Unit 3 - marketing Flashcards
What is market growth?
The % increase of sales in the market
What is market share?
The percentage of all sales in the market made by one firm
What is market mapping?
It is used to identify the position of different brands within a market
What is sampling?
This is the size and type of people chosen when carrying out research
What is correlation?
Comparing 2 sets of data to show how closely linked they are
What is a confidence interval?
The possible range of outcomes for a given confidence
What is extrapolation?
Predicting what will happen based on previous trends
What is market segmentation?
Dividing the market into different subgroups that each have different needs
What are the 3 types of goods?
Convenience
Shopping
Speciality
What is the Boston Matrix?
This plots the position of each product in terms of market share and relative market growth
What are the 4 parts to the Boston Matrix?
Rising stars-high share high growth
Problem children-low share high growth
Dogs-low share low growth
Cash cows-high share low growth
WHat should a firm do with its problem children?
Let them die out if they don’t think they are going to go anywhere or use the money generated from the cash cows to invest in the, and try and turn the into rising stars
What is the product life cycle?
This shows the sales of a product over its life
What are the 5 stages of the PLC
Development, introduction, growth, maturity, decline.
What can a firm do to prevent a product dying out?
Use extension strategies, e.g. Promotion or redesign product