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Business Studies Unit 3 > Topic 3 > Flashcards

Topic 3 Flashcards

1
Q

name 3 possible marketing objectives?

A

Maintain/increase market share
Target new market segment
Develop new product

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2
Q

what are 4 internal influences on marketing objectives?

A

finance (amount available from budgets - overall financial position and expected returns)
Human resources
Operational issues
Business culture

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3
Q

What are 5 external influences on marketing objectives?

A 
Competitors actions
Technological changes
Market factors (economic climate / social change / legislation / consumer needs)
Social and political change
Economic environment
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4
Q

What is market analysis?

A

Examining market features such as market size and sales to predict future trends, understand consumers and enables to assess situation and identify opportunities and threats to be overcome

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5
Q

What are 2 main reasons for analysing markets?

A

Gather evidence to devise a new strategy

Identify patterns in sales - use for decision making

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6
Q

What 4 reasons would you need to gather evidence for a new strategy?

A

changed corporate objectives
changes in competitive behaviour
technological developments
market conditions

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7
Q

What are 3 main ways of analysing a market?

A

Moving averages
Extrapolation
Correlation

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8
Q

What are moving averages?

A

Finds underlying trends by smoothing out fluctuations in data

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9
Q

What is correlation?

A

The relationship between 2 factors which influence demand for a product

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10
Q

What is extrapolation?

A

a prediction of future trends based on current trend and historical data
Assumes the trend will continue into the future

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11
Q

Give 3 advantages of extrapolation

A

Aids distribution and promotion
More informed budgets, workforce and production planning
Simple, quick and cheap

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12
Q

Give 3 disadvantages of extrapolation

A

Reliant on continuing trends - not happen in fast moving markets and unpredictable events
Ignores qualitative factors
Unreliable if significant fluctuations in data

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13
Q

Examining markets makes it easier to understand which 3 things?

A

Available opportunities
Potential future market changes
Influences on demand in market

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14
Q

In what 4 ways can IT be used to analyse markets?

A

gain information from store cards
Market research online questionnaires
Software processes and presents data
Blogs collect feedback

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15
Q

Give 2 advantages of using IT in analysing markets

A

Processed quickly and used for sales forecasting
Build electronic database of consumer buying habits and customer profiles to target future products and promotions more effectively

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16
Q

Give 2 disadvantages of using IT in analysing markets

A

Information overload slows down decision making - could miss opportunity which is exploited by competitors
Data available quickly - overreact and misinterpret - causing unfortunate decisions

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17
Q

Businesses also have to analyse data collected on own marketing activities, which 2 ways is this mainly done?

A

Test marketing

Primary market research

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18
Q

What is a test market?

A

Small scale product launch in one geographical location or demographic group to judge viability of product in the market

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19
Q

Give 4 advantages of a test market

A

Data from actual consumer spending
Reduces risk of full launch
Able to adjust marketing mix before full launch
Creates promotional buzz

20
Q

Give 5 disadvantages of test market

A 
Competitors may respond before full launch
Test market may not be representative 
Delays in full launch reduce revenue
Costly and time consuming 
Reactions affected by external factors
21
Q

Give 3 reasons why market data might be incorrect/misleading

A

Historical data may not reflect change in consumer habits - unrealistic trends
Data may be biased - firms portray favourable information to secure contracts
Forecasts too far into the future, reduced accuracy

22
Q

What is Ansoff’s Matrix?

A

Helps to select what sort of marketing strategy to use depending on type of product and type of market they wish to work in

23
Q

What is market penetration?

A

Increasing sales of existing products in existing markets - entice customers away from competitors

Low risk due to experience and knowledge of characteristics in larger market - bad to assume all customers share characteristics and respond in the same ways

24
Q

Gives 3 ways to achieve market penetration

A

Increase market share - competitive pricing, promotion and personal selling
Dominance of growth markets
Drive out competition

25
Q

What is product development?

A

This involves introducing new products into existing markets
Will require market research
May introduce new models of existing products with modifications, new functions or services
Higher risk

26
Q

Give 5 benefits of product development

A

Allows to utilise excess production capacity
Response to new products from competitors
Maintain reputation for being innovative
Protect market share
Exploit new technology

27
Q

What is market development?

A

Involves attracting new customers (new market) to existing products
Risky as no knowledge of new market
Marketing costs could be high
Helps spread risk

28
Q

Give 4 strategies for market development

A

Targeting new geographical areas
Develop new sales channels
New product dimensions/packaging
Different pricing policies

29
Q

What is diversification?

A

Entering a new market with new products
Most risky
Spreads risk
Can gain first move advantage in emerging markets

30
Q

In what 5 circumstances is moving to international markets appealing?

A 
UK market is saturated
UK market is very competitive
Opportunities for economies of scale
Firm has excess capacity
Additional costs are small
31
Q

Give 5 advantages of exporting from UK

A 
Cheap
Not complicated
Easy to withdraw if fails
Use existing resources
Retained control of marketing
32
Q

Give 4 disadvantages of exporting from UK

A

Distance makes it difficult to identify opportunity
Bureaucracy may be complicated
Risks with payment can cause cash flow problems
Language barriers

33
Q

Give 4 strategies for moving to international markets

A

Exporting from the UK
Open overseas operation
Overseas sales agent
A distributor

34
Q

to open overseas operations means to open new branches, managed by a local partner, give 5 advantages

A 
Identify opportunities in target market
Control operations/potential to expand
Develop relationship with clients
Provide good after sales services
Local partner provides experience and knowledge
35
Q

Give 3 disadvantages of overseas operations

A

More expensive
Local legislation may be difficult to understand, require specialists
Brand name may not be appropriate in target market

36
Q

Give 3 advantages of using an overseas sales agent

A

Agents have knowledge of local area - should identify opportunities
Recruitment, training, relocation costs avoided
Agent should have local contacts

37
Q

give 2 disadvantages of using an overseas sales agent

A

UK company is still responsible for costs and documentation

Difficult to maintain customer service

38
Q

Give 3 advantages of using a distributor

A

They become responsible
Greater chances of successful launch if distributor has established reputation and contact
Marketing costs fall on them

39
Q

Give 4 disadvantages of using a distributor

A

Distributor may expect discounts and credit
Control of marketing mix passed over
Hard to give incentives to sell more
May demand exclusive rights - reduce sales

40
Q

A marketing plan is the details of activities to be used to carry out a marketing strategy, what 3 things are included?

A

Description of all activities
Time frame
Reasons justifying each action

41
Q

What are the 6 steps in a marketing plan?

A

1) Marketing objectives
2) SWOT analysis
3) Situational analysis
4) Budgets
5) Sale forecasts
6) Marketing strategies

42
Q

What is SWOT analysis?

A

Strengths - what good at and why
Weaknesses - what can hold back strategies
Opportunities - whats happening in the market
Threats - what may constrain business activities

43
Q

What is situational analysis?

A

An assessment of business, customers, competitors and market environment - using SWOT and market research

44
Q

What are marketing tactics?

A

Marketing mix activities to achieve marketing strategies

45
Q

What are 3 internal influences on marketing plans?

A

Operational issues
Finance
Human Resources

46
Q

What are 3 external influences on marketing plans?

A

Competitors actions
Market conditions
Technological change

47
Q

What are 4 issues with influencing marketing plans?

A

Scheduling key tasks
Resources required
Cost
Control

Business Studies Unit 3 (5 decks)

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