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BUSINESS > unit 2 chap 1 nature of marketing > Flashcards

unit 2 chap 1 nature of marketing Flashcards

1
Q

what is a market?

A

can be held anywhere

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2
Q

what is common in all markets?

A

sellers looking to sell products or services

consumers looking to buy products or services

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3
Q

how does a business assess a market for the demand of a product?

A

1) size of market
2) market niches
3) potential market growth
4) exisiting market segments

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4
Q

mention the external factors that affect marketing objectives
5

A
  • tech
  • customer behavior
  • competitor behavior
  • change in law
    suppliers
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5
Q

how does marketing opperate within an organization?

A

marketing depaetment does not operate in isolation witin a firm

marketing dep obj has to align w businesses obj
such as = inc in proft + sales
inc in market share + good business image

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6
Q

what are the 2 things maketing objcvtives are converned with?

A

product and markets

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7
Q

marketing obj concerned w product and markets?

A

product
- inc sales
- create brand loyalty
- delvelop product range

market
- survival in market
- change market position
- inc market share

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8
Q

what are the internal factors that affect marketing obj

A
  • forecasted sales + profit
  • availaibiltiy of finance
  • market research findings
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9
Q

explain the imp of having clear marketing obj and their requirement

A

marketing obj–> set out what A business wants to achieve –> from its marketing activities

  • THUS OBJ HAVE TO BE
  • Consistent w ocverall aims
  • clearly comminicated to all deps in org
  • if clear + realistic obj –> they will provuide clear sense of direction to org + marketing dep to become market leader
  • if clear–> progress can be monittered
    this will form basis of marketinf strategy for business
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10
Q

what does supply mean

A

the ability and willingness to sell a product or service

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11
Q

supply relation explain
and why

A

whenprice increases supply increases

  • most firms want to make profit –> if a price of product high–> thus more profit made on each unit sold (assume p doesnt change)

thus other firms encouraged to make + sell that product as see opp to make profit

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12
Q

mention the non price factors of supply

A

cop
technology change
weather
govt policy

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13
Q

what does the term demand mean?

A

the abililty and willingness to buy a good or a service

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14
Q

the non price factors of supply lead to a ____________

A

shift in the supply curve

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14
Q

supply affected due to price leads to__________

A

movement along the same supply curve

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15
Q

what is the r/s of demand and price
AND explain why

A

if the prices increase
demand falls
(inverse relation)

consumers look to buy as cheaply as possible
when prices increase of a product —> ppl not able to afford (assuming disposbale income does not increase)

thus ppl look for cheaper substitute alt

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16
Q

mention the non price factors of demand

A

-income
- price of substitte goods
advertising
- change in pop structure
- tastes and trends

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17
Q

non price factors of demand lead to ______________

A

shift in the demand curve

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18
Q

demand affected by price lead to movement along the demand curve

true or false

A

true

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19
Q

below the equalibrium point is ______________

A

excess demand

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19
Q

what is market equalibrium?

A

where the demand and supply forces meet at one point

19
Q

above the market equalivrium means ___________

A

exess supply

20
Q

what are national markets?

A

business that opperates WITIHIN country NOT overseas

21
Q

what are international markets?

A

business that opprrates within local boundary and targets oversees customers –> GIVES ACCESS TO MORE CUSTOMERs

22
Q

how does an international market differ from a national market?

A

legal differences–> diff regulations

unstable govts–>civil voilence

cultural differences –> use of lang/diff products demanded/ dress code

business practices —> diff working comditions/ use of gifts toc achieve contracts

larger markets/segments
cheap labor/material

23
Q

what are the 2 approaches to marketing

A

product oreintation
market oreitnation

24
Q

explain market oreintation

A

focus on meetimg needs of customer

market research used to identify customer needs + perception + demand —.info allows firm to develop products catering to demand of customers

effective apraoch
in competive market –> market oreinted approach said to be used to survive + thrive in market

25
Q

explain product oreintation

A

firm concentrates on producing products + invest high prop of resrouces on PRODUCT FEATURING rather than MARKETING

product made w/o carrying pout market research THEN business tries to find customers to buy it
(DYSON)

26
Q

what are the benifits of market oreientation

A

1) possible for firms to use D and S to deterimine prices

2) very imp approach in fast changing markets –> allows speedy respose

3) decreases number of market failures ‘

4) reduces wastage as unwanted products not produced

5) market reserach feedback allows business to tailor production + marketimg to needs of customers before compettitos

27
Q

product oreinted refers to __________ ________ approach

A

inward looking marketing

28
Q

what are the 3 things marketing strategy should consider?

A

target market
the marketing mix
strenghts of the business

29
Q

what is a NICHE market

A

smallest portion of the larger market

cator the specifi c wants and needs of customers

30
Q

what is marketing stretegy for?

A

it is desgned to achieve marketing obj

31
Q

what is a mass market

A

selling into the largest part of the market
where many similar products + servives

maj needs of customer similar

32
Q

mention 2 adv of opetating in a Mass market

A

ecos of scale
less risky–> business not dependant on upon smqaller segment

sakles revenue higher

32
Q

mention 2 disadv of operating in a niche market

A

high compitition
ped
capital usually high –> expensive machinery –> may not sell all

32
Q

mention 2 adv of operating in a niche markrt

A

price skimming–> can set a premium price

less competiton

33
Q

mention 2 disadv of operating in a Mass market

A
  • competiton high
  • difficult to diferentuiate btw diff products and swevices
  • PED
  • expensive machinery
34
Q

what does consmuer marketing incluide

A

1) Conveince products
purchased frequnelty–> bought on impulse + sold to larger market

2) Shopping products
requires market research+ planning by the customer before buying
not bought frequwently

3) SPECIALTY PRODUCTS
bought infrequnwtly bec expensie+ have strong brand loyalty

35
Q

what does industrial marketing include

A

1) CAPITAL ITEMS
- machinery + vehicle + equipment

2) MATERIALS AND COMPONEMENTS
- that are needed for production to take place

3) SERVICES AND SUPPLIES
- business services and utilities

36
Q

difference btw industrial and consumer marketing

A
  • different prices
  • diff amrketing fro B2B AND B2C
  • diff packaging
  • diff types of segmentation
  • diff promotion
37
Q

what does USP mean

A

unique seeling point
- special feature of a product that difereites it from competitors product

38
Q

what are the benifits of USP

A
  • effective way to distance a product or service from competitive rivals
  • competitive ADV created
  • fall in PED
  • can charge high price due to exclusive design
  • differentiated –> high sales –> high market share
  • consumers attracted to EXSCLUVE SPECIAL DIFFERENT nature of product or service –> create brand loyalty + brand image
39
Q

what is product differentiation

A

making a product distinctive so that it stands out from competitors’ product in CONSUMER PERCEPTION

40
Q

define the term competitive adv

A

once there is gap in the market–> firms convince customer to buy their products

by doing this they will try to gain a competitive adv

esp where products are similar + identical

41
Q

what are product differeintiation benifits

A
  • if marketing concerned with strengthening product position in eyes of the customer –> PD Can become v Imp + profitable activity
  • creates CA for sellers –> as customer views such products as Unique –> pulls customers away from competitor products
  • premium product–> allowing premium price to be charged

-imp part of effective marketing strategy

42
Q

mention the methods of gaining a competitive advantage

A
  • good location
  • value for money
  • brand name
  • customer service
  • facilities
  • image
43
Q

what is social marketing

A

this approach considers not only demand of conumers
BUT
ALSO effects on all members of public socoerty in some way

44
Q

mention 3 benifits of increased market share

A
  • increased scale of operation –> thus ecos of scale
  • increase in no of customers –> inc in sales
  • bsuiness becomes moe powerful in the market –> can dictate prices
  • retaliors eagar to stock that brand of goods –> prominnante sales position in retail outlets
45
Q

what are the factors that rate of market growth depends on

A
  • countrys rate of eco growth
  • change in comsumer income
  • change in consumer taste
    – development of new markets + products –> leads to fall in sales of exisitng market and products
  • chang ein tech –> can boost market sales

BUSINESS (9 decks)

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