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
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
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
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
4
Q
Benefits of mass marketing
A
- Cheaper advertising cost per unit
- Brand awareness
- High sales revenue due to large target market
- Bulk buying
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
6
Q
Stages of the product development process
A
- Generate ideas
- Analysis of ideas
- Product development
- Test marketing
- Launch
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
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
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.
10
Q
Stages of the product cycle
A
- Development
- Introduction
- Growth
- Maturity
- Decline
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
12
Q
Name a type of promotion
A
- Public Relations
- Branding
- Merchandising
- Sales Promotions
- Direct Selling
- Advertising
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
14
Q
Name the four main pricing strategies
A
- Price Skimming
- Price Penetration
- Price Leadership
- Price taking
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
How does finance influence the marketing mix?
- 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
How does technology influenced the marketing mix?
- 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
How does market research influence marketing mix?
- 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
Give an example of an inter grated market mix
- 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
Name two of the major detriments of competitiveness
- Investment in new equipment
- Staff skills
- Innovation through investment
- Enterprise and the entrepreneurial skills of business owners
- Effectiveness of the marketing mix
29
Name the methods of improving competitiveness
- Marketing
- Reducing cost
- Improving quality
- Staff training
