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Business Studies - Marketing > MARKETING > Flashcards

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
What is the formula for market growth?
(change in size of market over a period of time/original size of market) x 100
26
What are market leaders?
The company which sells the largest quantity of a particular product
27
What can market leaders usually do?
Charge higher prices | Easily distribute product as brand is well known
28
What is the marketing mix?
A combination of factors which a company controls to influence customers to buy their products
29
What are the 7Ps?
Place, people, process, promotion, price, physical environment, product
30
What is price involved in?
How much a customer pays for a product
31
What is product involved in?
The product/service which a customer buys
32
What is place involved in?
This is how the product is distributed to a customer
33
What is promotion involved in?
This is how a company makes a customer aware of their product/business
34
What is process involved in?
The processes which deliver a product to a customer
35
What is people involved in?
The people who make contact with the customers in delivering the product
36
What is physical environment involved in?
The physical environment which a customer experiences when purchasing a product
37
What is product development?
The creation of new products or the development of existing products
38
What are two advantages of product development?
More sales = More Revenue | Allows the opportunity to sell to a different segment
39
What are two disadvantages of product development?
The actual process of developing a product (market research & promotion) is costly There is always a risk that a product may fail
40
What is product differentiation?
The adaptation of a product to make it different from competitor products
41
What is USP?
Unique selling point
42
What are two advantages of product differentiation?
Increased sales = increased revenue | Competition on price may be avoided
43
What is a disadvantage of product differentiation?
To ensure that differentiation is effective, businesses may have to spend a lot of money
44
What is the law of demand?
As price increases = sales decrease | As price decreases = sales increase
45
What is price elasticity?
Where a change in price has a significant influence on sales
46
What is price inelasticity?
Where a change in price does not have a significant influence on sales
47
What is an internal influence on a business' pricing decisions?
Operations within a business which influence its' pricing decisions
48
What are two examples of internal influences on pricing decision?
Technique of production | The product life cycle
49
What is an external influence on a business' pricing decisions?
Operations outside of a business which influences its' pricing decisions
50
What are two examples of external influences on pricing decision?
State of the economy | Competitor prices
51
What is price skimming?
Initial: High price Gradual: Low price
52
What are two advantages of price skimming?
Profits can be increased | Can be used to quickly recover costs from research and development
53
When could a business use price skimming?
During the introduction of a product | When the product has a USP
54
What is price penetration?
Initial: Low Price Gradual: High Price
55
What is an advantage of price penetration?
People will most likely try the product while it is cheap, possibly increasing your market share
56
What is a disadvantage of price penetration?
You will initially make low profits
57
What is competitive pricing?
Where a business sets the product price to a similar range as its competitors
58
What is an advantage of competitive pricing?
You would gain a stable loyal customer base
59
What is a disadvantage of competitor pricing?
Marketing costs are increased - you want to be the best!
60
What is cost plus pricing?
Where you calculate the product costs and add a mark up
61
How do you work out cost plus pricing?
1) Work out the total cost of the product | 2) Multiply the result from step one by your mark up
62
What is an advantage of cost plus pricing?
Ensures costs are covered and profits are guaranteed
63
What is a disadvantage of cost plus pricing?
Doesn't take competitor prices into account
64
What is loss leader pricing?
This is where a product costs less than it does to make
65
What is an advantage of loss leader pricing?
It usually persuades customers to buy other products
66
What is a disadvantage of loss leader pricing?
Its not good if someone bulk buy
67
When should a business use loss leader pricing?
ONLY SELL TWO PER CUSTOMER | Make sure the products are perishable

Business Studies - Marketing (1 decks)

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