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business studies > AS2 TP2 and TP3 > Flashcards

AS2 TP2 and TP3 Flashcards

1
Q

what is market research?

A

involves gathering info about customer attitudes, behaviours and wants in relation to products

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2
Q

what is the purpose of market research?

A

describe the market - explore trends

explain the market - why market has fallen

predict change - how customers will respond to rise in price

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3
Q

what is qualitative data

A

non-numerical data finds out opinions and why people are interested gathered from open ended questions can be difficult to measure results

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4
Q

what is quantitative data

A

numerical data, presents factual info questions are structured

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5
Q

what is primary research?

A

finding out info brand new first hand info for firms own specific needs

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6
Q

advantages of primary research

A

original info collected, up to date completely relevant to business

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7
Q

disadvantages of primary research

A

bias may occur costly (hire analysts) time consuming to create questionnaires

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8
Q

what is secondary research

A

involves using data that has already been collected by another organisation for a different purpose (existing info)

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9
Q

advantages of secondary research

A

easy to access and check accuracy, relatively low cost quicker to complete

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10
Q

disadvantages of secondary research

A

not directly relevant to firm data can be outdated aswell as biased

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11
Q

advantages of questionnaires

A

quick and convent easy to interpret

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12
Q

disadvantages of questionnaires

A

in depth opinions not given, response may not be accurate

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13
Q

what is a consumer panel?

A

group of experts chosen to answer a series of questions about a product

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14
Q

advantages of a consumer panel

A

low costs
high response rate
current up to date

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15
Q

disadvantages of consumer panel

A

bias
distorted results
may not be representative

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16
Q

advantages of interviews

A

face 2 face so learn more about person

can see attitudes and communication skills

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17
Q

disadvantages of interviews

A

time consuming and costly
not easy to analyse

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18
Q

what are focus groups

A

structured discussion of pps and comments are recorded by researcher given product for a trial period to see how it goes over time

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19
Q

advantages of focus groups

A

allows for discussion detailed answers qualitative data

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20
Q

disadvantages of focus groups

A

small scale so not representative
could be very biased

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21
Q

advantages of face to face surveys

A

questions can be explained, low refusal rate

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22
Q

disadvantages of face to face surveys

A

expensive to generate questions
can be made bias

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23
Q

advantages of store loyalty cards

A

easy to run, firm can build up customer profile

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24
Q

disadvantages of store loyalty cards

A

expensive to set up and run, concerns about how info is used and who can access it

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25
what is sampling
choosing a percentage of target market to carry out research on
26
advantages of sampling
provides insight into behaviour of target market can prevent errors being made can be used flexibly - adopted to suit different needs
27
disadvantages of sampling
may be unrepresentative may be bias in questions opinions gathered may be outdated
28
what is random sampling
every member of population has equal chance of being interviewed
29
advantages of random sampling
simple to design and interpret allows firms to accurately estimate size of a potential sampling error act used to help with the selection
30
disadvantages of random sampling
may be slow collecting data is time consuming and costly firm may spend too much time on deciding what list to pick sample from
31
what is stratified sampling
used when a selection is required from a number of sub groups selected randomly from a list but within sub groups like age, gender
32
advantages of stratified sampling
should be less biased and more accurate
33
disadvantages of stratified sampling
time consuming and costly
34
what is a cluster sample?
selection of sub-groups made within an unknown population used when difficult to gather info of entire population
35
advantages of cluster sampling
cheaper and faster info gained from range of different areas larger sample size
36
disadvantage of cluster sampling
each cluster may be different size affecting reliability of results sometimes results can't be generalised to other sub groups
37
what is a quota sampling
population is segmented into a number of groups which share specific characteristics
38
advantages quota sampling
results are more suited to firms needs as those chosen are specific sample should be representative easier and cheaper to conduct
39
disadvantages of quota sampling
bias - not based on laws of probability samples may be tempted to cut corners to speed up process can be expensive as may have to employ specialists to carry out sample
40
MARKETING MIX ONWARDS
41
what is marketing?
process which identifies anticipates and satisfies customers requirements of profits
42
what are the 7 p's in the marketing mix
profit, place, price promotion, people, process psychical environment
43
what is the product
refers to the object that the business provides to consumers, it must be right for target audience and have features customers expect
44
what is product branding.
the unique name, logo designed to the business' product aim is to differentiate from competitors products through use of a USP
45
what factors need to be considered in the product design
functionality - extent product is effective in its use aesthetically pleasing - attributes that differentiate their product from competitors regarding looks cost - costs of designing and producing the product ethical - emphasise the business acts in a ethical manner throughout production
46
what factors affect the pricing strategy decision
production costs brand reputation competition pricing
47
what is price skimming
business adopts when dropping new product, the price is set high initially then reduces in price in order to cover cost of production quickly
48
advantages of price skimming
helps firm recover quicker from R&D high profit margins available strategy works efficiently if target audience is quality conscious over price conscious
49
disadvantage of price skimming
can backfire if competitors release similar product at lower price if company has history of price skimming consumers may wait fro price to drop
50
what is value based strategy
practise of setting price of product as its perceived value to customer
51
advantages of value based strategy
increases profit - method results in highest possible price being charged customer loyalty - despite the high prices charged if the product provided justifies the high price
52
disadvantages of value based strategy
niche market - method only acceptable to small no. customers competition - allows a great deal of room for competitors to offer lower prices and take away business' market share labour costs - assuming service is provided likely offering such a high end skill set that the employees needed will be expensive to train
53
what is penetration pricing
initially sets low price for its products and then gradually increases the price once good customer base is developed
54
advantages of penetration pricing
creates customer base quickly helps a firm capture market share from its competitors as this strategy sets low initial price improves overall efficiency as workers are aware the price will be low so they work to keep production costs down
55
disadvantages of penetration pricing
firm is sacrificing the point in initial phase when its new and excitement not ideal for products technologically driven as new tech comes out too often penetration may not create loyal customer base and only attract customers looking for a profitable deal
56
what is cost plus strategy
refers to that pricing strategy under which the company adds all costs which have gone into a product like raw materials
57
advantages of cost plus strategy
company knows exact amount of expenditure that occurred during production so can add profit margin accordingly simplest method to decide the price because one has just to add up all the costs and then add he profit margin
58
disadvantage of cost plus strategy
doesn't take into account future demand for product doesn't account for competitor actions and its affect on pricing can result in company overestimating the price of a product as there could be some bias in deciding profit margin
59
what factors should be considered when adapting a pricing strategy
price elasticity of demand, price change may change demand product life cycle skimming strategy may be effective in early stage brand strength - if business is well established product they can charge higher
60
what is promotion
refers to activities a business undertakes to ensure both potential and current customers are aware of products
61
what are the 3 methods of promotion
advertising, special offers and joint ventures
62
what is advertising
paid form of non personal media intended to persuade and inform
63
advantages of advertising using television
wide audience, can adapt to suit audience e.g time shown
64
disadvantage of advertising using television
very expensive, too many channels
65
advantages of advertising using internet
worldwide potential, can contain a lot of info
66
disadvantage of advertising using internet
pop ups are irritating
67
explain how products are advertised using special offers
product or service is offered at reduced price e.g. buy one get one free can be used to clear stock
68
advantages of using special offers as advertising
can generate sales and increase profits can be effective for first time entry onto market can help add to brand awareness and attract new customers
69
disadvantages of using special offers as advertising
only a short term boost to sales and profits can make it difficult to sell a product at full margin can change expectations of your customers, if done regularly it can be expected
70
what is meant by place (4th p's)
distribution, transporting goods to the distributor or direct to customer
71
what are the five channels of distribution
distribution, transporting goods to the distributor or direct to customer
72
what is retail distribution
retailer buys product direct from manufacturer and distributes to customers e.g high street shop
73
advantages of retail distribution
gives personal service to customers
74
disadvantage of retail distribution
expensive to operate a retail store
75
what is wholesale distribution
wholesaler buys goods direct from manufacturer, stores them and redistributes them to individual retailers
76
advantages of wholesale distribution
wholesaler provides storage reducing cost for retailer
77
disadvantages of wholesale distribution
efficient supply chain required which isn't always possible so sales may decline
78
what is internet distribution
use of internet technology to undertake e-com activities
79
advantages of internet distribution
easy and handy for customers
80
disadvantages of internet distribution
security issues and reliability of internet tech may impede sales
81
what is meant by people in the marking mix
employees - highly skilled staff allow business to be efficient management - ensure resources are provided to enable staff development customer service
82
what is meant by process in marking mix
dealing with complaints and issues refers to the system employed by the firm to ensure their services are successfully delivered to customers
83
what is the psychical environment in the marketing mix
what it looks like, psychical environment allows customers to perceive the quality of business and its service

business studies (22 decks)

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