Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Unit 3 > Flashcards

Unit 3 Flashcards

1
Q

sales value (not on it)

A

level of sales in given period in terms of amount spent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

sales volume (not on it)

A

level of sales in given period in terms of units sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

market share (not on it)

A

the sales of one brand as % of total market sales in a given period.
sales of product/total market sales x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

sales growth (not on it)

A

% change in sales volume or value over given period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

market growth (not on it)

A

% change in total sales in market over given period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

internal influences on marketing objectives + decisions

not on it

A
  • overall strategy
  • ambition of managers
  • existing position of business
  • amount business can produce
  • finance
  • employees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

external influences on marketing objectives + decisions

not on it

A
  • political
  • human resources
  • social
  • technological
  • competitive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

globalisation (not on it)

A

increasing trade between countries + growing internalisation of business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

marketing research (not on it)

A

involves gathering + analysing data relevant to the marketing process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

competitiveness (not on it)

A

measures the extent to which a business offers good value for money relative to competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

primary market research (not on it)

A

collects + analyses data for first time to use for marketing purpose.
eg interview customers, send out questionnaire

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

secondary market research (not on it)

A

collects + analyses data that already exists for marketing purpose.
eg annual reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

sample (not on it)

A

group of people or items selected to represent target population

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

target population (not on it)

A

items or people that are relevant to market research being under taken

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

the value of sampling (not on it)

A

+ saves money as does not have to include the whole population
+ quicker than trying to talk to all of pop.

  • risk of relying on sample which may be incorrect
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

market mapping (not on it)

A

analyses market conditions to identify one position of one product or brand relative to others in the market in terms of given criteria

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

correlation (not on it)

A

occurs when there is apparent relationship between one factor + another

perfect negative -1
no correlation 0
perfect positive +1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

extrapolation (not on it)

A

tracking what has happened in the past to forecast what will happen in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

confidence levels (not on it)

A

the probability that the research findings are correct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

confidence interval (not on it)

A

possible range of outcomes for a given confidence level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

PED = (not on it)

A

% change in quantity demanded / % change in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

size of price elasticity (not on it)

A

shows how responsive it is to price changes , bigger no. more quantity demanded changed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

price elastic (not on it)

A

more than 1 -> change in demand is more than change in price

price increase: bigger % decrease in quantity demanded, revenue falls
price decrease: bigger % increase in quantity demanded, revenue rises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

price inelastic (not on it)

A

less than 1 -> change in demand is less than change in price

price increase: smaller % decrease in quantity demanded, revenue rises
price decrease: smaller % increase in quantity demanded, revenue falls

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

brand (not on it)

A

a ‘promise of an experience’ + conveys to consumers a certain assurance as to the nature of a product or service they will receive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

patent (not on it)

A

protects new inventions + covers how things work etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

influences of PED (not on it)

A
  • what alternatives there are -> is there are substitutes likely to be price elastic
  • patents or trade marks -> price inelastic
  • time period -> ST less changes on demand
  • habit -> price inelastic
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

YED = (not on it)

A

% change in quantity demanded/ % change in consumer income

29
Q

luxuries income elasticity (not on it)

A

more than 1

as incomes grow, proportionally more is spent on these products

30
Q

necessities income elasticity (not on it)

A

less than 1 but greater than 0

as incomes grow proportionally less is spent on necessities

31
Q

segmentation (not on it)

A

identifying different groups of similar needs
+ identifying new customers, market + products
- ignore the needs of potential customers

32
Q

how can groups be segmented? (not on it)

A

demographic -> age, gender
geographic -> tastes around the world, types of housing etc
income -> A (professionals), B, C1, C2, D, E (casual labour)
behavioural -> when they buy, how much they buy, brand loyalty

33
Q

value of segmentation (not on it)

A
  • identify what different groups want
  • helps to better design marketing mix
  • helps them to build a strong brand identify
34
Q

market segments (not on it)

A

groups of similar needs + wants within a market

35
Q

targeting (not on it)

A

when a business decides what segment it wants to operate in

36
Q

a business will target a segment if.. (not on it)

A
  • it has sufficient demand + potential profit to justify investment
  • ability to be competitive + gain sales
37
Q

niche marketing (not on it)

A

if a business decides it wants to focus on a specific segment, concentrated marketing

38
Q

mass market (not on it)

A

aims to provide products that meet some of the needs of a large proportion of the market
+ larger volumes to fulfil orders
+ promotional techniques to reach more customers
- potentially more competition

39
Q

positioning (not on it)

A

identifies the benefit + price combination of a product relative to competitors

40
Q

factors influencing companies position relative to competitors

A
  • price
    -benefit it offers
  • brand image
    level of service it provides
41
Q

marketing mix

A 
combination of marketing choices that can be used by a business to influence consumers to buy products
price
people
physical environment 
place
product
promotion
 process
42
Q

promotional mix

A 
branding
sponsorship
sales promotion 
PR
advertising
direct mail 
direct marketing
43
Q

consumer products

A

good bought for consumption by the general public

convenience items - inexpensive, bought regularly
shoppings good - less regular, more expensive eg clothes, computers
speciality goods - unique designer

44
Q

industrial products

A

goods bought for use in business processes

45
Q

product life cycle

A

shows the sales of a product over its life, usually involves stages eg introduction, growth, maturity + decline
R+D - costs high, high failure rate
Intro - promotes heavily to boost sales but need to make sure have enough resources for demand
growth - sales grow fast
maturity - sales reach peak, at saturation sales may begin to drop depending on product
decline - doesn’t appeal to customers anymore, sales may be picked up if other competitors leave first

46
Q

product portfolio analysis

A

examines the market position of all of the products of a business

47
Q

what are the extension strategies?

A 
find new uses
increase usage 
find new market segments
promote more effectively 
modify the product
48
Q

boston matrix

A

analyses all of a firm’s products in term of their market share + growth of the market

stars (high growth high share) -> profitable growth phase, most potential 
Question marks (high G low S) -> all new products, could succeed or could fail
cash cow (low G high S) -> maturing phase, been produced in high volumes so cost = low
dogs (low G low S)
49
Q

factors that influence pricing

A
  • costs
  • stages of life cycle
  • PED
  • positioning
  • competitiveness of market
50
Q

penetration pricing

A

charges low prices to attract customers + gain market share, most suitable when demand is price elastic
customers may expect low prices to continue

51
Q

price skimming

A

occurs if relatively high price is charged when a product is launched eg new iPhone (innovative)
appropriate when demand is price inelastic
prices are then dropped as other competitors enter the market

52
Q

what influences promotional decisions?

TPMT

A
  • target audience
  • promotional budget
  • message
  • technology
53
Q

if a brand is strong may mean..

A
  • demand is more price inelastic
  • customers may tell others
  • may be difficult for other brands to enter market
  • can achieve premium pricing
  • customers may remain loyal as they have confidence in its quality
54
Q

multichannel distribution

A

customers can buy the product serval ways eg in store, online
-> offers flexibility to customers, may lead to added costs but allows business to target wider market

55
Q

e-commerce

A

buying + selling of products through an electronic medium

56
Q

value of e commerce + Digital marketing

A
  • gather more info about customers + process more quickly + efficiently
  • build relationships w customers more effectively being able to track what they buy
  • target very specific segments, can set up online very cheaply
  • target global market 24/7
57
Q

factors that influence marketing mix

MCTPLT

A
  • market research accuracy
  • competitors
  • target market segment
  • positioning
  • location
  • type of product
58
Q

B2B

A
  • based on relationship with business buyers
  • often small + focused market
  • more complex + longer buying process
  • more specialised buyers
    eg L’oreal to hairdresser
59
Q

what challenges do B2B businesses face?

A
  • finding businesses to buy their products

- fewer sales (but likely to have higher profits)

60
Q

how do B2B businesses market?

A

direct marketing campaigns
personal selling
trade magazines
trade exhibitions eg

61
Q

B2B and the marketing mix

A

Price depends on competitiveness of the market, but some profit may be sacrificed to build relationship to guarantee repeat purchases
Promotion = less persuasive + more informative
Place = trade shows

62
Q

Short distribution channels

A
  • industrial products
  • few customers
  • expensive, complex goods
  • infrequent sales
  • bulky products
63
Q

Long distribution channels

A
  • consumer products
  • many customers
  • inexpensive, Simple goods
  • standard products
  • frequent sales
64
Q

Positives of using wholesaler

A

More market coverage as can deliver products from several manufactures in a single delivery

65
Q

Positives of selling directly to the customer

A

More profitable as less intermediaries to give a slice of the profit to
Can sell at lower price then retailers who have a long distribution channels
More control over product

66
Q

Value of niche marketing (not on it)

A

+ not likely to be challenged by the bigger businesses
+ possible to build intense customer loyalty -> easier to design marketing mix, when you know specific characteristics

  • not big so may be vulnerable to losing customers
  • can’t take advantage of economies of scale
67
Q

What should firms aim for, shown by the Boston matrix

A

Firms should have a balanced portfolio, some products in each category

68
Q

inferior good (not on it)

A

yed < 0 (negative)

incomes rise, demands fall eg Tesco branded food

Business (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions