Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Marketing > Flashcards

Marketing Flashcards

1
Q

What is the importance of identifying and satisfying customer needs?

A
  • Provide a good or service which customers will buy
  • Increase sales
  • Select the correct marketing mix
  • Avoid costly mistakes
  • Be competitive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is market segmentation?

A

Market segmentation is the process of dividing potential customers into different groups.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What groups can firms segment markets into?

A
  • Gender
  • Age
  • Location
  • Income
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the benefit of segmenting a market?

A

Helps the business to identify their target market and create an effective marketing strategy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why do businesses perform market research?

A
  • Identify business opportunities

- Get a better insight about customers and competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What do businesses collect information about during market research?

A
  • Demand
  • Competition
  • Target market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is primary market research?

A

Conducting market research yourself.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is secondary market research?

A

Analysing data collected by others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

4 examples of primary market research

A
  • Questionnaires (cheap, wide area, low return rate)
  • Surveys (higher response rate, more expensive)
  • Interviews
  • Focus groups (Qualitative data, quieter individuals might not get heard)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

2 examples of secondary market research

A
  • Internet research

- Printed press (i.e. newspapers)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Advantages and disadvantages of primary market research

A 
\+ Up to date
\+ Relevant
\+ Specific to target market
- Expensive
- Time consuming
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Advantages and disadvantages of secondary market research

A 
\+ Cheap
\+ Easily found
\+ Instantly available
- Not always relevant
- Could be outdated
- Not specific
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is quantitative data?

A

Number based data, i.e. number of people who prefer a flavour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is qualitative data?

A

Data based on longer answers and feelings / opinions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the 5 pricing methods?

A
  • Price skimming
  • Price penetration
  • Competitive pricing
  • Loss leader
  • Cost-plus
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is price penetration?

A

Entering the market with a low price to convince new customers to try it. The firm then will raise the price to make more profit once it has loyal customers. This is a good approach for competitive markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is loss leader pricing?

A

Firms will set the price of a product below the cost of production, but customers will buy other products along with it (i.e. game consoles) on which the firm will make profit).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is price skimming?

A

A firm with a product with a USP will charge a high price in the beginning due to high demand. The firm can then lower the price later when competitors copy the USP. This covers high research and development costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is competitive pricing?

A

Firms charge similar prices to competitors. This is useful in highly competitive markets without much product differentiation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is cost plus pricing?

A

Adding mark-up or a profit margin to a product when the firm is not in price competition with other companies.

Mark up is a percentage of the cost, profit margin is a percentage of the selling cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the 4 factors that affect pricing decisions?

A
  • Costs
  • Nature of the market
  • Degree of competition
  • Product life cycle
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Benefits of developing new products

A
  • New products will increase sales
  • May extend the life-cycle of existing products
  • May appeal to a new market segment
  • Businesses can use price skimming
  • New products may help a firm’s reputation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Risks of developing new products

A
  • Very costly and time consuming
  • May waste resources if customers don’t want to buy it
  • Businesses might not be able to produce the product on a large scale at a low price
  • Reputation damage if the product is of low quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a market-drive firm?

A

A firm that designs products based on market research to find out what the target market actually wants.

25
Q

What is a product-driven firm?

A

A firm that designs products and then tries to sell it.

26
Q

What are the key elements to consider when developing a new product?

A
  • Product design
  • Product image
  • Brand image
  • Needs of the target market
27
Q

What are the 3 key elements of the design mix?

A
  • Cost
  • Aesthetics
  • Function
28
Q

What are the 2 ways in which a brand can differentiate its products?

A
  • Brand image

- Unique selling point (USP)

29
Q

What are the 5 stages of the product life cycle?

A
  • Research & development
  • Introduction
  • Growth
  • Maturity
  • Decline
30
Q

What happens during the research & development stage of the product lifecycle?

A

A firm identifies a gap in the market and invests into developing a product.

31
Q

What happens during the introduction stage of the product lifecycle?

A

The firm launches the products and invests into advertisement so that customers know it exists and what the features are.

32
Q

What happens during the growth stage of the product lifecycle?

A

Sales rapidly increase as the product begins to become established. Towards the end of this stage, the firm will begin to make a profit.

33
Q

What happens during the maturity stage of the product lifecycle?

A

Sales begin to decrease as the market is mature. They are still rising. Promotion becomes less important as popularity grows.

34
Q

What happens during the decline stage of the product lifecycle?

A

Sales of a product begin to die as the needs of the target market change, i.e. stock deprecation in the fashion industry.

35
Q

What might a firm do to mitigate the decline of a product?

A

Utilise extension strategies

36
Q

5 examples of extension strategies

A
  • Updating packaging
  • Adding features
  • Changing target market
  • Advertising
  • Price reduction
37
Q

What is a product portfolio?

A

The range of products that the firm sells

38
Q

Why is it important to have a balanced product portfolio?

A

If one product fails, they are still able to profit from the rest

39
Q

What is the Boston Matrix used for?

A

A graph in which a firm can assess its product portfolio, comparing market share to market growth.

40
Q

What are the 4 boxes in the Boston Matrix?

A
  • Question marks
  • Dogs
  • Cash cows
  • Stars
41
Q

What is a question mark?

A

A product with low market share in a market with high market growth.

42
Q

What is a dog?

A

A product with low market share in a market with low market growth.

43
Q

What is a cash cow?

A

A product with high market share in a market with low market growth.

44
Q

What is a star?

A

A product with high market share in a market with high market growth.

45
Q

What are the 5 key promotional methods?

A
  • Newspapers
  • Magazines
  • Television
  • Internet
  • Billboards
46
Q

What is PR and why is it important?

A

Public relations relates to communicating with the media, i.e. press releases. It can be a cheap and easy way to get a firm noticed by a wide audience. However, a firm can also get bad PR.

47
Q

What are the 6 key methods of sale promotions?

A
  • Point of sale displays
  • 2 for 1 offers
  • Free gifts
  • Samples
  • Coupons
  • Competitions
48
Q

Advantages and disadvantages of sale promotions

A

+ New customers more likely to try product

- May be seen as less of a luxury product

49
Q

How can sponsorships benefit a firm?

A

People associate the events with the firm, and so are more likely to buy from them due to the good publicity. However, if the event gets bad publicity, so might the firm.

50
Q

How can social media benefit a firm?

A

Social media is a quick and cheap way for firms to advertise products or promotions, as well as build up hype for products and respond to customers quickly. However, negative comments or mistakes can be seen by all.

51
Q

What is a promotional mix?

A

The different factors that firms combine to promote a product.

52
Q

What factors are involved in the promotional mix?

A
  • Finance available
  • Competitor actions
  • The nature of the product or service
  • The nature of the market
  • The target market
53
Q

What are the reasons for promotion?

A
  • Inform customers about the product
  • Create or increase sales
  • Create or change the image of the product
  • Persuade customers to buy the product
54
Q

What are the 3 key channels of distribution?

A
  • Retailers
  • Wholesalers
  • Telesales (Selling directly to customers)
55
Q

Advantages and disadvantages of telesales

A

+ Cheapest for the consumer

  • Time consuming
  • Need good logistics process
56
Q

Advantages and disadvantages of wholesalers

A

+ Wholesalers already has customers
+ Bulk orders, manufacturer doesn’t have to store much store
- No customer service
- Wholesalers add a mark up or profit margin

57
Q

Advantages and disadvantages of retailers

A

+ Retailers have product knowledge
+ Good customer service
+ Retailers may advertise products
- Hard to persuade retailers to stock new products
- Retailers add a mark up or profit margin

58
Q

What is the importance of e-commerce and m-commerce?

A

These 2 methods of sales are very fast growing, so businesses must investigate utilising them to maintain high levels of sales. They also allow businesses to reach international markets easier to sell more products.

59
Q

Advantages and disadvantages of e-commerce and m-commerce

A 
\+ Able to sell internationally
\+ Products are available to more customers
\+ May be able to close physical stores to reduce fixed costs
- Higher customer expectations 
- More competition
- Experts needed to design the website
- Hardware costs
- Harder to manage logistics

Business (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions