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Business Management Unit 2 > AOS2: Marketing a Business > Flashcards

AOS2: Marketing a Business Flashcards

(67 cards)

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1
Q

Marketing

A

The process that provides the link between the producers and the consumers

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2
Q

Marketing Concept

A

Where the business focuses on satisfying the needs of the consumer rather than just selling a product

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3
Q

Market-oriented Approach

A

Where the business simultaneously achieves its business objectives and satisfying customers

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4
Q

Pareto Principle

A

Idea that approximately 80 per cent a business’ revenue is generated by approximately 20 per cent of their customer base.

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5
Q

Internal environmental factors that affect the establishment of a customer base

A

Culture of business, owners and managers, Employees

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6
Q

Macro environmental factors that affect the establishment of a customer base

A

Economic factors, technological developments, legislation and regulation,

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7
Q

Operating environmental factors that affect the establishment of a customer base

A

Customers (Loyalty, respect to customers) Competitors

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8
Q

Market Research

A

Systematic procedure used to develop and analyze new and existing information.

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9
Q

What does market research assist a business to do?

A

Reduce the risk or uncertainty attached to introducing a new product, assess current products, and determine whether changes need to be made, predict future changes or trends

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10
Q

Exploratory Research

A

type of research design that involves collecting information in an unstructured and informal manner, such as reading an article.

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11
Q

Descriptive research

A

Type of research design that incorporates such things as consumers’ attitudes, intentions and behaviour.

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12
Q

Causal Research

A

Aims to find the cause and effect of certain actions.

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13
Q

Primary Data

A

Refers to information gathered by the business owners themselves

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14
Q

Secondary Data

A

Refers to information previously collected

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15
Q

Examples of primary data sources

A

Surveys/Questionnaires, Interviews, Direct Observation, Focus Groups

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16
Q

Examples of secondary data sources

A

Company records, financial statements, annual reports, libraries, newspapers, magazines

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17
Q

Best method to gather quantitative research

A

Questionnaire

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18
Q

Best Method to gather qualitative research

A

Focus Groups

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19
Q

Market

A

Comprises customers and potential customers with similar needs and desires who may purchase a product or service through the exchange of money

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20
Q

Mass Marketing

A

When a business markets its product or service to an entire market

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21
Q

Niche Market

A

Subset of a larger market with its own needs and preferences

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22
Q

Market Segment

A

Relatively similar group of customers who are likely to respond in similar ways

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23
Q

Market Positioning

A

Where a product is placed within a market with regards to its image, price and age of the target market

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24
Q

Market Segmentation

A

Defines and subdivides a large generic market into distinct subsections of potential customers who have similar specific needs and wants

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25
Marketing Mix
Seven variables that are used when undertaking marketing strategies: product, price, place, promotion, people, physical evidence and process
26
Forms of segmentation and their variables
Geographic- region, size of city, suburban or rural Demographic- age, gender, income level, education Psychographic- Social class, personality, lifestyle Behavioral- Needs, kind of shopping
27
Target Market
Group of customers the business actually wants to sell its products to
28
Generic Market
Broadly similar needs of customers are met by sellers offering a variety and often diverse range of products; e.g. the entire drinks market
29
Product market
When a consumer is looking for a particular item; e.g. a particular type of drink
30
Examples of trends and behaviors due to COVID-19
Increased online transactions and usage of technology, shift to the suburbs, change in purchases
31
Factors influencing consumer behavior
Cultural, social, personal, psychological, situational
32
Product
Anything that can be offered to a market to satisfy a need or want
33
Consumer profile
Statistical picture of the typical consumer of a product based on demographic data
34
Stages of Product Development
Idea Development, Idea Screening, Idea Evaluation, Developing the product, Commercialization of the product
35
Product Mix
Full set of all products being sold by a business
36
Product Line
Broad group of products intended for basically similar uses and have reasonability similar characteristics
37
Brand
Distinguishing name, symbol or design used to identify one manufacturer's product and differentiate it from another product.
38
Price
Amount of money paid by customers for a product
39
Penetration pricing
where the price is set lower than that of competitors, to get customers to try the product and then remain with the company.
40
Skimming pricing
Used for products that are of high quality and have an 'image' attached to them
41
Loss Leader
Price on a product is set low in order to attract customers to buy other products in the range that are more expensive
42
Psychological pricing
Strategy where the price is set in accordance with the value consumers place on the product
43
Complementary Pricing
Where the price is set low on one item and high on another item that would normally go together
44
Place
involves making decisions to ensure that the right quantity of a product is in the right location, at the right time.
45
Direct distribution channel
Where the manufacturer sells their product directly to the customer
46
Indirect Distribution Channel
Involves the use of a retail outlet, where products are stored and displayed.
47
Advantages of direct distribution
Cuts out retail profit margin, pricing are under control of producer
48
Disadvantages of direct distribution
Producer needs to warehouse the stock, not on display
49
Advantages of indirect distribution
Cost of holding stock passed on
50
Disadvantages of indirect distribution
Profit is shared with retailer, out of control of the manufacturer.
51
Promotion
Involves the business communicating with its actual or potential customers by informing them about the business's products or services
52
People
Staff must be appropriately trained and motivated, have the right attitude and be suited to their role
53
Examples of physical evidence
Evidence showing a service was performed, the physical environment it was performed and the signs and symbols of the business
54
Product life cycle: Introduction
Lauch of the product, sales at this stage are low, profits are non-existent and competition is scarce.
55
Product Life Cycle- Growth
Sales will be growing fast, with profits rising then flattening out.
56
Product Life Cycle: Maturity
Level of sales has stabilized. Demand has been satisfied and the product doesn't yet need to be replaced.
57
Product Life Cycle: Decline
The product should be withdrawn from the market, or exported.
58
Customer Relationship Marketing
Uses marketing strategies to develop relationships with clients, gain customer loyalty and bring value to the brand
59
Examples of Customer Relations Strategies
Providing quality customer service and establishing customer loyalty programs
60
Examples of technological developments in marketing
Social media, Email marketing, Search engine optimization, AI, Data analytics, management of data
61
Public relations
Practice of promoting goodwill among the public to present a favorable image
62
Planned public relations strategy
Strategies established ahead of time, setting out a series of steps to be undertaken
63
What should a well-planned public relations campaign achieve?
Increased customer base, increased demand for products, gain a competitive edge, enhancing credibility, creating goodwill within the community
64
Examples of strategies used for planned public relations
Free publicity, develop relationships with the community, public information, media releases, social media, sponsors
65
Crisis public relations
When a crisis has arisen that a business has to respond to and manage their brand
66
Green marketing
Marketing of products that are presumed to be environmentally preferable to others
67
How can businesses gain green marketing opportunities?
Using recycled products, using green energy, decreasing level of waste

Business Management Unit 2 (4 decks)

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