Marketing + Operations Flashcards
What is marketing?
Marketing involves trying to meet the needs and wants o customers.
This is done through finding out what they want and providing this at a reasonable price that can make a profit.
What is a market? 4 examples?
A market is where customers (the buyer) and sellers (the supplier) come together when goods and services are supplied to the customers.
- On a website
- In a shop
- Over the telephone
- Through an internet-enabled telephone or tablet computer (e.g. an app).
Why is marketing important?
-Can attract new customers
-Allows the business to enter a new market (eg using the internet to sell a product on the other side of the world)
-Helps the business grow
-Increases profit
What is market growth
Helping a business increase the number of customers buying from the business.
What is market share
To increase proportion of customers the business has from the whole market.
What is a market leader?
Having the most customers compared to other businesses
What is the target market or target segment?
The specific group of people a business focuses their product towards.
What are the four elements the marketing mix consists of to achieve it marketing objectives?
The four P’s
-Product
-Price
-Place
-Promotion
What are the four P’s description?
Product= The item that is produced by the business and then sold in thee market.
Price= how much money the business charges the customer to buy the product.
Place= This is the way the business makes the product available to the customer and where the product is sold (the market).
Promotion= This is how customers are told that the product exists and are encouraged in different ways to buy it promotion is more than just advertising.
Product development.
-Market research carried out to find out what the customer wants.
-Ideas for the product are generated based on market research information.
-Prototype made.
-Test marketing where customers can try the product and provide feedback.
-Changes made to product based on feedback.
-method of production decided.
-The price, product and methods of promotion must be decided.
Some risks a business faces when it develops a new product are?
-Customers might not want the product and therefore not buy it.
-The money invested into developing the product would bee wasted so the business is in financial difficulty.
-Reputation of the business could be damaged if the product is unwanted or poor quality.
-external factors (eg competition or the economy) might impact upon the success of the product.
What is the product life cycle and what are the different stages of it?
The product life cycle shows the different stages of the product life.
The four stages are:
-Introduction
(The product is introduced into the market)
-Growth
(Sales of the product are growing)
-Maturity
(Sales of the product reach their highest)
-Decline
(Sales of the product begin to fall)
What is branding
A bran can be a logo, name or symbol that is given to a group or type of product.
Advantages for branding
-So that is recognizable to customers. promotion and marketing tool.
-Customers become brand loyal.
-higher prices charged for branded products.
-new products introduced easily as the brand name is already well known.
Disadvantages for branding
-Brand name can be damaged by a bad reputation or low quality product.
-some people try to copy brands and produce a fake product.
-time consuming
What is distribution methods and what are the four main methods?
distribution methods is how the business decides to physically get the product to the customer.
the four main methods are:
-Road network
-train
-aircraft
-boat
What is advertising
Advertising makes customers aware that a product exists. It includes information about the product to encourage people to buy it.
-Can increase sales
Examples of internet websites
-Quick response (QR) codes
-e-commerce
Advantages of internet websites
-customers worldwide can be targeted
-can buy 24/7 from anywhere they want
-product information can be updated and accessed quickly
-3D views of the product can often be seen.
Disadvantages of internet websites
-Goods cant be seen or handled before buying
-customers might not want to disclose personal details on a website.
-technical products make occur
-no personal contact with the organization.
Internet advertising examples.
-Apps
-text messaging
-e-mail advertising
-tv, newspapers, magazines, billboards.
Examples of promotion methods.
-special offers
-free samples
-celebrity endorsement
Examples of ethical marketing
-Cutting down on volumes of paper
-No misleading information
-ensuring marketing activities do not offend beliefs that other people have.
What is market research?
Its when businesses find out what customers want and what competitors are doing. Market research involves looking at information that exists and finding out new information.
Why is market research done?
-To make sure they provide the goods and services customers want.
-To make sure that they keep ahead of the competition.
What are the two types of market research.
Field research
= (Surveys, interviews and observations).
new information
Desk research
= (Newspapers, books and internet)
existing information
Advantages of field research.
-More up to date
-More relevant because gathered for a specific purpose.
Advantages of desk research.
-Research already carried out and easy to obtain
-Cheaper to gather
-Decisions can be made quickly.
Disadvantages of field research
-Can be expensive to carry out
-Takes a lot of time.
-People need to be trained in carrying out field research.
Disadvantages of desk research
-Carried out for a different purpose, not reliable.
-Not relevant
-Information may be biased.
methods of field research?
-personal interview
-focus group
-postal survey
-telephone survey
-online survey
What is operations?
The operations function (or department) is responsible for manufacturing products.
controls the quantity of stock help by business to meet customer orders and avoid wasting capital.
What are the the different activities the operations department carry out?
-they make products (people or machinery)
-Help satisfy customers by making products they want
-Work with suppliers to ensure raw materials are available at correct time.
-manage levels of stock to make sure it doesn’t run out
What are suppliers for?
They supply the business with raw materials for their product
What are the factors of the purchasing mix
-Cost of raw materials
-Quality of raw materials
-Lead time/delivery time
-quantity of raw materials.
-location of supplier
-reliability
-storage space available
What is inventory management?
When businesses manage their stock level (e.g raw materials, work in progress, finished products). This is to make sure there isnt to much or to little.
How can stock levels be managed
spreadsheets or EPOS
DESCRIBE THE CONSEQUENCES OF OVERSTOCKING AND UNDERSTOCKING
overstocking=
-Costs money to store stock
-Stock has a higher risk of being stolen
-Stock has a higher risk of going out of date
-social factors may change (trends/fashion) stock will then be wasted.
Understocking=
-production might stop if there isnt enough raw materials.
-customers might not recieve orders on time
-unexpected order cannot be met.
GIVE EXAMPLES OF HOW TECHNOLOGY CAN BE USED IN OPERATIONS
Internet websites = compare prices of raw materials
spreadsheets and databases= track inventory levels
equipment= switch on and off at specific times
tablet computers = take orders from customers
Delivery vehicles= GPS tracking so deliveries can be tracked
CAD= computer aided design to design products on screen before produced
OUTLINE FACTORS TO BE CONSIDERED WHEN DECIDING UPON A SUPPLIER
-Cost of raw materials
-Quality of raw materials
-Lead time/delivery time
-quantity of raw materials.
-location of supplier
-reliability
-storage space available
DESCRIBE PRICING STRATEGIES A BUSINESS CAN USE
What is maximum stock level
The highest amount of stock that can be stored at one time.
What is minimum stock level
The lowest amount off stock that should be stored at one time.
What is reorder level
The quantity at which more stock is ordered.
What is reorder quantity
The quantity of stock that has to be ordered to bring levels back to the minimum stock level.
Lead time
The time that passes between ordering stock and it arriving.
Factors to think about when deciding which method of production to use to make a product.
-actual product being made
-The quantity of the product that needs to be made
-the way the business will make sure the product is of a high quality.
-The way stock is managed
-The resources available
What are the three main methods of production?
Jon, batch and flow
What is job production?
When one product is made from start to finish before another one is made.
-made to the customers own requirements
-unique one of product
e.g wedding cakes
What is batch production
It is when a group of identical products are made at any one time.
e.g bread
What is flow production
When parts are added to a product as it moves along a production line.
Once at the end of the production line the final product will be complete.
Advantages of job production
-Customer gets exactly what they want
-high prices can be charged
-designs can be changed to suit customers requirements
Disadvantages of job production
-Expensive equipment may be needed.
-Cant always buy raw materials in bulk
-Can take a long time to make a unique product
Advantages of batch production
-Batches can be changed to suit the requirements of the customer
-Raw materials can be bought in bulk
-No need for highly skilled workers
Disadvantages of batch production
-Equipment and employees might not have anything to do between batches, which costs money
-mistake in one item= whole batch wasted
-Cost of each item might be high if the batch size is small so the price charged to the customer might be higher.
Flow production advantages
-Large amounts of identical products are made
-Raw material can be bought in bulk
-machinery can be used instead of humans
Disadvantages of flow production
-Each product is identical so customers requirements cannot be met
-whole production line can stop if fault occurs.
-large demand for products is needed because they are made in large quantities.
Advantages of providing a high quality product
-customers might make repeat purchases
-a good reputation is gained
-customers less likely to buy from a competitor
-profits and sales can be maximized
Methods of ensuring quality
-use raw materials that are high quality
-ensure machinery and other tech is well maintained
-use quality control
-use quality assurance
How can businesses be social responsible
-minimize wastage
-recycle as much as possible
-try to minimize packaging
-prevent pollution
What is epos
electric point of sale systems.
=used to process customer sales
What is market segmentation
Putting potential customers into groups based in specific criteria or characteristics.
eg
age
gender
religion
lifestyle
income level
What are the 4ps plus examples
LOBSTER EXAMPLE
product= selling product in fancy packaging
price= premium price
place= high class restaurants or next to fish house shows lobster is fresh
promotion= celebrity endorsement
researching development
-market research= what customers want or need
-idea generation= brainstorming ideas
-creating a prototype
-test a fine tune
-put into production
What are the four stages to the product life style
-introduction=product launched low sales, high costs
-growth= rising sales, high costs
-maturity (ultimate aim for all businesses)= sales at highest, low costs
-decline= sales falling, low costs
positives of a strong brand
- people pay more
-loyalty
-easier to launch
-perceives higher quality
factors that effect price
-branding
-packaging
-holidays
-availability
-trending
-the government
long term pricing strategies
-market/competitive price=setting same price as your competitor
-low pricing=bargain to encourage shoppers
-high/premium pricing
short term pricing strategies
-skimming= setting high price in short term (introduction stage)
-market pricing
-penetration= price set below market price to encourage customers to try product
-destroyer pricing (illegal)= very low price to destroy competition
short term or long term pricing strategies
- promotional = low prices because to much stock
-psychological = setting a price to convince consumer its a bargain
-contributing pricing= price set to cover the cost of making the product and a small percentage towards the fixed costs.
-loss leader = very low prices to encourage consumers to come into shop
Contingency zone
stock available for unexpected OV AD HOC orders
What is flow production
Mass producing identical products.
capital intensive
What is labor intensive
involving people carrying out most of the task.
eg picking daffidils
What is capital intensive
relying on large amounts of investments to produce product
methods to ensure quality
-raw materials
-employees
-technology
quality control
-checks of quality of raw materials
-checks finished good
quality assurance
quality of product being inspected at every stage of production
quality circles
small group of employees from different levels across a business who meet regularly to discuss how to improve quality and methods of working.
benchmarking
identifying a similar company in the market with the highest level of quality and then changing the policies and procedures, methods of strategies to try and be better than them.
