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Higher Business Management > Marketing > Flashcards

Marketing Flashcards

(77 cards)

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1
Q

Desk Research - Description

A

Involves researching & analysing info that has been gathered
- News articles
- Sales figures
- Competitor’s website

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2
Q

Desk Research - Advantages

A

Timely - Desk info is quick to gather

Available - Already exists, easy to look up

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3
Q

Desk Research - Disadvantages

A

Not Appropriate - Desk info not fit for exact purpose may have to be changed to fit a businesses needs

Not Concise - Researcher may have to read lots of info to get what’s needed

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4
Q

Field Research - Description

A

Gathering new info suitable for business’s exact needs

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5
Q

Field Research - Advantages

A

Timely - Info is up to date

Complete - No parts missing

Accurate - Info should be correct as it can be validated

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6
Q

Field Research - Disadvantages

A

Not Cost Effective - Requires trained & paid interviews or expensive companies

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7
Q

Stages of Product Life Cycle

A

Product development - Product being researched & develops changes made after feedback

Introduction - Product is launched, promo activities for hype

Growth - Product been on market for a while, customers aware of it & purchasing it

Maturity - Competition starts to enter market

Saturation - Product suffers from too many competitors

Decline - Product stops being produced

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8
Q

Product Portfolio - Description

A

A range of products on sale

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9
Q

Product Portfolio - Advantages

A

Can spread risk over different markets

A range of products increases awareness of the brand as a whole

Newer products can replace those at the end of their life cycle

Businesses will find it easier to launch new products with a large existing portfolio

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10
Q

Product Portfolio - Disadvantages

A

High costs involved in researching & developing products

High marketing costs incurred to promote so many products

Bad publicity surrounding a product can affect the whole portfolio

Dogs can drain a business of profits unless divested

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11
Q

Pricing Strategies - Competitive

A

Price of product similar to competitiors

  • Avoids price war
  • Encourages competition, improves market
  • Other elements of marketing mix must be better than competitions to ensure sales
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12
Q

Pricing Strategies - Skimming

A

Price set high to begin with & lowers over time

  • Hype around product enables higher prices to be charged, increases profits
  • Lack of competition allows maximum prices to be charged
  • High prices puts people off
  • Results in low initial sales
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13
Q

Pricing Strategies - Penetration

A

Price set low to begin with & increases over time

  • Encourages customers to try new products
  • Business hopes to gain repeat custom once price rises
  • Little profit generated during initial low price period
  • Could result in price war if competitors set lower prices
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14
Q

Pricing Strategies - Destroyer

A

Price set extremely low for a period of time to force out competitors

Competitors are forced out of the market, then prices can increase again
Increases market share

Can only be used by larger
companies that can afford to make losses
Illegal & could breach CMA’s anti-competition rules

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15
Q

Pricing Strategies- Cost Plus

A

Business calculates unit cost & then adds percentage mark-up for profit

Quick way of setting selling price
Ensures total costs are covered & profit is generated

Indirect costs not covered
External factors not taken into account

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16
Q

Pricing Strategies - Price Discrimination

A

Price altered depending on discriminating factor

Ensures products appeal to different market segments
High profit margins on some price brackets

Harder to budget for sales revenue in advance
Loss in potential revenue from selling at cheaper price

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17
Q

Pricing Strategies - Loss Leaders

A

Promo price of 1 or more products set unprofitably low so customers buy other products

Brings customers to business
Encourages repeat purchases

Risk that some customers will only buy loss leaders, impacts profits

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18
Q

Pricing Strategies - Psychological

A

Price set just below next rounded number

Makes customer think product is cheaper than it is
Product fits price band customer has in mind

Calculating total owed can be more difficult
Customers may ignore attempt so rest of marketing mix must convince them to purchase

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19
Q

Press Conferences

A

Media invited to business presentation where they’re given info or news

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20
Q

Press Conferences - Advantages

A

Business can send message to wide audience whilst keeping control of what’s reported

Helps get the media ‘on side’, allows press the opportunity to ask questions directly

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21
Q

Press Conferences- Disadvantages

A

Could face difficult questions & be put on the spot

Business could make situation worse if under-prepared

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22
Q

Press Releases

A

Media provided with written account of business’s newsworthy events

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23
Q

Press Releases - Advantages

A

Can counteract bad publicity

Business can send messages without further questions

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24
Q

Press Releases - Disadvantages

A

Takes time to ensure wording is correct

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25
Donations
Some donate anonymously, others make it a PR event
26
Donations - Advantages
Promotes the CSR aims of business & can make it seem ethical Can help business achieve a positive image
27
Donations - Disadvantages
Some shareholders may prefer money being invested in growing the business
28
Sponsorship
Pay to support an event
29
Sponsorship - Advantages
Can benefit from success of those they sponsor Can help businesses become popular with customers who support the event
30
Sponsorship - Disadvantages
Expensive If event suffers bad PR then business will be associated with it
31
Company Visits
Opens factories to public
32
Company Visits - Advantages
Customers can get a sense of what the business is like
33
Company Visits - Disadvantages
Staff will have to show visitors around which can affect their productivity
34
Promo Merch
Giving out free gifts with business details on them
35
Promo Merch - Advantages
Customers reminded of company when they use the item Customers feel rewarded
36
Promo Merch - Disadvantages
Expensive Cheap-looking gifts can affect business’s image
37
Research & Development
Sales - No sales yet as product is still being developed Profits - Making a loss due to development costs
38
Introduction
Sales - Slow as customers unsure of product Profits - High promo costs result in a loss
39
Growth
Sales - Rising rapidly due to lack of competition Profits - Starting to be made
40
Maturity
Sales - Peak & levels out Profits - Starting to fall
41
Saturation
Sales - Beginning to fall as customers flocking to competition Profits - Falling rapidly
42
Decline
Sales - Product withdrawn from market Profits - Continuing to fall
43
People
Refers to who is representing a business Train staff to deal with customers effectively - Staff informed of business expectations Regularly update staff on product developments - Staff appear knowledgeable Ensure selection methods are rigorous - Employees suitable to represent business Monitor staff - Ensures staff representing business appropriately
44
Process
Refers to how a customer receives a service Ensure outlets & call centres are well staffed - Avoids long queues Offer live chat services on website - Reduces number of queries made over the phone Empower customer-facing staff to make decisions - Avoids waiting as queries not passed onto management Introduce latest tech - Faster than humans & will speed up processes
45
Physical Evidence
Refers to what customers see Modern & clean vehicles & premises - Customer’s opinion not ruined by dirty shops or vans Settings should convey ambiance to match service on offer - Customers feel needs are recognised even before making a purchase Feedback from customers should be promoted - Provides reference materials for new customers Layout of website should be carefully considered - Should convey the type of business it is
46
Direct Selling
Selling directly from manufacturer to consumer
47
E-Commerce
Business selling products using the internet Entire range can be shown online Customers reached 24/7 Online discounts offered Expensive to design high-quality websites Customers need internet access May have to pay delivery costs
48
Mail Order
Business selling its products using a catalogue Credit facilities offered to customers Companies save on staffing & store costs Glossy catalogues can be expensive to produce Bad debt may be incurred
49
Direct Mail
Business posts letters & letters directly to customer Specific market segments targeted Wide geographical area targeted by placing leaflets inside newspapers Customers may perceive this as junk & may throw this away Customer mailing lists can quickly become out of date
50
Personal Selling
Salesperson sells products directly to customers Allows demonstration or explanation of product to be given Feedback on products gathered from customers Customers may not listen to this type of selling Staffing costs & commission make this expensive
51
Shopping Channels
Business selling products on the TV Customers see product being modelled Customers encouraged to buy on impulse Customers need to switch onto the channel Long waiting times & have to pay delivery costs
52
Market Led
Business develops products off of customer wants Market research carried out to determine customer wants Exist in competitive markets Marketing mix responsive to changes in external factors
53
Product Led
Produces products they believe customers want High levels of product development New tech often product led Product unresponsive to changing external factors
54
Need/Want
Businesses need to understand different motivations customers have & offer products accordingly
55
Types of Purchases
Routine/habitual Impulse Informed Marketing has to raise awareness of products & promotion methods can influence routine purchase
56
Field Research - Quota Sampling
Researcher chooses from group of people with certain characteristics A - Easy as group lists are pre-made - Can select customers that reflect target market D - Sample from each group not randomised, researcher could use bias
57
Field Research - Online Survey
Website or email used to ask customer questions A - Customers surveyed over large geo area - Online software used to easily analyse results D - Clarification not gained - Access to internet must be available
58
E-Commerce
Selling products online A - Customers reached 24/7 - Entire range shown online - Online discounts offered to attract customers D - Takes time & money to set up website - Customers need internet access - Customers wary of providing details online
59
Direct Mail
Business posting letters & leaflets to customers directly A - Specific market segments targeted - Wide geographical area targeted D - Customers may perceive as "junk mail" & throw it away - Mailing lists can become out of date, wastes money
60
Personal Selling
Salesperson selling directly to customer A - Allows demonstration of product - Feedback gathered from customers D - Can be seen as a hassle - Staff costs makes this expensive
61
Wholesalers - Manufacturers
A - Packaging of goods carried out by wholesaler which saves manufacturer time - Wholesalers buy in bulk, saves manufacturer making small deliveries D - Less profit as cut is taken by wholesalers - Manufacturer loses control of how product is marketed
62
Wholesalers - Retailers
A - Can benefit from promotions offered by wholesalers - Can trial smaller orders of new products, not left with unsold inventory D - More expensive than going directly to manufacturers as wholesalers add margin of profit - Retailers miss deals by not going to manufacturers directly
63
Online Retailers
A - Products sold worldwide - Can be sold 24/7 D - Can't try product before trying - Delivery charges off putting
64
Discount Stores
A - Products sold for cheap D - Limited product range - Some don't like image of stores
65
Department Stores
A - Many target markets catered for - Central locations attract customers D - More closing due to high rent - Staff supervision difficult
66
Trade Credit
Manufacturers offer retailers credit to pay for goods later A - No cash required to stock products - Can purchase goods & pay once sold D - Could lead to debt if unable to sell goods
67
POS Materials
Free posters given to retailers to display products A - Enhances look of store - Can draw customers' to product display D - Retailers need to dispose of bulky materials at end of promotion
68
Sale of Return
Manufacturers give retailers option to return items that don't sell A - Retailers can try new products without risk of unsold inventory - Improves cashflow D - Products may be returned in poor condition, creates waste
69
Dealer Loaders
Discounts used to encourage retailers to stock up on products A - Retailers can save on unit cost of products - Savings passed to customers, increases sales revenue D - Retailers may overstock - Products may go out of fashion
70
Staff Training
Manufacturers offer retailers free training to give them skills of how to sell product A - Staff become experts on product - Staff motivation improved D - Training done in normal hours, reducing productivity
71
BOGOF
A - Encourages customers to try new products D - Customers feel pressured into buying more than they need
72
Free Gifts
Tempts customers to buy products again A - Requires multiple tokens, multiple purchases D - Difficult to find gifts that appeals to all markets
73
Vouchers
A - Customers getting better value for money, attracting new customers - Encourages repeat customers D - Discounts can reduce profits - Some customers only spend value of voucher, limits sales
74
Interest-Free Credit
Customers offered credit to pay for goods later A - Customers can purchase products & pay when they can afford it D - Can lead to debt if many customers unable to pay by agreed date
75
EPOS
Used to gain market research information
76
Social Media
Used to interact with customers A - Free to use - Comments left can help improve product D - Negative feedback can put customers off using business
77
E-mails
Can offer promotions to customers

Higher Business Management (6 decks)

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