Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A Level DT > 1.52 From Mind To Market (Done) > Flashcards

1.52 From Mind To Market (Done) Flashcards

1
Q

What is innovation?

A
  1. Getting the product right
  2. Getting the product introduced to the market first.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a marketing strategy?

A

A marketing strategy is a long-term plan to achieve a set of marketing objectives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the two types of market research?

A
  1. Numerical- for example; how many 14-20 year olds own a smartphone.
  2. Psychological- for example; why do 14-20 year olds buy smart phones.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are market needs?

A

Market needs are the requirements of a human being for example food, water and shelter.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are market wants?

A

When market needs turn into market wants, this change occurs when marketed in a way that customers believe they need those products for everyday survival.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are market demands?

A

Market demands are wants backed with buying power.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are radical products?

A

Radical products are never before seen products featuring new technologies that are costly and require a high level of marketing but can lead to rapid growth and profits. (e.g. the internet or telephone).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are Incremental Products?

A

Are less costly products using existing technology that focus on improvements on existing products (e.g. cars or mobile phones).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is Market Penetration?

A

Market penetration is about increasing the market share of an existing product through increasing product sales. (Finding new customers & taking customers from competitors).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is Market Development

A

Market Development is about finding new markets for existing products. (Repositioning into different new markets e.g. abroad).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is Product Development?

A

Product Development is about developing and innovating existing products to differentiate from competitors in competitive markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is Diversification?

A

Diversification is about adding more markets and products to an existing business to enhance company sales and market share.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is Market Pull?

A

A market pull model is when a new product comes from a need identified within a market. Market research identifies what needs exist. (e.g. Gluten free & Vegan products).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is Technology Push?

A

When new technology is used to design and develop a product that the consumer has not requested or identified as a need. It is a high risk strategy as consumer demand has not been identified. (e.g. The Sony Walkman)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the definition of price and what affects it?

A
  1. Price is the amount of money that a consumer must pay to a business or organisation for a product or service.
  2. Extra features, quality, reputation and guarantees of the product affect price.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is Price Elasticity of Demand?

A

Price elasticity of demand is the measurement of changes in demand for a product or service in response to changes in its price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does a low elasticity of demand mean?

A

A very low elasticity of demand means that consumers are less sensitive to changes in the price of the product. (e.g. Oil prices rise, consumers need oil and petrol for the heat and transport).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is Price Skimming?

A

Used when high prices will not deter a consumer and little competition for a product. Only successful if the product has an inelastic demand curve.
Set at a very high price at first, then lower this price over the period of its life-cycle.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is Penetration Pricing?

A

Method of setting an artificially low price at the start of a products life-cycle in an attempt to attract new consumers and then raise the prices of the product.
Used in competitive markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is Competitive Pricing?

A

Charge a similar or lower price than their competitors making their product more attractive to consumers and increasing their market share. (Used in Competitive markets).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is Cost Based/ Plus Pricing?

A
  1. A business calculated the price of producing their product and adds a percentage profit to this cost.
  2. Disadvantages: Does not take demand into account or if customers will pay this price.
  3. Cost-Plus price= Total costs
    —————————
    Total sales + Profit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is Perceived Value Pricing?

A

Businesses set the price of a product on what they think the maximum price is, that a consumer is willing to pay.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is Contribution Pricing?

A

By taking away the direct costs of producing the product from the sales price of the product a business can discover what contribution the product will make to its overheads (fixed costs) e.g. rent, electricity etc.
Sales price - Variable costs= contribution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What five potential pricing options would be used for the introductory stage of a product life cycle?

A
  1. Penetration
  2. Skimming
  3. Cost-plus
  4. Contribution based
  5. Perceived value
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What four potential pricing options would be used for a product in its Growth stage?

A
  1. Competitive pricing
  2. Cost-Plus pricing
  3. Contribution pricing
  4. Perceived value
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What four potential pricing options would be used for a product in its mature stage of its life cycle?

A
  1. Competitive
  2. Cost-Plus
  3. Contribution
  4. Perceived value
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What three potential pricing options would be used for a product entering its declining stage of its life cycle?

A
  1. Cost-Plus
  2. Contribution
  3. Perceived value
28
Q

What are Direct Sales?

A

Sales that are direct to the customer.

29
Q

What are Indirect Sales?

A

Sales to the customer via, for e.g. a wholesaler, etc.

30
Q

What are the differences between international and regional trade?

A

International trade is more expensive usually due to additional costs such as tariffs and time costs. Different language, legality, or culture.

31
Q

What difficulties and barriers are there to international trade?

A
  1. Manufacturer is risking credit.
  2. Transactions may be interrupted by governments (Political problems).
  3. Unforeseeable events can have a negative impact (e.g. war).
  4. A risk of unfavorable exchange rates.
  5. Burdensome certification and testing requirements.
  6. Bribery or corruption could affect the company competing fairly in that country.
  7. Consumers unable to pay directly to the manufacturer.
32
Q

How does the Type of Product affect how the product will be distributed?

A

The characteristics of a product need to be taken into account. For example, Coca-Cola does not ship their product to the UK from the USA. Only the syrup is shipped as the actual product is then made in the UK.

33
Q

How does the Market affect how the product will be distributed?

A

Having the product on the high street allows more potential customers to access the product (or online).

34
Q

How do the Quantity and Frequency of sales affect how the product will be distributed?

A

If a product is regularly being delivered then a firm might invest in a delivery system.

35
Q

How does the Geographical Location affect how the product will be distributed?

A

How far is the market from the firm? Regional markets are far more accessible than international markets.

36
Q

How does the Cost affect how the product will be distributed?

A

The chosen outlet/ distributor must be cost-effective for the business.

37
Q

How does the Competition affect how the product will be distributed?

A

Businesses consider the distribution methods used by other competitors (some use the same).

38
Q

What is International Trade?

A

International trade is the exchange of products or services between international borders.

39
Q

What is Regional Trade?

A

Regional trade is the exchange of products or services within a country.

40
Q

What is the Aim of Promotion?

A

The aim of promotion is to raise the consumer,s awareness of the price and quality of a product or service. The target market needs to be reminded about the product’s existence.

41
Q

What is Above the Line Promotion (ALT) and give an example of it?

A

Above the line Promotion is aimed at a mass audience. (e.g. TV, Billboards, Radio, and Magazines.

42
Q

What is Below the Line Promotion (BLT) and give an example of it?

A

Below the Line Promotion targets potential consumers directly such as direct email etc.

43
Q

What is Personal Selling (Salesperson)?

A

A salesperson is employed by a company to sell a product or service on behalf of the company.

44
Q

What are the advantages of a salesperson?

A

A salesperson is well-trained and can develop very good relationships with customers.

45
Q

What are the disadvantages of a salesperson?

A

Very expensive.

46
Q

What is Sales promotion?

A

Sales Promotions are the ways in which businesses attempt to persuade consumers to purchase their goods or services through various incentives. (e.g. Buy one get one free, Money-off promotions, competitions, loyalty cards- Tesco Clubcard).

47
Q

What are the advantages of Sales Promotion?

A
  1. Quick increase in sales.
  2. Encourage buyers to continue purchasing.
48
Q

What are the disadvantages of Sales Promotion?

A

Each sales promotion should be carefully priced and compared with the next best alternative. Failure to do so could result in massive market competition.

49
Q

What is Public Relations (PR)?

A

Public relations is an effort to establish and maintain mutual understanding between an organization and its public. (e.g. Football- Arsenal - Emirates).

50
Q

What are the advantages of Public Relations?

A
  1. Relatively cheap.
  2. Succesful strategies tend to be long-term.
51
Q

What are the disadvantages of Public Relations?

A

Companies do not have direct control over what message is delivered.

52
Q

What are Trade Fairs and Exhibitions?

A

A trade show is an event in a specific industry so that they can exhibit their products and services to potential customers.

53
Q

What are the advantages of Trade Fairs and Exhibitions?

A
  1. Very good for making new contacts.
  2. Instant feedback on products and pricing.
  3. Learn about markets, products, trends, and product competition.
  4. Identify new market opportunities.
  5. Access to a large number of potential buyers at one time and in one place.
54
Q

What are the disadvantages of Trade Fairs and Exhibitions?

A
  1. Expensive.
  2. Time-consuming.
  3. Very competitive.
55
Q

What is Advertising?

A

Advertising is a ‘paid for’ communication that should develop an awareness of the product and encourage consumers to purchase it. (e.g. Newspapers, TVs, Magazines).

56
Q

What are the advantages of Advertising?

A
  1. A huge number of people can be reached.
  2. Reach the intended target market.
  3. The advert can be as large as required.
57
Q

What are the disadvantages of Advertising?

A
  1. Can be expensive.
  2. A lot of competition.
  3. The market that views the advert may be the target market that buys the product.
58
Q

What factors determine the type of advertising campaign chosen to promote a product or service?

A
  1. Nature of product.
  2. Target Market.
  3. Stage in the life-cycle.
  4. Budget.
  5. Competition.
59
Q

What is Distribution?

A

Distribution is to ensure that the right quantity of the product is at the right place at the right time.

60
Q

What range of factors determines what distribution channel is used?

A
  1. Type of good
  2. Value of good.
  3. Costs involved.
  4. Demand for the goods.
  5. Competition for the goods.
  6. Life span.
61
Q

What are the 3 distribution channels?

A
  1. Manufacturer -> Wholesaler -> Retailer -> Consumer (used by Deli-Lites)
  2. Manufacturer -> Retailer -> Consumer (used by Tesco, ASDA, Sainsbury).
  3. Manufacturer -> Consumer (used by Farm shops, Jewellers, Artists, Apple?)
62
Q

What are the strategies that can be implemented to prolong the life cycle of a product or service?

A
  1. Modifying the product.
  2. Altering the packaging.
  3. Reducing the price.
  4. Exporting the product to new markets.
63
Q

What is the Pull strategy?

A

This strategy is used when companies want to promote their product to create demand within consumers through several distribution channels. Consumers asking about the product force retailers and wholesalers to stock them.

64
Q

What is the Push strategy?

A

This strategy is used to convince retailers to stock the product. The product is pushed onto the retailer, hence the name.

65
Q

What does the AIDA communication model stand for?

A

A- Attention (grab the potential consumers’ attention by using celebrities to sell products).
I- Interest (Hold their interest by promoting features)
D- Desire (Make the product attractive by demonstrating its features).
A- Action (If the company starts and continues to make sales then the strategy was a success).

A Level DT (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions