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A Level Business > Unit 3 pt2 > Flashcards

Unit 3 pt2 Flashcards

1
Q

What is market segmentation

A

Dividing the market into different groups(segments)in which customers share common characteristics

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2
Q

What are some pros of market segmentation

A

Helps understand need of a specific group of customers
Makes marketing more targeted and efficient
Helps differentiate a product or service

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3
Q

Hat are cons of market segmentation

A

Segment size may be too small to be profitable
Could miss other potential customers
Could prevent customers from trying to buy product if they believe it’s not aimed at them

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4
Q

What is market targeting

A

Deciding which segments as a business they would like to target and how

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5
Q

Which factors influence target marketing

A

Nature of product (purpose)
Level of competition
The consumer

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6
Q

What is a mass market

A

Has products for most people,most things,most of the time

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7
Q

What is a niche market

A

Targeting a smaller specialist group of customers

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8
Q

What are characteristics of mass market

A

Not segmented
Widely available
Lots of competition
Mass media used to advertise

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9
Q

What are some pros of mass market

A

Economies of scale
Helps brand awareness
Large target market = high revenue+high market share

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10
Q

What are cons of mass market

A

More competition means price competition
Generic products
High levels of initial investment
Higher costs due to product adaptation to segments

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11
Q

What are characteristics of niche market

A

Less competition
Unsatisfied gaps in the market w
Customer loyalty and repeat purchases

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12
Q

What are cons of niche market

A

Small market
Low obstacle entry
Small overall profit

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13
Q

What are pros of niche market

A

Specialisation and differentiation (USP)
Less competition
Change premium price as it meets exact needs
Better profit margins

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14
Q

What are examples of mass market

A

Nescafé coffee(mass produced product)
Bread
Soap

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15
Q

What are examples of niche market

A

Viva magic coffee ,includes lions mane mushroom and is organic and ethical

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16
Q

What is market positioning

A

Where a particular business stands in the market

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17
Q

What is the marketing mix

A

Combination of marketing activities a business should consider and plan to best meet needs of customers

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18
Q

What affects how the marketing mix changes

A

Tech
Market research
Nature of products
Finance

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19
Q

What are the 7ps of the marketing mix

A

Price product place Promotion
People process physical

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20
Q

What is physical

A

Layout and design of premises,ambience,ease of movement

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21
Q

What is process

A

Transaction process,design,operational support

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22
Q

What is people

A

Customer service,skills and experience of staff

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23
Q

What is product

A

Anything capable of satisfying a customer
Services and physical products

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24
Q

What are consumer products

A

Brought by final customers for personal consumption

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25
What are industrial products
Brought by other businesses not customers
26
What is product development
Process of developing new or improving existing products
27
What are the steps of the product development
Idea screening and evaluation>detailed investigation >developing>testing>market launch
28
What are internal factors that influence new product development
Talent Past success/failure Current products
29
What are external factors that influence product development
New gap in market Customers expectations New technology Competitor actions Government policies
30
What are some extension strategies
Find new segments Price reduction Product re design New packaging Increase promotions
31
What are pros of the product lifecycle
Easy to use Extension strategy Forecast sales
32
What are cons of the product lifestyle
Never follow smooth pattern Identifying which phase the product in may be difficult Can be misleading and lead to wrong decisions
33
What is the Boston matrix
A model which helps a business analyse their portfolio Helps businesses to categorise their products/brands and make more informed decisions
34
What is the X axis of the Boston’s matrix
Relative market share
35
What is the Y axis of the Boston matrix
Market growth
36
Describe the dog part of the Boston matrix
Low market share and growth enough cash to break even Usually sold or close Not worth investment
37
Describe the question mark part of the Boston matrix
Low market share High market growth Need substantial investment Should they invest?
38
Describe the cash cow part of the Boston matrix
Low growth products ,high market share Little investment needed Managed for continued profit General strong cash flow
39
What is the star part of the Boston matrix
High growth products Strong compared with competition Heavy investment Growth will slow Strong compared
40
What are pros of the Boston matrix
Having a business in all 4 categories reduces risk Multiple resource streams Another test for informed decisions
41
What are cons of the Boston matrix
Only a snapshot(things change) Some products can be borderline Doesnt take into consideration environmental factors Getting share info isn’t easy or accurate
42
What is price
Amount of money charged by a business for a product or service
43
What are factors that impact price of a product
Rivals Desirable and inexpensive Singular components Value for money Unique/USP Elasticity of demand
44
What is competitor pricing
Price set in comparison to the competition
45
What is loss leader
Price set below cost price as a bait to entice customers ,profit comes from other sales
46
What is predatory pricing
Price set deliberately low by dominant competitor put off competitors (Illegal in the UK,EV,US)
47
What is psychological pricing
Price set to make customers think products are cheaper E.g £9.99 instead of £10
48
What is price discrimination
Different prices for different groups of customers e.g child ticket,student prices
49
What is dynamic pricing
Responding to periods of high and low demand which is powered by AI and algorithms
50
What is cost plus pricing
Adding a percentage to the cost of making a product to arrive at its final selling price
51
What is distribution
Where to sell the product How to get the product there Where can it be accessed or consumed
52
What is a distribution channel
The number of intermediaries involved in getting the product to customers
53
What is a direct Channel
Produces > consumer
54
What is the through modern channel
Producer > retailer > consumer
55
What is the traditional channel
Producer > wholesaler > retailer > consumer
56
What are advantages of the direct channel
Quicker for consumers to buy Control over prices and keep all profits so retailers and wholesalers have no cut Increase in demand and sales due to low prices
57
What are disadvantages of the direct channel
Relies on branding Hard to forecast sales Huge distribution costs Low reach so lots of marketing costs
58
What are advantages of the modern channel
Can sell more in batches Easier to forecast sales Good way to overcome marketing costs Don’t deal with all customer service Retailers have a large reach
59
What are disadvantages of the modern channel
Don’t have control of marketing Less profits you can keep No control of price More retailers means higher distribution costs Won’t receive full price of what customer pays because of retailer margin
60
What are advantages of the traditional channel
Lots of cash coming in large quantities More likely for higher sale Reach higher customer base Wholesaler buys in bulk so increase in sales Low distribution cost,low risk and logistic costs
61
What are disadvantages of the traditional channel
Take longer for customers to get products Retailer and wholesaler seek a margin Price increase till final customer so lower sales Hard to provide effective customer service
62
What is promotion
Bringing customers attention to a product or service
63
What is the promotional mix
Combination of methods used to promote a product
64
What are some ways to advertise
Ads,sale promotions,PR, merch,sponsor
65
What is marketing
This means understanding and communicating with customers so effectively that they want to buy from the business
66
What is physical
Layout and design of premises,ambience and ease of movement
67
What is process
Website design and operational support
68
What is people
Customer service, skills and experience of staff

A Level Business (8 decks)

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