Topic 5 - Paper 2 Flashcards
Whats an exchange?
When someone gives up something in return for someone else. E.g product for cash
Whats the marrketing mix?
A combination of factors that influence a customer decision to purchase a product
What is sales volume
Measures the number of items sold
What is sales value
Measures the revenue created from sales
What is segmentation?
When a market is divided into different groups of needs and wants. E.g car market : family car, sports car
What is market research?
Process of gathering and analysing data relevant to marketing decisions. For example you can measure demand, market share and competition
Equation for market growth
Change in market size over original times 100
What is quantitative data
Involves using numbers. E.g number of customers a business has
What is qualitative data
Involves views and opinions. E.g a survey
Equation for market shares
Sales of the product divide total market sales times 100
What is primary market research
Uses data gathered for the first time. For example questionnaire to conduct a survey of potential customers
What is secondary market research
Uses data that has already been gathered. E.g using information in a newspaper or published on a website.
Types of primary market research
Telephone survey, door to door survey, focus groups, internet research
What are the four P’s of the marketing mix?
Price, place, promotion,product
Whats a product portfolio
The collection of products that a firm produces
Whats the DOG in the boston matrix?
Has a low market share in a low growth market
Whats a cash cow in the bostom matrix
Has a high market share in a low growth market
Whats a question mark in the boston matrix?
Has a low market share in a fast growth market
Whats a star in the boston matric
Has a high market share in a fast growth market
Whats the product life cycle?
Shows how the sales of a product have changed over time
What are extension strategies?
Attempts to mantain the sales of a product and prevent it from entering the decline stage of a product life cycle
What is price skimming?
Setting a high price for a product when it first enters the market
What is penetration pricing?
A new product at a low price to achieve fast sales
What is competitive pricing
Matching the prices to your competitor
Whats a Loss leader
A product sold at a loss in the hope that a customer will buy other items from the business where they make profit
What is cost plus pricing?
Where products are priced covering all the costs to the retailer and adding a percentage on top
What are promotional activities
The different ways a firm tries to communicate with its customers
What are sales promotions
Short term incentives to encourage customers to buy
What is advertsising
Involves paid for communications
What are the factors that influence the promotional mix
Target audience,competitors actions, nature of the market and product, finance
What is a wholesaler
Buy in large quantities from a producer and sell to retailers
What is the distribution channel
How the ownership of a product passes from the producerto the final customer
What is direct marketing?
When there is a direct limk from the producer to the customer with no intermediaries
Whats an intermediary
A link in the distribution chain between the producer and the customer
