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Business A-level > Unit 3 > Flashcards

Unit 3 Flashcards

Decision making to improve marketing performance

1
Q

Examples of marketing objectives

A

-sales volume and sales value
-market size
-market and sales growth
-market share
-brand loyalty

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2
Q

The value of setting marketing objectives

A

-target setting
-motivation
-evaluation of performance

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3
Q

market share calculation

A

sales of firm/total market sales x 100

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3
Q

what is market share?

A

The percentage of a market’s total sales that is earned by a particular company over a specified time period

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3
Q

sales growth calculation

A

difference in sales/earliest year x 100

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4
Q

market growth calculation

A

difference in total market sales/earliest year x 100

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4
Q

market size

A

sales / market share x 100

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5
Q

external factors influencing marketing objectives and decisions

A

-market and competition
-economic factors
-social factors
-ethics
-technology

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6
Q

internal factors influencing marketing objectives and decisions

A

-finance
-production capacity
-human resources
-nature of product

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7
Q

what does market research involve?

A

-study of market trends and characteristics
-analysis of market shares and potential of existing products
-sales forecasting for products
-analysis and forecasting of sales of new products

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7
Q

examples of primary research

A

-surveys
-observation
-focus groups
-test marketing

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8
Q

examples of secondary research

A

-published reports
-government and other agencies
-internet

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9
Q

features of quantitative market research

A

-its a collection of information and data on consumer views
-can be analysed statistically and represents in charts and graphs
-can be used to demonstrate sales potential, market size etc

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10
Q

features of qualitative market research

A

-research into attitudes and opinions of customers
-collected in small groups such as focus groups
-can show consumer reaction to changes in price, product, packaging etc

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11
Q

what is market mapping

A

Using a diagram to identify the position of all the products in the market using two key features e.g price and quality

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12
Q

random sampling

A

Each member of the public has an equal chance of being included. This is appropriate when a firm is researching a product aimed at a large target group

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13
Q

stratified sampling

A

This separates the population into segments of strata. This can avoid bias by ensuring that the composition of the sample accurately reflects that of the entire population.

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14
Q

quota sampling

A

This splits the population into a number of groups, each sharing common characteristics.

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15
Q

correlation

A

Occurs when there is a direct relationship between one factor and another

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16
Q

confidence interval

A

The plus or minus figure used to show accuracy of results arising from sampling.

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17
Q

confidence level

A

The probability that research findings are correct

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18
Q

extrapolation

A

analyses past performances of a variable, such as sales, and extends the trend into the future

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19
Q

elasticity

A

a measure of the responsiveness of demand to a change in a variable e.g price or income

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20
Q

price elasticity of demand equation

A

percentage change in demand / percentage change in price

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21
income elasticity of demand equation
percentage change in demand / percentage change in income
22
market segmentation
dividing the market into identifiable submarkets each with its own customer characteristics
23
market targeting
deciding which market segment a business wants to operate in
23
market positioning
where a particular brands stands in relation to other brands in the market
24
niche marketing
A business identifies and satisfies the demands of small segments of a larger market.
24
Advantages of niche marketing
-may benefit from price skimming -can be highly profitable -customer loyalty
24
influences on choosing a target market and positioning
-the nature of the product -competition -the consumer
25
disadvantages of niche marketing
-if profitable could attract competition -may be difficult to generate acceptable profit
26
mass marketing
Businesses aim their products at most of the available market
27
what is the marketing mix?
The combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market.
27
influences on designing marketing mix
-technology- the product itself and methods of distribution -finance- profit levels and cash flow -market research- a key influence on all elements of the marketing mix
27
7Ps of the marketing mix
-promotion -people -process -physical environment -product -place -price
27
influences and the value of new product development
-technology- developments in technology -competitors actions- competitor producing a new product -the entrepreneurial skills of manager's and owners- skill of creativity and thinking of new ideas
27
Use of a USP
- business can base its advertising campaign around the difference between products and those of its rivals - having a USP assists in encouraging brand loyalty as it gives customers a reason to continue to buy that particular businesses product - A USP commonly allows the firm to charge a premium price for that product
27
what is each section of the boston matrix
-star - high market growth, high market share -cash cow - low market share, high market growth -dog - low market share, low market growth -problem child - high market growth, low market share
27
stages of the product lifecycle
-development -introduction -growth -maturity -decline
27
extension strategies to prolong life of product
-finding new markets for existing products -changing the appearance or packaging
27
price skimming
Setting a high price and lowering when competitors join the market
28
penetration pricing
Setting a low price to gain a foothold in the market and have high sales before increasing the price
29
price leadership
Used for established products with strong brand images. The firm adopting this strategy will probably dominate the market and other businesses will follow their lead.
30
price taking
Price takers set their prices equal to the going rate or the established market price.
31
loss leaders
Setting prices very low (often below cost of production) to attract customers. Businesses using this tactic hope that customers will purchase other full price products while purchasing the loss leader.
32
Special-offer pricing
This involves reduced prices for a limited period of time or offers such as "three for the price of two"
33
how to make demand demand for products more price inelastic
-differentiating products from those of competitors -reducing competition through takeovers and mergers
34
what is promotion
Bringing a consumers' attention to a product or business
35
elements of the promotional mix
-advertising -exhibitions and trade fairs -packaging -public relations -merchandising -personal selling -sales promotion
36
what is advertising?
A paid form of non-personal communication using mass media to change the attitudes and buying behavior of consumers
37
what is merchandising?
Merchandising is in-store promotional activity by manufacturers or retailers at the point of the sale
38
what is packaging?
Emphasises the attractiveness of the product and informs the consumer of its features
38
what are exhibitions and trade fairs?
Events staged to attract all those people involved in a particular market, both sellers and buyers.
38
what is branding?
This establishes an identity for a product that distinguishes it from the competition.
38
what is personal selling?
Visits by a firm's sales representatives to prospective customers.
38
what are public relations?
Promoting the company's image to establish a favourable public attitude towards the company
39
Influences on the choice of promotional mix
-the product's position in its life cycle -the type of product -the finance available to the business -where the consumers make purchasing decisions -competitors' actions
39
What is distribution of a product?
The range of activities necessary to make a product available to customers.
60
What factors should be considered when choosing appropriate outlets and distributors?
-location -credit terms -willingness to display products in prominent positions
61
Types of distribution channel
Traditional Wholesaler - retailer - consumer Modern Producer - retailer - consumer Direct Produce - consumer
62
What is multichannel distribution?
Firms use more than one type of distribution channel

Business A-level (12 decks)

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