Marketing Flashcards

Question

What are the uses of market research?

Answer 1

Identifies how much the customer is willing to pay Target market can be identified so the most appropriate methods of promotion are used Can gain a competitive advantage Reduces the risk of failure

Answer 2

Product Price Place Promotion

Answer 3

Must meet customers wants or they will not buy it Determines what the PRICE will be Determines how it is PROMOTED Determines where it is sold - PLACE

Answer 4

Physical appearance e.g. size, shape, colour Taste e.g. texture, flavour Quality - value for money Packaging – eye catching, environmentally friendly Unique Selling Point (USP)

Answer 5

``` Generate the idea Analyse the idea Produce the prototype Test the product Alter the product Produce the product ```

Answer 6

The first step is to come up with the idea for the product. This can come from within the business or from market research to find out what the consumer wants.

Answer 7

At this step the business will decide whether the product can be made. This may not be possible for a number of reasons e.g. lack of finance, lack of up to date technology, problems with design and production (internal factors).

Answer 8

The business will create an example of the product to see what it will look like, the size and the design to see if it works and is possible to produce.

Answer 9

Use test marketing or a focus group to ask the consumers views of the product. Collect feedback.

Answer 10

Make changes based on the market research to ensure the product is the best is can be. This will reduce the risk of failure

Answer 11

Start production of the product. Advertise and promote the product so that consumers are aware that it exists.

Answer 12

Brands are products or ranges of products which have a unique, easily recognised character It can be a word, symbol or slogan that no-one else can use Brands are perceived to be better quality than other similar products Customers will pay a premium price for a branded item, partly due to high packaging and advertising costs.

Answer 13

Creates a unique identity and is instantly recognisable to customers Helps to encourage repeat custom New products are trusted by consumers - reduces the risk of failure Gives an impression of quality and reliability A premium price can be charged The brand name can become valuable

Answer 14

Establishing a brand is expensive and time consuming. To protect the brand name legal costs will be incurred Bad publicity for one product in the brand can negatively affect the whole brand name Some brands are likely to be copied, fake versions can appear on the market for cheaper Brands must invest in research and development and advertising to remain competitive

Answer 15

When a business produces and sells their own version of a product. Usually, the brand is the name of the retailer Retails do not normally manufacture their own products e.g. McVities manufacture and package biscuits for M&S

Answer 16

Usually cheaper than branded products therefore popular with customers. Gives customers more choice Very little advertising required as own brand is well known e.g. Tesco

Answer 17

Sometimes seen as poorer quality compared to other brands Can be viewed as a copy or imitation of a brand.

Answer 18

Packaging is the materials used to protect and promote goods. Packaging is designed to capture a customer’s attention and it can directly effect whether they buy the product or not. Packaging has to fulfil a number of important functions, including: communicating the brand and its benefits protecting the product from damage preventing leakage of the contents presenting government-required warning and information labels. It is almost as important as the product itself as it has to represent the brand and the product!

Answer 19

Makes the brand recognisable and identifies the product from their competitors – advertises the brand Attracts consumers and persuades them to try a product Protects the product and can keep it fresh e.g. food Informs consumer about the product e.g. ingredients Can be updated to attract new customers e.g. Coca-Cola name bottles and Santa bottles Can make the product look like it is of a higher quality

Answer 20

Can be costly for the business to make packaging if it wants to give an impression of a high quality image Needs to be updated to stay in line with Government legislation More pressure to reduce plastic use and easy to recycle materials to limit damage to the environment Product packaging can be misleading which can give the business a bad reputation Packaging can be copied easily

Answer 21

Low Price Market Price High Price (Premium Price) Penetration Pricing Price Skimming Promotional Pricing Psychological Pricing Destroyer Pricing Cost-Plus Pricing

Answer 22

A business may decide to charge a price lower than those of competitors to increase sales. It is usually used in a marketplace with little brand loyalty and competition is high. Can be used to attract a different target market e.g. value ranges in supermarkets.

Answer 23

The price is set at the market rate which means that a business charges a similar price to competitors. This happens in markets where there are a few large dominant companies e.g. petrol. If one petrol retailer reduces their price competitors will match it or better it almost immediately. Instead of competing on price these businesses tend to compete using other incentives such as air miles, nectar points or free gifts.

Answer 24

A business can charge a high or premium price for their product if they are seen as being better than their rivals in meeting the needs of the target market e.g. perfumes and designer clothes. Other reasons for charging a high price would be a well-established brand name and reputation, lack of competition in the market or a USP (Unique Selling Point). In the short term a high price can be charged for innovative products when they are first introduced to the market.

Answer 25

This is used by a business that is entering a market where competitors are already selling similar products. Prices will be set lower than competitors to tempt customers to choose to buy the new product rather than the competitors. Once the popularity of the product increases the price will increase in line with competitors’ prices.

Answer 26

A business will use this strategy when they are the first to launch a new product onto the market. The price is high which allows the business to make a large initial profit and recoup some of the costs of developing the new product. As competitors enter the market the price will gradually fall.

Answer 27

This is used to boost sales in the short term by lowering the price of the product. It can also be employed to create interest in a new product e.g. BOGOF, 20% off flash sale. Supermarkets use promotional pricing for some of their products. They will advertise the low price for these products attracting customers into the store in the hope that they will buy a whole range of other goods at the same time.

Answer 28

A business will set prices to make the customer believe that the product is cheaper than it is, for example 99p instead of £1.00 or £99.99 instead of £100.00.

Answer 29

This is used by a business who wants to eliminate the competition from the market. Prices are lowered to force competition to lower their prices – hopefully forcing them out of the market. When that happens, prices are increased to their original level. This strategy is used by large organisations who can afford to make a loss in the short term until the competition has been destroyed.

Answer 30

A common way to make pricing decisions is to calculate how much it costs to make a product or complete a particular job and then add on a percentage for profit. This is known as the MARK UP.

Answer 31

Staffing Competition Location of Customers Parking Facilities Infrastructure Finance Available

Answer 32

Businesses want a location where a customer base already exists e.g. a busy shopping mall Customer will not travel too far – market research will help identify where the customers are

Answer 33

Certain size of shop may be required Certain facilities may be needed e.g. large stockroom, kitchen area

Answer 34

Transportation links are required so customer, employees and suppliers can get to the business

Answer 35

Businesses need to think about the environmental impact – they do not want to be ripping down forests in order to build premises

Answer 36

A certain number of staff might be needed – an area with high unemployment levels would benefit a business Employees with suitable skills may be required e.g. tradesmen

Answer 37

``` E-commerce High Street Shop Shopping Centre Catalogues Teleshopping Market ```

Answer 38

Cinema TV Billboards

Answer 39

Celebrity endorsement advertising is defined as a well-known person using his or her fame to help promote a product or service

Answer 40

Consumers buy the product in an attempt to be the same as the celebrity Assumed the products will be of a high quality as celebrities are using them Exclusive image - higher prices can be charged Brand loyalty can be created

Answer 41

It can cost large amounts of money to get and retain the celebrity If the celebrity gains bad publicity the product also tarnished

Answer 42

Billboard advertising is the process of using a large-scale print advertisement to promote a product/service

Answer 43

Usually in busy locations Can be cheaper than other forms of advertising Potential customers will see the advert repeatedly over a long period

Answer 44

May be ignored by passers-by Can only include limited information No demonstration can be made

Answer 45

Technology plays a major role in marketing. This is used in market research, promotions, and sales through online surveys, EPOS, social media adverts, and e-commerce

Answer 46

``` Social Media Apps Text Alerts E-mail e-commerce Online Surveys ```

Answer 47

Databases are used by the marketing department to store highly detailed information on customers purchases. Databases allow departments to easily access these records so they can target particular groups of society and see which products are commonly bought together.

Answer 48

This is the buying and selling of goods online. The marketing department can use e-commerce to reach the global market who will be able to shop 24-hours-a-day 7-days-a-week.

Answer 49

Can sell worldwide means the business will be better known Increased sales, leading to increased profit Savings on expensive showrooms/stores Business is open 24/7 Can sell a larger variety of stock

Answer 50

Business is in competition with lots of others Designing and keeping the website up-to-date is expensive and requires specialists Not all the businesses target customers have access to the internet. If the website crashes, then customers won't be able to buy any goods.

Answer 51

Customers have a wider range of goods to choose from They can ‘shop around’ and get the best deal Internet prices are often lower than in shops Customers can shop from the comfort of their own home ‘24/7’ Arrange when you want your items delivered and where

Answer 52

Customers need to own or have access to a computer and be on-line and know how to use the Internet. Delivery problems Inconvenience of returning unwanted goods. Time it takes for refund to be put back into your account Difficulty in communicating with business Security risks of buying on-line

Answer 53

Cinema advertising is a form of advertising used in cinema to promote products or services. The presence of the advertisement takes place before the movie for around 20-30 minutes.

Answer 54

The message is short lived Limited audience Expensive to produce good quality adverts

Answer 55

Exposure to a national audience targeting all market segments/ socio economic groups Product can be demonstrated Regular adverts can be very persuasive

Answer 56

A television advertisement is a span of television programming produced and paid for by an organization. It conveys a message promoting, and aiming to market, a product or service.

Answer 57

Producing paid material to inform public of a product or service.

Answer 58

A short-term marketing strategy which aims to increase sales of a particular product or a range of products.

Answer 59

The more that a customer spends in a shop, the more points are added to their loyalty card. These points can then be converted into some sort of reward, for example a discount on other products.

Answer 60

Many food companies will offer free samples as a way to let potential customers test a product

Answer 61

Often a business will encourage customers to buy by offering a free gift with its product.

Answer 62

Point of sale displays are to be found at the checkout. The point of sale display is most commonly designed to attract the customer to products that are new

Answer 63

A commonly used special offer. This deal is used to offer customers extra value and may encourage them to buy more or to choose one business or product over another.

Answer 64

Special offers are short-term pricing strategies that businesses, especially shops, will adopt to encourage customers to buy from them.

Answer 65

By offering products at a reduced price for a set period of time, a business can offer customers better value

Answer 66

Customers can agree to be added to a mailing list and they will be e-mailed with special offers, details of new products and other promotional materials.

Answer 67

When a customer scans a QR code it will take them directly to a company website. They are often shown on promotional advertising billboards and magazines. It enables the customer to access the goods quickly and easily. This could increase sales.

Answer 68

Market research conducted over the internet in the form of a questionnaire e.g. SurveyMonkey and e-mail. (Refer back to methods of field research).

Answer 69

Using platforms such as Twitter/Instagram/Facebook/ Snapchat which allows quick interactions with customers. Customers follow businesses they like to see products on sale and can see updates on stock levels. Sharing/ “like”ing of information increases the exposure of the business and celebrities can tag businesses in posts. Easy to run competitions which boosts publicity.

Answer 70

With the growth in mobile technology many businesses have launched Apps to give customers easier access to products and services when they are on the move

Answer 71

These are used to keep customer records and can be easily searched to allow the business to target marketing materials to particular groups of customers e.g. student discount

Answer 72

This software package can be used to design eye catching marketing materials to persuade customers to buy products/services