Marketing Flashcards
1
Q
Marketing definition
A
Scientific process focusing on meeting customer needs and wants
2
Q
Brand definition
A
Product that is distinctively different due to its name
3
Q
Own-label brands
A
Produced under the retailer’s names
4
Q
Process of marketing
A
Research
Segmentation
Product development
Devising marketing mix
5
Q
Segmentation definition
A
Grouping customers into subsections of market with similar characteristics
6
Q
Ways of segmentation
A
Gender
Age
Location
Income
7
Q
Localisation definition
A
Tailoring products to markets in different locations
8
Q
Market research definition
A
Process of gathering, analysing and processing data to find out needs and wants of customers
9
Q
Primary research definition
A
Research conducted by business itself (new information)
10
Q
Secondary research definition
A
Data about market that already exists
11
Q
Benefits of market research
A
Identify opportunities
Reduces risk of failure
Reduces waste or resources
Understand the market and who to target
12
Q
Survey advantages
A
Quick and easy
Large amount of data
13
Q
Survey disadvantages
A
Lots of incentive required
Quantitative data
Lower detail
14
Q
Interview advantages
A
Qualitative data
In-depth data
15
Q
Interview disadvantage
A
Time-consuming
16
Q
Observation advantages
A
Observe human behaviours and trends Live reaction (more genuine)
17
Q
Observation disadvantages
A
Not in-depth
18
Q
Test marketing advantages
A
Reduces waste of resources and risk
19
Q
Test marketing disadvantage
A
Expensive if fails
20
Q
Focus group advantages
A
Higher depth
Both qualitative and quantitative
21
Q
Focus group disadvantage
A
Higher incentive (usually paid contestants)
22
Q
Sales records advantages
A
Shows clear pattern
Easy to draw conclusions (what works and doesn’t work)
23
Q
Sales records disadvantages
A
Doesn’t consider external influences
Past demand doesn’t always stay the same
24
Q
Previous research advantages
A
About your business
Likely domains opinions of target market
25
Previous research disadvantages
May not be longer relevant
| May not consider current likes of customers in target market
26
Articles advantages
Contains qualitative and quantitative definition
| Can be up to date
27
Articles disadvantages
Can be biased
| Can be out of date
28
Internet advantages
Quick and easy access
| Huge variety of information
29
Internet disadvantages
Anyone can write information
| Information may be false
30
Government statistics advantages
Reliable source
| Shows results for whole population
31
Government statistics disadvantages
Takes long time to analyse
| Not tailored to specific business
32
Market intelligence reports advantages
Very accurate
Specialised for business’ target market
Done for you
33
Market intelligence reports disadvantages
Very expensive as competed by specialists
34
Market size definition
Total size of marker
35
Volume definition
Number of units sold
36
Value definition
Monetary worth of total units sold
37
Methods of measuring market size
Volume
| Value
38
Market share definition
Percentage of sales that one business controls
39
Benchmarking definition
Using market leaders as goals and reference points for success
40
Sample definition
Representative group of target market
41
How to present data
- numerically
- written form
- graphically
42
How to analyse results
- overtime
- comparison to competitors
- comparison with other parts of business
43
Design definition
Functions and features
44
Image definition
Attractiveness to customer, fits in with brand image
45
Needs of the target market definition
Design product in response to market (specific segment)
46
Product differentiation definition
methods to make product more distinct from rivals
47
USP definition
unique aspect of product that makes it different
48
Stages of product development
```
Generate idea
Check idea
Develop product
Trial product
Launch product
```
49
First-mover advantage definition
when you are first business to do something new in market
50
Factors affecting demand
```
Trends
Technology
Seasonal
Cost and economy
Climate
```
51
Product life cycle definition
model showing lifespan of product’s sales from launch to being taken off market
52
Product development disadvantages
First-mover advantage
Compete better vs competitors
Higher customer engagement with brand
53
Product development disadvantages
```
Risky if fails
High potential of waste of resources
Potential damage to brand, lowering PR
May not reach customer expectations
Expensive
Takes time
Competitors may react sooner
```
54
Extension strategy definition
Ways business modifies product to appeal to more customers and maintain sales maturity
55
Benefits of extension strategy
Increase sales
Extends maturity
Appeal to new segment
56
Examples of extension strategy
Change image, name, size, packaging, campaign
Target new segment
Find different purpose for product
57
Product portfolio definition
Range of products business sells
58
Product range definition
Product’s variants sold under same name
59
Broaden product portfolio
Different target markets for similar products
| Diversification by selling new products
60
Balance product portfolio
Offer a range of products to support original products
| Meet meets of different customers
61
Boston matrix definition
Tool to analyse product’s share and growth in market
62
Rising star Boston Matrix
High market share
High market growth
Fierce competition
Needs heavy promotion / improvement
63
Cash cow Boston matrix
```
High market share
Low market growth
Little proportion needed
Less threat from competition
Established products
```
64
Problem child Boston matrix
High market growth
Low market share
Low demand
Needs heavy promotion / development
65
Dog Boston matrix
Low market share
Low market growth
Get rid of / improve
66
Boston matrix benefits
AIDS decision making
Categorise products visually
Simple to interpret
67
Price definition
Amount charged for product / service
68
Factors for price
```
Quality for product
Competitors
Nature of brand
Production cost
Previous sales records
Sensitive demand
```
69
Sensitive demand definition
Demand dependent on price
70
Price skimming definition
Setting high price to set up brand image in market and lowering when more competitors arise
71
Price war definition
Businesses undercut each other until price of product isn’t sustainable
72
Loss leader definition
Product is priced lower than cost to attract customers into store to more products
73
Price penetration definition
Entering market with low price and increasing it as competitors arise
74
Profit plus definition
Setting price of product at fixed percentage
75
Distribution definition
Getting products to the right place at the right time
76
Distribution channel definition
Route taken by product as it moves from produced to consumer
77
Traditional distribution channel
Producer -> wholesaler -> retailer -> customer
78
Modern distribution channel
Producer -> retailer -> customer
79
Direct distribution channel
Producer -> customer
80
Logistics definition
Science of moving products, managing stocks and distribution
81
Leas time definition
Duration between customer placing order and receiving order
82
Intermediaries definition
Different parties involved in distribution channel
83
Intermediaries advantages
Less responsibility
84
Intermediaries disadvantages
Increases cost and prices
Increases time
More miscommunication
85
e-commerce definition
When buyers and sellers meet in virtual location e.g. Internet
86
m-commerce definition
use of mobile devices to trade
87
E/m-commerce growth benefits
```
No cost for retail premises
Any businesses can reach larger markets
Direct distribution = cheaper
Business can gather more information
Can access more consumers all over world
```
88
E/m-commerce drawbacks
Mobile devices can limit information due to smaller screen
Initial costs can be high
Greater competition when operating online
Communication and transport problems worldwide is difficult
Website requires frequent updating
89
Promotion definition
Ways businesses try to communicate with customers
| Aims to inform and persuade them about product
90
Aims of promotion
Awareness
Interest
Desire
Action
91
Below the line definition
Non-media, some direct control
92
Above the line definition
Through media, no direct control
93
ATL advantages
Large number of viewers
| More engaging
94
ATL disadvantages
Very expensive
| No direct control over viewers
95
BTL advantages
Cheaper
| Some direct control over viewers
96
BTL disadvantages
Smaller number of viewers
| Less likely to be shared
97
ATL methods
```
TV
Radio
Newspaper
Magazines
Posters
Internet
```
98
BTL methods
```
Direct mail
Packaging
Personal selling
Public relations
Sales promotion
Celebrity endorsement
```
99
Viral marketing definition
Lots of people share an advert online
100
Reasons for promotion
```
Widen target market
Increase sales
Raise awareness
Create/change product image
Inform/remind consumers
```
101
Factors influencing promotion
```
Target market
Budget
Brand
Size of business
Competitors
Stage in product life cycle
```
102
Marketing mix definition
All activities that influence customer’s choice to buy product
103
Factors involving choice of mix
```
Type of of product
Target market
Cost of production
Budget
Competitors
```
104
Reasons marketing mix changes over time
Pricing strategies
Technology
Keeping up with customers
Keeping up for trends
105
Product development advantages
Products invented/improved
Increase sales
Competitive advantage (USP)
Increase marker share and profit
106
Product development disadvantages
Expensive and takes time
May affect lifetime of other products
Competitors may react sooner, sales affected
If fails, may damage brand image
