Business Flashcards
Marketing (129 cards)
1
Q
What is marketing?
A
The process of identifying, anticipating and satisfying the customers needs in a beneficial exchange.
2
Q
What are the four elements of the marketing mix?
A
- Products
- Price
- Place
- Promotion
3
Q
What is customer satisfaction linked to?
A
Loyalty
4
Q
What is market orientation?
A
Bases its decisions on customers’ needs and continually monitors its environment.
5
Q
What is product orientation?
A
Focuses on what it can produce and hopes it fits customer requirements.
6
Q
True or False: Increasing customer satisfaction decreases loyalty.
A
False
7
Q
What is a marketing objective?
A
A marketing target for the business, setting out what it wants to achieve and when.
8
Q
What are sales targets?
A
Targets set in terms of sales volumes or value.
9
Q
What does market share measure?
A
A product’s or business’s sales as a percentage of total market sales.
10
Q
How is market share calculated?
A
Market share = sales of a business (or product) / total market sales × 100
11
Q
What does market growth measure?
A
The rate at which the market as a whole is growing over a given time period.
12
Q
What is a marketing plan?
A
Sets out the marketing objectives, strategy, budget and marketing activities necessary to achieve the marketing objectives.
13
Q
List the elements of a marketing plan.
A
- Executive summary
- Market analysis
- Marketing objectives
- Marketing strategy
- Resources required
- Marketing budget
14
Q
What is the marketing mix?
A
The combination of elements that influence a customer’s decision on whether or not to buy a product.
15
Q
What are the 7Ps of the marketing mix?
A
- Product
- Price
- Promotion
- Place
- People
- Process
- Physical evidence
16
Q
What is market segmentation?
A
The process of identifying different segments within a market.
17
Q
What is a target market?
A
A particular market segment that a business focuses its marketing activities on.
18
Q
What criteria must a market segment meet to be attractive?
A
- Measurable
- Accessible
- Profitable
19
Q
What is positioning in marketing?
A
Describes how a product or business is perceived relative to its competitors.
20
Q
What is a position map?
A
Shows customers’ perception of the product of the business, relative to its competitors.
21
Q
What is niche marketing?
A
Occurs when a business focuses on a relatively small segment of the market.
22
Q
What are the advantages of niche marketing?
A
- Focuses on one segment
- Resources required may be small
- Less perceived threat from larger firms
23
Q
What are the dangers of niche marketing?
A
- Total number of customers is low
- Larger businesses may enter the market
24
Q
What is mass marketing?
A
Occurs when a business targets all the customers in the market rather than specific segments.
25
What is a unique selling proposition (USP)?
A feature about your business or product perceived as different from competitors.
26
How does promoting a USP benefit a business?
It helps to differentiate offerings, establish a brand, and generate loyalty.
27
What is a USP?
A feature about your business or product perceived by customers as different from competitors.
28
How can promoting a USP benefit a business?
It can differentiate its offering, allow charging a higher price, establish a brand, and generate brand loyalty.
29
What is product differentiation?
When the benefits of your product are perceived as clearly different from those of competitors’ products.
30
List elements of the marketing mix that can differentiate a product.
* Distribution methods
* Brand values
* Pricing structure
* Delivery options
31
What are the advantages of product differentiation?
Attract customers, increase sales, charge more, and increase profit margin.
32
What are some disadvantages of product differentiation?
* Highly expensive to produce a new product
* Creates a niche market
* Competitors may copy the product
33
Define market research.
The process of gathering, analysing and producing data relevant to the marketing process.
34
What is the difference between a customer and a consumer?
A customer purchases and pays for a product or service, while a consumer is the person who ultimately uses it.
35
What is the purpose of market research?
To understand customers and the market to help make better marketing decisions.
36
What are fundamental needs and customer desires?
Fundamental needs are essential for survival, while desires are specific preferences.
37
What is primary market research?
Data gathered for the first time for a specific purpose.
38
Name the types of primary market research.
* Surveys
* Interviews
* Focus groups
* Observations
39
What are the advantages of surveys?
Can gather a lot of information quickly and are relatively cheap.
40
What is a disadvantage of surveys?
Respondents may answer quickly without providing useful answers.
41
What is a focus group?
A small group discussion to understand people’s values and feelings in depth.
42
What is secondary market research?
Uses data that already exists.
43
List sources of secondary market research.
* Market analysis
* Academic journals
* Government publications
* Media articles
* Online resources
44
What is qualitative research?
Research based on opinions, motives, and beliefs, usually collected through small focus groups or interviews.
45
What is quantitative research?
Research based on large samples, expressed in numerical terms, showing market trends.
46
Define sample in market research.
A group of people selected to represent the population as a whole.
47
What are the three main ways of selecting a sample?
* Random
* Quota
* Convenience
48
What is random sampling?
All the population has the same chances to get chosen, making it representative.
49
What are the advantages of quota sampling?
* More reliable results
* Ensures representation of subgroups
50
What is convenience sampling?
Using people who are easy for the researcher to study.
51
What are the disadvantages of convenience sampling?
High potential for bias and not representative of the population.
52
What is a sampling error?
When a researcher inappropriately designs market research.
53
What are the elements of the marketing mix?
* Price
* Product
* Promotion
* Place
* People
* Process
* Physical evidence
54
What do tangible attributes of products refer to?
The physical aspects of a product, including specifications, features, and design.
55
What are intangible aspects of a product?
Aspects that cannot be touched but are important, such as brand and core values.
56
What are tangible attributes of a product?
The physical aspects of a product, including specifications, features, and design.
57
What are intangible aspects of a product?
Aspects that cannot be touched but are important to customers, such as brand values, guarantees, and after-sales service.
58
What are the five stages of the product life cycle?
* Research and Development Stage
* Introduction Stage
* Growth Stage
* Maturity and Saturation Stage
* Decline Stage
59
What happens during the research and development stage?
The basic idea for the product is developed and tested, which may involve creating mock-ups and models.
60
What is the introduction stage of the product life cycle?
The stage at which the product is launched and put on sale, often with high promotion costs and potential losses.
61
What characterizes the growth stage of a product?
Sales increase as the product becomes known and accepted, leading to potential profits and expansion.
62
What occurs during the maturity and saturation stage?
Sales growth slows, and the market may be saturated with competitors' offerings.
63
What is the decline stage in the product life cycle?
The stage where sales begin to fall, and distribution may become more difficult.
64
What are extension strategies?
Marketing activities changed to prevent sales from declining.
65
Name a method of extension strategy.
* Increasing product usage on any given occasion
* Encouraging use on more occasions
* Reducing the price
* Adapting the product
* Introducing promotional offers
* Changing the product's image
66
What is brand loyalty?
The extent to which customers return to buy a particular brand and prefer it over rivals.
67
What are the benefits of brand loyalty?
* Reduces price sensitivity
* Encourages repeat customers
* Creates a recommending customer base
* Increases chances of success for new products
* Increases brand value
68
What is brand awareness?
The extent to which people are aware of and can remember a particular brand.
69
What factors determine the price of a product?
* Type of product
* Cost of producing a unit
* Customer ability to pay
* Demand for the product
* Sensitivity of demand to price changes
* Competitors' pricing
70
True or False: The price of a product influences purchasing decisions.
True
71
Fill in the blank: The _______ life cycle traces the stages of a product over its life.
product
72
What does brand value contribute to a product?
It can help a product be more profitable through higher prices and more sales.
73
What is the primary challenge businesses face with the product life cycle model?
Determining a product's life cycle stage can be challenging and may require real-time decision-making.
74
What is the relationship between life cycle, investment, profit, and cash flow?
Initial investment is required, but successful products may lead to growth, while failing products can result in losses.
75
What measures the sensitivity of demand to price changes?
Price elasticity of demand.
76
What must a business consider when setting its product prices?
Competitors' prices.
77
What is the purpose of stressing particular benefits of a product?
To justify a higher price.
78
What influences the price charged by a firm?
The objectives of the business.
79
What can limit a business's sales in the short-term?
Capacity.
80
How does the product life cycle affect pricing?
Prices may change at different stages.
81
What are the pricing methods mentioned?
* Cost-plus pricing
* Penetration pricing
* Loss leader
* Predatory pricing
* Premium pricing
82
Define cost-plus pricing.
Establishing the price by calculating production costs and adding profit.
83
What is the goal of penetration pricing?
To enter the market and gain market share with a low price.
84
What is a loss leader?
A product sold at a price that does not cover costs to attract customers.
85
What is the aim of predatory pricing?
To undercut competition by lowering prices.
86
What does premium pricing convey?
Quality and exclusivity.
87
List one advantage of cost-plus pricing.
* Simple to understand and calculate.
88
List one disadvantage of penetration pricing.
* Not sustainable long-term due to potential losses.
89
What is the purpose of promotion?
To communicate about products to customers.
90
What are the purposes of promotion?
* Informing customers
* Persuading them
* Reassuring buyers
91
What does the promotional mix refer to?
The combination of ways a business communicates about its products.
92
What is above-the-line promotion?
Mass media communication to build customer awareness.
93
What is one benefit of advertising on television?
Reach a very large audience.
94
What is one limitation of radio advertising?
Lack of visual stimulus.
95
What is below-the-line promotion?
Promotional activities targeting specific groups with direct contact.
96
What is direct mail?
Postal correspondence for promotional purposes.
97
What is a benefit of public relations?
Develops positive relationships with the press and public.
98
What are sponsorship deals?
Financial support to another organization or event for promotion.
99
What is point of sale promotion?
Promotion of goods in retail outlets where customers can buy them.
100
How does email promotion benefit businesses?
Cost-effective and environmentally friendly.
101
What is a customer loyalty program?
A program that allows customers to accumulate points for discounts.
102
What is merchandising?
Selling a firm’s own products as a form of promotion.
103
What are exhibitions?
Events where firms showcase goods and services to potential customers.
104
What is sales promotion?
A short term tactic to boost sales.
105
Fill in the blank: The price charged will be higher if the product has a _______.
Unique selling point.
106
True or False: Premium pricing is effective only if the brand is perceived as premium.
True.
107
What happens to a business using loss leader pricing?
It may incur losses on the loss leader product.
108
List one disadvantage of sponsorship deals.
* Negative behavior of the sponsor could harm the organization’s reputation.
109
What is sales promotion?
A short-term promotional tactic used to entice customers to buy a certain product.
## Footnote
Examples include free samples and buy one get one free offers.
110
What are the benefits of sales promotions?
Encourages customers to trial a new product or switch from a rival brand.
## Footnote
Sales promotions can effectively boost immediate sales.
111
What are the limitations of sales promotions?
Costly to maintain, customers may anticipate further promotions, delaying their purchases.
112
What is through-the-line promotion?
Combines above-the-line and below-the-line promotion to raise brand awareness and drive sales conversion.
113
What factors influence the promotional mix?
* The nature of the product
* The marketing expenditure budget
* The available options
114
How do consumer-durable products typically get advertised?
Advertised directly to end consumers, while sales teams handle interactions with wholesalers and retailers.
115
What is a zero-level distribution channel?
The good or service passes directly from producer to consumer without any intermediaries.
116
What is a one-level distribution channel?
A distribution channel that has one intermediary.
117
What is a two-level distribution channel?
A distribution channel that has two intermediaries.
118
What are the objectives of distribution?
* Ensure the right products reach the right customers
* Ensure timely and undamaged delivery
* Provide good value for money
119
What are some factors to consider when choosing a distribution channel?
* Access to market
* Desired degree of control
* Costs
120
What are the advantages of direct distribution?
* Keeps all sales revenue
* Maintains direct contact with customers
* Faster for customers
121
What are the disadvantages of using agents in distribution?
* Commission reduces producers' earnings
* Reliance on third parties for sales
* Risk of damage to producer reputation
122
What is digital distribution?
A method where customers access products directly online.
123
What is the importance of delivery processes in marketing?
Directly impacts customer satisfaction and influences perceptions, fostering brand loyalty.
124
What does physical evidence refer to in marketing?
Tangible aspects that influence the buying process, such as showroom design and cleanliness.
125
What are the key components that must work together in a marketing mix?
* Position in the product life cycle
* Boston Product Portfolio (BCG) matrix
* Type of product
* Marketing objectives
* Target market
* Competition
* Positioning
126
What characterizes industrialized products?
* Sold to businesses
* Professional buyers consider price and necessity
* Less focus on packaging and branding
127
What are convenience items?
Products like milk that are widely distributed and easily substitutable by consumers.
128
What defines shopping goods?
Products where customers compare features and prices before making a decision.
129
What are specialty products?
High-end items like sports cars or Rolex watches that customers are willing to travel far to purchase.
