Unit 2 Flashcards
What is a focus group in marketing?
A group of people reviewing the product
Focus groups provide qualitative insights into consumer perceptions and preferences.
What is the difference between quantitative and qualitative research?
Quantitative is about data whereas qualitative is about opinions
Quantitative research often involves numerical data, while qualitative research focuses on understanding feelings and experiences.
Which marketing technique involves promoting products on social media?
Social media
Social media marketing leverages platforms like Facebook, Instagram, and Twitter to reach target audiences.
Fill in the blank: _______ is when you get an email from the business asking you questions about the product.
Email marketing
Email marketing can be used for surveys, promotions, and customer engagement.
What is the primary purpose of marketing?
To generate interest in a product or service resulting in a sale.
What does anticipating demand in marketing involve?
Studying long-range weather forecasts to predict product demand.
How can recognizing demand help businesses?
By keeping up to date with competitors’ products and trends in consumer behavior the business can detect what products are being demanded at the moment
What is one way to stimulate demand?
Advertising on billboards, in newspapers and online
This includes various forms of media to reach potential customers.
What is the purpose of offering vouchers?
To promote product lines that are poor sellers or over-stocked
Vouchers can incentivize customers to purchase these items.
What does satisfying demand entail?
Ensuring stocks or capacity to deliver a service are sufficiently available
This is crucial for meeting customer demand.
Why is it important to have enough stock before Christmas?
To cover popular toys and meet demand generated during the holiday season
Anticipating demand helps avoid stockouts.
What is one way to handle poor-selling products?
Offering vouchers for product lines that are poor sellers or over-stocked.
How does understanding customer wants and needs benefit marketing?
It simplifies marketing strategies for the business
Distinguishing between wants (e.g., perfume, Nike trainers) and needs (e.g., food, water) helps tailor marketing efforts.
What is the difference between a want and a need?
A want is something desired but not essential, while a need is essential for survival
Examples: Wants include luxury items like a PS5, whereas needs include basic necessities like food.
How can marketing help in developing new products?
By generating ideas based on customer feedback
Asking customers what products they would like to see can guide product development.
In what way can marketing improve profitability?
By reducing costs associated with product marketing
Effective marketing strategies can lead to cost savings, increasing overall profit margins.
What is market share?
The value or quantity of goods sold by a business relative to the total market
For example, in 2015, Tesco had the largest market share in the UK supermarket sector in terms of volume.
What does diversification in a business context mean?
Selling products different from the usual offerings
This can involve creating hybrids of existing products or entering entirely new markets.
Why is increasing brand awareness important?
It fosters customer loyalty and encourages repeat purchases
Customers who are aware of a brand are more likely to seek it out for their needs.
Fill in the blank: A _______ is something a customer only wants to have.
[want]
Fill in the blank: A _______ is something a customer needs for survival.
[need]
True or False: Marketing can help a business to increase its market share.
True
What are S.M.A.R.T objectives
Specific:something specific the business can do
Measurable:something the business can track and measure
Attainable:something the business can realistically do
Relevant:something relevant to current trends
Time based:something the business must do within a certain amount of time
What is the relationship between potential customers and market share?
The more potential customers a business has, the larger the market share.
What are businesses with dominant market shares called?
Market leaders.
How do market leaders influence their competitors?
They control the pricing of their competitors.This is because when they switch prices their competitors have to follow them as they have a large majority of the market
What does brand awareness and loyalty refer to?
Customers knowing and being loyal to the business’s brand.
What is an example of a bad brand image mentioned?
Tesla’s due to Elon Musk’s ‘straight from the heart salute’.
What are niche markets?
Markets populated with businesses that sell to a small and specific segment with few competitors.
What was the initial focus of The Body Shop as a niche market?
Selling to people who cared about ethical products.
What is the benefit of segmenting the market?
It’s easier to sell products/services sorted by elements like age, education, income, family size, race, gender, etc.
What does behavior segmentation involve?
Dividing the market by customer behavior.
What does psychographic segmentation take into account?
Psychological aspects such as lifestyles, personality traits, values, etc.
Why is branding considered a powerful business tool?
It can influence consumer behavior.
What elements of a business help customers assign reputations?
Names, logos, etc.
What is a tagline?
A short text or phrase representing a product designed for dramatic effect.
Where does the power of branding come from?
Deep subconscious parts of the brain developed many millennia ago.
How do customers rank businesses?
According to their individual value system.
What is visual recall in branding?
When the brand symbol is well known.
What color is associated with Cadbury’s strong brand recognition?
Purple.
What is a key to the success of a good brand?
Emotionally connecting with the customer.
How can a brand give itself ‘human characteristics’?
By associating emotional traits with the brand.
What is the role of a sole trader in marketing?
The sole trader will be conducting all of the marketing for the business unless they have some employees.
This may lead to a lower quality of marketing if the sole trader lacks skills.
What is a potential benefit of a sole trader handling marketing?
There will be a clearer plan on what to market.
However, this is contingent on the sole trader’s marketing skills.
What is a characteristic of marketing in a micro business?
There will probably not be a marketing specialist.
This allows for effective marketing while focusing on other business aspects.
What is a possible downside of marketing in a micro business?
The marketing quality may still not be that great.
This is due to the lack of specialized skills.
What is the marketing structure in a small business?
There will either be a small group of people marketing the business or a marketing specialist will be brought in.
This can increase the quality of marketing but may raise costs.
What is common in medium businesses regarding marketing?
It is common to have a marketing department with a number of specialists in charge.
This generally ensures higher quality marketing.
What are the four key factors that impact business marketing?
- The cost of the campaign
- The availability of finance
- The expertise of the staff
- The size and culture of the business
Each factor plays a crucial role in shaping marketing strategies.
What is an important question regarding campaign costs?
How much is the campaign going to cost?
Understanding costs is crucial for budget planning.
What percentage of businesses pay between $100 and $5000 per month on social media management?
52% of businesses.
This reflects a significant investment in social media marketing.
What percentage of businesses spend between $1000 and $25,000 annually on social media ads?
48% of businesses.
This indicates a wide range of marketing budgets among businesses.
What is the cost of buying advert spots between TV shows in the UK?
£500.
This cost can vary significantly based on the show’s popularity and time slot.
What financial document is typically drawn up to analyze a business’s financial position?
A cash flow forecast.
This helps businesses plan ahead for financial challenges.
What are alternative credit sources for sourcing finance?
- Bank loan
- Credit arrangement
These options come with risks, such as repayment obligations.
What is a major cost associated with conducting a marketing campaign?
The expertise of staff.
Conducting marketing in-house can provide more control.
