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higher business management > mgt of marketing > Flashcards

mgt of marketing Flashcards

1
Q

What is the Boston Matrix?

A

This enables products to be analysed on market share and market growth

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2
Q

What are cash cows?

A

Products that have a high market share of a low-growth market

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3
Q

What are dogs?

A

Dogs are products with Low Market Share and Low Market Growth

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4
Q

What are questions marks?

A

They are products with high market growth but a low market share

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5
Q

What are stars?

A

These are products with high growth products competing in markets where they are strong compared with the competition

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6
Q

What are channels of distribution?

A

The possible routes taken by a product to reach the consumer from the manufacturer

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7
Q

What is consumer behaviour?

A

This is the thoughts consumers have and the actions they take when purchasing products.

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8
Q

What is consumer audit?

A

Used by large market research companies to continuously monitor customer habits and influences

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9
Q

What is cost plus pricing?

A

This involves setting the price by calculating the cost of making the product and then adding on a mark-up for the profit

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10
Q

What is price Skimming?

A

The price is set high to begin with and lowers over time

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11
Q

What is pricing penetration?

A

Theo is set low to begin with and increases over time.

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12
Q

What is pricing discrimination?

A

Prices are altered depending on a discriminatory factor, for example different prices are often changed in the transport industries depending on age.

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13
Q

What is loss leaders?

A

A promotional price of one or more products is set unprofitably low to entice customers in to buy other product.

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14
Q

Advantages of cost plus?

A

A quick and easy way of setting the selling price.

Ensures that total costs are covered and a profit is generated.

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15
Q

Disadvantages of cost plus?

A

Doesn’t cover indirect costs, for example other expenses such as rent.

Doesn’t take external factors into account, for example increasing prices during boom periods to maximise profits.

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16
Q

Advantages of skimming?

A

Sufficient hype around a new product enables higher prices to be changed, which can increase profits

Lack of competition also allows maximum prices to be charged

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17
Q

Disadvantage of skimming?

A

High initial prices can put off some customers

Technique results in low initial sales numbers

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18
Q

Advantages of pricing penetration?

A

Encourages customers to try a new product

The business hopes to gain repeat custom once the prices rises

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19
Q

Disadvantages of pricing penetration?

A

Very little profit can be generated during the initial low price period

Could result in a price war if competitors set lower prices too

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20
Q

Advantages of prices discrimination?

A

Ensures products appeal to different market segments

Allows for high profit margins on some price brackets

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21
Q

Disadvantages of price discrimination?

A

Harder to budget for sales revenue in advance

Loss in potential revenue from selling at a cheaper price

22
Q

Advantages of loss leaders?

A

Creates greater footfall, this means that it brings customers into the business

Hopefully customers will by normal-priced products while buying loss leaders

Encourages repeat purchases

23
Q

Disadvantages of loss leaders?

A

There is a risk that some customers will only buy the loss leader, impacting profits

24
Q

What is a diversed port folio?

A

Involves having products for sale across completely different market segments

25
Q

What is e-commerce?

A

A business sells its products using the internet

26
Q

What is EPOS? (Electronic point of sale)

A

Information on customer preferences and habits is gathered as loyalty cards are swiped electronically or recorded online

27
Q

What are extension strategies?

A

As sales (and profits) begin to fall as a product matures, a business can attempt to inject new life into the product

28
Q

What is field research?

A

Involves gathering new information for the business’ exact needs

29
Q

What are focus groups?

A

A group of customers is brought together and asked to answer and discuss questions put forward by a market researcher

30
Q

What is a hall test?

A

A product is given to customers to try and their feedback is gathered

31
Q

What is interest free credit?

A

Retailers offer customers credit to pay for goods at a later date with no interest added on to the price charged

32
Q

What is into-the-pipe line promotion?

A

Sales promotions are offered by the manufacturer to encourage retailers to purchase products from them

33
Q

What is out-of-the-pipe-line promotion?

A

Sales promotions are offered by the retailer to encourage customers to purchase products from them

34
Q

What is market growth?

A

Increase in the number of customers buying a good or service from the business

35
Q

What is a market leader?

A

The business that has the most customers in a market

36
Q

What is the market mix?

A

Product
Price
Place
Promotion
Process
Physical Evidence
People

37
Q

What is market lead

A

Market research is central to market orientation so produces a product that consumers want/need

38
Q

What is market segmentation?

A

Breaking down of markets into sub-groups that can be targeted with a specific marketing mix

39
Q

What is market share?

A

The proportion of customers that a business has in a market

40
Q

What is People?

A

Refers to who is representing a business or a brand

41
Q

What is physical evidence?

A

Refers to what customers see that gives them clues about a business from the image it portrays

42
Q

What is process?

A

Refers to how a customer receives a service

43
Q

What is the products of a business?

A

Refers to what a business sells which can be either a good or a service

44
Q

What is a product line portfolio?

A

Involves having a variety of similar products on sale

45
Q

What is product endorsement?

A

Involves businesses using celebrities (also known as celebrity endorsement) to promote the product

46
Q

What is product life cycle? Development

A

The product is being researched and developed and there are no sales

47
Q

What is product life cycle? Introduction

A

The product is launched and sales are low

48
Q

What is product life cycle? Growth

A

The product has been on the market for some time, customers are fully aware of the product and are purchasing it.

49
Q

What is product life cycle? Maturity

A

The product has been on the market for some time and sales have peaked

50
Q

Product life cycle - Saturation

A

The product suffers from too many competitors being in the market and sales fall

51
Q

Product life cycle - decline

A

The product’s life is nearing the end and the product will stop being produced

higher business management (3 decks)

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