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Business Unit 2 > Marketing And The Competitive Environment > Flashcards

Marketing And The Competitive Environment Flashcards

0
Q

What are the features of a B2B market?

A
  • Transactions are much larger
  • Buyers and sellers are specialist employees meaning they have great knowledge and understanding
  • Greater emphasis on factors such as after sales servicing
  • Promotion is more Informative
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1
Q

Name a purpose for marketing

A
  • Anticipating customers wants, through market research
  • Satisfying customers wants in a way that delights customers, using suitable marketing mix
  • Meeting the needs of the organisation
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2
Q

Benefits of a niche market

A
  • Premium pricing strategies due to lack of competition
  • Unique Selling Point and often first mover advantage due to spotting a gap in the market
  • Greater focus on customer needs
  • Less Competition
  • Less economies of scale
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3
Q

Drawbacks of niche market

A
  • Changes in tastes or fashion can quickly affect the market
  • Market Growth can see larger firms joining industry
  • High profit margin, but low sales can affect the status due to economic crisis
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4
Q

Benefits of mass marketing

A
  • Cheaper advertising cost per unit
  • Brand awareness
  • High sales revenue due to large target market
  • Bulk buying
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5
Q

Drawbacks of mass marketing

A
  • High level of competition
  • Lower prices and fewer premium products due to less scope for adding value
  • High level of investment in products
  • Diseconomies of scale
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6
Q

Stages of the product development process

A
  1. Generate ideas
  2. Analysis of ideas
  3. Product development
  4. Test marketing
  5. Launch
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7
Q

Name a factor that influences development and how it does it?

A
  • Technology
  • Can create a new product superior to existing products
  • Reduced production cost
  • Competitors actions
  • New product may take away firms market share
  • Entrepreneurial skills of managers and owners
  • New products occur because an entrepreneur identifies an opportunity
  • New ideas arise from research and development
  • Market Research
  • Able to spot trends and demands in certain products that a target market is looking and willing to pay for
  • Ideas from other countries
  • A product that yields great sales revenue in another country could do the same in a different country
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8
Q

Name a method used to create a USP

A
  • Developing a popular brand name through promotions
  • Modifying a product to attract new market segments
  • Attractive packaging
  • Enhanced customer service
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9
Q

Evaluation of Boston Matrix

A

On balance, a firm would prefer a portfolio of cash cows and stars. However, dogs can be profitable and a problem child might become a cash cow in the future.

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10
Q

Stages of the product cycle

A
  1. Development
  2. Introduction
  3. Growth
  4. Maturity
  5. Decline
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11
Q

Name two extension strategies for a product

A
  • Attracting new market segments
  • Increases usage among existing customers
  • Modifying the product
  • Changing the image
  • Targeting new markets
  • Promotions, advertising and price offers
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12
Q

Name a type of promotion

A
  • Public Relations
  • Branding
  • Merchandising
  • Sales Promotions
  • Direct Selling
  • Advertising
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13
Q

What factors influence the promotional mix?

A
  • Objectives of the campaign
  • Costs and budgets
  • The target market
  • The need for a mixture of different promotions within a campaign
  • Legal Factors
  • External Factors
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14
Q

Name the four main pricing strategies

A
  • Price Skimming
  • Price Penetration
  • Price Leadership
  • Price taking
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15
Q

What are the two main influences on pricing decisions.

A
  • Cost of production

- Price elasticity of demand

16
Q

Name a factor that influences cost plus pricing

A
  • Level of competition
  • The price that customers are prepared to pay
  • Firms objectives
17
Q

Name two factors that influence price elasticity of demand

A
  • Necessity
  • Habit
  • Availability
  • Brand Loyalty
  • The proportion of income spent on a product
  • Income of consumers
18
Q

Drawback of PED

A
  • Significant changes in the market has an effect on the level of demand independently of price
  • Changes in price may provoke rival firms to match the change
  • Consumers unable to predict their spendings effect on price changes. (This makes primary surveys useless)
19
Q

What are the elements that effect location?

A
  • Convenience
  • Accessibility
  • Cost of access
  • Reputation
  • Localisation
20
Q

Give an example of how placement within the point of sale can effect a products chances of being bought

A
  • Similar products are placed together, so they shoppers can make comparisons
  • Brightly coloured, fresh produce is made visible from outside the store
  • Impulse buys are put close to the checkout(Chewing gum)
  • Popular products are given greater shelf space
21
Q

Name a method used by manufactures to try widen the number of outlets stocking their products.

A
  • Promotional campaigns to boost demand
  • Providing extra facilities or attractive displays for retailers to use
  • Offering high profit margins to retailers
22
Q

Name the factors that influence the method of distribution

A
  • Size of the retailer
  • Type of product
  • Number of retailers
  • Technology
  • Geography of the market
  • Complexity of the product
  • Degree of control desired by the manufacturer
23
Q

What are the three influences on the marketing mix?

A
  • Finance
  • Technology
  • Market Research
24
Q

How does finance influence the marketing mix?

A
  • If a business has cash-flow problems, it may need to reduce spending on promotion
  • Whether or not the firm is able to buy raw materials at a discount price can affect the market mix
25
Q

How does technology influenced the marketing mix?

A
  • If a product is technologically advanced, it will usually be more popular with customers
  • Technology helps organisations to produce high quality at low costs
  • New technology in the form of the internet is having a major impact on the ‘place’ element of the marketing mix
26
Q

How does market research influence marketing mix?

A
  • If market research shows the existence of a lot of competition, a business needs to differentiate its product from those of competitors.
  • Continuous market research is required to keep up-to-date with markets
27
Q

Give an example of an inter grated market mix

A
  • Main selling point of product is excellence, the quality, design and price product must match consumers expectations.
  • Impulse buyers, place is vital but promotion is needed to make customers recognise the product, and the product design must attract attention.
28
Q

Name two of the major detriments of competitiveness

A
  • Investment in new equipment
  • Staff skills
  • Innovation through investment
  • Enterprise and the entrepreneurial skills of business owners
  • Effectiveness of the marketing mix
29
Q

Name the methods of improving competitiveness

A
  • Marketing
  • Reducing cost
  • Improving quality
  • Staff training

Business Unit 2 (6 decks)

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