Unit 3.1 Long answers Flashcards
What are the benefits of Primary research?
More accurate
Up to date
Specific to needs
What are the benefits of Secondary research?
Less time consuming
More general and offers wide range of information
Inexpensive
What are the benefits of Quantitative data?
Easy to analyse
Reliable
More accurate
What are the disadvantages of Quantitative data?
Time consuming
Expensive
Question design can lead to Structural bias
What are the benefits of Qualitative data?
Creates openness
Avoid pre-judgement (To expand on a response)
Concentrated issue analysed- maximum probing
What is the Disadvantages of Qualitative data?
Less easily generalized
Time consuming
Takes more time to analyse and collect
Explain how quantitative data might help a business to improve its marketing mix(3 marks)
Finding out about the amount of sales of a competitor, will give the firm info about competitors doing. Causing firms to increase amount of advertising it does to try increase sales and customer loyalty.
Give 4 methods of Product trial.
Free samples
Viral marketing e.g Facebook
Advertisement
Low trial prices/ special offers
Explain purposes of a product life cycle for a business?
It helps to manage a business cash flow,helps identify when products should be replaced and helps a business manage its products portfolio and extension strategies.
What is happening in the Development stage?
Researching and developing a product
What is the Introduction stage?
Strong advertisement and promotion campaigns, low sales and initially no profit, cash flow is negative.
What is Growth stage?
The launch is successful, sales increase sharply and the products may make profit and are at a stage of break-even. Cash flow is positive but small.
What is the Maturity stage?
Sales growth slows down, but repeat customers continue to buy and customers become loyal, the market is saturated as rivals bring out competing products. Cash flow is likely to be positive.
What is the Decline stage?
Eventually, the product is outdated and there is big fall in sales leading to negative cash flow.
What does Star mean in terms of market growth and market share?
High growth market with high market share
What does Dog mean in terms of market growth and market share?
Low growth market and Low market share.
What does Problem child mean in terms of market growth and market share?
High growth in market and low market share
What does Cash Cow mean in terms of market growth and market share?
Low growth market and high market share
Describe how the use of the Boston Matrix can benefit a business (3 marks)
The Boston matrix puts products in categories according to growth rates and market share. It tells the firm where they may have too many similar products and can help identify when they need to withdraw products or introduce new ones
How can branding have an impact on the Product life Cycle?
- Creates awareness from potential consumers
- Increases repeat purchases
- Increases sales
- Can charge premium prices.
What are 4 advantages of Branding?
Charge premium prices
Leads to repeat purchases
Target market aware of brand
increase sales and market share
Explain 3 issues that can arise with establishing or maintain a brand name
Competition
Not an effective brand
Not known(just came into the market)
What are the 6 ways you can differentiate your product from competitors
Unique and catchy product name Quality Design, function Packaging Customer service Differentiation across the value chain
List 4 reasons why marketing is important to businesses?
1) Reduce risk of product failure
2) Understand their customers
3) Communicate products effectively to encourage customers to buy them.
4) Keep up to date with market trends so products can continue to meet customer needs.
Explain one way in which effective marketing can help improve the products of a business?
If a business understands their customer needs their products and services can be developed to meet their needs. This means that the products will be more attractive and desirable, leading to greater number of sales.
Explain one method shake-away could use to encourage potential customers to give the millionaire’s milkshake a product trial?
Lower prices
If shake-away lower the price of its milkshake from £11.95, this would make the milkshake seem more attractive and affordable
This will lead to more people trialing the milkshake.
What does a star mean?
A very successful product with high market share and growth.Stars have a USP and a competitive advantage but also growth has to funded to keep up with demand and recognition meaning cash flow may not be always positive because of spending.
What is a Question mark?
These have low market share but high market growth. they present a problem because you do not know what to do with them. The business are going to need to invest to increase sales. Does it have the potential to become stars.
What are Cash cows?
They have a high market share but a low market growth. they have a good cash flow in low growth market. They are an established product and profitable product. They bring a lot of revenue in the company without effort don’t need any major investments. The profit from cash cows can help stars and question marks.
What are dogs in the Boston matrix?
They have a low market share and low growth. Declining products like in the PLC. These products have failed. They make little income but will need to be deleted from product portfolio. Even if market share of dogs can improve, there is limited opportunity for sales growth in a market where consumer demand is falling.
What does Product portfolio analysis help a business to make decisions about?
1) What products to launch and when
2) When to withdraw a product
3) What products are doing well or badly now and in future.
4) How to increase sales
What does the price of the product give indication to?
Give an indication of quality
Name 2 reasons why businesses would like promote their business.
1) Boosting sales
2) Creating awareness
What are the 3 ways business can have a product avaliable to customers?
Direct (internet sales directed to customers)
Retail ( improves buying experience of customers and improving customer service.)
Wholesale( distributes it to retails, they produce large quantities of a product)
