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Business > Unit 3 > Flashcards

Unit 3 Flashcards

1
Q

Market size

A

The volume if sales of a produc6

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2
Q

Market size

A

The volume if sales of a produc6

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3
Q

Marketing

A

Anticipating and satisfying customers wants in a way that felights the consumer and also meets the need of the organisation

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4
Q

Market growth

A

Percentage change in sales

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5
Q

Factors including market growth

A

Economic growth
Nature of the product
Changes in taste
Social changes

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6
Q

Sales growth

A

Percentage change in sales

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7
Q

Market share

A

Percentage change in proportion of total sales of a product or service achieved by a firm or a specific brand of a product

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8
Q

Example of marketing objective

A

Marketing positioning reaching out to different targets like gendere
Ethical and environmental marketing objectives- making there products better for the environment

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9
Q

Value of setting marketing objectives

A

Act as a focus for decision making and effort
Provide a yardstick against which success or failure can be measured
Improve co-ordination by giving teams a common purpose

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10
Q

Benefits of setting marketing objectives

A

Marketing objective should be smart
SPECIFIC
MEASURABLE
AGREED
REALISTIC
TIME BASED
measure and timed objectives allow managers and individuals to improve efficiency

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11
Q

Problems with setting marketing objectives

A

External chanh3s are not easy to predict and marketing objectives may be based on incorrect assumptions
Internal changes should be foreseeable foreseeable they are likely to create problems
May be unclear priorities

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12
Q

External influences on marketing objectives

A

Market factors- growth or decline has big impact on objectives
Competitors action and performance- difficult for the owner to achieve a high market share if there is loads of competitors
Supplier- capability of its suppliers to provide whatever the business believe can be sold

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13
Q

Internal influence software marketing objectives

A

Finance- business with healthy financial situation can afford to put.more resources into it marketing and therefore can set more challenging objectives

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14
Q

Primary market research

A

Collection or commissioning of info, gathered first hand, for the specific purpose of the initial user

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15
Q

Secondary market research

A

Info that has already been collected for a different purpose

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16
Q

Example of primary research

A

Focus group
Survey
Telephone interviews

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17
Q

Advantages of focus group

A

Enable a firm to gather detailed info om why consumers react the way they do

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18
Q

Disadvantages of focus groups

A

Sometimes and element of bias in focus groups as ghe groups consists of people who have particular interest in the group

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19
Q

Focus group

A

Group of consumers encouraged to dicuss their feelings about a product or a market

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20
Q

Interview advantages

A

A wide range of info can be obtained
Questions can be closed or open
The interviewers can explain the wording of the question to the interviewer

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21
Q

Interview disadvantages

A

Personal interviews can be time consuming
Person responding can give false answers

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22
Q

Advantages of surveys

A

Cheap
Surveys can update quickly
May be possible to do a detailed questionnaire

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23
Q

Disadvantages of surveys

A

Sample will tend to be biased towards people with a particular interest
Will be less relevant for organisations whose target market use the internet

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24
Q

Examples of secondary market research

A

Government publications
Newspapers
Magazines
Competitors
Loyalty cards
Internet

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25
Q

Advantages od secondary market research

A

Info is already available
Cheaper than primary research
Secondary surveys are often conducted regularly

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26
Q

Disadvantages of secondary market research

A

Info may be dated and therefore misleading
Since info is available to other organisations unlikely to give the business any advantages over competitors

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27
Q

Qualitative market research

A

Collection of info about the market based on subjective factors such as opinions and reasons

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28
Q

Benefits of qualativae market research

A

By examiners why consumers in a certain way the business can gain a greater insight into what it needs to appeal to its consumers
Can highlight issues that the business was not aware of

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29
Q

Drawback of qualative Market research

A

Expensive to gather this info as usually requires skilled personel to interpret it
Difficult to tabulate the data and compare it with other data

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30
Q

Quantitive market research

A

Collection of info based on numbers

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31
Q

Benefits of quantities market research

A

Summarises data in a concise and meaningful way
Numerical data makes it easier to compare results eith other organisations

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32
Q

Disadvantages of quantative research

A

Only shows what rather than explaining why
Can lack reliability and validity

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33
Q

Market mapping

A

A technique that analyses markets by looking at the features that distinguish different products or firms

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34
Q

Benefits of market mapping

A

Helps to identify a firms closest rival
Helps to identify gaps in the market that a firm could fill by introducing a new product or image
Shows overall competition of market

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35
Q

Benefits of market mapping

A

Helps to identify a firms closest rival
Helps to identify gaps in the market that a firm could fill by introducing a new product or image
Shows overall competition of market

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36
Q

Disadvantages of market mapping

A

Can be an oversimplification of a product or a business position
Very subjective ajd potentially inaccurate or biased
Apparent gaps in a market

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37
Q

Benefits of sampling

A

Asking a small group of customers fsj provide food indication of the likely behaviour of the whole market
Can be used flexibly
Reliable info can be gathered from a fairly small cross section

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38
Q

Disadvantages of sampling

A

Samples may be unrepresentative
May be bias in questions or in the answers that they encourage
In markets tastes are constantly changing such as music industry

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39
Q

Confidence intervals

A

Plus or minus figure used to show accuracy or statistical results arising from sampling

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40
Q

Factors influencing confidence levels

A

Sample size
Population size
Percentage of sample choosing a particular answer

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41
Q

Extrapolation

A

Using previous patterns of numerical data in order to repdict values in the future

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42
Q

Strengths of extrapolation

A

Quite common for past trends to continue into the future
Some consumers adopt new idead more quickly than others and so products experiencing sales growth steadily build up

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43
Q

Disadvantages of extrapolation

A

Less reliable if there are fluctuations
Assumes thr past changes will continue into the future and so does not take into account changes
Ignores qualative factors

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44
Q

Value of technology in gathering marketing decisioj making

A

Info from business links
Internet
Loyalty cards
Social media

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45
Q

Value of info technology in analysing data for marketing decision making

A

Time saved by a business allows a business to comapres a number different strategies
Organisations are able to link their sale records to databases

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46
Q

Price elasticity of demand

A

The degree to which the quantity demanded of a good or service affected by a change in price

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47
Q

Income elasticity of demand

A

The degree to which the quantity demanded of a good or service is affected by a change in consumer income

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48
Q

Price elasticity can be

A

Elastic demand
Inelastic demand
Unit elasticity

49
Q

Plastic demand

A

I’d the change in price leads to a greater percentage change in the quantity demanded than the percentage change in price
Calculation answer will be greater than 1

50
Q

Inelastic demans

A

If the change in price elasticity to a small percentage change in the quantity demanded than the percentage change in price then the calculation number will be smaller than 1

51
Q

Unit elasticity

A

The name is given to the both situation where both percentage changes are the same giving an answer of -1

52
Q

If demand for a good iwinelastic whay does it mean if price rises

A

The quantity demanded falls by a small percentage

53
Q

If demand for a good is elastic whay does it mean when price increases

A

Quantity demanded falls by a large percentage

54
Q

If a demand for a good is unitary what happens to sales revenue

A

Will be the same

55
Q

Factors influencing the price elasticity of demand

A

Necesity- if product is a necessity customers will buy similiar quantities even if price is high
Habit-cugarretes or chocolate

56
Q

Market segmentation

A

Classification of customers or potential customer into group or sub group

57
Q

Types of market segmentation

A

Demographic segments
Geographic
Income

58
Q

Step 1 of market segmentation

A

Identify vaes for segmenting market
Gather profile of consumers in ech of those market segments

59
Q

Step 2 of market segmentation

A

Assess nature of each market segment and identify those that provide the best match to the business’ existing capabilities
Select the market segment on which the business will focus its effort on

60
Q

Step 3 of market segmeng

A

Decide on important characteristics of products that will be used to appeal t the targeted market segments
Develop a marketing mix for each market segment

61
Q

Demographic segmentation

A

Age gender

62
Q

Geographical segment

A

Influenced by places people live at

63
Q

Income segmentation

A

Influence on customer spending
Products and marketing messages can be made to make them more likely to buy a product

64
Q

Benefits of market segmentation

A

Increase market share
Assist new peoduct development
Extend products into new markets

65
Q

Drawbacks of market segmentatin

A

Difficulty in identifying most important segments of a product
Reaching the chosen segment with marketing
Recognising changes in segments interested in theproduct

66
Q

Niche marketiny

A

Targeting a product or service at a small segment of a larger market

67
Q

Advantages of niche marketing

A

Less competition
Cost reduction
Small scale production
Tailor made products

68
Q

Disadvantages of niche marketint

A

Lower profits
Changes in demand
Market entry

69
Q

Mass marketing

A

Aiming a product at all of tha market

70
Q

Advantages of mass marketing

A

Large scale production
High revenues
Barriers to entry

71
Q

Disadvantages of mass marketing

A

Fixed capital
Changes in demand
Competition
Adding value

72
Q

Market positioning

A

Where your product or brand stands in relation to the products or brands of other businesses

73
Q

Market positioning factors

A

Attributes and benefits of product
Competition
Product user
Pricing

74
Q

Value or marketing positioning

A

Allows a business to maximise sale revenue
Reduced cost
Give the business scope for high prices

75
Q

Marketing mix

A

Elements of a business approach to marketing thag enables it to satisfy there customers

76
Q

6 ps

A

Product
Price
Promotion
Place
People
Process
Physical environment

77
Q

Influences in elements of marketing mix

A

Finance-cash flow, discounts, marketing budget and costs of promotion
Technology- lower costs, online selling ,social media

78
Q

Features of industrial marketing

A

Larger transactions
Quality
Pricing
Informative advertising

79
Q

Features of convenience products

A

Consumed and purchased regularly
Purchase them by habit
Purchased by large proportion of population

80
Q

Features of shopping products

A

Consumed and purchased quire often
Because consumer plan their purchase they do not need to be displayed so prominently in stores

81
Q

Features if speciality products

A

Products will often have unique characteristics
Consumers are much more slectivd and greater emphasis on image

82
Q

Product features

A

Reliability
Size and weight
Fashion
Durability
Convenience of use

83
Q

Boston matrix

A

A tool of product portfolio analysis that classifies products affording to th3 market share of the product and the rate of growth or the market in which the product is sold

84
Q

Stars Boston matrix

A

These are products that have a high percentage market share in a high growth market
They enjoy increasing sale revenue but because the market is growing, competitors will be encouraged to focus on this market

85
Q

Cash cows born matrix

A

These products have a high percentage in a low growth market, they often exit in established markets that have reached maturity

86
Q

Problem child Boston matrix

A

Low percentage market share in a Hugh growth market

87
Q

Problem child Boston matrix

A

Goods or services with a low percentage market share in a high growth market share
Poses a problem for the firm

88
Q

Problem child Boston matrix

A

Goods or services with a low percentage market share in a high growth market

89
Q

Dogs Boston matrix

A

Good with a low percentage market share in a low growth market

90
Q

5 stages of product lifecycle

A

Development
Introduction
Growth
Maturity
Decline

91
Q

Development

A

Prepare for launch of its product
For example
Generation of idead
Analysis of ideas
Product development
Test marketing
Launch

92
Q

Introduction

A

Starts with the launch and continues during the period in which product is new to the market

93
Q

Growth

A

Aa pr9duct becomes more popular it enters the growth
Profitability may be reached ss initial burst of marketing is no longer needed

94
Q

Maturity

A

Firm will hope to make a profit and sales will tend to stabilise
However there may be an increase if the product is in an expanding market

95
Q

Decline

A

Eventually sales of a product will fall

96
Q

Problems of predicting life cycle

A

Is limited use in strategic planning because the exact life span of a product is never known

97
Q

Stages of development os mrw goods and services

A

Generation of ideas
Analysis of ideas
Product development
Test marketing
Launch

98
Q

Influences in new product development

A

Technology
Competitors actions
Entrepreneurial skills

99
Q

Benefits of focus on core

A

Concentration on areas of expertise will lead to greater efficiency as the firm will benefit from specialisation
Each product is likely yo be produced on a much larger scale
Consumers will trust firms ability

100
Q

Benefits of product profileration

A

Increasing number of products will spread risks and this may help to secure the firms future

101
Q

Penetrative pricint

A

A strategy in which low prices are set to break into a market or to achieve a sudden increase in market share

102
Q

Price skimming

A

A strategy in which a high price is set to yield a High profit margin

103
Q

Dynamic pricing

A

Flexible system if pricing based on marketing factors
A products price may change at short notice according to changing in supplies or demand
Can also involve charging different prices to different customers

104
Q

Influences of pricing decision

A

Cost of production
Price elasticity of demand

105
Q

Benefits of branding

A

Increased demand
Increased price
Reduced competition
Protection against downturns

106
Q

Examples of direct selling

A

Dorect mail
Telephone
Personal selling

107
Q

Influence on the choice of promotional mix

A

Campaign objectives
Costs and budgets
Target market
Balance of promotions in a campaign

108
Q

Importance of location

A

Convenient
Accessibility
Cost
Reputation

109
Q

Examples of how people increase number of outlets

A

Promotional campaigns
Providing extra facilities
Offering hug profit margins to retailers
Paying generous commission to sales staff

110
Q

Traditional distribution channel

A

Producer wholesaler
Retailer consumer

111
Q

Modern distribution channek

A

Producer retailer consumer

112
Q

Direct distribution channel

A

Producer consumer

113
Q

Factors including method of distribution

A

Size of retailer
Type od product
Technology
Geography of the market

114
Q

Importance of an integrated marketing mix

A

If the main selling point of a product is it excellence then the quality and design of the product
Supermarket will want its low price

115
Q

Influences of integrated marketing mix

A

Position in product lifecycle
Baston matrix
Type of product
Marketing objectives

116
Q

Benefits ot digital marketing to business

A

Reduces costs
More personalised and targeted marketing
Marketing can be relayed to consumers interests
More immediate impact

117
Q

Benefits of commerce in the business

A

Saves costs
Saves time
Facilitates customisation of products
Inventory levels cab be reduced

118
Q

Benefits of commerce in the business

A

Saves costs
Saves time
Facilitates customisation of products
Inventory levels cab be reduced

119
Q

Issues involving digital technology and ecommerce

A

Security
Initial costs
User resistance

Business (8 decks)

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