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Business > 3.5 Marketing > Flashcards

3.5 Marketing Flashcards

1
Q

1 What is an exchange process

A

When someone gives up something in return for something else

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2
Q

1 how do you identify a business opportunity

A

sell products means offering something that customers value and are willing to pay for
identify opportunities that exist and develop products according to people’s needs and wants
think about customer as well as consumer

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3
Q

1 how to satisfy customer needs

A

increase sales
select correct marketing mix
avoid costly mistakes
be competitive

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4
Q

1 what is the marketing mix

A

product
place
price
promotion

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5
Q

1 what is a customer

A

someone who buys a product or service

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6
Q

1 what is a consumer

A

someone who uses a product or service

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7
Q

1 what is a need

A

something needed to survive

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8
Q

1 what is a want

A

something to satisfy a need

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9
Q

2 what is market segmentation

A

occurs when a business divides a market into different groups of needs and wants

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10
Q

2 why do you segment a market

A

meets needs more efficiently
avoids waste
target the correct market for max sales

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11
Q

2 how do you segment a market

A

age
gender
income
ethnic, culture, religion
socio-economic
geographical area

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12
Q

2 what is the market growth equation

A

change in market size
——————————– x100
original market size

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13
Q

3 what is market research

A

the process of gathering and analysing and processing data relevant to marketing decisions

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14
Q

3 what is the role of market research

A

get info about the market that the business operates in
product - price and packaging
promotion - best advertising media

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15
Q

3 what are the uses of market research

A

assess the effectiveness of actions being taken
identify opportunities in markets
weigh up different possible actions

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16
Q

3 what are some methods of market research

A

printed press
magazines
info
surveys
questionnaires
customer feedback
telephone interviews
internet research

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17
Q

3 what is primary market research
examples?

A

first hand collected data, that does not previously exist

surveys
internet research
observations of customers

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18
Q

3 what is secondary market research

A

uses data that already exists
in form of government surveys or other information accessible online say

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19
Q

3 advantages of secondary market research

A

gathered cheaply and quickly
provide information on large sections of the population

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20
Q

3 disadvantages of secondary market research

A

existing data may not be exactly what the business wants
existing data may be out of date

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21
Q

3 what is test marketing

A

launching a product to a small amount of people in the target market to see how well it does

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22
Q

3 what is a consumer panel

A

a representative of people selected by a business to provide input for consumer research

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23
Q

3 what is qualitative data

A

data provided in descriptive form
peoples emotions and thoughts
why things happen
gathered through open questioning
not easily measurable or accurate

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24
Q

3 what is quantitative data

A

data in numerical form
gathered through surveys
easy to analyse and compare
not able to explain anomalies or changes

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25
Q

3 what is market mapping

A

considers the position of a business to other businesses using any two criteria
a diagram used to identify target customers and potential gaps in the market
shows possible positions for two key features
eg low to high price and quality

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26
Q

3 equation for value of sales

A

value no. of price
of = units x per
sales sold unit

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27
Q

3 what is market size

A

measured by value or volume of sales
volume = no of units sold

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28
Q

3 what is market growth equation

A

change in market size
——————————– x100
original market size

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29
Q

3 what is market share equation

A

sales of product
————————— x 100
total market sales

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30
Q

3 pros and cons of surveys?

A

pro;
convenient
see genuine reactions

con;
cants see body language
might not answer phones or doors

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31
Q

3 pros and cons of internet research

A

pro;
cheap and quick
achieved whenever

con;
may not target correct customers
may be out of date

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32
Q

4 what is the marketing mix

A

to meet customers needs a business must develop products to satisfy them, charge the right price, get the goods to the right place, and make the product know through promotion

it is a combination of product, price, place and promotion

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33
Q

4 what is a product

what is price

A

the features and appearances of goods and services

how much customers pay for a product

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34
Q

4 what is place

what is promotion

A

the point where products are made available to customers

how customers are made aware about products

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35
Q

4 how do you choose the best marketing mix

what factors does it depend on

A

all four aspects must work together effectively

the product
competitors products
target customers
business approach

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36
Q

4 what are the benefits for an entrepreneur

what are the risks for an entrepreneur

A

a unique product will make many sales and increase profit

people may not be interested so any invested money is lost

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37
Q

4 what are the factors when designing a product

A

reliability
quality
value for money
design
image
technology
packaging
status

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38
Q

4 what is e commerce

A

having a website that business can sell goods on

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39
Q

4 what is m commerce

A

using smartphones and mobile devices to sell goods

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40
Q

4 what is multi-channel

A

providing physical and online options to buy goods

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41
Q

4 benefits of e & m commerce

A

reduced costs as no need for expensive premises
larger number of customers
products are sold direct to customers
convenience for customer as can shop anytime anywhere

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42
Q

4 drawbacks of e & m commerce

A

small screen size can limit amount of info shared
initial costs of operating online can be high
greater competition at the same level online
comms and transport problems
customer accounts can be hacked and fraudulent

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43
Q

5 different factors about price

A

credit card instalments
cash
discounts with large quantities
price comparisons
value for money items
business costs
reduced pricing

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44
Q

5 price and demand

A

if a business has a strong brand and usp, fall in sales may be small if price increases
differentiation between products to make people less sensitive to press change
higher revenue with higher pricing
demand is proportional to price

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45
Q

5 price skimming

A

when a high price is set for when the product first enters the market
used with high demand
people are willing to pay high prices
business obtain money needed to pay development costs
price is lowered to attract new groups of people
works best if product is unique

46
Q

5 price skimming drawback

A

product has to be unique if people are going to pay more

47
Q

5 price penetration

A

launching a product with a low price to achieve high sales quickly
establish a product as market leader and earn market share
good if customers are price sensitive
budget airlines
producing on a large scale allows business to become known and benefit from lower supplier costs

48
Q

5 price oenetration drawback

A

only works best if customers are very sensitive to price

49
Q

5 competitive pricing

A

price match other businesses with the same products
used by supermarkets, insurance companies
big firms compete directly against each other
if products are similar price becomes a big factor

50
Q

5 competitive pricing drawback

A

only useful when products are similar
when price becomes a factor that will influence the buyers decision

51
Q

5 loss leader

A

sell a product at a loss so the customer will buy more products and create a profit
charge loss for a printer but alot for ink cartridges
advertisement in shop windows

52
Q

5 loss leader drawback

A

can lead to losses for the business if higher priced items are not purchased alongside loss leader

53
Q

5 cost plus pricing

A

ensures business cover their costs and make a profit
calculate the cost of providing the product and adding a percentage on to create a price
common for retailers
simple to apply

54
Q

5 cost plus pricing drawback

A

doesn’t account for supply or demand in market or customer satisfaction
or what people are willing to pay for

55
Q

5 what factors influence price

A

costs
demand
competitors pricing
stage in product life cycle
strength of brand
nature of market

56
Q

5 what is cost

A

to make a profit the price needs to cover the costs
fixed costs
variable costs

57
Q

5 what is demand

A

what people are willing to pay
high demand means higher prices

58
Q

5 what is the nature of the market

A

prices will be competitive if there are many similar products in a market
offering a very different product allows more to change

59
Q

5 what is business aims and objectives in pricing

A

may use price penetration to become known in a market
high price to promote high quality

60
Q

5 what is position in product life cycle

A

price can be altered around the life cycle
in growth phase have high pricing
in decline stage have reduced pricing

61
Q

5 what about price vs the rest of the marketing mix

A

high quality fashion will be sold expensively
low quality mass production will be sold more cheaply

62
Q

5 what about competitors pricing

A

always try to stay within competitors range to not lose sales or market share
low priced competitors = low prices
high priced competitors = high prices

63
Q

5 what stages are in a product life cycle

A

development
introduction
growth
maturity
decline

64
Q

6 what is product

A

all factors relating to the design, the specifications and the features
Toyota known for reliability
Duracell known for long life batteries
businesses may alter products to appeal to customers

65
Q

6 what is THE product

A

what customers actually buy
important in marketing mix
if wrong, it’s hard to imagine the market will be successful
customers interested in overall nature

66
Q

6 what is the main features of a product

A

reliability
quality
value for money
design
image
technology
packaging
status

67
Q

6 what is product development

A

the design
the price
the expected sales
cost of development and production

68
Q

6 what is product differentiation

A

having a unique selling point
stand out form competition
build a brand image

69
Q

6 benefits of product differentiation

A

attract more sales
charge a higher price

70
Q

6 what are the stages of new product development

A

generate a new idea
check the idea
develop product
trial product
launch it

71
Q

6 why might product development stop

A

it’s too expensive
too difficult
the risk is too high

72
Q

6 how do you brand a product

A

different to competitors
easily recognised
higher prices
own brand

73
Q

6 what is a product life cycle

A

shows the stages that products go through from development to withdrawal

74
Q

6 whats on each axis

A

y= sales
x= time

75
Q

6 what is the 6 stages

A

development
introduction
growth
maturity
decline
extension

76
Q

6 what is development

A

product being developed and tested
money is spent
no sales

77
Q

6 what is introduction

A

product is launched
sales are low
heavy advertising
expenditure on promotion and publicity
business tries to convince companies to sell products

78
Q

6 what is growth

A

sales increase rapidly as demand grows
business may need to find more outlets for the product

79
Q

6 what kind of variation is seen in a PLC

A

length of time from development to launch can change drastically
decline phase can be entered as soon as a few weeks later
some brands go through ups and downs with extensions

80
Q

6 what changes in the PLC about the marketing mix

A

introduction - promotion is heavy
promotion then switches to product
high prices but go lower when decline

81
Q

6 how do you extend a PLC

A

cut price
advertising
update packaging
add more features
new customers

82
Q

6 what is a product portfolio

A

the products that company produce collectively
starter is only one or two products
develop more as a business grows

83
Q

6 what is the boston matrix

A

a model looking at products in terms of their market share and growth
analysing a product portfolio
measures based on market growth and market share

84
Q

6 high M growth high M share-1
high M growth low M share -2
low M growth high M share -3
low M growth low M share -4

A
  1. star
  2. problem child
  3. cash cow
  4. dog
85
Q

6 what is a star

A

high growth and high market share
high revenue growth
keep improving and promoting stars
aim to turn into cash cows

86
Q

6 what is a cash cow

A

high market share low growth
low costs
high revenue
heinz tomato ketchup
no advertising needed

87
Q

6 what is a dog

A

low growth low market share
negative cash flow
large costs to keep going
not used to business
either get rid or improve

88
Q

6 what is a problem child

A

low market share high growth
money to develop
negative cash flow
has potential
spend money promoting

89
Q

6 why should you have a balanced portfolio

A

appropriate mix of different products
cash cows provide ongoing finance
high no of problem childs is a risk

90
Q

6 what use is the boston matrix

A

analyse product portfolio visually
show what action to take
too many problem child = take action
too many cash cows/ no stars = invest in problem child with cash cow money

91
Q

6 what drawback in the boston matrix

A

snapshot of current position
no environmental factors
flaws from assumptions
inadequate measurements
only show market share and growth
product life cycle varies

92
Q

6 risk of developing a new product

A

cost of investment
inaccurate market research
too expensive
may never be launched = time and money wasted

93
Q

6 benefits of developing new products

A

replace products coming to the end of their life
grow a larger product portfolio
sales increase for all products
reputation for launching new exciting products

94
Q

7 what is promotion

A

communicating something about the product
highlighting a special offer, or USP
advertising in a newspaper
sponsorships (RedBull)
Cars advertise on radiostation

95
Q

7 why do you promote

A

to inform
to persuade
to remind

96
Q

7 why would you promote something

A

inform customers or remind them
increase sales
create a change in product image
show benefits of the product

97
Q

7 what are some methods of promotion

A

advertising
sales promotion
public relation
sponsorships
social medias
personal selling

98
Q

7 what is advertising

A

TV and cinema
vehicles
radio
online
printed
newspapers, billboards, magasines

99
Q

7 what is sales promotion

A

short-term incentives to encourage customers to buy
buy one get one free
free samples
free gifts
discounts
competitions or coupons

100
Q

7 what is other promotional methods

A

personal selling
sponsorships
public relations
social media

101
Q

7 what is public relations

A

actions used by a business to arrange free media coverage of its activities
cannot control what’s being said by the media

102
Q

7 what is personal selling

A

using a sales force to promote the products of a business

103
Q

7 what is sponsorship

A

when a business uses its own money to support an event
commonly sports persons or sports events, arenas

104
Q

7what is social media

A

when a business uses social media platforms like facebook, instagram, tiktok, snapchat, etc to promote and make the public aware of its business, products or services

105
Q

7 what factors influence the promotional mix

A

target audience
finance
competitors actions
nature of the marketing mix

106
Q

7 why does cost and finance affect the promotional mix

A

some forms of promotion cost more than others
advertising on TV is more expensive than in a newspaper
different businesses will chose different promotional methods based on the finance available

107
Q

7 why does target market affect promotional mix

A

good form of communication if trying to talk to everyone
local radio is better for local businesses

108
Q

7 why does competitors actions affect the promotion mix

A

pressure on businesses to respond to other actions
if they see a competitor has a successful campaign they may adopt similar actions

109
Q

7 why is the nature of the market going to affect the promotion mix

A

size or market
market share
different promotional needs for different varieties of markets

110
Q

7 why does the nature of the product affect the promotion mix

A

brand image and style may affect what you choose to use
two for one price offer works well with fast food

111
Q

7 how do you select promotional styles

A

TV- sound, words, pictures
Poster- Words and Images
Printed advert- read several times
Radio Advert- only heard once, but played multiple times

112
Q

8

A

Business (7 decks)

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