = adapt to dynamic market
4. M-commerce = meets needs
98
What ways has technology affected marketing activities ?
1. Costs reduced
2. Significantly increase potential audience
3. Helped identify customers preferences & buying habits
4. Large investment for tech
