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HIGHER BUSINESS > Marketing and operations > Flashcards

Marketing and operations Flashcards

1
Q

what is the purpose of the marketing department
3 points

A

raise awareness of products
inform customers about products
Anticipate what customers want

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2
Q

describe product led

A

When a business develop a product first and then try to sell it to the customer through intensive advertising

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3
Q

Give to examples of companies that would work product lead

A

Apple and Tesla

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4
Q

What is one advantage of product lead

A

Organisations can focus on the quality of their products and take their time in production

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5
Q

What is one disadvantage of product lead

A

The actual needs of the market are ignored

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6
Q

Explain market lead

A

When a business finds out what the customer wants for intensive market research and then creates a product that will satisfy those wants

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7
Q

What is one advantage of market lead

A

It has more confidence in the launch of the new product due to research being carried out

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8
Q

What is one disadvantage of market lead

A

Market research is very expensive to carry out

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9
Q

Identify three types of consumer buying behaviour

A

Routine
informed
impulsive

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10
Q

Describe routine purchases

A

They require little involvement by the customer
purchases are made automatically for example cereal

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11
Q

Describe informed purchases

A

Buyer takes time to investigate the product then they will consider different products that are on offer for example a car

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12
Q

Describe impulsive purchases

A

They happen without any prior planning authority e.g chocolate

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13
Q

What are the five stages of the product life cycle

A

research and development
Introduction
growth
maturity
decline

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14
Q

Describe research and development stage

A

The product is not in the market yet research and development testing takes place no sales and profit are made

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15
Q

Describe introduction stage

A

Sales will be low as just launched onto the market
advertising cost will be high and ordered for the product to get noticed

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16
Q

Describe the growth stage

A

Sales begin to grow
advertising costs are still high
a small profit can be made of our research and development course I’ve been covered

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17
Q

Describe maturity stage

A

Sales at their peak profits
Advertising can be reduced as the product is well known

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18
Q

Describe the decline stage

A

Sales begin to fall as the product begins slow death imitations may take over it therefore profits will fall

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19
Q

What are 4 extension strategies of the product life cycle

A

Change the price of the product change the place of the product change the packaging of the product and change the name of the product

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20
Q

Describe changing in the price of a product

A

Please can we lowerd to allow new customers to buy it

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21
Q

Describe changing the place of a product

A

Products can be sold in different countries to gain more sales as well as online etc to reach wider market

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22
Q

Describe change in the packaging of a product

A

The packaging may be changed together new appearance of the new and improved product

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23
Q

Describe changing the name of a product

A

Product suffered from bad publicity and sales are falling a tried and tested technique is used to simply changing the name

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24
Q

Name for advantages of having a wide product portfolio

A

-Can increase profits from selling a large range of different products
-greater brand awareness
-easier to launch new products as brand is already established
-can meet different market segments

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25
Q

What are three disadvantages of having a wide product portfolio

A

-Increased research and development costs due to multiple products being produced
-marketing and advertising cost can be high
-bad publicity may affect sales of all other products within the product portfolio

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26
Q

What are stars (Boston matrix)

A

Products have high market share in a fast-growing market

27
Q

What are cash cows (Boston matrix)

A

Have high market share in a slow growing market

28
Q

What are problem children (Boston matrix)

A

Products have a low market share in a fast-growing market

29
Q

what are dogs (boston matrix)

A

Products with a low market share in a slow growing market

30
Q

What are two advantages of using a Boston matrix

A

Allows firms to identify products that may require further investment for example turn a problem child enter star
Allows a firm to identify poor performing products and make decisions about which products to drop i.e. dogs

31
Q

Are two disadvantages of using a Boston matrix

A

Firms cannot measure what is going to happen in the future
Does not take into account external factors such as competitors actions

32
Q

Describe high/premium pricing advantage and disadvantage

A

Price is higher than rivals to signify luxury or quality
They will usually have a high profit margin on each sale
May be difficult to attract customers who may look for better value from the competition

33
Q

Describe market/competitive pricing and one advantage

A

Involves a business setting their price at a similar one to competitors
The business will then compete on other factors such as convenience and customer service

34
Q

Describe low value pricing with an advantage and disadvantage

A

Prices are below the market price in order to attract customers
Customers are often look for the cheaper products to save money
Low prices are associated with her quality even if that’s not always the case

35
Q

Describe psychological pricing with an advantage

A

Used to make customers think the price of a product is lower than it actually is for example £19.99 instead of £20 this leads to customers thinking they are receiving a great deal which could secure a sale

36
Q

Describe price discrimination pricing

A

Used when demand for products or service may change due to changes in consumer demand for example price of snacks at a service station

37
Q

Describe cost plus pricing with an advantage and disadvantage

A

Method of pricing is based on calculating the cost of producing the item and then adding on the percentage profit
SMSes insures all costs are covered however it does not consider external factors such as competitors pricing

38
Q

Describe penetration pricing with an advantage and disadvantage

A

The price will be set lower than competitors to gain market share once product becomes established the price will then increase
A strategy can be used to encourage customers to switch brands
Company will not make as much profit during initial launch

39
Q

Describe promotional pricing and give an advantage

A

Prices are reduced for a period of time through discounts and vouchers
often used to attract a lot of media interest or help clear stock for example January sales

40
Q

Describe destroyer pricing and give an advantage and disadvantage

A

Involves a business setting a very low price in order to attract customers away from competitors who will struggle to match the low price and go bust
used to eliminate competition whoever it is legal in the UK

41
Q

Describe market skimming prices in and give an advantage and disadvantage

A

A product is launched at high price and reduced over time
The business can build a quality image
Loss and status when you eventually lower the price

42
Q

Describe loss leader pricing and giving advantage

A

Involve selling certain products at a loss or below market value to encourage customers to come into the business
This method of pricing should increase sales of other full Price products in store

43
Q

Identify four methods of direct selling

A

Mail order
e-commerce
direct mail
personal selling

44
Q

What are two advantages of direct selling

A

Products can be tailored to customers specific requirements
Set the middleman which increase profits for the manufacturer

45
Q

What disadvantages of direct selling

A

Increase costs due to advertising storing stock and administration
Time and cost and organising product delivery

46
Q

What are two advantages to wholesaler

A

Low transport and admin costs by relieving the manufacture of having to make lots of small deliveries
The wholesaler can be packaged and labelled products in smaller quantities meaning less work

47
Q

What are two disadvantages to a manufacturer when using a wholesaler

A

Wholesaler may damage reputation of the manufacturer
Manufacturer loses control over what happens to the product after they have sold it and may not like the way product is being portrayed by wholesalers

48
Q

Identify for PR activities

A

Sponsorships
press conferences
press releases
charity donations

49
Q

describe sponsorships

A

Companies pay to have their name associated with a organisation for example football teams

50
Q

describe press conferences

A

When members of the press are invited to a presentation given by the company to report information for example a new product

51
Q

describe press releases

A

Written statements that are given to the media to inform them on any information

52
Q

describe charity donations

A

Letting the public know your company donates to support a charity

53
Q

Describe maximum inventory level

A

Highest level of infantry that can be held at any one time to avoid overstocking

54
Q

Describe minimum inventory level

A

The lowest amount of inventory that a business can hold at any one time to avoid understocking

55
Q

Describe reorder level

A

The level at which inventory should be re-ordered taking account of usage and leadtimes

56
Q

Describe reorder quantity

A

The man that is ordered to take the inventory back up to maximum level

57
Q

Describe lead time

A

The time taken between ordering new inventory and it been delivered

58
Q

Describe buffer inventory

A

There’s always a buffer inventory of a items held in case deliveries are held up or there is an unexpected large order

59
Q

What are three advantages to just-in-time

A

Reduce wastage as less risk of stock going out of date or over fashion
less storage space required
Organisation is more responsive to customer demand

60
Q

What are three disadvantages to just-in-time

A

Organisations can lose out on bulk buying discounts
Delay in receiving orders from suppliers will lead to production having to stop
Stock being delivered frequently increases Administration and delivery costs

61
Q

what are 2 advantages to centralised warehousing

A

Suppliers are delivering to one location which reduces delivery costs
Economies of scale are gained to bulk ordering

62
Q

What are two disadvantages of centralised warehousing

A

High costs due to special equipment and large storage facilities
May incur increased delivery times and delays in receiving stock to the department

63
Q

To advantages of decentralised warehousing

A

Inventory is accessible so no delay in receiving required goods
Small amounts of stock being held prevents wastage

HIGHER BUSINESS (3 decks)

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