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Business Ocr As Level Required Notes. > Marketing > Flashcards

Marketing Flashcards

1
Q

What are the advantages of setting objectives?

A

It helps the business identify what it hopes to achieve through any spending on marketing.
Helps to motivate workers as its like setting targets for workers to achieve.
This allows the business to easily understand where they should spend their retained profits from the previous years.

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2
Q

What are the disadvantages of setting objectives?

A

Many objectives just involve the marketing planning, not taking into account the consumer that is vital.
If the objectives aren’t SMART it can demotivate staff if they are not achievable after working hard.
Objectives must take into account the economy status, if in a recession luxury good sales are going to be low.

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3
Q

What does SWOT Stand for?

A

Strengths
Weaknesses
Opportunities
Threats

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4
Q

What are the uses of SWOT analysis?

A

It helps the business to identify the best way to proceed for the future success, but it will need to be used in conjunction with other methods of forecasting and formulating strategies.

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5
Q

What is globalization?

A

The integration of the countries of the world through trade by implementing world trading.

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6
Q

What is quantitative research?

A

The type of research that concentrates on numerical data, providing attention to market trends and focuses on statistical analysis.

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7
Q

What is qualitative research?

A

The type of research that is often regarded as subjective as its the opinions of the consumers, providing an explanation of why things are the way they are.

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8
Q

What are the two types of research you can perform?

A

Primary Research and Secondary Research?

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9
Q

What is primary research?

A

Primary research is gathering information first hand that hasn’t been collected or seen before.

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10
Q

What is secondary research?

A

Secondary research is using previously gathered information to research the market.

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11
Q

What are examples of primary research?

A

Interviews, Surveys, Questionnaires, Observations, Focus groups, Trial marketing,

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12
Q

What are examples of secondary market research?

A

Sales and data figures, Previous survey results, Customer information, Company reports, Market research companies, The internet, Trade publications, Newspapers and magazines, Competitors or government statistics.

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13
Q

What are the different types of sampling methods?

A

Systematic sampling, Random sampling, Quota Sampling, Stratifies sampling or Cluster sampling

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14
Q

What is random sampling?

A

This is a method of choosing individuals randomly selected from a list of the population, every individual has a equal chance.

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15
Q

What is Quota sampling?

A

Quota sampling involves splitting the population into sub-groups according to their distribution in the population, for example age or gender.

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16
Q

What is convenience sampling?

A

Convenience sampling, is in the name it is a method of sampling, questioning people that are most easily to be questioned. Can result in poor results, e.g. if you take results on a supermarket midday on a weekday most people work thus you will be asking the unemployed that will have most likely less money to spend.

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17
Q

What is stratified sampling?

A

Stratified sampling is a variant on random sampling and systematic methods. They identify there targeted sub-populations and then ask randomly to people in that strata.

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18
Q

What are the problems with sampling?

A

There are occasions when respondents give an answer that they think will please the interviewer.
If the respondent is in a hurry they just give a random answer to get it done quicker.

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19
Q

What is the formula for market growth?

A

Increase or decrease in sales/

Original sales value

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20
Q

What are the factors that affect buying behavior?

A

Income, standard of living and employment.
Consumer confidence
Advertising of publicity campaigns
Layout of the shop to make consumers take longer to go around the shop to make them spend more.
Fashion trends.

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21
Q

What is niche marketing?

A

Targeting a clear and identifiable market in a particular segment

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22
Q

What is mass marketing?

A

Selling into a market containing many products that are all similar targeting the mass population.

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23
Q

What is market orientation?

A

Focuses the needs of the consumer over the needs of the product.

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24
Q

What is product orientation?

A

Focuses on the need of the product over the needs of the consumer, (however most businesses will still have market orientation as well)

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25
Q

What are the 4Ps?

A

Product, Price, Place, Promotion

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26
Q

What is a USP?

A

A unique selling point of a business it can increase the market growth and share by finding a good or service that has a unique aspect to it.

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27
Q

What are the different stages on the product life cycle?

A

Introduction, Growth, Maturity, Decline

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28
Q

What is the Boston matrix?

A

Shows the four categories of products you can have, Cash cow(Low growth market, High market share), Dog(Low market share, Low market growth), Star(High market growth, High market share), Problem child or question mark(High market growth, low market share).`

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29
Q

What are the factors that affect the price of a product?

A 
Consumers and their incomes
Cost of producing the good
Level of demand within the market
Level of competition within the market
The nature of the product
Stage in the product life cycle
Boom or Recession
Legislation
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30
Q

What is the formula for elasticity?

A 
Change in Demand%/
 Change in (Income,Price)%
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31
Q

How can you tell if a product is elastic or inelastic?

A

If its over 1, its elastic under 1 its inelastic.

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32
Q

What are the different types of pricing strategies?

A

Price skimming, Penetration pricing, Psychological pricing, Loss Leaders, Competition based pricing, Predatory pricing, Promotional pricing, Price discrimination, Cost plus pricing

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33
Q

What is price skimming?

A

Setting a high price for a product when it enters the market , to gain the maximum profit quickly, usually the business reduces price after a certain amount of time.

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34
Q

What is penetration pricing?

A

Entering the market at a low price to try attract loyal customers, attempting to gain market share then raising the price.

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35
Q

Psychological pricing?

A

£0.99

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36
Q

What are loss leaders?

A

Operating at a loss attempting to attract consumers to other products that will compensate for the loss.

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37
Q

What is predatory pricing?

A

Operating at a loss to force a new competitor out the market.

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38
Q

What is cost plus pricing?

A

They work out the cost of producing the good or service, then add a cost onto this making this there margin of profit.

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39
Q

What are the channels of distribution?

A 
Producer-Wholesaler-Retailer-Consumer
Producer-Retailer-Consumer
Producer-Consumer
Producer-Wholesaler-Consumer
Producer-Agent-Consumer
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40
Q

What are wholesalers?

A

The job of a wholesaler in the distribution chain is to break up the bulk buying to reduce the cost, allowing them to make profit by selling on to consumers or the retailer.

41
Q

What is the role of agents in the distribution channel?

A

To negotiate between buyers and sellers, never having control over the goods but in charge of getting the best price

42
Q

What does place refer to in the marketing mix?

A

The channel of distribution?

43
Q

What is promotion?

A

Promotion is used to inform and persuade potential consumers to buy a product or service that meets their needs.

44
Q

What is above the line promotion?

A

Above the line promotion uses media where there is no direct contact with the potential consumer. The business has no control over the media involved

45
Q

What is below the line promotion?

A

Below the line promotion uses the type of media where the business can directly contact potential consumer. It can also have some influence and control over the media used.

46
Q

What are examples of above the line promotion?

A

Television, Radio, Cinema, Sponsorship, Newspapers

47
Q

What are examples of below the line promotion?

A

Sales promotion, Packaging, Direct marketing, Digital marketing, Email, Merchandising, Trade fairs, Telesales, personal selling

48
Q

What are trade fairs?

A

Trade fairs are a popular method of encouraging interested parties (Businesses and customers) to visit a wide selection of fairs and exhibitions, customers will meet staff who will try get direct face-to-face sales of products, usually luxury goods.

49
Q

How can a business assess the success of its marketing objectives?

A

Sales Increase
Market Share
Number of enquiries
Satisfaction surveys

50
Q

What factors should be taken into account before constructing a marketing strategy?

A

Business objectives
Size of the business
Nature of the market
Management changes

51
Q

What are the two types of errors that can occur when taking samples?

A

Non sampling errors

Sampling errors

52
Q

What are non sampling errors?

A

A respondent may give a untruthful answer due to many reasons such as.
There are occasions when respondents give an answer that they think will please the interviewer

Sometimes if respondents are in a hurry they may give the first answer that comes to their head.

53
Q

What are sampling errors?

A

The difference between the mean of the sample and the mean of the population.

54
Q

What is market segmentation?

A

Once a business has used market research to find out about its customer base, it can begin to split its market into different groups with different characteristics and needs.

55
Q

What are the types of market segementations possible?

A 
Age
Geography
Gender
Social class
Residence
Religion or ethnic grouping
56
Q

What are the disadvantages of market segmenting?

A

It could exclude some potential customers by taking segmentation to far.

Its becoming increasingly difficult to categorise consumers and their behaviour.

57
Q

What are the factors affecting buyer behaviour?

A 
Income
Consumer confidence
Advertising 
Layout of shop
Fashion trends.
58
Q

What is DAGMAR?

A

DAGMAR is a model aimed at promotion.

59
Q

What does DAGMAR stand for?

A 
Defining
Advertising
Goals
Measuring
Advertising
Results
60
Q

What is AIDA?

A

AIDA is a promotional model applied specifically to advertising. It suggests a way on how to get consumers to successful purchase a good by getting the attention of a consumer, then they must keep the possible consumers interest. This interest must lead to desire to buy the product, the desire must then lead to action of the consumers to go out and buy the product.

61
Q

What does AIDA stand for?

A

Attention
Interest
Desire
Action

62
Q

How does a business use SWOT analysis?

A

Strengths and Weaknesses, are both internal measures of the businesses performance.

Opp’s and Threats and external, you would look at PESTLE to see the external factors.

63
Q

Is there any difference between consumers and customers?

A

Yes, customers are the people that purchase the good whereas and consumers are the people that use the good. E.g. Parents buying nappies for babies, the consumer is the baby but the customer is the parent.

64
Q

When are the 4p’s used?

A

When a business is making a marketing decision, to formulate a marketing strategy.

65
Q

What is USP?

A

A unique selling point, something that makes the business stand out against competitors.

66
Q

What is value analysis?

A

Value analysis helps to focus the manufacturers mind on the main characteristics of the product.
It is important to achieve the right balance of:
Function
Aesthetics
Cost

67
Q

When would you use value analysis?

A

When a business is assessing the priorities of the product being produced.
E.g. if a business is producing custom clothes, Aesthetics would be a significant feature demanded where as the cost would be less significant.

68
Q

What are the stages of the product life cycle?

A

Introduction
Growth
Maturity
Decline

69
Q

What are extension strategies?

A

Extension strategies are used to delay the decline process in the product life cycle.

70
Q

What is product positioning?

A

When a business tries to sell the right product in the right segment of the market.

71
Q

How can a business correct position its product?

A

The price in relation to that of competitors in the market.

Having a beneficial quality such as durability when compared to others in the market.

Satisfying a small segment of the market.

Being something completely different, such as the Dyson vacuum when it first entered the market.

72
Q

What is a product portfolio?

A

Most businesses sell more than one product. Often they will produce several similar products that appeal to different customers. A collection of such products is called a product portfolio.

73
Q

What is a product positioning chart?

A

Shows where the majority of products in a market are positions, allowing a business to identify gaps in the market.

74
Q

What is the Boston Matrix?

A

A tool that business can use when deciding what products to produce.

75
Q

What are the four sectors in the Boston Matrix?

A

Star
Cash Cow
Dog
Problem Child.

76
Q

What is a ‘Star’ product in the Boston Matrix?

A

A star is product that has high market growth and a high market share.

77
Q

What is a Cash Cow in the Boston Matrix?

A

A cash cow is a product that has a high market share in a low growth market.

78
Q

What is a Problem Child in the boston matrix?

A

A Problem child is a product that has a low market share in a market with high growth.

79
Q

What is a dog in the boston matrix?

A

A dog is a product that has a low market growth and a low market share.

80
Q

What should the business do with the profit from cash cows?

A

Spend the profit on Stars or Problem Child.

81
Q

What is the use of the Boston matrix?

A

By looking at its range of products within the Boston Matrix, a business can see if it has a balanced portfolio. E.g. It will allow the business to see if it has any dogs it needs to get rid of, if it has to many stars that will be a cash drain.

82
Q

What are the factors affecting the price of a product?

A 
Consumer incomes and tastes
Cost of production
Level of demand
Level of competition
Nature of the product
Stage in the product life cycle
Value of the pound
Weather conditions
Taxation rates
83
Q

What does an elastic and inelastic curve look like?

A

Elastic-Demand curve Horizontal 30Degrees

Inelastic- Vertical Demand curve -10Degrees

84
Q

What is the formula for most price elasticies?

A

Percentage Change in Demand/

Percentage Change in X(The factor of concern) e.g. income

85
Q

What is the formula for cross elasticity of demand?

A

Percentage change in the demand for Product A/

Percentage change in the price of Product B

86
Q

What different types of pricing methods/strategies could a business use?

A 
Price Skimming
Penetration Pricing
Premium pricing
Psychological pricing
Loss leaders
Competition based price
Predatory pricing
Market based pricing
Promotional pricing 
Cost plus pricing
Contribution pricing
87
Q

What is market based pricing?

A

For homogeneous products a business will take its price for the product from the market.

88
Q

What is promotional pricing?

A

Buy one get one free
Price reductions
3 for 2

89
Q

What is contribution pricing?

A

Contribution pricing is a method whereby fixed costs are ignored and the business considers only the variable costs of production.

90
Q

What is price discrimination?

A

Price discrimination occurs when different prices are charged for the same product or service.

91
Q

What is examples of price discrimination?

A

Area- A different price is charged for the same product in different parts of the world.

Time-A different price is charged for the same product in differnt parts of the world or country.

Age-Pensioners and Children Cheaper swimming prices than for 18-60.

92
Q

What is a channel of distribution?

A

This is a method by which the good travels from the producer to the consumer.

93
Q

What are retailers?

A

Retailers are responsible for the final part of the distribution chain, selling the final product to the consumer.

94
Q

What is physical distribution?

A

This refers to the physical method of distribution which a business uses. E.g. road transport goods from one place to another.

95
Q

The physical distribution method depends on?

A

The need for freshness for perishable goods e.g. fish
The price that consumers will pay for fresh goods
The price of the good
The size of the product

96
Q

What are different ways a business can advertise?

A 
Television
Commercial radio
Magazines
Customer publications
Digital magazines
Cinema
Newspapers
Billboards
Sponsorship
Direct Mail
Electronic adverts
Social media
Internet promotion
Sales promotion, e.g. win a competition on purchase
Trade Fairs
Drip marketing
Telesales
Packaging
Public relations
Viral marketing
97
Q

What is viral marketing?

A

It is the use of a social networking sites to increase brand awareness, the advert will spread through the site.

98
Q

What are the factors affecting what promotional method is selected for a business?

A

The size of the business, location and budget
The actual product or service to be promoted
The customer
The marketing strategy to be used
External factors (PESTLE)
Time factors
The stage in its product life cycle.

Business Ocr As Level Required Notes. (6 decks)

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