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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
Q

What are industrial products

A

Brought by other businesses not customers

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26
Q

What is product development

A

Process of developing new or improving existing products

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27
Q

What are the steps of the product development

A

Idea screening and evaluation>detailed investigation >developing>testing>market launch

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28
Q

What are internal factors that influence new product development

A

Talent
Past success/failure
Current products
I

29
Q

What are external factors that influence product development

A

New gap in market
Customers expectations
New technology
Competitor actions
Government policies

30
Q

What are extension strategies

A

Find new segments
Price reduction
Product re design
New packaging
Increase promotions

31
Q

What are pros of the product lifestyle

A

Easy to use
Extension strategy
Forecast sales

32
Q

What are cons of the product lifestyle

A

Never follow smooth pattern
Identifying which phase the product in may be difficult
Can be misleading and lead to wrong decisions

33
Q

What is the Boston matrix

A

A model which helps a business analyse their portfolio
Helps businesses to categorise their products/brands and make more informed decisions

34
Q

What is the X axis of the Boston’s matrix

A

Relative market share

35
Q

What is the Y axis of the Boston matrix

A

Market growth

36
Q

Describe the dog part of the Boston matrix

A

Low market share and growth
enough cash to break even
Usually sold or close
Not worth investment

37
Q

Describe the question mark part of the Boston matrix

A

Low market share
High market growth
Need substantial investment
Should they invest?

38
Q

Describe the cash cow part of the Boston matrix

A

Low growth products ,high market share
Little investment needed
Managed for continued profit
General strong cash flow

39
Q

What is the star part of the Boston matrix

A

High growth products
Strong compared with competition
Heavy investment
Growth will slow Strong compared

40
Q

What are pros of the Boston matrix

A

Having a business in all 4 categories reduces risk
Multiple resource streams
Another test for informed decisions

41
Q

What are cons of the Boston matrix

A

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
Q

What is price

A

Amount of money charged by a business for a product or service

43
Q

What are factors that impact price of a product

A

Rivals
Desirable and inexpensive
Singular components
Value for money
Unique/USP
Elasticity of demand

44
Q

What is competitor pricing

A

Price set in comparison to the competition

45
Q

What is loss leader

A

Price set below cost price as a bait to entice customers ,profit comes from other sales

46
Q

What is predatory pricing

A

Price set deliberately low by dominant competitor put off competitors
(Illegal in the UK,EV,US)

47
Q

What is psychological pricing

A

Price set to make customers think products are cheaper
E.g £9.99 instead of £10

48
Q

What is price discrimination

A

Different prices for different groups of customers e.g child ticket,student prices

49
Q

What is dynamic pricing

A

Responding to periods of high and low demand which is powered by AI and algorithms

50
Q

What is cost plus pricing

A

Adding a percentage to the cost of making a product to arrive at its final selling price

51
Q

What is distribution

A

Where to sell the product
How to get the product there
Where can it be accessed or consumed

52
Q

What is a distribution channel

A

The number of intermediaries involved in getting the product to customers

53
Q

What is a direct Channel

A

Produces > consumer

54
Q

What is the through modern channel

A

Producer > retailer > consumer

55
Q

What is the traditional channel

A

Producer > wholesaler > retailer > consumer

56
Q

What are advantages of the direct channel

A

Quicker for consumers to buy
Control over prices and keep all profits

57
Q

What are disadvantages of the direct channel

A

Relies on branding
Hard to forecast sales

58
Q

What are advantages of the modern channel

A

Can sell more in batches
Easier to forecast sales
Don’t deal with all customer service

59
Q

What are disadvantages of the modern channel

A

Don’t have control of marketing
Less profits you can keep
No control of prices

60
Q

What are advantages of the traditional channel

A

Lots of cash coming in large quantities
More likely for higher sale
Reach higher customer base

61
Q

What are disadvantages of the traditional channel

A

Take longer for customers to get products
Less money per product as everyone wants a cut

62
Q

What is promotion

A

Bringing customers attention to a product or service

63
Q

What is the promotional mix

A

Combination of methods used to promote a product

64
Q

What are some ways to advertise

A

Ads,sale promotions,PR, merch,sponsor

65
Q

What is marketing

A

This means understanding and communicating with customers so effectively that they want to buy from the business

66
Q

What is physical

A

Layout and design of premises,ambience and ease of movement

67
Q

What is process

A

Website design and operational support

68
Q

What is people

A

Customer service, skills and experience of staff

A Level Business (6 decks)

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