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Business > Section 7 - Marketing > Flashcards

Section 7 - Marketing Flashcards

1
Q

What is marketing?

A

A management process of identifying, anticipating + satisfying customers’ wants profitably

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2
Q

What is a brand?

A

A named product that is seen as different

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3
Q

What is an own brand?

A

A product sold under the name of a retailer rather than the manufacturer

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4
Q

What is product mix?

A

The number of products made by a business

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5
Q

What is product range?

A

A group of similar products made by a business

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6
Q

What are the advantages of a business widening their product portfolio?

A
  • Grow as a business so more profit
  • Less risk, spread risk so others to fall back on
  • Greater selection for consumers
  • Wider range to support original product
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7
Q

What are the disadvantages of a business widening their product portfolio?

A
  • More responsibility
  • Quality decrease as not focussing on one as much
  • More staff needed so higher costs
  • Poor publicity on one product can impact others
  • Costs to keep developing them
  • Product may fail as not enough market research done
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8
Q

What is a product life cycle?

A

A model showing the lifespan of a product’s sales from launch to being taken off the market

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9
Q

What are the stages of a product life cycle?

A
  • Research + development
  • Intro
  • Growth
  • Maturity
  • Decline
  • Extension strategy
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10
Q

What is price?

A

The amount charged to a consumer for a good or service

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11
Q

What factors influence the price set?

A
  • Quality of the product
  • Target market
  • Manufacturing costs
  • Originality of product, USP
  • Brand reputation
  • Competitors
  • Location
  • Innovation
  • Profit you want
  • Stage of product life cycle
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12
Q

What is cost plus pricing?

A

Cost of producing the product plus a percentage on top to create profit (mark up)

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13
Q

What are the advantages of cost plus pricing?

A

-Guaranteeing profit to cover costs

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14
Q

What are the disadvantages of cost plus pricing?

A

-No consideration of competition

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15
Q

What is competitive pricing?

A

Basing the price of your product on the amount competitors charge for a similar product

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16
Q

What are the advantages of competitive pricing?

A

-Customers generally willing to pay

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17
Q

What are the disadvantages of competitive pricing?

A
  • Don’t stand out from competitors

- Not much profit

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18
Q

What is skimming pricing?

A

Charging high prices to begin with + then reducing over time

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19
Q

What are the advantages of skimming pricing?

A
  • Lots of profit from start

- People will often pay lots for something new

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20
Q

What are the disadvantages of skimming pricing?

A

-Innovative, constantly need to be coming up with new products

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21
Q

What is penetration pricing?

A

Charging lower prices to begin with + increasing over time

22
Q

What are the advantages of penetration pricing?

A
  • Lots of profit when product becomes popular

- Gain loyal customers easily

23
Q

What are the disadvantages of penetration pricing?

A
  • May reduce sales when price increases

- Low initial profit

24
Q

What is loss leader pricing?

A

Pricing below cost price at a loss to attract customers

25
Q

What are the advantages of loss leader pricing?

A

-Attracts customers, may buy other things too

26
Q

What are the disadvantages of loss leader pricing?

A

-Lose money

27
Q

What is advertising?

A
  • Paid for method of promotion
  • A method of promotion to make people more aware of your business through putting adverts in places for people to see so they know about your business
28
Q

What are the advantages of advertising?

A
  • Seen by lots of people

- Seen lots of times so message conveyed effectively

29
Q

What are the disadvantages of advertising?

A
  • Not individually targeted, very general

- Expensive

30
Q

What is sales promotion?

A

The process of persuading a potential customer to buy the product i.e. loyalty cards, coupons

31
Q

What are the advantages of sales promotion?

A
  • Encourages people to try product + potentially switch brand
  • Quick boost in sales
  • Increases sales
32
Q

What are the disadvantages of sales promotion?

A
  • Can damage brand image
  • Can only be effective short term
  • Lowers profits
  • May expect further promotions
33
Q

What are the methods of promotion?

A
  • Advertising
  • Sales promotion
  • Public relations
  • Person selling
34
Q

What is public relations?

A

The way in which a company manages their relationship with different parts of the public e.g. customers, media

35
Q

What are the advantages of public relations?

A
  • Credibility + trust in company
  • Creates a good brand image
  • Long lasting effect
36
Q

What are the disadvantages of public relations?

A
  • Message can be twisted (especially by media)

- No guarantee message will reach target market

37
Q

What is personal selling?

A

Where businesses use people to sell the product after meeting face to face with the customer

38
Q

What are the advantages of personal selling?

A
  • Personal, adaptable
  • High customer attention
  • Persuasive
  • Increases customer relations
39
Q

What are the disadvantages of personal selling?

A
  • Labour intensive
  • Only reaches a limited number of customers
  • Can be expensive
40
Q

What are the factors affecting which channel of distribution to use?

A
  • Convenience for customer
  • Distance from customer
  • Cost of holding stock
  • Likelihood of customer access online
  • Amount of control
  • Product
41
Q

What is product portfolio?

A

The range of different products a business sells

42
Q

What are some methods of sales promotion?

A
  • Discounts
  • Product trials
  • Free gifts
  • BOGOF
  • Competitions
  • Point of sale advertising
  • Use of credit
43
Q

What is a channel of distribution?

A

The way the product gets from the producer to the customer

44
Q

What is the traditional channel of distribution?

A

Producer–>wholesaler–>retailer–>customer

45
Q

What is the modern channel of distribution?

A

Producer–>retailer–>customer

46
Q

What is the direct channel of distribution?

A

Producer–>customer

47
Q

What are the advantages of the traditional channel of distribution?

A
  • Only have to sell to wholesaler, easier to sell
  • Sell in large quantities
  • Gives customer choice
48
Q

What are the disadvantages of the traditional channel of distribution?

A

-Lower profit margins, have to sell for cheaper

49
Q

What are the advantages of the modern channel of distribution?

A
  • Higher profit margins, can sell at higher price

- Manufacturer can get customer feedback

50
Q

What are the disadvantages of the modern channel of distribution?

A

-Could make more profit through traditional

51
Q

What are the advantages of the direct channel of distribution?

A
  • Very high profit margins
  • Faster
  • Cheaper
  • Relationship w/ customers
52
Q

What are the disadvantages of the direct channel of distribution?

A

-Lots of work, make product + find customers

Business (13 decks)

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