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BUSINESS > Unit 2 - Management of Marketing > Flashcards

Unit 2 - Management of Marketing Flashcards

1
Q

What is Field research and how is it collected ?

A

field research is a primary source of information collected for a specific purpose

Examples:

  • Interview (face to face)
  • Survey, Postal, telephone, online
  • Test marketing
  • Focus groups
  • Observations
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2
Q

What is Desk research and how is it collected ?

A

Desk research is a secondary source of information that already exists, the information was collected for one purpose and then reused for another.

Examples:

  • Websites
  • Newspaper articles
  • Competitors website
  • Government statistics e.g. unemployment figures
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3
Q

Field Research, Advantages and Disadvantages (Face to Face interview)

A

Advantages:
- Body language and facial expressions can be observed
- The researcher can encourage an answer
- Any mistakes or understandings can be cleared up right away
Disadvantages
- Personal interviews can be expensive to carry out
- Researchers have to be selected and trained

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4
Q

Field Research, Advantages and Disadvantages (Postal survey)

A

Advantages:
- Cheap to send a large quantity of surveys over a large geographical area
- People can complete the survey in their own time
Disadvantages
- Questions must be simple and easy to carry out
- Response rate very low, incentives may be needed

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5
Q

Field Research, Advantages and Disadvantages (Focus Group)

A

Advantages:
- Qualitive information provided in the form of opinions, feelings and attitude.
- Points not understood can be clarified
Disadvantages:
- Time consuming and expensive to carry out
- The sample of people may not reflect the views of the consumer population

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6
Q

Desk Research Advantages and Disadvantages

A

Advantages:
- Easier to obtain information that has already been
collected, by looking in a newspaper, book or a website
- Usually cheaper and less time consuming, saving
money
- Decisions can be made quickly as the information
already exists
Disadvantages
- Information was collected for a different purpose,
meaning it could be unreliable
- Out of date/ not relevant as it was carried out a long time ago
- Information can be biased, leading to wrong decisions being made.

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7
Q

Types of Product Portfolio

A
  • Varied product portfolio

- Product line portfolio

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8
Q

Varied Product Portfolio, Costs and benefits

A

Benefits:

  • Increased profits from selling a variety of different products
  • Can cope with seasonal fluctuations easier
  • The needs of different markets can be met
  • Newer products can replace those products at the end of their product life cycle.

Costs:

  • The cost of advertising all the products could be very expensive
  • If one product receives bad publicity it could negatively affect the other products
  • Research and development costs will be high to maintain a variety of new products
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9
Q

Pricing Strategies

A 
Psychological pricing
Cost-plus pricing
Penetration pricing 
Promotional pricing
Price discrimination
Destroyer pricing'
Market skimming pricing
Loss leader
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10
Q

Pricing strategy’s (explain)

A

——————————————————————————————————–write down on paper—————————

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11
Q

channels of distribution

A
  • Manufacturer
  • Wholesaler
  • Retailer
  • Direct Selling
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12
Q

Reasons for choosing different channels

A
  • Legal Restrictions: Certain pharmaceutical products can only be sold via prescription in a pharmacy for customer safety
  • Type of Product: Suitable transportation/ storage for type of product; product durability e.g. frozen foods, etc
  • Finance available: If its to expensive to have retail outlets, manufacturers are likely to use wholesalers who can save them money from packaging & labelling
  • Image of Product: Channel should reflect the quality of the product e.g. high quality products should be sold through exclusive, up-scale retailers
  • Reliability of the wholesalers or retailers: If past experience shows these channels to be unreliable, manufacturers will just sell to the customer directly
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13
Q

Channels of Distribution ADV’s and DSV’s (retailer)

A

Advantage:

  • Have responsibility for deciding on final price, advertising methods, etc.
  • Located close to and have the ability to reach a large number of customers
  • Retailers will deal with any direct customer problems
  • May offer credit facilities, delivery, aftersales, and guarantees

Disadvantages

  • Retailers may not price or advertise goods as the manufacturer would like
  • Retailers require a share of the profit, hence the price may be high
  • Incur costs of holding stock, storing stock, retail premises and employing sales staff
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14
Q

Different types of retailers

A
  • Independent Retailers–most common type and can be best illustrated as your local corner shop
  • Chain Stores–a number of outlets across the country with a well-known name. E.g. Marks and Spencer’s
  • Supermarkets –offer a wide range of groceries, clothing and electrical goods. E.g. Tesco, Sainsbury’s
  • Department Stores–offer a range of goods within different departments. Normally specialise in premium brands. E.g.
    House of Fraser, Debenhams
  • Franchises–offer a new business a chance to trade using a successful formula, e.g. McDonald’s
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15
Q

How is promotion described ?

A
  • Into-the-Pipeline

- Out-of-the-pipeline

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16
Q

What is Into-the-Pipeline promotion ?

A
  • Into-the-pipeline sales promotions are offered by the manufacturer to encourage retailers to purchase products from them
  • This is a promotion designed to enhance sales of a product to trade outlets and to help them sell the product to their
    customers
17
Q

What is Out-of-the-Pipeline promotion ?

A
  • Out-of-the-pipeline sales promotions are offered by the retailer to encourage customers to purchase products from them
18
Q

Into-the-Pipeline Promotion method (POS)

A

Point of Sale Material (POS):
- Free posters and display materials given to retailers to display product to customers
Advantages:
- This can enhance the look of the retail store
- It can draw customers eyes to the product display
Disadvantage:
- Retailers may need to dispose of bulky display materials at the end of the promotion

19
Q

Into-the-Pipeline Promotion method (Sale of Return)

A

Sale of Return:
- Manufacturers give retailers the option to return goods that do not sell
Advantages:
- It allows retailers to try new products without the risk of being stuck with unsold inventory
- It improves cash flow
Disadvantages
- Products may be returned in a poor condition, creating waste

20
Q

Into-the-Pipeline Promotion method (Dealer Loaders)

A
  • Discounts used to encourage retailers to stock up on a product, (e.g. buy 10 get 1 free)
    Advantages:
  • Retailers can save on the unit cost of products, allowing for greater profits
  • Saving can be passed to customers to increase sales revenue
    Disadvantages:
  • Retailers may overstock and find they are unable to sell
  • Products might go out of date or out of fashion
21
Q

Into-the-Pipeline Promotion method (Staff training)

A

Manufacturers can offer retail staff free training to give them the skills and knowledge to sell the products

Advantages:

  • Staff become experts in the product, which can impress customers
  • The quality and motivation of staff are improved

Disadvantages:
- Training has to be done during normal hours, reducing productivity, or after hours increasing overtime pay

22
Q

Out-of-the-Pipeline promotion method (Special Offers)

A

This can include Buy One Get One Free (BOGOF) and other short-term promotion

Advantages:
- Encourages customers to try new products, which they may buy at full price

Disadvantage:
- Customers might feel pressured into buying more than they need resulting in a waste

23
Q

Out-of-the-Pipeline promotion method (Free Gifts)

A

Used to tempt customers to buy a product again or for the first time, e.g. free toy

Advantages:
- Gifts that require multiple tokens ensure repeated purchases

Disadvantages:
- It can be difficult to find a gift that appeals to all target markets (e.g. free toy that suits boys and girls)

24
Q

Out-of-the-Pipeline promotion method (Vouchers and Coupons)

A

Usually given in newspapers/ magazines to give customers money off future purchases

Advantages:

  • Customers feel they are getting better value for their money, attracting new customers
  • It can encourage repeat purchases

Disadvantages:

  • Discounts offered by money-off vouchers can reduce profits
  • Some customers will only spend up to the value of their money-off coupon limiting profits
25
Q

Out-of-the-Pipeline promotion method (competitions)

A

Businesses can use competitions to encourage customers to buy in order to take part, for example the popular McDonalds Monopoly

Advantages:

  • Can encourage repeat custom as more customers are trying to win or collect more tokens
  • Can create hype and excitement around a product, which can lead to a new custom

Disadvantages:

  • Prizes can cost substantial amounts of money
  • The associated marketing costs of the competitions can be high and often packaging has to be redesigned.
26
Q

Technology used in the marketing Department (Social Media)

A
  • Twitter, Facebook, Instagram and Snapchat can all be used to interact with customers.
  • Products can be advertised at any time and they allow access to a wide range of customers.
  • Social media allows customers to:

Advantages

  • Directly ask the business any questions they have
  • A quick response time from the social media manager of the account

Disadvantages:

  • There can be many spam comments making it hard to respond to actual customer questions
  • The risk of being hacked
27
Q

Technology used in the marketing Department (EPOS)

A
  • Used as a key method of field research, especially in the retail sector
  • A business is able to match-up the items being purchased with the type customer who is buying them
  • This allows the marketing department to use more effective promotional strategies in the future and also helps to identify products which are in high demand and those which aren’t.

Advantages:

  • Allow large amounts of field and internet market research to be collected organically
  • allows marketing managers and senior managers to make more informed and better quality decisions.

Disadvantages:
- Expensive to purchase, install and maintain the EPOS equipment.

BUSINESS (5 decks)

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