Marketing Flashcards
Compare market orientated with product oriented.
- Product orientated organisation focus on creating a good product whereas customer orientated organisations focus on satisfying customers
- Product orientated focusses on making profit whereas market orientated focusses on satisfying customer needs
- Product orientated products are often made for a specific purpose whereas market orientated products are made to respond to changes
What is a niche market?
A niche market is a small market within a market segment made up of people who are willing to pay a high price for an exclusive product e.g. Gluten free products
How could technology be used in marketing?
- Emails and video calls can be used to improve communication
- The internet improves access to information which an help with finding suppliers and market research e.g. Looking at competitors websites
- Use of computers when manufacturing can help to ensure products are consistent
- Ecommerce can help an organisation reach wider markets and eliminate the need for a shop
Compare desk and field research.
- Field research is primary information whereas desk research id secondary information
- Desk research involves reusing existing information whereas field research involves finding new information
- Desk research does not involve direct contact with consumers whereas field research often does
- Field research is specific to what the organisation wants whereas desk research is more broad
- Desk research can be unreliable whereas field research is up to date and accurate
What are advantages of using a telephone survey as a method of research?
- A large number of people can be reached
- It is cheaper than interviewing
- 2 way communication means misunderstandings can be discussed and cleared up easily
What are disadvantages of an online survey?
- People need to have internet access to fill it out
- There is no way of clarifying questions and answers
- There may be a limit to the amount of information that can be put in an online survey
What is a hall test?
A hall test is when products are given to a sample of customers. The sample evaluate the product and give the organisation feedback on it.
What is a focus group?
A focus group involves putting together a group of customers and asking them questions about a product or service.
How can EPOS be used for field research?
EPOS can be used to gather information when customers are paying for products. This information is factual rather than customer opinions
State the 6 stages of the product life cycle.
- Research and development
- Introduction
- Growth
- Maturity
- Saturation
- Decline
Name and describe the 7 P’s of the marketing mix.
Product - The goods/services provided
Price - The amount charged for the product
Place - The location at which the product is sold
Promotion - The way the business communicates with customers and makes them aware of products
People - The people involved in providing the product e.g. Managers and employees
Process - The systems and procedures in put in place to help deliver the product e.g. Lead times, handling complaints
Physical evidence - The mood and atmosphere of the place of sale e.g. Specific smells, furniture, uniform
What is a product portfolio?
A product portfolio is a range of products provided by an organisation
State 3 advantages of a product portfolio.
- Profit is available from more than one place, spreading risk
- A range of products may have appeal to a range of consumers in different market segments meaning more profit can be made
- Customers may become more aware of the brand as products are seen in more than one place
- Gives a the organisation a specialist image
- New products can replace older ones at the end of their life cycle
- Customers who like a product are more likely to try another by that company (brand loyalty) meaning more profit is made
State 3 disadvantages of a product portfolio.
- If customers do not like a product it may put them off other products
- It can be costly to advertise an entire portfolio meaning less profit is made
- It can be costly to research and develop products and a loss can be made if products are not popular
- Operations involved in manufacturing can become very complex when a number of products are being made
What is a brand?
A brand is a unique identity for an organisation which is created using a logo, symbol, name, design or slogan
What are the disadvantages of branding?
- Branded products often cost more which may put customers off, resulting in reduced sales and profit
- Competitors may copy branded products (benchmarking) making the market more saturated
- It can be costly to create a brand meaning less profit is made
- It can be expensive to market a brand meaning less profit is made
State 3 advantages of branding.
- Makes products identifiable which may attract customers helping to increase sales and profits
- Customers who are satisfied with products may repeat purchases from that brand (brand loyalty)
- It is easier to launch new products as customers trust the brand, this means profit is made faster on new products
- Higher prices can be charged because brands tend to look exclusive or high quality
- Money is saved in marketing as advertising the brand will attract customers to a range of products (cheaper than advertising each product separately)
- A brand can target different markets
Suggest ways of extending a products life cycle.
- Altering/improving the product
- Altering the packaging
- Varying the product i.e. Fun sized packs etc.
- Altering the price
- Using promotions e.g. Offers and competitions
- Alter the purpose e.g. Lucozade changing from energy to sport
- Change the advertising method
Which section of the boston matrix has HIGH market growth and LOW market share?
Problem child
Which section of the boston matrix has LOW market growth and LOW market share?
Dog
Which section of the boston matrix has HIGH market growth and HIGH market share?
Star
Which section of the boston matrix has LOW market growth and HIGH market share?
Cash cow
State 2 disadvantages of own branding.
- The products may be seen as low quality alternatives to original bands
- Marketing costs the company money as it has to promote its own products
Describe market skimming.
Market skimming is when a high price is charged for an exclusive product when it is launched, as the market becomes more saturated the price is lowered in order to stay competitive.
Describe promotional pricing.
Promotional pricing is when the product price is lowered for a short period of time. This encourages more customers to buy as they feel like they are getting a deal, increasing sales and profit
Describe discriminatory pricing.
Different prices are charged for the same item depending on the time of year e.g. Ice cream is more expensive during the summer
What are advantages of using a wholesaler?
- May be cheaper for the manufacturer as wholesalers ofter package an label goods
- The risk of not selling goods is passed on to the wholesaler meaning the manufacturers risk is reduced
- The wholesaler buys products in bulk meaning the manufacturer needs less storage space
- The wholesaler may promote products reducing costs for the manufacturer and increasing profit
What is a retailer?
A place of sale that distributes products to the customer on behalf of the manufacturer
Compare above and below the line promotions.
- Above the line promotions are aimed at large rages of people whereas below the line promotions are aimed at specific groups of people
Give 3 advantages and 3 disadvantages of endorsement.
3 Advantages
- Customers are encouraged to buy the product because a successful individual or icon is promoting it
- Customers may buy the product to be associated with the celebrity
- The celebrity may promote a good image for the organisation
3 Disadvantages
- It can be very expensive to use celebrity endorsement
- The celebrity must be chosen carefully to match image of the product
- If the celebrity has bad publicity (Justin Bieber) it may effect the image of the product
Describe methods of below the line promotions.
- Offers and discounts on particular products
- Public relations (PR) improve relationship between the organisation and the public by running activities such as press releases, sponsorships and charity donations
Give examples of into the pipeline promotions.
- Staff training
- Point of sale materials
- Staff training
- Dealer loaders
Describe what is meant by market share.
The market share is the sectorn of the market a business sells to (is usually shown as a percentage)
