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business > unit 3 > Flashcards

unit 3 Flashcards

1
Q

what is marketing

A

the process of identifying, predicting and staying customers needs profitably

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2
Q

4 functions of business

A

marketing
HR
finance
opperations

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3
Q

what are objectives

A

statement of specific outcomes to be achieved

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4
Q

what are corporate objectives

A

things that relate to the business as a whole

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5
Q

examples of functional change

A

raising finance
training programme for staff

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6
Q

problems with setting marketing objectives

A

fast changing external environment
potential conflict between marketing objectives
be too ambitious

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7
Q

sales growth

A

percentage change in sales over period of time for certain brand

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8
Q

market growth

A

percentage change in sales over period of time for whole market

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9
Q

internal influences on marketing objectives

A

corporate objectives
finance
human resources
opperations

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10
Q

external influences on marketing objectives

A

economic environment
competitor actions
market dynamics
technological
social
political

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11
Q

market size

A

sales volume + sales value

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12
Q

sales volume

A

measures number of items sold or produced

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13
Q

sales value

A

measures financial worth of item sold

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14
Q

market share

A

overall market is split between the existing competitors

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15
Q

what is market research

A

analysing of research to help support the implementation of marketing strategy

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16
Q

types of market research

A

dimensions of market
competitor strategies
needs, wants, expectation
market segments

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17
Q

what is meant by market dimensions

A

size, structure, growth, trends

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18
Q

what is meant by competitor strategies

A

market share, positioning, USPs

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19
Q

what is meant by market segments

A

existing and potential opportunities for new segments

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20
Q

two main types of market research

A

primary and secondary

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21
Q

primary research

A

getting data that hasn’t been collected before

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22
Q

secondary research

A

researching that uses data that was collected by someone else

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23
Q

quantitive research

A

the process of collecting and analyzing numerical data

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24
Q

qualitative research

A

collecting and analyzing non-numerical data (e.g., text, video, or audio) to understand concepts, opinions, or experiences

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25
Q

what is sampling in a research market

A

involves the gathering of data from a sample of respondents

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26
Q

what should the sampling research be representative as

A

the population (e.e. target market) as a whole.

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27
Q

benefits of sampling market research

A
  • can provide useful research insights
  • can reduce risk and costs of done.
    before making market decisions
  • flexible and quick
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28
Q

drawbacks of sampling market research

A

sampling audience can be to small and to similar
bias opinions
customers taste buds changing frequently

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29
Q

what is random sampling

A
  • simple method
    -not completely unplanned (chose the
    right place)
  • data collection can take time and may
    be expensive
  • ICT used to help chose randoms
  • can be difficult for keeping it random
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30
Q

what is quota sampling

A
  • where the population id divided into
    what you need (50/50 men + women)
  • easy done quick
  • may be biased as its selected
    population
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31
Q

what is stratified sampling

A
  • group of people randomly selected
    before survey carried out
  • in specific groups (age, gender)
  • mail, email, phone surveys
  • popular as its less biased
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32
Q

factors influencing the choice of sampling methods

A
  • time to complete research and
    decisions
  • costs involved and fanatical situation
    of firm
  • new or existing product
  • market position (niche or mass)
  • target audience
  • is the target markets wants specific
  • firms existing knowledge of market
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33
Q

what is marketing mapping

A

using a graph to plot your competitors and their products to understand their behaviour band spot a gap in the market

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34
Q

dimensions affecting a marketing positioning map

A

low price - high price
basic quality - high quality
low volume - high volume
light - heavy
unhealthy - healthy
simple - complex
necessary - luxury
low tech - hi tech

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35
Q

what is primary research

A

getting data that has not bee collected before

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36
Q

what is secondary research

A

researching that uses data that was collected by someone else

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37
Q

primary research benefits

A
  • guarantees that the information is up to
    date and relevant
  • no one else has access to it
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38
Q

secondary research benefits

A
  • time efficient and easy to obtain
  • saves time and money
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39
Q

primary research drawbacks

A
  • expensive
  • time consuming
  • might not be feasible
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40
Q

secondary research drawbacks

A
  • already been collected
  • not good quality
  • not what you need
  • not up date
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41
Q

qualitative research benefits

A

-

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42
Q
A
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43
Q
A
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44
Q
A
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45
Q
A
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46
Q

aspects of the market that firms need to amylase

A
  • size of market
  • growth in the market
  • market structure
  • segmentation of the market
  • social trends
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47
Q

size of market

A
  • is it big enough
  • is it feasible for the firm to operate in
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48
Q

growth in the market

A
  • does the market have enough future
    potential
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49
Q

market structure

A
  • what level of competition is there
  • how intense will the competition be
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50
Q

segmentation of the market

A
  • who will the company be targeting
  • what are their needs (wants and taste)
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51
Q

social trends

A
  • changing lifestyles
  • demographics
  • fashions
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52
Q

reasons for analysing the market

A
  • firm can then devise new plans and
  • strategies
  • identify future trends
  • is the product viable
  • identify opportunities and threats
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53
Q

what is correlation

A

statistical technique that looks at the strength of the relationship between two variable and how they relate.

(relationship between advertising expenditure and sales increase)

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54
Q

different between correlation and causation

A
  • correlation - doesn’t automatically
    mean that the change in one variable
    is the cause of the change in the
    values of the other variable
  • causation - indicates that one event is
    the result of the occurrence of the
    other event
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55
Q

correlation independent variable

A
  • variable that causes change in the
    other
  • (increasing the investment in
    promotion)
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56
Q

correlation dependent variable

A
  • variable that is impacted by the
    change in the independent variable
  • (the resulting rise in demand)
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57
Q

positive correlation

A
  • direct relationship between two
    variables.
  • as independent variable increases the
    dependant variable increases
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58
Q

negative correlation

A
  • inverse relationship between two
    variables
  • as the dependent variable falls the
    independent variable rises and vice
    versa
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59
Q

what is confidence intervals

A

how confident you are in your estimates

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60
Q

what is extrapolation

A

method of forecasting sales is took at what has been happening in the past and to continue the trend into the future

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61
Q

what can extrapolation be used

A
  • measure performance
  • workforce planning
  • marketing department planning to hit forecast
  • plan production levels and schedules
  • produce realistic and motivating targets
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62
Q

advantages for test marketing

A
  • actual sales results can be used to
    inform decisions
  • reduce risk as firms not waste money
  • generate feedback to modify product
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63
Q

negatives for test marketing

A
  • can be costly
  • time consuming
  • give competitors time
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64
Q

how do firms gather data from model technology

A
  • internet data, social media
  • CCTV
  • store cards (club cards)
  • EPOS
  • online surveys
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65
Q

advantages of technology in gathering data for market decisions

A
  • processed and analysed quickly
  • go into greater depth with IT
  • emails asking what customers prefer and want to hear
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66
Q

disadvantages of technology in gathering data for market decisions

A
  • too much information is hard to
    analyse and can slow decisions down
  • trends can be misunderstood as data
    is gathered to quickly
  • trends can be mistaken as data is
    gathered to quickly
  • costly to acquire the required
    technology to be able to gather data
    (Tesco club card £500mil)
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67
Q

what is elasticity

A
  • measures the responsiveness of
    demand to a change in a relevant
    variable
  • (price or income0
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68
Q

what is price elasticity of demand

A

measures the extend to which the quantity of a product demanded is affected by a change in price

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69
Q

price elasticity of demand formula (PED)

A 
       %change in price
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70
Q

do you ignore +- sign in PED calculation

A

yeppers

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71
Q

what does it mean if the elasticity number is greater then 1

A

elastic goods

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72
Q

what does it mean if the elasticity number is less then 1

A

inelastic goods

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73
Q

what does it mean if the elasticity number is 1

A

unitary elasticity

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74
Q

how too calculate percentage change

A

original figure - new figure
————————————- X100
orignal figure

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75
Q

factors influencing PED

A
  • grand strength
  • necessity
  • habit
  • availability of substitutes
  • time
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76
Q

income elasticity of demand formula

A

% change in consumer income

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77
Q

what is income elasticity of demand usually positive for

A
  • fine wines and spirits
  • chocolates
  • holidays
  • data
  • sports an leisure
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78
Q

what is income elasticity of demand usually lower for

A
  • staple food (bread, vegetables)
  • mass transport (bus)
  • beer takeaways
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79
Q

what is inferior goods and why does it happen

A
  • income rises demand actually falls
  • consumers witch to better alternatives
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80
Q

elements of effective marketing

A
  • identify customer needs
  • meeting the customer needs
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81
Q

niche marketing

A

meeting needs on a small number of customers

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82
Q

examples of niche marketing

A
  • AnythingLeftHanded
  • hearing direct
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83
Q

advantages of niche marketing

A
  • firm can respond quickly to the needs of the customer
  • effective marketing expenditure
  • less likely to be major competition
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84
Q

disadvantages of niche marketing

A
  • vulnerable to market changes
  • successful niche may attract
    competition
  • lower level of sales = risks of cost
    increases
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85
Q

what is mass marketing

A

meeting needs of a very large number of people

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86
Q

advantages of mass marketing

A
  • profit margin on each unit may be
    small, very high sales means high
    profits
  • less likely to be. significant change I’m
    the market therefore more stable
    revenue
  • economies of scale therefore lower
    cost per unit
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87
Q

disadvantages of mass marketing

A
  • likely to attract competition which
    may reduce profit margins
  • less responsive to change sin
    customers needs
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88
Q

what is meant by socio-economic groups

A
  • a persons position in society
  • measured by A,B,C1,C2….
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89
Q

advantages of niche market

A
  • lower levels of competition = higher market share
  • possible to build intense customer loyalty
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90
Q

disadvantages of niche market

A
  • lower profits may be made as firms operate on
    smaller scales and can’t reduce their unit costs
    through economies of scale
  • new rivals entering the market will have a
    considerable impact particularly as the barriers to
    entry are relatively small
  • larger rivals may enter the market if it becomes
    very profitable
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91
Q

why segment the market

A
  • match customer needs
  • enhanced profits for business
  • opportunities for growth
  • retain more consumers
  • target marketing communications
  • gain share of the market segment
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92
Q

process of segmentation

A
  • income (Rolex etc)
  • geographical region (rural + inner city)
  • ACORN (a classification of residential
    neighbourhoods)
  • behavioural (lifestyle/tastes)
  • level of brand loyalty
  • benefits sought by consumers
  • purchase occasion (when and why)
  • frequency of usage
93
Q

difficulties with market segmentation

A
  • firms find it difficult to identify the most
    important segments for a product
  • constant research is needed to keep up to dare
    with consumer tastes
  • products may become to specific to one market
    segment
  • company may ignore potentially lucrative
    segments
94
Q

example of company changing market segment to make more sales

A
  • lego
  • released girls lego
  • revenue increase
95
Q

what is market targeting

A
  • deciding which segments of the market they want
    to target
96
Q

what is concentrated marketing

A

product aimed at a very well defined and specific market segment (niche)
helps avoid mass production

97
Q

what is differentiated marketing mean

A

targeting several different market segments with different products

98
Q

what is undifferentiated marketing

A

targeting the whole mass market with one product

99
Q

what is product proliferation

A

when a firm sell a range of products aimed at different markets (Volkswagen)

100
Q

what is market positioning

A
  • when a firms product are in a market in relation
    to rivals
  • do this based on factors like (price, value, quality)
  • create a USP
101
Q

what is USP

A

unique selling point

102
Q

what are economy brands

A
  • low quality
  • low price
103
Q

what cowboy brands

A
  • low quality
  • high price
104
Q

what are bargain brands

A
  • high quality
  • low price
105
Q

what are premium brands

A
  • high quality
  • high price
106
Q

what are the 7 Ps

A
  • product
  • price
  • place
  • promotion
  • people
  • process
  • physical environment
107
Q

product (7ps)

A

product or service that the customer buys

108
Q

price (7ps)

A

how much customer pays for product

109
Q

place (7ps)

A

how the product is distributed to the customer

110
Q

promotion (7ps)

A

how the customer is found & persuaded to buy

111
Q

people (7ps)

A

people who make contact with customers delivering the product

112
Q

process (7ps)

A

systems and processes that deliver a product to a customer

113
Q

physical environment (7ps)

A

elements of the physical environment the customer experiences

114
Q

what is marketing mix

A

elements of a firms approach to marketing that satisfies and delight its customers

115
Q

why are the 7ps used

A
  • maximise sals + profit
  • create brand
  • customer loyalty
  • create USP
116
Q

key implications of an extended marketing mix

A
  • each of business functions need to
    work closer (customer service, HR)
  • technology becomes increasingly
    important (IT, customer
    communication)
  • intangible elements like branding play
    an enhanced role
117
Q

why is it called mix market

A

each element of the marketing mix is related to the others
elements if the mix should work together to achieve the desired effect

118
Q

importance of the marketing mix

A
  • firms need to use all elements of the
    7Ps when launching a product
    (price too high, won’t buy)
119
Q

key influences on the marketing mix

A
  • business resources
  • technology
  • importance of customer relationship
120
Q

order of marketing strategy

A

research —-> segmentation —–> targeting
product differentiation —–> marketing position

121
Q

what is a product

A

anything that is capable of satisfying customer needs

122
Q

layers of a product

A
  • core value
  • actual product (quality)
  • augmented product (warranty)
123
Q

what are consumer products

A
  • bought by final consumers for personal
    consumption
  • differ o the ay consumers by them
124
Q

industrial products

A
  • bought. for further processing or for use in
    conduction a business
  • bought by other businesses, not consumers
125
Q

what are the 3main kinds of industrial products

A
  • material & parts
  • capital items
  • supplies & services
126
Q

what are the key features of marketing industrial products

A
  • specialist buyers seller
  • buyer-seller relationship
  • transaction value
  • quality + price
  • support
127
Q

what is the product life cycle

A

a theoretical model which describes the stages a product goes through over its life

128
Q

key uses of the product cycle model

A
  • forecast future sales trends
  • help with market targeting and
    positioning
  • help analyse + mange the product
    portfolio
129
Q

stages in the product life cycle

A
  • development
  • introduction
  • growth
  • maturity
  • decline/end
130
Q

what happens in the development section (life cycle)

A
  • market research carried out
  • expensive period
  • no sales due to not being available
131
Q

what happens in the introduction section (life cycle)

A
  • sales begin
  • slow start
  • a lot of promotion
  • convince people to stock product
132
Q

what happens in the growth section (life cycle)

A
  • sales start accelerating
  • becoming successful
  • in more shops
  • start to break even
133
Q

what happens in the maturity section (life cycle)

A
  • sales slow down
  • new competitors
  • consumer have new needs
  • start to come up with new products
134
Q

what happens in the decline section (life cycle)

A
  • sales fall
  • less popular
  • firm will make decisions
  • spend on marketing or withdraw from
    market
135
Q

when should companies start to develop a new product (life cycle)

A

end of growth section as they have enough money and want to keep consumers happy

136
Q

why do new products get scrapped before launched

A
  • inadequate demand
  • action of competitors
  • high costs
  • production problem
  • change in external environment
  • life cycle expected too be too short
137
Q

what are the strategies in the introduction stage

A
  • aim
  • high promotional spending
  • limited, focusing on distribution
  • skimming or penetration pricing
138
Q

strategies in growth stage

A
  • advertising to promote brand awareness
  • increase distribution outlet
  • go for market penetration + marker leadership
  • target early majority of potential buyers
  • continue high promotion spending
  • improve the product
139
Q

strategies for the decline stage

A
  • maintain market share
  • harvest by spending little on
    marketing the product
  • price cutting to maintain
    competitiveness
  • promotion to retain loyal customers
  • distribution narrowed
140
Q

what options do firms have when product is on decline

A
  • withdraw product
  • let it decline in sales until no profit
  • improve sales by extension strategy
141
Q

how would you extend the product life cycle

A
  • lower price
  • change promotion
  • change product
  • find new uses for product
  • develop new market segment
  • look for alternative distribution
    channels
142
Q

weaknesses of the product life cycle model

A
  • shape + duration of the cycle varies
    from product to product
  • strategic decisions can change the life
    cycle
  • difficult to recognise exactly where a
    product is in its life cycle
  • length can’t be reliably predicted
  • decline is not inevitable
143
Q

conglomerate meaning

A

business owned by me company which operates I different sectors

144
Q

what is product portfolio analysis

A

asses the position of each product or brand in a firms portfolio to help determine the right marketing strategy for each

145
Q

whats the Boston matrix

A

a product portfolio amylases tool used to plan the development of products

146
Q

categories of Boston matrix

A
  • stars
  • cash cows
  • question marks
  • dogs
147
Q

what would dog link between in the product life cycle

A

decline

148
Q

what would question mark link between in the product life cycle

A

introduction

149
Q

what would star link between in the product life cycle

A

growth

150
Q

what would cash cow link between in the product life cycle

A

maturity

151
Q

difference between profit life cycle and Boston matrix

A

life cycle - individual products
- sales over time
matrix - firms portfolio of products
- cash flow from products

152
Q

axes of Boston matrix

A
  • relative market share x
  • market growth y
153
Q

what are question mark products

A
  • low share of a rapidly growing market
  • cash flow is negative
  • potential but future uncertain
  • could become either a star or a dog
154
Q

strategy for question mark products

A
  • invest to increase market share
  • substantial investment ti achieve
    growth at the expense of powerful
    competitors
  • invest promotion and other aspects
  • build selectively
155
Q

what are star products

A
  • high share of rapidly growing market
  • position of leadership in a high growth
    market
  • product is strong
  • high marketing spending
  • net cash flow is neutral
156
Q

strategy for stars

A
  • investment to sustain growth
  • build sales/market share
  • spend to keep competitors at bay
  • investment to maintain or increase
    leadership position
  • ## repel challenges from competitors
157
Q

what are cash cow products

A
  • high share of a slowly growing market
  • mature stage in life cycle
  • mature, successful product
  • dominant share
  • little potential for growth
  • large positive cash inflow
158
Q

strategy for cash cows

A
  • defend market share
  • aim for short term profits
  • little need for investment
  • little potential for further growth
  • reduce investment in order to
    maximise short term cash flow +
    product
159
Q

what are dog products

A
  • failed products
  • declining products life cycle
  • low share of a slowly growing market
  • not going anywhere/ no potential
160
Q

strategy for dogs

A
  • phase out or sell off
  • not worth investing
  • any profit made needs to be
    reinvested to maintain market share
  • uses up more management time and
    resources than can be justified
  • divest or focus on defendable niche
161
Q

how valuable is the Boston matrix model

A
  • useful for analysing product
    portfolio decisions
  • only has a snapshot of current
    position
  • has little or no predictable
  • focuses on market share + market
    growth
162
Q

value of life cycle and Boston metric to firms

A
  • setting objectives
  • identify successful + failing products
  • make decisions on products need tp
    be modified
163
Q

what is price

A
  • money charged for a product or services
  • everything that a customer has to give up in order
    to acquire a product or service
  • usually expressed in terms of £
164
Q

stages of price setting

A
  • develop pricing objectives
  • assess of targets markets ability to purchase
  • determine demand for product
  • analyse demand, cost and profit relationship
  • evaluate competitors prices
  • select pricing strategy & tactics
  • decide on price
165
Q

possible business objectives that influence pricing (financial)

A
  • maximise profit
  • achieve a target level of profits
  • achieve a target rate or return
  • maximise sales revenue
  • improve cash flow
166
Q

possible business objectives that influence pricing (marketing)

A
  • maintain/improve market share
  • beat/prevent competition
  • increases sales
  • build a brand
167
Q

what’s pricing methods

A

the method used to calculate the actual price set

168
Q

what is meant by pricing strategies

A
  • adopted over the medium to long term to achieve
    marketing objectives
  • have a significant impact on marketing strategy
169
Q

what is meant by pricing tactics

A
  • adopted in the short run to suit particular situations
  • limited impact beyond the product itself
170
Q

main factors that influence pricing

A
  • costs
  • elasticity demand
  • product life cycle
  • market share
  • marketing objectives
  • positioning
  • competitors
171
Q

what influences how pricing is set

A

competitors

172
Q

what are price takers

A

have no option but to charge the ruling market price

173
Q

what are price makers

A

able to fix their own price

174
Q

what are price leaders

A

market leaders whose price changes are followed by rivals

175
Q

what are price followers

A

follow the price-changing lead of the market leader

176
Q

factors that businesses need to consider in setting price

A
  • competitors products and prices
  • cost of production, promotion, etc
  • market conditions (demand levels, market share)
  • the state of the economy and its impact on consumers
    disposable income
  • location of business
  • brand image, reputation, customer loyalty
  • product quality and packaging
  • price elasticity of demand
177
Q

producer

A
178
Q

wholesaler

A
179
Q

retailer

A
180
Q

agent

A
181
Q

what are channels of distribution

A

goes through several distribution channels before reaching customer

182
Q

what are organisations in each stage of distribution called

A

intermediaries

183
Q

what are intermediaries

A

a person who acts as a link between people in order to try and bring about an agreement

184
Q

why use intermediaries

A
  • efficiency of distribution costs
  • specialists in selling
  • have contacts, experience, scale of
    operation
185
Q

methods of distribution

A
  • websites
  • catalogues + mail order
  • representatives and sales teams
  • vending machines
  • telesales (phone)
186
Q

what is the main function of a distribution channel

A

to provide a link between production and consumption

187
Q

what key functions do organisations that form distribution channels create

A
  • information
  • promotion
  • contact
  • negotiation
  • physical distribution
  • financing
  • risk taking
188
Q

what will influence the types of distribution method a business may use

A
  • nature of the product
  • the market
  • the business (where it is)
  • legal issues
189
Q

what does it mean by nature of product

A
  • perishable/fragile
  • technical/complex (specialist sellers)
  • customised (direct distribution best)
  • desired image (suitable + relevant)
190
Q

what does it mean by the market

A
  • is it geographically spread
  • does it sell over sea
  • competition (channels and
    intermediaries do they use)
191
Q

what does it mean by the business

A
  • size and scope (afford sales force)
  • marketing objectives (rev+prof)
  • established distribution network or
    extend them
  • how much control does it want over
    distribution (longer the channel - less
    control)
192
Q

what does it mean by legal issues

A
  • are there limitations on sales
  • sell to under age customer
193
Q

factors influencing the choice of distribution (profit margins)

A

more intermediaries in the
distribution channel lower the the
profit margin
- convince for customer and type of
product (

194
Q

factors influencing the choice of distribution (distribution costs)

A

retailers help firms to ensure their products are available in all destinations without having to pay their own distribution costs

195
Q

factors influencing the choice of distribution (control required over display and brand image)

A

Tesco and Levis battle, doesn’t want their company portrayed in Tesco as its cheap and not high end

196
Q

factors influencing the choice of distribution (proximity)

A

how close does the firm need to be to its customers

197
Q

factors influencing the choice of distribution (convince for customers and type of product)

A

convince goods must be easier for consumers to access as they often rely on impulse chargers

198
Q

what is multi-channel distribution

A

a business using more than one type of distribution channel (online, stores, click&collect)

199
Q

benefits of multi-channel distribution

A
  • allows more target market segments
    to be reached
  • customers increasingly expect
    products to be available via more than
    one channel
  • enables higher revenue
200
Q

drawbacks of multi-channel distribution

A
  • potential for channel conflict
  • can be complex to manage
  • danger that pricing strategy becomes
    confused
201
Q

what are main aims of promotion

A
  • make customers aware of the
    existence and positioning of products
  • persuade customers that the product
    is better then others
  • remind customers about why they
    may want to buy
202
Q

what does AIDA stand for

A
  • awareness
  • intrest
  • desire
  • action
203
Q

what are. the main uses of promotion

A
  • increase sales
  • attract new customers
  • encourage customer loyalty
  • encourage trail
  • create awareness
  • inform
  • remind potential customers
  • reassure new customers
  • change attitudes
  • create an image
  • launch a new product
204
Q

what’s promotional mix

A

specific mix of promotional methods that a business uses to pursue its marketing

205
Q

key factors influencing promotional decisions & strategy

A
  • stages in product life cycle
  • nature of the product
  • competition
  • marketing objectives + budget
  • target market
206
Q

advantages of advertising

A
  • wide coverage
  • control of message
  • repetition-communicated effectively
  • building brand and loyalty
207
Q

disadvantages of advertising

A
  • expensive
  • impersonal
  • one way communication
  • lacks flexibility
  • limited ability to close a sale
208
Q

what’s e-commerce

A

buying and selling goods and services through the internet

209
Q

what’s m-commerce

A

purchasing goods through mobile devices

210
Q

advantages of digital marketing

A
  • global reach
  • 24/7 availability
  • faster buying process
  • cheaper to advertise
  • multiple ways to pay
  • use it on the go
211
Q

disadvantages of digital marketing

A
  • small screen, all the information
  • security risk
  • not able to try product
  • cost of setting it up
  • increased competition
212
Q

what is social media marketing

A

use of social media websites and platforms to promote products and services and connect with audiences

213
Q

how can social media marketing help

A
  • build company brands
  • driving websites traffic
  • increasing sales
214
Q

reasons to utilise social media

A
  • improve your brand
  • engage the audience
  • promote customer service
  • impact sales + conversion rates
  • become a thought leader
  • study the competition
  • improve search engine result page
  • boost website traffic
  • attract top-of-funnel leads
  • earn greater ROI
  • retarget missed customers
  • learn about your audience
  • build partnership
  • keep up with industry trends
  • acquire talent
215
Q

whais viral marketing

A
  • spreads information about a product
    between people by word of mouth or
    through internet-based
    communication at an increasing rate
216
Q

advantages of viral marketing

A
  • allows companies to reach consumers
    that wouldn’t be targeted by
    traditional marketing campaigns
  • expanded reach allows the company
    to enter new markets and expanded
    customer base
  • free
  • shared quickly and easily
217
Q

disadvantages of viral marketing

A
  • consumers tend to share negative
    news more than positive
  • hard to measure as can’t determine if
    a lead or sale resulted from it
  • if consumers think viral campaign will
    comprise their privacy and security
    they will not share
218
Q

examples of sales promotion

A
  • coupons
  • money off
  • competition
  • demonstrations
  • free samples
  • loyalty points
  • free gifts
  • points of display
  • BOGOF
  • merchandising
  • trade in offers
219
Q

advantages of sales promotion

A
  • effective at achieving a quick boost to
    sales
  • encourages customers to trial a
    product or switch brands
220
Q

disadvantages of sales promotion

A
  • sales effect may only be short-term
  • customers expect more promotions
  • may damage brand image
221
Q

what is personal selling

A
  • promotion on person to person basis
  • two way communication
  • meeting with potential customers to
    close a sale
  • telephone, meetings, retail outlets,
    knocking on doors
  • highly priced, low volume + highly
    technical products rely heavily on
    perosnal selling
222
Q

advantages of personal selling

A
  • high customer attention
  • message is customised
  • interactivity
  • persuasive impact
  • potential for development of
    relationships
  • adaptable
  • opportunity to close the sale
223
Q

disadvantages of personal selling

A
  • high cost
  • labour intensive
  • expensive
  • can only reach a limited number of
    customers
224
Q

what is public relations (PR)

A

those that create goodwill toward an individual, business, cause or product

225
Q

main aims of PR

A
  • achieve favourable publicity
  • build the image and reputation
  • communicate effectively with
    customers + stakeholders
226
Q

typical PR activities

A
  • promoting new products
  • enhancing public awareness
  • projecting a business image
  • promote social responsibility
  • projecting business as a good
    employer
  • obtain favourable product
    reviews/recommendation
227
Q

how do PR & sponsorship link

A
  • specialist form of public relations
  • common in the worlds of arts and
    sport
  • sponsorship should benefit both sides
228
Q

what is direct marketing

A

promotional material directed through mail, email, social media, or phone to individuals or businesses

229
Q

why use direct marketing

A
  • allows a business to generate a
    specific response from targeted
    groups of customers
  • allows a business to focus on several
    marketing objectives
  • increasing sales
  • build loyalty
  • generate new business

business (14 decks)

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