Marketing Year 10 Flashcards
What are the 4Ps?
Product, Price, Place, Promotion
What is qualitative market research?
Research that gathers people’s opinions and attitude
What is quantitative market research?
Research that gathers numerical data for analysis
What is primary research?
First hand research that gathers direct answers to the research question
What is secondary market research?
Research that was gathered for a different purpose, it indirectly helps with the research question
Give 4 examples of primary research methods
questionnaires, interviews, trialling, focus groups
Give 4 examples of secondary research methods
MINTEL reports, news items, competitor information, internal sales data
Give 5 pricing methods
price skimming, cost-plus, penetration, competitor, promotional
What is the pricing strategy called when businesses charge a high price to target customers who will pay most
price skimming
What is the promotional strategy called when a business makes no profit on a sale but expects customers to buy other products?
loss leader
Explain the cost-plus pricing method
A business works out the cost of a product and then adds a desired percentage on to each product
Give 5 examples of how to segment the market
age, gender, lifestyle/interests, income, location
When doing market research, give 3 ways of selecting your sample population
Random, quota, stratified
How does random sampling work?
Everyone in the population has an equal chance of being included in the survey
How does quota sampling work?
quota sampling requires that representative individuals are chosen out of 1 specific subgroup
How does stratified sampling work?
The population is divided (“stratified”) by the most important variables such as income, age and location. The required number is then drawn from each stratum.
Give 5 methods of Promotion for a business
Advertising, Public Relations, Direct marketing, personal selling, sales promotions
Give 3 methods of advertising and comment on the price and reach
Bus stops - cheaper and local
TV - expensive and mass reach
Newspapers - quite expensive and targeted reach
Give 2 examples of sales promotions
Buy One Get One Free (BOGOF) and loyalty cards
Give 2 examples of direct marketing
Cookies on computers, email adverts
What is Public Relations?
Indirect promotion when a business raises its company profile by supporting causes eg local events and campaigns McDonalds litter picks
Give examples of companies that use personal selling
car company 1-to-1 sales staff or double glazing calling up
What are the 4 stages of the product life cycle in order?
Introduction, Growth, Maturity, Decline
In the product life cycle, what does the curve up from the maturity stage show?
Extension strategies
How would the product life cycle of a technology product differ from a breakfast cereal?
The shape is the same curve but the time it takes to move through the stages in technology is rapid
What will influence the promotional methods chosen by a business?
finance available to the business, what competitors are doing
What is the marketing mix?
The blend of the 4Ps decided upon by the business and all 4Ps have to work consistently together
Give an example of consistent marketing mix
A BMW car has a high price, quality product, well-informed sales staff and a showroom in a smart post code
Give an example of a direct sales channel (place)
Manufacturer direct to customer via internet
What is a wholesaler?
Retailer that buys in bulk and sells to smaller retailers and takes profit by adding to the price of the product
What is an agent?
A sales method where the retailer does not buy the product and sell it on but sells for someone else and takes a % of each sale eg an estate agent
What is the purpose of marketing in a business?
To understand and identify the customer needs
To tell customers about your product/service
To increase your sales
What is the difference between a product and service?
a product is a physical item that a customer owns eg a games console or a pack of crisps
a service is a non-physical benefit that the customer pays for eg a hair cut or broadband
What is meant by Point of Sale?
The promotion that takes place in the shop
Give examples of Point of Sale promotion
Price reductions, competitions, loss leader, free samples
What marketing decisions does a business take with its product?
The design of the product and packaging
How to innovate/adapt the product
What is the advantage of using a digital distribution channel ie online?
Wider customer reach leading to increase in revenue
Reduce bricks and mortar costs like rent
What is the disadvantage of digital distribution?
Increased shipping costs
Customers can’t try the product first
What is the advantage of physical/bricks and mortar distribution?
Customers can try the product
Face to face selling/advice
What is the disadvantage of physical/bricks and mortar distribution?
Higher bricks and mortar costs like rent
Limited reach to the area around the shop
