Specification Areas Flashcards
market growth
(difference/old or original) x100
5 key marketing objectives
- sales growth
- launching new products
- entering new markets
- brand loyalty
- market share
4 primary research examples
- surveys/questionnaire
- observations
- focus groups
- test marketing
5 secondary research methods
- published reports
- newspapers
- internet
- government
- market research reports
What is the purpose of market mapping
To spot gaps in the market
What is sampling
Choosing a small amount of people from the target population
What is extrapolation
Identifying future trends from historical data
Product life cycle stages
- R and D
- Introduction
- Growth
- Maturity
- Decline
5 Product life extension strategies
- product redesign
- price reduction
- new packaging
- increase promotions
- new markets and segments
Dynamic pricing
When pricing changes based on the level of demand
6 Key promotional methods
- advertising
- sales promotion
- direct selling
- personal selling
- sponsorship
- merchandising
7 P’s of the marketing mix
- price
- product
- promotion
- place
- people
- process
- physical environment
Taylor’s theory
Staff are motivated by money
Maslows theory
- staff are motivated by having their needs met
Maslows hierarchy of needs
- self-actualisation
- esteem
- social needs
- safety needs
- physiological needs
Herzbergs theories
- Two-factor theory
- Hygiene factor
5 Financial rewards
- salaries
- wages
- piece rate
- bonuses
- performance related pay
4 Non financial rewards
- promotion
- empowerment and delegation
- praise
- consultation
Key phases of the business cycle (GDP Measure)
- boom
- recession
- slump
- recovery
Exchange rates
Value of currency represented as another
What do exporters prefer the pound to be?
Weak
What do importers prefer the pound to be?
Strong
Inflation
Measures the change of the average price of goods and services as a %
Why are protectionism policies introduced?
To protect domestic business from overseas competition - strengthens economy
5 Organic methods of growth
- open new branches
- invest in tech and new facilities
- increase capacity
- develop new products
- enter new markets
2 Inorganic/external methods of growth
- takeover
- merger
4 benefits of organic growth
- lower risk
- easier to manage
- less debts
- not interference from CMA
3 drawbacks of organic growth
- less competitive
- no synergy
- loss of image
7 drivers of retrenchment
- high costs
- poor return on investment
- financial difficulties
- failed takeover or merger
- economic downturn
- saturated market
- change of ownership
4 Internal causes of failure
- wrong strategic decisions
- poor execution of strategy
- poor leadership
- financial difficulties
Emergent strategy
develops over time as the strategic plan is implemented
3 ways that a business can improve flexibility
- spare capacity
- offer varied order sizes
- offer flexible lead times
3 ways to improve speed of response
- flexible workforce
- JIT production
- digital technologies - monitor stocks and organise shipping
‘Push’
- Produce to stock
- Produce first and then try to sell stock
‘Pull’
- Produce to order
- Produce only if there is an order
3 ways to increase supply
- hire temporary staff
- outsource
- JIT production
Criteria for choosing a supplier (9)
- price
- quality
- reliability
- flexibility
- capacity
- payment terms
- location
- ethics and reputation
- returns policy
4 benefits of having multiple suppliers
- ensure back-up incase of failure
- increase size order
- compare suppliers quality, prices etc.
- prevent being dependent on one supplier
