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Business - GCSE > S5 - Marketing > Flashcards

S5 - Marketing Flashcards

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1
Q

What are the four elements to marketing ?

A

The four p’s: product, price, promotion and place.

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2
Q

What is decided in the product element of the market ?

A

The business must identify customers’ needs or wants and then must need to make a product that can fulfil these.

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3
Q

What falls under the promotion aspect of marketing ?

A

How the product is promoted - it must be promoted in a way that makes the target audience aware that it exists.

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4
Q

What does ‘place’ in the marketing mix mean ?

A

It equates to how and where a product is sold - so a product must be sold in a place convenient to customers, but it can also refer to channels of distribution.

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5
Q

What is the price aspect of marketing ?

A

A products price must be suitable and good value for the customers.

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6
Q

What determines the marketing mix ?

A

It’s dependent on what of the four p’s is decided to be the most important and is highly situational. Customers may be willing to go to a less convenient ‘place’ for a better ‘price’ or the other way around.

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7
Q

What is market size ?

A

The number of individuals within a market which are potential buyers or sellers, can also mean the total value of products in the market.

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8
Q

What does the market share of a business mean ?

A

The proportion of total sales within the market that is controlled by the business.

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9
Q

What is market segmentation ?

A

When people within a market are divided into different groups - to allow business to identify their target market, and create a marketing strategy based on this to make sure marketing is as effective as possible.

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10
Q

How might a market be segmented ?

A

The target markets: age, income, location, gender etc.

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11
Q

What is the point of market research ?

A

It helps a business understand its customers and competitors - allowing them to create a good marketing mix.

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12
Q

What does identifying and satisfying customers needs achieve ?

A

Increased sales, remaining competitive, and create targeted marketing.

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13
Q

What is a market opportunity ?

A

Where a group of customers have a need that isn’t being met.

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14
Q

What are the types of market research ?

A

Primary and secondary.

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15
Q

What is primary research ?

A

Getting new information and getting customers views on your products.

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16
Q

What are the pros and cons of primary research ?

A

It provides data that’s up to data, relevant and specific to the businesses needs - can be specific to their target market. But it’s expensive and time consuming.

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17
Q

How can primary research be carried out ?

A

Through questionnaires, phone surveys, interviews and focus groups etc.

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18
Q

How can primary data be made more accurate ?

A

By using larger samples, however this is more expensive and small business may have to go for smaller groups or research using the internet or over the phone.

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19
Q

What is secondary research ?

A

Looking at research carried out by other people that’s accessible without having to carry out first hand research - useful for looking at the whole market and analysing past trends to make future predictions.

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20
Q

How can secondary research be carried out ?

A

Looking at things like market research reports, government publications, articles in newspapers and magazines and on the internet.

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21
Q

What are the benefits and drawbacks of secondary research ?

A

It’s cheaper than primary research - more accessible to smaller business - and data is easily found and instantly available, however it’s not always relevant or specific to your products or target market and is often out of date.

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22
Q

What is quantitative data ?

A

Data that can be measure or reduced to a number.

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23
Q

What is qualitative data ?

A

Information about peoples feelings and opinions - tricky to analyse as it’s hard to compare multiple opinions, however will likely give a greater depth of information.

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24
Q

What is the first stage in a product life cycle ?

A

Research and development - developing an idea and turning it into a marketable product. (loss)

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25
Q

What is the second stage in a product life cycle ?

A

Introduction - product launched and put on sale for first time, lots of advertising and sales promotions. (loss)

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26
Q

What is the third stage in a product life cycle ?

A

Growth - demand increases until product is established. (profit to pay off previous loss)

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27
Q

What is the fourth stage in a product life cycle ?

A

Maturity - demand reaches peak, promotion is less important but some advertisement still occurs, business tries to make product more widely available. Towards end of this market becomes saturated. (profit)

28
Q

What is the fifth stage in a product life cycle ?

A

Decline - demand falls as rival products take over. (loss)

29
Q

How does an extension strategy work ?

A

Used during the decline phase of a products life cycle to try and make it possible for it to make a business profit for longer, however it means cash is taken from areas to be used to do this.

30
Q

What are some examples of extension strategies ?

A

Adding more or different features to the product, using new packaging, targeting new markets, changing advertisement and lowering the price - these are all situational and can link in to each other (new packaging –> targeting new market)

31
Q

What is a product portfolio ?

A

The range of different products that a business sells.

32
Q

How is having a good product portfolio beneficial ?

A

Having a balanced portfolio of different products in different stages of the product life cycle means that if one fails they can still depend on others.

33
Q

What is the Boston Matrix ?

A

A graph or table used to analyse a business product portfolio - measuring the market shares of products and the growth of the market they’re in.

34
Q

How is the Boston Matrix configured ?

A

Along the left is market growth (high at top and low at bottom) and along the bottom is market share (high at left and low at right), making four quadrants.

35
Q

What are ‘stars’ ?

A

Top left quadrant of Boston Matrix with a high market share and a high market growth - future cash cows.

36
Q

What are ‘cash cows’ ?

A

Bottom left quadrant of the Boston Matrix with low market growth but high market share - in the maturity phase so have low costs and are profitable products.

37
Q

What are ‘dogs’ ?

A

Bottom right quadrant of the Boston Matrix with a low market share and growth - essentially useless so businesses get what profit they can before discounting them or selling them off.

38
Q

What are ‘question marks’ ?

A

Top right quadrant of the Boston Matrix with high market growth but low market share - all new products start here so aren’t profitable yet and need heavy marketing for success.

39
Q

How is the Boston Matrix useful ?

A

To see if a business has a balanced product portfolio and to allow them to identify how a business can use money from cash cows to fund the development of question marks to stars.

40
Q

How can the Boston Matrix be misleading ?

A

It depicts a dog as being entirely useless, however a product here can still have a strong cash flow and be profitable despite it’s falling sales and low market shares.

41
Q

How can a business broaden their product portfolios ?

A

By adding to an existing range by developing new products based on their current ones, or by increasing their range of products by developing products that are different from their current ones.

42
Q

What is diversification ?

A

Designing and producing more products, reducing risk that the decline in sales of one product will harm the business’s profits.

43
Q

What are some benefits of designing new products ?

A

Increase overall sales and extend life cycle of other products, may appeal to new market segment, charge initial high prices while their unique in the market, and can be good for a firms reputation - increasing future sales.

44
Q

What are the risks of developing new products ?

A

Costly and time-consuming for the research and development phase, can be a waste of resources if customers don’t want it, may be unable to produce it large scale with low costs, and can damage reputation if of poor quality.

45
Q

What is a market-driven firm ?

A

One that uses market research to identify what the target market wants, then makes it.

46
Q

What are product-driven firms ?

A

Ones that design or invent a new product then try to sell it - often do worse than market driven firms.

47
Q

What are the benefits of having a good brand image ?

A

They’re easily recognised and liked by customers so helps to increase sales - both first time purchases and repeat purchases.

48
Q

How can a business develop a good brand image ?

A

They have to be built up over many years costing a lot of money, it has to be constantly managed using the marketing mix - products, prices, promotion and places have to be right to get a good brand image, and they have to maintain a reputation of high quality products for repeated purchases from customers.

49
Q

What is products differentiation ?

A

Making your products distinctive in a market to make customers want to buy your product over competitors.

50
Q

How can you achieve product differentiation ?

A

Through having a USP - unique selling point, and a good product design.

51
Q

What elements make a good product design ?

A

The design mix: cost - low manufacturing cost for high profit, function - design must fit its purpose (+ unique features), and appearance - it should look attractive and distinctive.

52
Q

What is demand ?

A

The quantity of a product that customers are able and willing to buy.

53
Q

What is the relationship between price and demand ?

A

As prices prices rise demand tends to fall so firms need to make sure product price isn’t too high so they can still sell them, and the same in reverse.

54
Q

What is the difference between internal and external factors ?

A

Internal factors are ones that are controlled by the business, and external factors are ones that aren’t controlled by the business.

55
Q

What are some internal factors influencing pricing decisions of a business ?

A

A businesses aims and objectives, how a businesses internal costs fluctuate, where a product is in its life cycle, and the elements of the marketing mix.

56
Q

What are some external factors influencing pricing decisions of a business ?

A

The nature of the market that a product is in, how competitive the market it’s sold in is, and it can’t control some costs - cost of raw materials.

57
Q

What the different pricing strategies ?

A

Price penetration, price skimming, loss leader pricing, competitive pricing, and cost-plus pricing.

58
Q

What is price penetration ?

A

Where firms start low price to start, to establish market share in competitive market, and then increase it once it has a loyal customer base.

59
Q

What is price skimming ?

A

Where charge initially high price - when they know there’ll be high demand, which works for established firms and helps cover costs of research and development phase, once the product is established prices drop to help it become a mass market product.

60
Q

What is loss leader pricing ?

A

When the price of a product is set below the cost, so they don’t make a profit on this product but make up for this loss on the accessories and other products they get with this main one.

61
Q

What is competitive pricing ?

A

Where a firm has to charge similar prices to competitors - when there is a lot of choice of products but not much differentiation, may not be very profitable.

62
Q

What is cost-plus pricing ?

A

When a firm finds out the total cost of making a product and then adds on a certain amount depending on how much profit they want to make while maintaining demand - can be worked out using a mark-up or a profit margin.

63
Q

Why do firms promote their products ?

A

To inform customers about the product, to persuade customers to buy the product, to create or change the image of a product, and to create or increase sales.

64
Q

What are some different methods of advertising ?

A

Newspapers, magazines, posters/billboards, leaflets/flyers/business cards, television, and the internet.

65
Q

What is sponsorship ?

A

Where a firm gives money to organisations and events so that their name can be displayed by the organisation or at the event.

66
Q

P

A

65

Business - GCSE (7 decks)

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