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business studies > 2 market segmentation > Flashcards

2 market segmentation Flashcards

1
Q

what is segmentation

A

spliting a market into parts for a product eg clothes male female childrens teen

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2
Q

why segment

A

helps businesses to identify target market more effectively

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3
Q

what is marketing mix

A

it is made up of price product place promotion

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4
Q

why must businesses take care when pricing

A

may have many competitors slling similar

customers take note of price to high wont buy to low no profit

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5
Q

what factors effect price

A

what competitors charge
new business aware that public are not familiar with the product and will be reluctant to buy unless cheap
must be aware of intended profit

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6
Q

what pricing methods might they use (5)

A 
competitor pricing
cost plus pricing
penetration pricing
skimming
promotional pricing
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7
Q

what is competitor pricing

A

looks at price charged by competitor to give them an indication what to charge

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8
Q

what is cost plus pricing

A

add desired profit to cost of production

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9
Q

what is penetration pricing

A

reduce a price to entice a customer to buy a new name

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10
Q

what is skimming

A

selling a product at a higher price to reflect its desireability

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11
Q

promotional pricing

A

reduce to attract new and existing customers

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12
Q

why is product important

A

busineses must ensure they make products customers want to buy

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13
Q

what will a business have to consider about a product (5)

A 
image/design
invention/innovation
branding
product life cycle
marketing
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14
Q

what are the 4 stages of a product life cycle

A

introduction- launch of product
growth - sales most rapid
maturity - sales at highest rate growth slower
decline - sales falling

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15
Q

what are the methods used to extend a products life (3)

A

advertising more widely
reduce price
develop new products

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16
Q

what is place

A

where goods are distributed and how they get there

17
Q

2 main methods of place

A

physical

digital

18
Q

how is place changing

A

where products are sold there are more out of town centres and digital distribution

19
Q

what is physical distribution

A

movement of goods we can see eg food household products

20
Q

how are good physically transported

A

by air and road

21
Q

what are the channels

A

producer - customer - small businesses
producer - retailer - customer- electrical
producer - regional centre -retailer - customer - usually food as shops cant store large quantities

22
Q

what is the role of wholesalers

A

store goods in buld, give credit to retailer, deliver to retailer

23
Q

what is RDC

A

regional distribution centre - owned by retailer to store products

24
Q

how has digital distribution increased

A

growth of internet

25
Q

how does digital distribution work

A

there is no physical product, goods are downloaded digitally eg books music insurance

26
Q

what are the advantages of digital distribution (3)

A

access products 24 hr a day
goods available quickly
cost saving for business

27
Q

what are the disadvantages of digital distribution (4)

A

not all goods are suitable for it
businesses are forced into it to match competitors
not all customers have internet
makes illegal copying easy - business looses sales

28
Q

what implications are there for a business having digital distribution

A

have to make sure their technology is up todate and always developing

29
Q

what is promotion

A

businesses informing customers about good price
new place
offer BOGOFF

30
Q

what is the aim of a promotion (4)

A

inform about a new product
keep ahead of competitors
create change of image
increase sales

31
Q

2 types of promotion

A

point of sale

advertising

32
Q

what are point of sale promotions

A

price reductions - usually when product not selling welleg
loss leaders- to entice people in to buy othr things
competitions
free samples - to target people who are reluctant to buy incase they dont like it
advertising
marketing campaign or single add

33
Q

are all parts of the mix equally important

A

no certain times some more important than others eg for a new product advertising is more important

34
Q

what are the 4 ps

A

price product place promotion

35
Q

what is market data

A

change in demand - how product is selling
target market - is it changing
market share - business share or total market
product change - how business performs after new product
effect of promotion - if spending lots is paying off

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