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Business AS Flashcards :) > Business - Unit 3: Marketing > Flashcards

Business - Unit 3: Marketing Flashcards

1
Q

Primary Market Research

A

Collecting information which did not exist before the research began

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2
Q

Primary Market Research - Advantages

A

It’s up to date
Relevant and specific for the business
Only business with access to the info

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3
Q

Primary Market Research - Disadvantages

A

Expensive
Could have bias
Take long time
Not representative of the entire population

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4
Q

Secondary Market Research

A

Information which already exists in some form
It can be internal or external

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5
Q

Secondary Market Research - Advantages

A

Easier
Cheaper
Quicker to collect

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6
Q

Qualitative Data

A

Higher degree of info
Disagreement within business about the significant and importance of qualitative data

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6
Q

Quantitative Data

A

Produces data that can be tested
Can be compared
Hard to collate
Only numbers

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6
Q

Secondary Market Research - Disadvantages

A

Could be out of date
Not reliable

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7
Q

Extrapolation

A

Involves the use of trends established by historical data to make predictions about future values

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8
Q

Correlation

A

Another method of sales forecasting
Looks at the strength of a relationship between two variables

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9
Q

Positive Correlation

A

As one variable increases/decreases the other one increases/decreases

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10
Q

Negative Correlation

A

A relationship between two variables that move in opposite direction

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11
Q

No Correlation

A

A situation in which there is no connection between 2 or more facts

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12
Q

Price Elastic

A

Change in demand is more than the change in price

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13
Q

Price Inelastic

A

Change in demand is less than the change in price

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14
Q

Unitary price elasticity

A

Change in demand = change in price

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15
Q

Income elasticity of demand

A

Measures the extent to which the quantity of a product demanded is affected by a change in income

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16
Q

Luxuries

A

Income elasticity more than 1
As income grows, proportionally more is spent on luxuries

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17
Q

Necessities

A

Income elasticity less than 1 but more than 0
As income grows, proportionally less is spent on necessities

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18
Q

Geographic Segmentation

A

Customer location
Rural/urban region

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19
Q

Behavioural Segmentation

A

Personality
Lifestyle
Attitudes
Class

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20
Q

Demographic Segmentation

A

Age
Gender
Occupation
Socio-economic background

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21
Q

Income Segmentation

A

Disposable income
Substitutes

22
Q

Segmentation Advantages

A

Focuses resources on parts of a market where business can succeed
Allows a business to grow share in markets
Helps with new product development
Helps make the marketing mix more effective

23
Q

Segmentation Disadvantages

A

Segmentation is an imprecise science
The segments might not reach the target market
Markets are increasingly dynamic

24
Q

Niche Marketing

A

A specialised market segment where you cater for the demand for products/services that are not currently being supplied by the main suppliers

25
Q

Mass Marketing

A

Occurs when a business offers almost the same products to all consumers and promotes them in almost the same way

26
Q

Market Positioning - Advantages

A

Helps spot the gaps in market
Useful for analysing competitors
Encourages use of market research

27
Q

Market Positioning - Disadvantages

A

Just because there is a ‘gap’ doesn’t mean there is demand
Not a guarantee of success
Market research might not be reliable

28
Q

Boston Matrix Axis

A

X Axis- Relative Market Share
Y Axis- Market Growth Rate

29
Q

Boston Matrix - Star

A

High market share of a fast growing market

30
Q

Features of a Star

A

Competition is high
Products have high levels of revenue
Products have high levels of costs such as advertising
Brands have to be established
There is hope they will become the cash cows of the future

31
Q

Boston Matrix- Cash Cows

A

High market share in a slow growth market

32
Q

Features of a Cash Cow

A

Very profitable
Well- positioned
Expenditure on advertising is very low
Customers know and understand the product
Brand value has been established
Development costs have already been recouped
Little need for Investment

33
Q

Boston Matrix- Question Marks/Problem Children

A

Low market share in a fast growth market

34
Q

Features of a Question Mark/Problem Child

A

Market is fast growing but it is not selling
Currently failing but worth doing something about it
Could be solved by a product relaunch or an alteration of design
Expensive to deal with and unclear what is best

35
Q

Boston Matrix- Dogs

A

Low market share of a low growth/shrinking market

36
Q

Features of Dogs

A

May still be marginally profitable
Not generally worth spending large amounts of money
Can be worth holding onto them especially if they provide synergies

37
Q

Product Life Cycle

A

Development
Introduction
Growth
Maturity
Decline

38
Q

Pricing strategies - Cost-plus

A

Price is set by applying a percentage margin based on the unit costs of production or supply

39
Q

Pricing strategies - Dynamic

A

Setting flexible prices for products or services based on current market demands

40
Q

Pricing strategies - Price Skimming

A

Charging a premium price when a product is first launched in order to maximise revenue per unit

41
Q

Pricing strategies - Penetration pricing

A

Offering a significantly lower price than normal in an attempt to maximise volume sold and to build an installed base of product users

42
Q

Promotion - Above the line

A

Mass targeting people

43
Q

Promotion - Below the line

A

Target specific people

44
Q

Distribution

A

Involves the ways in which a product reaches the end consumer

45
Q

Aim of Distribution

A

To make products available in the right place at the right time in the right quantities

46
Q

4 Stage Distribution

A

Producer
I
Wholesales
I
Retailers
I
Consumers

47
Q

3 Stage Distribution

A

Producers
I
Retailer
I
Consumers

48
Q

2 Stage Distribution

A

Producers
I
Consumer

49
Q

Extended Marketing Mix - People

A

The employees and the people who produce the product

50
Q

Extended Marketing Mix - Process

A

Process of buying something

51
Q

Extended Marketing Mix - Physical Environment

A

The intangible
How the store feels when the consumer enters

52
Q

Digital Marketing

A

The promotion of brands to connect with potential customers using the internet and other forms of digital communication

53
Q

E-commerce

A

The trading of goods and services on the internet

54
Q

E-tailer

A

A person or company that sells products on the internet

Business AS Flashcards :) (5 decks)

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