Unit 2 Flashcards
What is a market
A market for a good or service exists in consumers and sellers are in contact with each other and are able to buy and sell it
What are the types of marketing
Direct to markets and indirect market
What is a direct market
Consumers and sellers are in direct contact
What is an indirect market
Consumer And sellers are not in direct contact
What are the sizesof marketing
Local national and global
What is Local
The market involves consumers and sellers in a small area immediately around a business
What is national
To market involves consumers and salaries within a country
What is global
The marketinvolves buyers and sellers all around the world
What is marketshare
Market shareis its percentage of all the sales in the market. Increasing market share some help a business to grow
What is market growth
a total increase in sales of a market
What is marketing
Marketing is one of the Functional activities of a business
What is the role of marketing in a Business
Identified the current goods and services that consumers want
Anticipate the goods and services that consumers would want to in the future by looking at C current trends
Create products that satisfy these current and future needs and wants
Why is marketing important
Marketing is important because it ensures that organisations produce what people want and make consumers aware of products available
What is the purpose of marketing
To achieve organisational objectives To raise product awareness To obtain customers in Newmarket To inform customers about the products To estimate and determine what customers want
What benefits can marketing bring
Survival Positive business image Increased customer satisfaction Increased use of the business by consumer Increase the profit budgets or donations
What is market research
It is the process of gathering recording and analysing information about a market
What types of information that market research is usually concerned with
Types of consumers
Current and future customer wants
Customer options of a business and its competitors
Actions of competitors within the market
Why is market research important
Because it means that a business should have information that should help it make quality marketing decisions.
This means the business is more likely to be successful by achieving its objectives and satisfying consumers
How is market research carried out
Decide on the type of information that has to be gathered
Decide on the best method to get to the information required
Carry out market research
Analyse and market to research gathered to help you decide what the business should do next
What is quantitive information
Based on facts and figures
Very specific
Helpful in finding out how things in a market are changing
Example of quantitative information
Sales figures
stock levels
What is qualitative information
Based on opinion
Helpful in finding out why things in a market are changing
Example of qualitative information
How to improve quality at a staff meeting
Types of market research
Desk research and Field research
What is desk research
Finding and reusing existing information
This is secondary information
Available internally and externally to the organisation
What are internal sources
Sources of market research information from inside of the business
What are external sources
Sources of market research information from outside the business
What is field research
Involves gathering you information about a market for your own specific purpose
This is Primary information
Requires direct contact with customers
Methods of field research
Surveys Interview Focus group Hall test Observation Social network
Advantages of desk research
Cheap
Quick and Easy to collect
Disadvantage of desk research
Info that already exists and is available to competitors
May be less than useful
Inaccurate
Advantages of field research
Valuable info
Reliable info
Up to date
Not available to competitors
Disadvantages of field research
Expensive
Time consuming
Advantages of surveys
Inexpensive
Immediate response for telephone surveys
Large number of reviews
Disadvantage of surveys
Many people don’t like telephone surveys
Must be easy to answer
Test manketing advantages
Customer can indicate areas about the product that they didn’t like.
If the product fails, expenses of national launch is saved
Disadvantages of test marketing
Not a representation of the whole country
Advantages of interview
Quick
2 way communication
Prompt the responding to answer
Disadvantages of interview
Researchers have to be trained which can be costly
Home interviews are unpopular
Advantages of focus groups
Quantitive info gained
Disadvantages of focus groups
Qualitative information is difficult to analyse
Advantages of hall tests
Qualitative info gained
Disadvantages of hall tests
Quantitive info is difficult to analyse
Which type of market research should be considered
The types of info needed
The market that the business is in
The time available for the research to be carried out
The finance available for conducting the research
The other resources available for conducting the research
In order to be high quality info, what must it have
Accurate Appropriate Complete Timely Concise Cost affective Available Objective
What is market segmentation
Involves market research information to split the consumers in your market to separate and identifiable groups (segments) with specific wants
Examples of segments
Age Gender Income Religion Location Taste/fashion Lifestyle/ preferences Marital status
Why is market segmentation important
When a business knows about its segments in the market they can meet the different needs of each segment by dealing with each of them in a separate, suitable way.
Benefits of marketing
Improved customer satisfaction Improved customer loyalty New sales opportunities Improved service Improved profit Improved market share Decreases wastage Less chance of failure
Disadvantages of target marketing
Increases costs
Complicated to manage
What is the marketing mix made up of
Product
Price
Place
Promotion
What is product
The product is the actual good or service that is provided by the business and then sold in a market
What are the main areas of activity in the product element of the marketing mix
Product development
Product life cycle
Branding
What are risks a business could have when it develops a new product
Customers might not want the product
Money spent on developing the product may be wasted, leading to financial difficulties
The reputation of the business could be damaged if the product is of poor quality
External factors may impact the success of the product
What is the product life cycle
A series is stages that a product will pass through in its lifetime
What are the stages of the product life cycle
Development Introduction Growth Maturity Decline
What is development
Cost in developing the product. There are no sales
What is Introduction
The product is launched and customers are aware of it.
What is growth
Sales rise, competitors may launch their own version of the product
What is maturity
Product is fully established. Sales may fall as competitors enter the market
What is decline
Customers are interested in other products
What factors should a business consider when choosing a suitable supplier
Price Quality Delivery time Quantity Storage space Reliability
What is price
How much the product costs
What is quality
How well the product is
What is delivery time
How long it takes the product to be delivered
What is quantity
How much product you buy
What is storage space
How much space you have for the products
What is reliability
Delivered on time, right quantity, good quality
What are the factors if production
Capital
Enterprise
Land
Labour
What is capital
The money invested into the business and the equipment it can be used to buy
What is enterprise
All of the ideas for goods and services and organising all the resources needed
What is land
The earth natural resources
What is labour
The physical and mental effort carried out by people
What are the types of production
Capital intensive
Labour intensive
Automation
What is capital intensive
Where mainly machinery are used for production
What is labour intensive
Where mainly human workers are used for production
What is automation
Where production is controlled by computers
What is the production process
Input
Process
Output
What is input
Raw materials
What is process
The making of the product
What is output
The finished product
What are examples of the production process
Crisps
Potatoes-cut, season, cook-crisps
Tables
Trees(cut and treat)-shape-table
What are the problems of understocking
Unable to cope with unexpected demands, leading to dissatisfied customers
Production may be stopped and sales may be lost
Placing high orders more often causes high administration costs and the business is likely to benefit from bulk buying
Damaged reputation and loss of customers loyalty
Problems of overstocking
Storage related costs
Cash tied up in stock
Less chance of theft detected
Increased wastage as stock may perish
What is another word for Minimum level
Buffer
What is another word for maximum level
Economic
What is minimum level
Minimum amout of product the business would want to hold in stock
What is reorder level
Acts as a trigger point so that when stock falls to this level, the next supplier order should be placed
What is maximum level
Max level of stock a business can or wants to hold
What is lead time
Amount of time between placing the order and receiving the stock
What is reorder quantity
This is the amount of stock required to return stock levels to the economic stock level
