(Done) Marketing (Paper 2) Flashcards
1
Q
Marketing mix 4 Ps
A
-Price
-Product
-Place
-Promotion
2
Q
4 Parts of Market Segmentation
A
-Age
-Income
-Location
-Gender
3
Q
Why do market research
A
-Increase Sales
-Stay competitive
-Create targeted marketing
4
Q
Types of Data
A
-Qualitative
-Quantitative
-Primary
-Secondary
5
Q
What Market research finds out
A
-Target market
-Demand
-Competitors
-Market Share
6
Q
Stages of a product life cycle
A
-Research and Development
-Introduction
-Growth
-Maturity
-Decline
7
Q
Types of Primary Research
A
-Questionnaires
-Phone surveys
-Interviews
-Focus Groups
8
Q
Types of secondary research
A
- Government Surveys
- Newspaper articles
- Internet articles
9
Q
Extension strategies
A
- Adding more or different features
- Using new packaging
- Targeting new markets
- Changing advertisement
- Lowering price
10
Q
Define product portfolio
A
- The range of products a business sells
11
Q
Define the Boston matrix
A
- A graph that measures the Market share (x), Market growth (y) and revenue (Circle size)
12
Q
List the four types of products on the Boston matrix
A
- Question marks
- Stars
- Cash cows
- Dogs
13
Q
Features of Question Marks
A
- New products
- Small market share
- High market growth
- Often not profitable and require heavy marketing
14
Q
Features of Stars
A
- High market share
- High market growth
- Future cash cows
15
Q
Features of Cash Cows
A
- High market share
- Low market growth
- Low advertising cost
- Produced in high volumes
16
Q
Features of Dogs
A
- Low market share
- Low market growth
- Business will either get whatever profit they can before discontinuing or sell them off
17
Q
Define market-driven
A
- Finding out what a market wants before developing a product
18
Q
Define product driven
A
- Will develop a product without any research and attempt to sell it
19
Q
Parts of the design mix
A
- Function
- Cost
- Appearance
20
Q
Define function in the design mix
A
- Must be designed for its purpose
- Unique features help
21
Q
Define cost in the design mix
A
- A good design will lead to low manufacturing costs leading to higher profits
22
Q
Define appearance in the design mix
A
- A good product should look attractive or distinctive
- Packaging can help a product to stand out
23
Q
Pricing strategies (5)
A
- Price penetration
- Loss leader pricing
- Price skimming
- Competitive pricing
- Cost-plus pricing
24
Q
Define price penetration
A
- Charging a very low price when a product is new to advertise
25
Define loss leader pricing
- The price of a product is set bellow costs
- Other products that depend on this product are made a profit on
- e.g low cost consoles, high cost games
26
Define price skimming
- Charge a high price on introduction
- Apple
27
Define competitive pricing
- Price similar to competitors
- lots of similar products
28
Define cost plus pricing
- Adds a percentage on production cost
29
Methods of promotion (6)
- Newspapers
- Magazines
- Posters and billboards
- Leaflets, flyers and business cards
- Television
- Internet
30
What types of organisations can businesses sponsor
- Television broadcasts
- Sporting teams and events
31
Role of public relations in business
- Communicating with the media
32
Types of sales promotion
- Competitions
- Coupons
- 2 for 1 offers
- Free samples
- Point of sale displays
- Free gifts
33
Features of sales promotion + pro and con
- Short-term method to boost sales
- Encourages customers to try new products
- Customers might get used to seeing a product on promotion and not buy it when it is not on promotion
34
Benefits of using social media to promote products
- Quick, easy and cheap
- Information can be edited whenever they want so businesses can respond to internal and external change
35
Drawbacks of using social media to promote products
- Any mistakes or mistakes or negative customer comments can be seen quickly by lots of people, so time and money needs to be spent carefully monitoring the site
36
Parts of the promotional mix
- Finance available
- Name of the product or service
- What competitors are doing
- Nature of the market
- Target market
37
Reasons for promotion
- To inform customers about the product
- To persuade customers to buy the product
- To create or change the image of a product
- To create or increase sales
38
Define channel of distribution
- How products get from manufacturers to consumers
39
Channels of distribution
- Selling directly to customers
- Selling directly to retailers
- Selling to wholesalers
40
Pros and cons of selling to wholesalers
Pros
- Doesn't have to communicate much to the wholesaler
- Manufacturer gets bulk orders and doesn't have to maintain a large amount of stock
- Wider reach of sales
Cons
- Customers may receive a lower level of customer service compared to other channels of distribution
41
Pros and cons of selling directly to retailers
Pros
- Retailer receives product knowledge to provide higher customer service
- Retailers can help promote products
- Products are exposed to a wider range of customers
Cons
- Can be hard for a new firm to persuade a retailer to stock their product
42
Pros and cons of selling directly to consumers
Pros
- Often cheapest route for consumers
- Good for businesses with not many customers selling one off items
Cons
- Can be time consuming for firms
- Can be difficult and expensive to arrange delivery
43
Effect of E-commerce and M-commerce on business
- Higher customer expectations
- More competition
44
Advantages of E-commerce and M-commerce
- Access wider markets
- Easier for customers to buy products online
- Saves money that would be spent on paper
- Decrease funds spent on people attempting to sell over the phone
- Save money on staff and property
45
Drawbacks of E-commerce or M-commerce
- Special equipment may need to be bought and installed, especially for large businesses with many customers
- Firms may need to employ specialist website or app designers
- Some customers are reluctant to purchase online - Might not have internet access or might prefer to buy from a shop where they can see the items
