Marketing Flashcards

(101 cards)

1
Q

marketing

A

meeting the wants and needs of customers so that marketings primary aim of increasing sales can be met

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2
Q

the marketing mix

A

4 Ps of marketing
price, product, promotion, place
each part affects the other

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3
Q

promotion

A

collection of techniques used to inform+persuade customers to buy a product or service

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4
Q

above the line promotion

A

uses media where there is no direct contact with potential customer

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5
Q

television advertising (above the line promotion)

A

reaches mass audiences
visual+sound easy to remember
very expensive

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6
Q

billboards (above the line promotion)

A

busy roads+traffic lights
more cost effective than tv
people less exposed bc they’re static
content needs to be concise

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7
Q

below the line promotion

A

business can contact customer directly

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8
Q

below the line promotion techniques

A
email
personal selling 
telesales (phone)
product sampling 
leaflet distribution 
trade fairs
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9
Q

personal selling

A

direct link between a customer and a sales persons

inclu. sales assistants,door to door+telesales

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10
Q

advantages of below the line promotion

A

target those who shown genuine interest in product

offer personalised service

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11
Q

disadvantages of below the line promotion

A

customers become frustrated so media is ignored

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12
Q

Above the line promotion techniques

A
Billboards 
Tv advertising 
Radio 
Magazines 
Cinema 
Sponsorship
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13
Q

Radio (above the line promotion)

A
Locally 
Reach large group 
Doesn’t need full attention 
Change radio station 
Expensive prime time spots
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14
Q

Magazine (above the line promotion)

A
Target certain group 
Well respected mag association 
Pass on to friends
Flick past it 
Put at the back with others
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15
Q

Cinema (above the line promotion)

A
People from all sections of society 
Big impact big screen 
Audience can’t turn it off 
Arrive late 
Limited exposure
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16
Q

Sponsorship (above the line promotion)

A
Sports persons/team
Product awareness 
Positive association 
Bad actions of sponsor linked 
Lack of control brand displayed wrong
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17
Q

Newspapers (above the line promotion)

A

National or local

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18
Q

what are the other two types of below the line promotion

A

branding

social media

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19
Q

branding

A

powerful for people to want to be associated with your brand
helps boost sales

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20
Q

social media

A

business website+social media pages directing target consumers

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21
Q

advantages of social media as a below the line promotion technique

A

more cost effective
personal customer interaction
social med boost traffic to website
easy to measure success

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22
Q

three social media strategies for promotion

A

cold sell
influencers/ambassadors
organic posts

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23
Q

disadvantages of social media

A

fail to respond/engage on sm=bad rep
costs of someone running it
influencer controversy

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24
Q

price

A

amount of money given up to obtain a good/service

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25
cost plus pricing
adds % cost of making product to selling price
26
competitor pricing
based on prices charged by competitor | this price often lower to gain sales from rivals
27
price skimming
product more advanced/customers want to associate wi a particular brand price is set higher customers willing to pay
28
penetration pricing
business new to market set prices lower to break customer loyalties short term
29
marginal pricing
fixed+variable cost covered by current output | cost of producing extra unit only compromise variable cost
30
contribution pricing
price covers variable cost and gives a contribution to the fixed cost
31
psychological pricing
appeals to emotion over rational repsonses over price | e.g 0.99- would round down not up
32
price elasticity of demand formula
% change in demand/% change in price
33
how do you work out % change in demand
from a demand graph
34
what does it mean if price elasticity of demand is over 1
elastic in relation to price
35
what does it mean if price elasticity of demand is 1
its unit elastic (15% rise in price=15% contraction in demand)
36
what does it mean if price elasticity of demand is between 0-1
inelastic in relation to price
37
what does it mean if price elasticity of demand is 0
perfectly inelastic | demand doesn't change when price does
38
What type figure does price elasticity usually come out as
Negative | Follows law of demand
39
Income elasticity of demand
Measure responsiveness of demand with changes in income
40
Formula for income elasticity of demand
% change in QD/ % change in income
41
What does it mean if income elasticity is more than one
They’re luxury products
42
What does in mean if income elasticity of demand is less than 1 but more than 0
Product is a necessity
43
Define cross price elasticity of demand
Responsiveness of demand for good x following a change in the price relating for good y
44
Formula for cross price elasticity of demand
% change in demand for good x/ % change in price for good y
45
Substitutes (cross price elasticity of demand)
Close substitutes have a strongly positive cross price elasticity
46
Complement (cross price elasticity of demand)
Strong relationship, highly negative
47
Unrelated products (cross price elasticity of demand)
Products have zero cross elasticity
48
Summary points for elasticity formulas
Marketers decide wether to increase/decrease price Assumes you will know what happens demand as a result of a change in variable This info won’t always be available/accurate
49
Product life cycle
Theoretical model which describes stages that a product goes through overtime
50
Four stages of the product life cycle
Introduction Growth Maturity Decline
51
Key points of intro stages of product life cycle
Sales initially slow Heavy promotion Cash flow could be an issue Penetration pricing used
52
Key points of growth stage of product life cycle
``` Sales increase quick Competitors become interested High promotion spending continues Adoptions to product made Increase distribution ```
53
Key points of maturity stage of product life cycle
Weak rivals leave market Defend position from remaining comp More improvement to product Positive cash flow likely
54
Key points of decline stage of product life cycle
Tech advance,eco conditions + fashion fads=cause of decline Drastic price fall (cost plus wi small %) Limit distribution
55
What is an extension strategy
Product starts to decline Don’t withdraw use strategy to bolster sales
56
What are potential extension strategies
``` Advertising (potential new audience) Price reduction (more attractive) Add value Explore new markets (new geographical) New packaging ```
57
Benefits of a product life cycle
Helps with planning | Spot trends in previous life cycles, avoid pitfalls
58
Cons of the product life cycle
Too rigid e.g sales might dip in intro then rise again | Self fulfilling- product looks in decline so is discontinued, but just be a dip
59
Product positioning chart
Plotting products on a grid | In relation to two important market features
60
Why would marketers want to position a product in a highly saturated area of the market
Suggest high sales volume
61
Product portfolio
Collection of products produced by a business
62
How can a business analyse its product portfolio
With a product positioning chart
63
Why would a business want to ensure it has multiple products in a market
``` Increase sales Meet needs of multiple customer groups Compete with rivals Reduce risk Increase brand recognition ```
64
Boston Matrix
Tool used to identify where to allocate investment | Categorises products into one of four areas based on market share and growth
65
Four areas of Boston Matrix
Question marks (problem child) Stars Dogs Cash cows
66
Summarise stars (Boston Matrix)
High growth products Heavy investment to sustain growth Growth will slow but if maintain market share will become cash cows
67
Summarise dogs (Boston Matrix)
Low market share in low growth market Might have enough cash to break even, rarely invest Usually closed/sold
68
Summarise question marks/problem child (Boston Matrix)
Low market share, high growth market Have potential but need substantial investment Hardest products to make decisions on
69
Summarise cash cows (Boston Matrix)
Low growth product, high market share Little need for investments Need to be managed for consistent profit Can generate strong cash flow to fund stars
70
Benefits of the Boston Matrix
Identify stars to invest in Identify cash cows to reduce investment See which question marks to invest in
71
Why is the Boston Matrix limited
Other indicators which determine which stars to invest Cash cows may still require advertising to maintain market share Doesn’t identify the question marks to invest in
72
Define place
How the product is distributed
73
Channels of distribution
Provides link between production
74
Retailer
Responsible for selling the final product to the consumer
75
Types of retailing
``` Multiples (chains) Department (John Lewis) Convenience (costcutter) Independents (shop run by owner) Franchises ```
76
Key trends in retailing
Growth in out of town stores Decline in independents Increased use of tech in retailing
77
Role of a wholesaler
Good for producers can’t deal wi every shop it sells to Help small shops (can’t bulk) Have own logistics Allow producer+retailer focus on specialist areas
78
Agent
Negotiate between seller+buyer | E.g admiral
79
Key points about agents
Tertiary sector Usually on commission Don’t hold stock Reduce cost of marketing
80
What is channel 3 also called
Direct marketing
81
Why have channels of distribution changed
From 1-2= increase size of supermarkets | From 2-3= internet sales
82
What is online distribution
Tangible product being purchased online | Delivered by physical distribution
83
What is digital distribution
Electronic methods to deliver good | Downloadable
84
Advantages of online distribution
Geographical reach increase Overhead lower e.g don’t need physical stores Open all times
85
Drawbacks of online distribution
Shipping+returns complicated High initial capital investment Some like to try before buy Security problems
86
Advantages of digital distribution
Convenient No physical stores No delivery costs
87
Disadvantages of digital distribution
Not suitable for all products Customers need Internet Ongoing cost of systems+security Illegal streaming competition
88
Physical distribution
Physical method business used to distribute goods
89
Types of physical distribution
Air-perishable Road-smaller distance Sea shipping- big bulky products
90
Service marketing
How business increases sales for an activity that a business does for you. Intangible in nature
91
Additional 3 Ps/ extended marketing mix
People Process Physical evidence
92
People extended marketing mix
Make contact with customer to deliver product
93
Process extended marketing mix
Systems and processes that deliver a product to a customer
94
Physical evidence
Elements of the physical environment the customer experiences
95
Viral marketing
Use of social media sites to increase brand awareness | Will be shared like a computer virus
96
Drip marketing
Automated process send a set of messages | E.g ‘new season’ emails from clothes brands
97
Why does drip marketing work
Increases visibility | Remind customer of business
98
Why does viral marketing work
Shared instantly
99
Examples of physical evidence
Uniform Appearance Cleanliness
100
Examples of process
Website layout Booking Mobile apps
101
Examples of people
Customer service Friendliness Capability