Unit 3 Flashcards

1
Q

What is marketing

A

The communication between a business and its(potential) customers in order to create and encourage sales

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

What is the purpose of marketing

A

To increase sales by identifying,anticipating and satisfying customer,this requires profitability

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

What is a market

A

Where buyers and sellers transact

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

What are the 2 types of markets

A

Retail(physical)
E-commerce(online)

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

What are examples of markets

A

Food and beverage
Tech
Clothing
Health care

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

What are objectives

A

Targets set by the marketing function

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are some key marketing objectives

A

Sales growth(percentage change)
Sales volume
Sales value (£)
Launching new products
Entering new markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the process of marketing objectives

A

1.Define the main goal
2.Outline the objectives
3.Break out objectives into tasks
4.Tie tasks to dates

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

What are the key marketing measures

A

Market size
Market growth
Market share

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

What is FMCG

A

Fats moving consumer goods

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

What is the role of market research

A

Competitor analysis
Identify trends in the market
Aid pricing strategies
Meeting consumer needs
Ideas for development
Customer feedback

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

What is quantitative data

A

Facts and figures

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

What is qualitative research

A

Customers thoughts and feelings on a product

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

What is primary research

A

Data collected first hand for a specific business

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

What is secondary data

A

Looking at data that already exists

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are some primary research methods

A

Surveys/questionares
Observations
Focus groups

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

What are some positives of surveys/questionares

A

Reach a large target audience
Mix of qualitative and quantitative responses
Can usually gather much info from large sample

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

What is a negative of surveys/questionares

A

Depends on who’s writing the questions

19
Q

What are positives of observations

A

Real world experience

20
Q

What are negatives of observations

A

Small sample size
Time consuming

21
Q

What are negatives of focus groups

A

Can be bias because they’re being paid to take part
Can be pressured by other people in the group

22
Q

What is a positive of focus groups

A

Helps avoid risk by getting feedback

23
Q

What are types of secondary market research methods

A

Newspapers
Internet
Government market research reports
Published reports by industry publications

24
Q

What is the formula for market share

A

Company’s revenue (divided )entire market revenue x100

25
Q

What is a confidence interval

A

Gives percentage probability that an estimated range of possible values in fact includes the actual values being estimated
It’s a range of outcomes

26
Q

What is correlation

A

Occurs when there is a relationship/link between 2 factors

27
Q

What affects sales

A

Pricing
Share holders
Quality
State of economy
Marketing activity
Seasonal events

28
Q

What is a positive correlation

A

Relationship of 2 variables where they increase or decrease together

29
Q

What is a negative correlation

A

Relationship between 2 variables that where in opposite directions
A increases, B decreases

30
Q

What is extrapolation

A

Use of trends from historical data to forecast the data

31
Q

What are pros of extrapolation

A

Aids decision making
Useful method to help predict future
The more historic data the more reliable it is for the future
Allows businesses to make informed business decisions

32
Q

What are cons of extrapolation

A

External factors such as rivals and economy
Validity of data
Can be bias

33
Q

What is the value of tech gathering data

A

Provides faster communication
Makes forecasting easier
Enables targeted sales messages
Relies on the business having right data in the first place

34
Q

What is elasticity of demand

A

Measures responsiveness of demand to a change in price or income
Means it’s price sensitive

35
Q

What is price elasticity

A

How significantly price demand changes when price changes

36
Q

What is income elasticity

A

How significantly demand changes when income changes

37
Q

What is the calculation for PED

A

%change in demand➗%change in price

38
Q

Is elasticity is greater than 1 it means

A

It is deemed as price elastic

39
Q

If elasticity is less than 1 it means the price is

A

Inelastic

40
Q

What factors affect PED

A

Strength of brand
Whether there are reasonable substitutes
Whether product is a necessity or not

41
Q

What is the formula for YED

A

%change in the demand➗%change in income

42
Q

What are necessities

A

Normal everyday goods and are in an elasticity of demand of between 0 and
demand is rising but less proportionately to income

43
Q

What is a luxury good

A

Good and services that have an income elasticity of above 1
If demand rises more than proportionally to a change in income

44
Q

What is an inferior good

A

Negative income in elasticity of demand
YED is negative because increase in income means a fall in demand
This means demand falls as income rises
E.g low priced label foods