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Business > Section 2 - Marketing > Flashcards

Section 2 - Marketing Flashcards

1
Q

What are the 4 parts of the marketing mix?

A
  • Product
  • Place
  • Promotion
  • Price
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2
Q

What is market research?

A

A collection of information to help businesses decide on particular products

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3
Q

Why do businesses conduct market research?

A
  • See what target market want
  • Know how to appeal to target market
  • Improve products
  • Understand demand
  • Understand customers
  • Keep ahead of competitors
  • See what your product is worth
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4
Q

What is primary market research?

A

Getting the information yourself

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5
Q

What are some examples of primary research?

A
  • Questionnaire
  • Telephone
  • Online (surveys)
  • Samples
  • Postal surveys
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6
Q

What are the advantages of using questionnaires as primary research?

A
  • Easily analysed
  • Wide range of responses
  • Get answers to the questions you want, personalised by business
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7
Q

What are the disadvantages of using questionnaires to conduct market research?

A
  • Closed questions
  • Inaccuracies
  • Rejection
  • Need lots of results
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8
Q

What are the advantages of phoning to conduct market research?

A
  • Brand recognition
  • Can adapt questions for appropriateness
  • Can get detailed feedback
  • Opinions
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9
Q

What are the disadvantages of phoning to conduct market research?

A
  • Often unwanted
  • People dislike this method
  • Can get a bad reputation
  • Hang up
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10
Q

What are the advantages of online surveys to conduct market research?

A
  • Reach a wide audience
  • Easy, no work after set up
  • Instant
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11
Q

What are the disadvantages of online surveys to conduct market research?

A
  • Not everyone has access to the internet
  • Inaccuracies
  • Often ignored
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12
Q

What are the advantages of samples to conduct market research?

A
  • Get customers first impressions
  • Awareness
  • Test actual product
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13
Q

What are the disadvantages of samples to conduct market research?

A
  • Biased, may feel pressured to be positive

- Costly

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14
Q

What are the advantages of using postal surveys to conduct market research?

A

-Cheap

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15
Q

What are the disadvantages of postal surveys to conduct market research?

A
  • Often discarded

- Not appropriate for all products

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16
Q

What is secondary research?

A

Information already exists, just finding it

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17
Q

What are the advantages of doing secondary research?

A
  • Easy
  • Cheap
  • Fast
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18
Q

What are the disadvantages of doing secondary research?

A
  • Not specific to your business, may not answer your questions
  • Not as reliable
  • May be out of date
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19
Q

What are the factors that affect the price of a product?

A
  • Competitor’s price
  • Costs for business
  • Target market
  • Number of customers
  • How much profit you want to make
  • Brand reputation
  • Quality
  • Production method
  • Need or want
  • Location
  • Trends
  • Demand
  • Life span of product
20
Q

What is competitor based pricing?

A

Consider how much competitors charge for similar product, often price similarly

21
Q

What is premium pricing?

A

Setting higher price than competitors so customers perceive it to be better quality

22
Q

What is penetration pricing?

A
  • Setting price low to boost sales
  • Used for new products or to grow firms
  • Low prices at start to attract customers then increase price
23
Q

What is skimming pricing (creaming)?

A

Setting price high then decreasing price, e.g. when established business releases high quality product

24
Q

What is loss leader?

A

When prices are set below unit cost at a loss to attract customers

25
Q

What is destroyer pricing?

A

Pricing low so business loses money to eliminate competitors

26
Q

What is percentage mark up pricing?

A

Adding a percentage to the unit cost as a way to decide on profit per product

27
Q

What is cost plus pricing?

A

Calculate cost to make product, then decide on price based on manufacturing costs

28
Q

What is psychological pricing?

A

Making people think they are getting a better deal than they actually are

29
Q

What is product range?

A

When a business sells a lot of products to a large target market

30
Q

What is product mix?

A

When a business sells closely related products that can be marketed together to same target market

31
Q

What are the 3 channels of distribution?

A
  • Modern
  • Traditional
  • Direct
32
Q

What is the modern channel of distribution?

A

Producer–>retailer–>customer

33
Q

What is the traditional channel of distribution?

A

Producer–>wholesaler–>retailer–>customer

34
Q

What is the direct channel of distribution?

A

Producer–>customer

35
Q

What are the benefits of selling a branded product?

A
  • Better quality
  • Reputation
  • Established
36
Q

What are the drawbacks of selling a branded product?

A
  • More expensive
  • Competition
  • Advertisement
37
Q

What are the benefits of selling an own brand product?

A
  • Cheaper to buy
  • Cheaper to make
  • Larger target market
  • Growing market
38
Q

What are the drawback of selling an own brand product?

A
  • Lower quality
  • No loyalty
  • Low profit margin
39
Q

What are the 2 methods of promotion?

A
  • Above the line: use of media to promote (generally more expensive)
  • Below the line: no use of media to promote
40
Q

What are some examples of above the line promotion?

A
  • Newspaper
  • TV
  • Magazines
  • Radio
  • Internet
  • Billboards
  • Posters
  • Sponsorship
41
Q

What are some examples of below the line promotion?

A
  • Flyers
  • Sales offers e.g. 2 for 1
  • Loyalty cards
42
Q

What are the advantages of using the modern channel of distribution?

A

-High profit margins, sell more expensive

43
Q

What are the disadvantages of using the modern channel of distribution?

A

-Can make more profit through traditional

44
Q

What are the advantages of using the traditional channel of distribution?

A
  • Easy to sell product, only to wholesaler, sell in large quantities
  • Gives customer choice
45
Q

What are the disadvantages of using the traditional channel of distribution?

A

-Lower profit margins, sell for cheaper

46
Q

What are the advantages of using the direct channel of distribution?

A
  • Very high profit margins
  • Faster
  • Cheaper
  • Relationship w/ customers
47
Q

What are the disadvantages of using the direct channel of distribution?

A

-Lots of work, make product + find customers

Business (13 decks)

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