Unit 3- Marketing Flashcards by Molly Drury

What is marketing?

The anticipation and satisfaction of consumers’ wants in a way that delights consumes and also meets the needs of the organisation

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What are the influencing factors of market growth?

Economic growth 
Nature of the product 
Changes in taste
Social changes 
Fashion

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What is brand loyalty and branding?

Brand loyalty- A measure of the degree of attachment that a consumer has for a particular brand of product
Branding- A name, sign, symbol, design or slogan linked to a [articular product or service in order to differentiate it from its competitors

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What is the net promoter score?

A measure of brand loyalty
Promotors= 9/10
Passives= 7/8
Detractors= 0-6

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What are the benefits for setting clear marketing objectives?

Consistent decision making 
Enables a measure of success 
Helps to instil a team ethos
Enables a review of strategy
Helps motivate staff

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What are the problems with setting clear marketing objectives?

External changes can undermine objectives 
Internal change 
Conflict of objectives 
Insufficient resources 
Too ambitious?

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Why conduct market research?

Customers differ in different ways:
Benefits they want 
Amount they are willing or able to pay
Media they see
Quantities they pay 
Time and place they pay

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What is market mapping?

A technique that analyses markets by looking at the features that distinguish different products and firms
Helps identify the gap in the market

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What are the 3 main sampling methods?

Random sampling- each member of the population with equal chance of being chosen
Quota sampling- group of selected respondents who share a common feature in proportion with their % in the population as a whole
Stratified sampling- selected according to a common feature but from a random unit of the population

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What is a confidence interval?

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

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What are the influencing factors of a confidence interval?

Sample size
Population size
% of population choosing a particular answer

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What is the price elasticity of demand?

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

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What are the factors affecting PeD?

Necessity 
Habit 
Availability of substitutes
Brand loyalty
Proportion of income spent on product
Income of consumers
Time taken to change

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What are the limitations of YeD?

Can be inaccurate or misleading- assumes other things remain equal
Changes in the market affecting demand- consumer taste, new competitors, technological change
Rival reaction
Different consumer reactions

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What are the types of market segmentation?

Demographic- age, gender, social class
Geographic- where you live
Income- how much earnt
Behavioural- lifestyle and useage/frequency of purchase

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What are the advantages of niche marketing?

Less competition
Costs
Small-scale production
Tailor made products 
Targeting customers

What are the disadvantages of niche marketing?

Lower profits
Changes in demand
Market entry- larger firms may join the market and squeeze out smaller players

What are the advantages of mass marketing?

Large scale production
High revenues
High barriers to entry 
Research and development 
Brand awareness

What are the disadvantages of mass marketing?

Fixed capital- high costs in factories and machinery
Chnages in demand
Effects of standardisation- difficult to appeal to individual needs
Competition- vulnerability to foreign competition
Adding value

What is the aim of market positioning?

To achieve a unique and beneficial perception of your product/ brand in the customers mind

What are the 2 different types of marketing?

Industrial- business to business

Consumer- business to consumer

What are the 3 different types of products?

Consumer products- purchased by habit
Shopping products- planned purchase
Speciality products- unique and more selective

In the Boston matrix, what is a star?

High market share and high market growth
Enjoy high sales revenue
Attracts competitors into the market
Investment in promotion needed to maintain profit

In the Boston matrix. what is a cash cow?

High market share and low market growth
Exist in established markets
Low growth discourages new businesses from entering

In the Boston matrix, what is a problem child/ question mark?

Low market share and high market growth Compete in competitive, fast growing markets Requires lots of market research and promotion

In the Boston matrix, what is a dog?

Low market share and low market growth Likely to be withdrawn Can still attract high revenue

What are the stages of the product life cycle?

Product development- core products or product proliferation? Introduction- sales pick up slowly Growth- Brand recognition Maturity- introduce extension strategies Decline- sales of product fall

What are the 6 different pricing strategies?

Price skimming- high price Penetration pricing- low price to break into a market Price leadership- large firms set a market price that smaller firms follow Predator pricing- very low price in order to drive other firms out of the market Loss leaders- low price for its product in order to encourage consumers to buy other products that provide profit for the firm Psychological pricing- selling a good for £9.99 instead of £10 or provide a limited number of accessories as part of a price package but it is not enough

What are the main influences of the pricing decision-

``` cost of production Price elasticity of demand Exchange rates Regulation Cost of raw materials ```

What are the aims of promotion?

Attention- increase awareness Interest- make customers want to find out more Desire- provide specific reasons for purchasing Action- encourage the consumer to act and buy

What are the 7 different promotional types?

Public relations- publicity Merchandising - the way a product is displayed Sales promotions Direct selling- communicating directly to the consumer Advertising Sponsorship Trade fairs and exhibitions

What are the influences on the choice of promotional mix?

``` Campaign objectives Costs and budgets The target market The balance of promotions in a campaign Legal factors External factors ```

What are the 4 main types of place?

The importance of location- convenience, accessibility, cost of access, reputation and localisation Placement at point of sale Number of outlets- more locations meaning a higher chance of sale Distribution channels

What are the elements that the impression of a physical environment is based on?

``` Reception area Brochures Websites Signage Equipment Staff uniform ```

What are the elements that the impression of a physical environment is based on?

``` Reception area Brochures Websites Signage Equipment Staff uniform ```

What are the influences on the marketing mix?

``` Finance Technology Market research The power of buyers and suppliers Quality of production Elasticity Reputation Convenience of location ```

What is the key part of the promotional mix?

All have to be equally balanced and they have to support each other Product may be considered to be key however