Marketing Flashcards
What are the 7 P’s
People Promotion Physical evidence Place Price Product Process
What is a market
A market for a good or service exists when consumers and sellers are in contact with each other and are able to buy and sell it.
What are the different types of markets
Direct markets: consumers and sellers are in deal with one another
Indirect markets: buyers and sellers are not in direct contact.
Local - Involves consumers and sellers in a small area immediately around a business.
National - Involves consumers and sellers within a country.
Global - Involves buyers and sellers all around the world.
What is the contents of the Boston matrix
Star - high market growth, high market share
Dog - low market growth, high market share
Problem child - high market growth, low market share
Cash cow - low market growth, high market share
What is the role of marketing
Identifying customer wants and needs
Anticipating customer needs and wants
Satisfying customer needs and wants
Channels of distribution
Direct Selling - Direct mail, personal selling, mail order, telephone selling
Retailers - Supermarkets, department store, chain store
Wholesalers
Factors affecting choice of distribution channel
The product Finance available Legal restrictions Reliability of wholesalers and retailers Stage in the product life cycle Image of the product
Above the line promotion
Use of mass media - TV, radios, National newspaper
Targets everyone, no specific market segment
Below the line
Direct selling, niche magazines, packaging, telemarketing
Specific segments of the market are targeted through targeted promotion
Describe a personal interview
When an interviewer conducts a face to face meeting with a consumer using a questionnaire.
Describe a telephone survey
When people are contacted by telephone and asked to answer a series of questions
Describe an online survey
A website that is used to ask questions and people simply access the website and answer them
Describe a postal survey
A survey that is sent through the post, participants complete it in their own time and send it back
Describe a hall test
When customers are invited to a venue to test products and services and give their opinion
What is a product led product
A product that is produced because an organisation thinks they’re good at providing it.
They have little or no competition
What is a market led product
A market led product is produced based on what the customer wants before the product is made
They have a competitive market
What are the stages of a product life cycle
- Research and development
- Introduction
- Growth
- Maturity
- Saturation
- Decline
Explain the use of extension strategies to prolong the life of a product
- Changing the packaging
- Making new improved versions
- Changing the colour, size etc
- Alter the price to target different socioeconomic groups
- Use different promotional activities
What does the term branding mean
A method of attaching a persona to a product based on an established make
Advantages of own branding
- They are of a lower price, making it affordable for a larger amount of people
- Don’t have to pay high costs for marketing, packaging or promotional activities as the supermarket does that
Disadvantages of own branding
- They are perceived as lower quality
- People want to stay loyal to brands and won’t buy the product
Describe promotional pricing
Prices reduced for a short period of time. Used to boost sales in short term
Describe cost plus pricing
The cost of making the product is calculated before a % is added on for profit - ensures that the cost of making the product is covered and that a profit is also made
Describe market skimming
A high price is charged for a new and often unique product. Often little or no competition. The price might be decreased once competition arrives.
High process can be charged because little or no competition exists, making a high profit
Explain into the pipeline promotions
Promotions offered to retailers or wholesalers to entice them to stock the products
Point of sale materials - posters, window displays, leaflets. Free of charge
Dealer loaders - purchase 10 get 1 free - example
Sale or return - retailer will be able to stock the product without fear that they will be left with unsold stock
Dealer competitions - competitions for high sales can be offered to retailers or wholesalers
Explain out of the pipeline promotions
Promotions offer d to the customer to entice them to make a purchase
Free samples
Credit facilities - purchase items on credit that they wouldn’t be able to afford and pay at a later date
Demonstrations - involves demonstrating to entice the purchase
Competitions - purchase a product to allow them to enter a competition.
BOGOF
Advantages of E-commerce
- Much cheaper and quicker to set up
- Helps create new relationship opportunities with potential customers, suppliers and partners
- Allows easier delivery of info + support
- Accessible wherever there is online access
Disadvantages of E-commerce
- It can be expensive and time consuming to have the entire range available online
- Vital to have strong security procedures to allow customers to buy in confidence
- Products cannot be seen or touched before purchase which can put customers off
- Customers have to wait for delivery and organisation has to rely on quality of delivery service provided by a third party
What is a loss leader
When an owner lowers the prices in the shop to entice the customer to come in and buy the products
Advantages of a diversified portfolio
- To reduce risk of failure of one product, as one product might be doing better then the other
- To appeal to a variety of market segments,maps different products will appeal to different customers
- To increase sales and profits from selling different products, as customers will be able to buy a variety of products sold by the same business
Disadvantages of a diversified portfolio
- Costs of maintaining machinery for different types of products might be high
- Staff may require training - expensive + time consuming
- High cost of research and development
Advantages of a product portfolio
- Wide range of products can allow business to meet needs and varieties of customers
- Increase profits and profit levels remain steady
- Raise profile of business
Disadvantages of a product portfolio
- Products can be spread to wide
2. Business can lose focus on its key objectives
Advantages of Quota sampling
- Cheaper to operate than random sampling
- Statistics showing proportions of groups within population readily available
- Interviewers can substitute someone else if interviewee is not at home at time of visit or phone call
Disadvantages of Quota sampling
- Results can be less representative than using random sampling
Advantages of desk research
- Secondary information has been collected
2. Wide range of information is available
Disadvantages of desk research
- Uses information that is available for everyone - competition
- Info could be out of date
- Not collected info itself so it is questionable wether it is accurate or not
Customers buying behaviour
Impulse purchases
Routine purchases
Limited decision making purchases
Extensive decision making purchases
What is market share
% of all the sales in the market a business has
What is market growth
Total increase in sales of a market
