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Business Studies EDEXCEL IGSCE > Marketing : Unit 36 - 39 > Flashcards

Marketing : Unit 36 - 39 Flashcards

1
Q
  1. What is marketing mix?
A
  • Elements of a firm’s marketing that are designed to meet customers’ needs.
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2
Q
  1. What are the 4 marketing mix?
A
  • Product
  • Price
  • Promotion
  • Place
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3
Q
  1. What is the process of product development? (5) define each.
A
  • Generating ideas (ideas of new products coming from business owners)
  • Analysis
  • Development ( this stage involves carrying out experiments, using simulations, building models, producing samples and initial testing)
  • Test marketing ( testing the product in a small section of the total market)
  • Commercialization and launch ( a business puts the “final touches” to the product)
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4
Q
  1. Define the development process.
A
  • This stage involves carrying out experiments, using simulations, building models, producing samples, and initial testing.
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5
Q
  1. What is a product?
A
  • The goods and services produced by businesses are called products.
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6
Q
  1. Why is packaging important to a product? (6)
A
  • Consumers judge the quality of the product by its packaging.
  • Is used to attract the eye of customers.
  • To protect the product.
  • Make it easy to transport.
  • Make it easy to use product.
  • carries information about the product and promotes brand image.
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7
Q
  1. What is the product life cycle?
A
  • Level of sales at the different stages through which a product passes over time.
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8
Q
  1. What are the 5 stages of a product life cycle?
A
  • Development.
  • Introduction.
  • Growth.
  • Maturity and saturation.
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9
Q
  1. What are extension strategies?
A
  • Extension strategies are which lengthen the life of a product before it starts to decline.
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10
Q
  1. What are the benefits of using extension strategies to lengthen the life cycle of products?
A
  • Competitors will find it more difficult to enter the market.
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11
Q
  1. What are the 6 ways of extension strategies?
A
  • Finding new markets/users.
  • Finding new uses for a product.
  • Modifying the product.
  • Develop the product range.
  • Change the appearance or packaging.
  • Encourage more frequent use of the product.
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12
Q
  1. What is a product portfolio?
A
  • Is the range of products a business is currently marketing.
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13
Q
  1. What is the Boston matrix?
A
  • 2x2 matrix that describes products according to the market share they enjoy and whether the market has any potential for growth.
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14
Q
  1. What are the 4 categories in the Boston matrix
A
  • Stars.
  • Cash cows.
  • Question marks.
  • Dogs.
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15
Q
  1. What does the star represent?
A
  • Stars are valuable products for a business, they have a higher market share.
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16
Q
  1. What does the cash cow represent?
A
  • Cash cows are mature products, they have a high market share but the market is not likely to grow very much.
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17
Q
  1. What does a question mark represent?
A
  • Are products with a low market share but the market is growing.
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18
Q
  1. What does a dog represent?
A
  • Dogs are at the end of their life cycle.
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19
Q
  1. What is early adopters?
A
  • consumers who are keen to buy new products as soon as they are launched.
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20
Q
  1. What are the 7 methods of pricing?
A
  • Cost plus pricing.
  • Competitive Pricing.
  • Psychological pricing.
  • Penetration pricing.
  • Price skimming.
  • Promotional pricing.
  • Dynamic pricing.
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21
Q

What is cost-plus/cost-based pricing? give advantages and disadvantages.

A

Pricing by adding a percentage (markup) to the costs that make a profit for a business when setting the price.
Ad: Easy to apply.
DisAd: Could lose sales if the price is higher than competitors.

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22
Q

What is penetration pricing? give advantages and disadvantages.

A

Setting a low price to start with in order to get established in the market: price may be raised once established.
Ad: Sales are high.
DisAd: profit per unit is less.

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23
Q

What is competition-based pricing? give advantages and disadvantages.

A

Pricing strategies are based on the prices charged by rivals.
Ad: Sales are likely to be high.
DisAd: Market research can be time-consuming and costly.

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24
Q

What is skimming/ creaming pricing? give advantages and disadvantages.

A

setting a high price initially and then lowering it later.
Ad: good quality product.
DisAd: May cut off potential customers.

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25
Q

What is promotional pricing? give advantages and disadvantages.

A

Promotional pricing usually involves lowering the price of a product for a short period of time to draw in customers.
Ad: Gets rid of any unwanted stock.
- Renews interest in the business.
DisAd: Sales revenue will be low.

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26
Q

What are the reasons for promotional pricing? (4)

A
  • to get rid of old stock.
  • to generate some cash quickly to help solve a cash flow problem.
  • to generate renewed interest in an existing product.
  • To attempt to win a larger share of the market by encouraging brand switching.
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27
Q

What are the 3 examples of promotional pricing?

A
  • Discounts and sales.
  • Psychological pricing.
  • Loss leaders.
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28
Q

What is dynamic pricing? give advantages and disadvantages.

A

Pricing for basically the same product because they have different demand levels.
Ad: Increases sales revenue.
- Increases profits.
- Ensure all seats are filled.
DisAd: - High cost of constantly changing prices in the business.
- High cost of consumers in choosing the best price.

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29
Q

What is loss leaders?

A
  • product sold below cost to draw in customers.
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30
Q

What is psychological pricing?

A
  • Is to set the price slightly below a round figure. Consumers are tricked into thinking that 99.9 is cheaper than 100.
    Ad:
  • High price for high-quality product.
  • Charging process just below the whole number.
    DisAd: Low price for regular customers.
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31
Q

What is place?

A
  • It refers to the location where people can buy products.
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32
Q

What are distribution channels?

A
  • Route taken by a product from the producer to the customer.
33
Q

What are the 5 distribution channels?

A

producer - retailer - customer
producer-wholesaler -retailer -customer
producer -wholesaler - consumer
producer- agent - retailer- consumers
producer- agent - consumers

34
Q

What are the 4 advantages of direct selling (one-level channeling)?
4 diasdvantages?

A

Ad : - All profits go to the manufacturer.
- This is the fastest and shortest channel.
- Manufacturer has full control.
- Direct contact with customers.
- Manufacture will respond quickly to customers.
Disad:- manufacturers bears stock holding costs
- maintaining retail outlets are costly.
- the manufacturer cannot focus on production.

35
Q

What are the are 4 advantages of retailing /two-level channeling?
What are 3 disadvantages of retailing/ two-level channeling?

A
  • Ad- Retailers are specialists.
  • manufactures stock holding costs will fall as a retailer is bearing them.
  • Easier for manufacturers to focus on production.
  • Disad - Retailers take a big share of profit margin.
  • Manufacturers have less control over distribution.
  • No direct contact with customers therefore producers cannot respond quickly
  • Retailers sell competitors products as well.
36
Q
A
37
Q

What is an intermediary?
What are the two intermediaries?

A
  • a person or organization that helps to arrange agreements or business deals between other people or organizations.
    • Retailers.
  • Wholesalers
38
Q

Who are wholesalers?

A
  • persons or businesses that buy goods from manufacturers and sell them in smaller quantities to retailers.
39
Q

Who are retailers?

A
  • Businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to consumers.
40
Q

What is bulk breaking?

A
  • Dividing a large quantity of goods received from a supplier before selling them in smaller quantities to customers.
41
Q

What might be some features of some common retailers?(8)

A
  • independents.
  • supermarkets.
  • department stores.
  • multiples or chain stores.
  • superstores or hypermarkets.
  • street vendors.
  • market traders.
  • online retailers.
42
Q

What is e- commerce/ e- tailing?

A

use of electronic systems to sell goods and services.

43
Q

What are the 4 benefits to consumers of online distribution?

A
  • It is cheaper because online retailers often have lower costs.
  • Consumers can shop 24/7.
  • there is generally a huge amount of choice.
  • People can shop from anywhere if they have access to the Internet.
44
Q

What are the 7 benefits to businesses of online distribution?one disadvantage of online distribution?

A
  • Retailers may not have meet costs of operating costs.
  • Lower start-up costs.
  • lower costs when processing transactions.
  • Less paper is needed for business documents.
  • payments can be made and received online.
    -B2C businesses can offer goods to a much wider market.
  • Businesses can serve customers 24/7.
  • Businesses have more choices when locating their operations.
  • Product isn’t tangible (customer)
45
Q

What are the 3 other distribution methods?

A
  • direct selling.
  • wholesaling.
  • Agent / brokers.
46
Q

what is direct selling?
What is wholesaling?

A
  • where businesses sell their products directly to consumers.
  • it is when wholesalers buy from manufacturers and sell to retailers.
47
Q

What is agent/ broker?

A

intermediary that brings together buyers and sellers.

48
Q

What are 4 factors that are appropriate for choosing a distribution channel?

A
  • nature of the product.
  • the market.
  • cost.
  • control.
49
Q

What are the two types of promotion?

A
  • above-the-line promotion.
  • below-the-line promotion.
50
Q

What is above-the-line promotion?

A

-Placing adverts using the media, outside the business.

51
Q

What is below-the-line promotion?

A
  • Any promotion that does not involve using media.
52
Q

What is merchandising?

A
  • the way in which goods are arranged and place in a store.
53
Q

What is coupons?

A
  • printed piece of paper given to customer by the seller, allowing the customer to pay less than usual for the product when they next but it, or get a free gift.
54
Q

What is direct mail?

A
  • advertisements that are sent to people in the post, often people who have been chosen because they might be interested in product.
55
Q

What is advertising?

A

communication between a business and its customers where messages are placed in the media to encourage the purchase of products.

56
Q

What are the 5 different types below-the-line promotion?

A
  • Sales promotions.
  • Merchandising and packaging.
  • Direct mailing.
  • Direct selling or personal selling.
  • Exhibitions and trade fairs.
57
Q

What are the 6 above-the-line promotion?

A
  • Television.
  • Newspaper and magazines.
  • Cinema.
  • Radio.
  • Posters and billboards.
  • Internet.
58
Q

What are sales promotion? (6)

A
  • Free gifts.
  • Coupons.
  • Loyalty cards.
  • Competitions.
  • BOGOF offers.
  • Money off deals.
59
Q

What are 3 examples of merchandising?

A
  • Product layout
  • Display material (posters, leaflets used to display certain products with the aim of persuading customers to buy)
  • Stock
60
Q

What are the 4 advantages of using exhibitions and trade fairs?

A
  • products might be tested out in consumers before full launch
  • Some exhibitions are overseas and can be used to break into foreign markets.
  • Products can be physically demonstrated and questions can be answered
61
Q

What are the public relations?

A

Attempt by a business to communicate with interested parties.

62
Q

What are 4 number of approaches that might be used by businesses to attract publicity?

A
  • Press release. (some information about the business may be presented to the media).
  • Press conference. ( Where representatives face the media and present information verbally).
  • Sponsorship. (making a financial contribution to an event in return for publicity).
  • Donations.
63
Q

What is press conference?

A

Where representatives face the media and present information verbally.

64
Q

What is sponsorship?

A

making a financial contribution to an event in return for publicity.

65
Q

What is donations?

A

Donations to charities and local community might be used by business.

66
Q

What is press release?

A

-information about the business may be presented to the media.

67
Q
  • What is main advantage of PR to a business?
A
  • it is cheap method of promotion.
68
Q

What are 4 ways to of promotion using technology?

A
  • Online targeted advertising
  • Viral advertising
  • Social media
  • E- newsletters
69
Q

What is e-newsletters?

A
  • These are documents sent electronically to interested parties.
70
Q

What is viral advertising?

A
  • direct marketing technique in which a company persuades Internet users to forward its publicity material in emails or via social media
71
Q

What is exposure?

A
  • advertising and publicity that is used to sell a product or service.
72
Q

What are 6 advantages of using social media in advertising?

A
  • It is relatively cheap.
  • Businesses can respond immediately to developments in the industry.
  • The quality of customer service can be improved as communication with customers is easier.
  • The method has a huge reach
  • Adverts can be accurately targeted.
  • Links can be used to draw traffic into the company websites.
73
Q

What is branding?

A

Branding involves giving a product a name, term, sign, symbol, design, or feature that allows consumers to instantly recognize the product.

74
Q

What are 5 benefits of branding?

A
  • differentiate the product.
  • create customer loyalty.
  • help recognition.
  • develop an image.
  • raise prices when the brand and images become strong.
75
Q

What is product positioning?

A

way that people think about a product in relation to the company’s( other products and to competing products, or the way that the company would like them to think about it.)

76
Q

What is subscription pricing?

A
  • amount of money you pay regularly to receive a newspaper, magazine, broadcasting or telephone service.
77
Q

What are the 5 main different promotion methods(strategies) used in different segments?

A
  • Advertising.
  • Sponsorship.
  • Product trials.
  • Special offers.
  • Branding.
78
Q
A
79
Q
A

Business Studies EDEXCEL IGSCE (13 decks)

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