Marketing Revision Flashcards
What does the term ‘marketing’ mean in business?
Marketing is identifying customer needs and providing products or services to satisfy them in a profitable way.
What is a market in the context of business?
A market is any place (physical or online) where buyers and sellers exchange goods and services.
What is a product-oriented business?
A product-oriented business creates a product first and then looks for customers to buy it.
What is a market-oriented business?
A market-oriented business researches what customers want and then creates a product to meet those needs.
What is the purpose of market research in a business?
Market research collects information on customers, competitors, and products to help define target markets, set prices, and avoid wasting resources.
What is primary (field) research in marketing?
Primary research gathers first-hand data directly from potential customers, such as through surveys or interviews.
What is secondary (desk) research in marketing?
Secondary research uses existing information from sources like government reports or market studies.
What are the advantages and disadvantages of primary research?
Advantages: Tailored to business needs Up-to-date
Disadvantages: Time-consuming Costly
What are the advantages and disadvantages of secondary research?
Advantages: Quick Cheap to access
Disadvantages: May be outdated Not fully relevant
What is quantitative research used for in business?
Quantitative research collects numerical data using closed questions to produce statistics.
What is qualitative research used for in business?
Qualitative research gathers opinions and attitudes using open questions.
What is random sampling in market research?
Random sampling gives everyone in the population an equal chance of being selected.
What are the pros and cons of random sampling?
Pros: Unbiased selection
Cons: Expensive May not target the right customers
What is quota sampling in market research?
Quota sampling selects people to match certain population groups (e.g. age, gender).
What are the pros and cons of quota sampling?
Pros: More accurate Likely to reach the right people
Cons: Requires accurate knowledge of population breakdown
What is target sampling in market research?
Target sampling focuses on a specific group of customers within the market.
What does market segmentation mean in business?
Market segmentation involves dividing customers into groups based on shared characteristics like age, income, or location.
What are the 4Ps in the marketing mix?
Product, Price, Place, and Promotion.
Why is the marketing mix important for a business?
A good marketing mix helps satisfy customer needs while achieving business profit.
What are the stages of a product’s life cycle?
R&D, Introduction, Growth, Maturity, Saturation, Decline.
What happens during the research and development stage of a product?
High costs and no sales as the product is being developed.
What happens during the introduction stage of a product?
Sales are low and costs remain high due to R&D and advertising.
What happens during the growth stage of a product?
Sales increase, profits begin, and competition may enter the market.
What happens during the maturity stage of a product?
Sales peak, competition is high, and profits are maximized.
What happens during the saturation stage of a product?
Sales stop increasing, and promotions or price reductions may be used.
What happens during the decline stage of a product?
Sales fall, profits drop, and the product may be discontinued or revived.
What are common extension strategies for a product?
Modify product or packaging Reduce price Add new features Advertise more Export it
What is penetration pricing used for?
Setting a low price to attract customers and gain market share for a new product.
What is price skimming?
Charging a high price for a new or innovative product to maximize early profits.
What is competitive pricing?
Setting a price that matches competitors to stay competitive in the market.
What factors influence the price of a product?
Demand Production cost Need for profit Competition Season Product type Stock levels
What is the relationship between price and demand?
As price increases, demand decreases. As price decreases, demand increases.
What can cause a change in demand for a product?
Changes in price Customer tastes Income Advertising Prices of alternative goods
What are the main aims of promotion?
To inform, persuade, and reassure customers.
What are common promotional methods?
Advertising Public relations Sponsorship Sales promotions
Why do businesses use advertising?
To launch new products, remind customers about existing ones, or target new audiences.
What are examples of advertising media?
TV Radio Newspapers Internet Posters Events Product packaging
What are examples of sales promotion techniques?
Discounts Special offers Coupons Loyalty cards Free samples Point-of-sale displays
What is sponsorship in marketing?
A business funds events in return for brand visibility.
What is public relations (PR) in marketing?
Creating a positive public image through actions like charity work or press releases.
What are the advantages of using social media for marketing?
Direct customer contact Global reach Up-to-date image Feedback from customers
What are the disadvantages of using social media for marketing?
Negative reviews can harm image Need for constant online presence
What does ‘place’ refer to in the marketing mix?
How the product gets from the producer to the customer.
What are common distribution channels for products?
Manufacturer > Wholesaler > Retailer > Consumer Manufacturer > Retailer > Consumer Manufacturer > Consumer
What factors affect the choice of distribution channel?
Product type Cost Lifespan Demand Customer expectations
What does the Consumer Rights Act state?
Goods must be of satisfactory quality, fit for purpose, and match their description.
What is the Trade Descriptions Act?
Businesses must not give false or misleading information about products or services.
What does the Consumer Protection Act do?
Protects consumers from unsafe products; allows injured customers to sue manufacturers.
Which organisations monitor advertising in the UK?
ASA (Advertising Standards Authority) OFCOM (for media and broadcasting)
How does competition benefit businesses?
Encourages improvements, innovation, and greater efficiency.
How does competition benefit customers?
Leads to better prices, more choices, and improved product quality.
What is customer service in a business?
The help and support given to customers before, during, and after a purchase.
Why is good customer service important for a business?
Builds loyalty, encourages repeat business, and saves money compared to finding new customers.
What is international trade in business?
Buying and selling goods and services across national borders.
What are the benefits of international trade?
Access to larger markets More customers
What are the drawbacks of international trade?
Issues with language Culture Exchange rates Transport
How should businesses adapt their marketing mix for global trade?
Modify the 4Ps to suit different laws, languages, customer needs, and transport challenges.
What is e-business?
Conducting business over the internet between buyers and sellers.
What are the benefits of e-business for businesses?
24/7 sales Global reach No need for physical stores
What are the disadvantages of e-business for businesses?
More competition Logistics challenges Legal compliance abroad
What are the benefits of e-business for customers?
More convenience Wider choice Often lower prices
What are the disadvantages of e-business for customers?
Security risks Can’t check quality in person Return difficulties
What is m-business (mobile business)?
Using mobile technology for business operations like sales and communication.
What are the advantages of m-business for businesses?
Real-time communication More payment options Higher efficiency
What are the disadvantages of m-business for businesses?
High tech costs Training needs Security concerns
What are the advantages of m-business for customers?
Convenience Faster communication Mobile access to products
What are the disadvantages of m-business for customers?
Expensive mobile data Security risks Unwanted marketing messages
