MARKETING Flashcards

1
Q

What is market research?

A

Research conducted to gather consumer needs and interests

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2
Q

Give two reasons as to why market research may be conducted

A

1) Find a gap in the market

2) Improve decision making to reduce risk

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3
Q

What are the two different types of research?

A

Primary - Do it yourself

Secondary - Use existing data

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4
Q

What are the two types of results which can be gained from market research?

A

Quantitative - Numerical

Qualitative - Worded

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5
Q

How is social media beneficial to market research?

A

1) Businesses can upload surveys to social media platforms. These are more likely to be completed as they are more convenient.
2) They can examine their followers to understand trends/patterns

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6
Q

What is Qualtitative Data?

A

Data which is expressed through words

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7
Q

What is quantitative data?

A

Data which is numerically expressed

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8
Q

What is an advantage of qualitative data?

A

Provides you with in depth data

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9
Q

What are two disadvantages of qualitative data?

A

Data may be harder and more time consuming to analyse

It is slower to gather

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10
Q

What are two advantages of qunatitative data?

A

Easier to gather

Faster to analyse

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11
Q

What is a disadvantage of quantitative data?

A

Unhelpful if you need to analyse an issue in depth

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12
Q

What is primary research?

A

Research which you conduct yourself

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13
Q

What is secondary research?

A

Where you use existing data

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14
Q

What are two advantages of primary data?

A

You can set questions to tailor your needs and interests

It may provide you with a competitive edge

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15
Q

What are two disadvantages of primary data?

A

Sometimes time consuming

Sometimes costly

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16
Q

What are two advantages of secondary data?

A

Usually quick, sometimes instant

Usually cheaper than primary

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17
Q

What are two disadvantages of secondary data?

A

Competition will have the same access to the data

Research may be out of date

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18
Q

What is market segmentation?

A

Where businesses split potential consumers up into different categories to tailor their products

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19
Q

What are four examples of market segments?

A

Gender, age, income and consumer lifestyles

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20
Q

What is an advantage of market segmentation?

A

It allows businesses to tailor their products to the needs of their customers, building a loyal customer base

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21
Q

What are two disadvantages of market segmentation?

A

Higher costs

Limited product range

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22
Q

What is market share?

A

The portion of a market, of a particular entity, which a business controls

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23
Q

What is the formula for market share?

A

(sales of a product or business/total market sales) x 100

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24
Q

What is market growth?

A

The portion of the whole market which a company holds

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25
Q

What is the formula for market growth?

A

(change in size of market over a period of time/original size of market) x 100

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26
Q

What are market leaders?

A

The company which sells the largest quantity of a particular product

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27
Q

What can market leaders usually do?

A

Charge higher prices

Easily distribute product as brand is well known

28
Q

What is the marketing mix?

A

A combination of factors which a company controls to influence customers to buy their products

29
Q

What are the 7Ps?

A

Place, people, process, promotion, price, physical environment, product

30
Q

What is price involved in?

A

How much a customer pays for a product

31
Q

What is product involved in?

A

The product/service which a customer buys

32
Q

What is place involved in?

A

This is how the product is distributed to a customer

33
Q

What is promotion involved in?

A

This is how a company makes a customer aware of their product/business

34
Q

What is process involved in?

A

The processes which deliver a product to a customer

35
Q

What is people involved in?

A

The people who make contact with the customers in delivering the product

36
Q

What is physical environment involved in?

A

The physical environment which a customer experiences when purchasing a product

37
Q

What is product development?

A

The creation of new products or the development of existing products

38
Q

What are two advantages of product development?

A

More sales = More Revenue

Allows the opportunity to sell to a different segment

39
Q

What are two disadvantages of product development?

A

The actual process of developing a product (market research & promotion) is costly
There is always a risk that a product may fail

40
Q

What is product differentiation?

A

The adaptation of a product to make it different from competitor products

41
Q

What is USP?

A

Unique selling point

42
Q

What are two advantages of product differentiation?

A

Increased sales = increased revenue

Competition on price may be avoided

43
Q

What is a disadvantage of product differentiation?

A

To ensure that differentiation is effective, businesses may have to spend a lot of money

44
Q

What is the law of demand?

A

As price increases = sales decrease

As price decreases = sales increase

45
Q

What is price elasticity?

A

Where a change in price has a significant influence on sales

46
Q

What is price inelasticity?

A

Where a change in price does not have a significant influence on sales

47
Q

What is an internal influence on a business’ pricing decisions?

A

Operations within a business which influence its’ pricing decisions

48
Q

What are two examples of internal influences on pricing decision?

A

Technique of production

The product life cycle

49
Q

What is an external influence on a business’ pricing decisions?

A

Operations outside of a business which influences its’ pricing decisions

50
Q

What are two examples of external influences on pricing decision?

A

State of the economy

Competitor prices

51
Q

What is price skimming?

A

Initial: High price
Gradual: Low price

52
Q

What are two advantages of price skimming?

A

Profits can be increased

Can be used to quickly recover costs from research and development

53
Q

When could a business use price skimming?

A

During the introduction of a product

When the product has a USP

54
Q

What is price penetration?

A

Initial: Low Price
Gradual: High Price

55
Q

What is an advantage of price penetration?

A

People will most likely try the product while it is cheap, possibly increasing your market share

56
Q

What is a disadvantage of price penetration?

A

You will initially make low profits

57
Q

What is competitive pricing?

A

Where a business sets the product price to a similar range as its competitors

58
Q

What is an advantage of competitive pricing?

A

You would gain a stable loyal customer base

59
Q

What is a disadvantage of competitor pricing?

A

Marketing costs are increased - you want to be the best!

60
Q

What is cost plus pricing?

A

Where you calculate the product costs and add a mark up

61
Q

How do you work out cost plus pricing?

A

1) Work out the total cost of the product

2) Multiply the result from step one by your mark up

62
Q

What is an advantage of cost plus pricing?

A

Ensures costs are covered and profits are guaranteed

63
Q

What is a disadvantage of cost plus pricing?

A

Doesn’t take competitor prices into account

64
Q

What is loss leader pricing?

A

This is where a product costs less than it does to make

65
Q

What is an advantage of loss leader pricing?

A

It usually persuades customers to buy other products

66
Q

What is a disadvantage of loss leader pricing?

A

Its not good if someone bulk buy

67
Q

When should a business use loss leader pricing?

A

ONLY SELL TWO PER CUSTOMER

Make sure the products are perishable