Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

AQA A-level Business > Marketing > Flashcards

Marketing Flashcards

(79 cards)

Start Studying
1
Q

What is a market ?

A

A market occurs when there are buyers and seller eg the housing market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is marketing?

A

Provides a link between customer and business
Identify, anticipate satisfy customer needs and once
Maintain customer relationship and inspire loyalty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define relationship marketing

A

Company seeks to build long-term relationship with customers by providing consistent satisfaction focuses on customer retention rather than one off sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Describe the marketing process

A

Set marketing objectives
Gather marketing data
Analyse data
Select plan
Implement plan
Review effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are marketing objectives?

A

Marketing target
SMART
Helps achieve corporate objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How important are marketingobjectives?

A

Compass market due to globalisation on the Internet therefore understanding customers and creating trusting relationships is vital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define market orientated

A

One where the customers placed at the heart of everything that organisation does. Everyone in the business thinks about decisions from the customers perspective.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the types of marketing objectives?

A

Sales volume target
sales growth
sales value target
market growth
market share
brand loyalty
products differentiation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define sales volume

A

The volume of sales is measured in terms of the number of units sold for example sales of 5 million cartons of drinks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define sales value

A

The value of sales is measured in terms of how much is spent on a product for example sales of £30,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define market size by volume

A

The total units of sales of all the firms in a given market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define market size by value

A

Multiplying the number of units sold by the selling price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define sales growth

A

The percentage change in sales volume or value over a given period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Sales growth calculation

A

Change in sales/existing sales x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does it what does it mean if the sales growth the growth rate is negative?

A

Sales are falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define market share

A

Measure sales of business as a percentage of total sales on the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define market growth

A

Measures the change in size of market of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Calculate market share

A

Market share=sales of firm A /total market size x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Calculate market growth

A

(New market size-old market size)/old market size x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is marketing

A

provides the link between customer and business
Identify anticipate satis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Define market research

A

Market research involves the gathering and analysis and evaluation of research to help support the implementation of marketing process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the purpose of marketing research?

A

It provides in-depth insights, allowing companies to better understand the market and identifies customers needs and preferences

Allows you to know more about the market itself

Find out about competition

Analyse existing position of the business

Decide in possible marketing objectives

Identify actions you want to take

Assess how effective previous marketing decisions have been

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does market research provide insight to?

A

Needs once and expectations of customers and how they are changing

customers behaviours and their market trends as well as a competitive landscape and who customers may prefer to purchase items from the income of the customer

what influences the decision to buy
do they buy it online or in person?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define competitiveness and how does market research allow businesses to be competitive

A

Competitiveness is the extent any organisation to give good value for money relative to its competitors. A business is competitive if it offers better value for money than rivals market research provides businesses with information that helps them to make good marketing decisions for example what products to develop

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Define primary research
Data collected firsthand for a specific research purpose for example, focus groups observation surveys telephone interviews test marketing experiments
26
What are the pros of primary research?
Directly focused to research objective Kept private – not publicly available More detailed insights – particularly into customer views Up to date
27
Cons of primary research
Time-consuming and costly to obtain risk of survey bias sampling may not be representative
28
Define secondary research
Dates that already exist in which has been collected for a different purpose for example publish market research oppose internal transaction data Google trade associations, media reports, newspaper, benchmark data and sensor
29
What are the pros and cons of secondary research?
Pros: Often free and easy to obtain Good source of market insight Quick and easy to use Usually based on actual data and large samples Cons: Quickly become out of date, possibly Not tailored to businesses needs Specialist reports is often quite expensive Can be biased
30
Why is it important to conduct primary and secondary research
It’s important to conduct both because it can fill any knowledge gaps as well as optimise the value and accuracy of research results
31
How to primary and secondary research which one should be conducted first
Secondary research should be conducted first gain abroad and understanding of the topic at hand followed by primary research and narrow down the topics and enhance knowledge in the topic and make it more personalised
32
Define qualitative data
Data that is based on views and opinions, more in-depth research into the motivation behind attitudes and buying habits of customers for example group discussions
33
Define quantitative data
Data that is based on hard data and can be numerical for example questionnaires
34
Why is it important to conduct quantitative and qualitative data
Using both data pieces can improve evaluations by ensuring the limitations of one of those data are balanced by the strength of another which shows understanding. Qualitative data raises issues that can be looked at in more depth with quantitative analysis and vice versa.
35
Why is it important to conduct quantitative and qualitative data
Using both data pieces can improve evaluations by ensuring the limitations of one of those data are balanced by the strength of another which shows understanding. Qualitative data raises issues that can be looked at in more depth with quantitative analysis and vice versa.
36
Define market capitalisation
The value of a company that’s traded on the stock market calculated by multiplying the total number of shares x share price
37
Who buys shares?
UK individuals , banks,pension funds, insurance companies buy shares
38
In the UK how many shares do individuals own(%)
In the UK individuals own less than 15% shares
39
How many shares do foreign investors own in the uK (%)
Foreign investors own more than 50% of shares in the UK
40
Benefits of buying shares
Receive a share of profits via dividends Increase in share price will increase value owned
41
Risks of buying shares
Share prices can fall for a variety of reasons Low profits =low dividends
42
What happens in a recession?
Demand for goods and services falls -> lower sales-lowered revenue-less dividends -shareholders may sell shares
43
What is the share price of a private company ?
Initially set when shareholders subscribe for their shares There after only determined when shares are bought/sold No active market in the shares of a private company -so hard to juggle current value
44
Describe the share price of public company
Highly transparent -displayed publicly in real time All trades are disclosed (how many bought /sold and for what’s price) Share prices widely published and tracked
45
What are the factors that affect the share price of a public company within the company’s control?
Financial performance (eg profit gravity) Dividend policy (how profits are distributed to shareholders Relationship with key investors (including communication) Managers
46
What are the factors that influence the share price of a public company out of company controls ?
State of economy General market sentiment Whether the company is a takeover target Alternative investment in the company’s sector
47
What do index numbers show?
index numbers show percentage changes in data
48
What are business ethics?
Morals/values which help businesses decide which actions re right or wrong
49
What are examples of business ethics?
Should we advertise products to children? Ahold we produce harmful products eg alcohol? Should we charge a high price for a New medical drug because there’s no competition ? Should a sweet shop be located near a school?
50
define correlation
Looking at an apparent link between 2 variables eg promotional spending and number of sales
51
Define positive correlation
An increase in one variable increases another variable and vice versa
52
Define negative correlation
As one factor goes up another goes down and vice versa
53
Define no correlation
No apparent relationship between variables
54
What does correlation usually look at ?
Correlation usually looks at sales rather than profits
55
How can managers predict demand?
If managers can identify key factors which determines demand they can estimate what is happening to these factors and predict demand Essential when deciding on pricing policy
56
Define correlation value
Given as a value between -1and +1 Higher figure regardless of sign The stronger the correlation
57
Describe a strong correlation
Means there’s little room between data points and line If data suggests strong correlation the. The relationship might be used to make marketing predictions
58
What indicates the strength of correlation?
Line of best fit indicates the strength of correlation
59
Describe a weak correlation
Means the data point are spread quite wide and far away from the line of best fit
60
What is extrapolation?
Looking at what happened to figures in the past and continuing this trend into the future
61
How do you conduct extrapolation?
Identify the trend Draw line of best fit Continue into the future Use it to make predictions
62
Why might a trend not continue in terms of extrapolation?
Extrapolation is useful provided the identified trend continues into the future many markers are very dynamic and change rapidly
63
What are examples of why a trend in extrapolation may not continue ?
Technology Economy New competitor Social change(becoming unfashionable) Health scare
64
What do confidence levels do
Give an indication of how certain researchers are of the results Eg 76% confidence level means researchers are 76% certain than their results are reliable and represent the population as a whole
65
What does degree of confidence depend on?
Size of sample How the sample was constructed eg was it random? The margin of error ie the confidence interval
66
Define confidence interval
Possible range of outcomes a given confidence level
67
Describe confidence intervals
Researchers could say 95% confident sale are between £200000 and £350000 -big margin of error
68
Define random sampling
Every member of the population has an equal chance of selection
69
Advantages of random sampling
Simple to design A random sample is relativist quick to survey giving quick results Lack of bias It is a useful method if the firms unaware of the type of customers it will/does attract as a method with survey a range of people
70
Disadvantages of random sampling
It assumes all people are equally important so it’s less useful if the product is targeted at a specific market segment A large sample is usually required meaning it can be expensive
71
Define stratified sampling
The population is divided into subgroups or strata based on specific characteristics such as age income and apgender ? Random samples are then taken from each subgroup giving everyone in the group equal chance of selection When stratifying researchers tend to make sure that the proportions from each strata represent the population as a whole
72
Advantages of stratified sampling
It ensure representation from all relevant subgroups It should provide results that are suited to the businesses needs as the people can match the background of the target markets If buying behaviour is very different between different types of consumer thus method allows the business to examine. This Lack of bias in selection
73
Disadvantages of stratified sampling
Time consuming and it requires detailed knowledge of the population structure
74
Define quota sampling
A sampling technique where specific quotas (numbers) or proportions are selected from each strata
75
What is quota sampling similar to?
Stratified sampling -as the population is divided in subgroups or stratified based on specific characteristics, however the required number of resoindents is then drawn from each group - this selection is not random the researchers choose who to sample
76
What is the value of sampling ?
Sampling saves time and money however there is a risk because the results are only based on a same,e and if the research was conducted badly then the sample won’t be representative of the target population
77
What does the value of sampling depend on ?
How the sample was selected eg only asking your friends or only asking men when women also buy the product . the sample must represent the target population How the same,e is conducted eg leading question The sample size the smaller the smaller the less the results will reflect the target population
78
What do researchers need to consider when gathering data ?
When gathering data researchers need to consider whether their actions are ethical Eg Should they ask permission before filming shopping Should they ask permission permission before tracking inline purchase then recommending ?
79
Why does market research not guarantee success?
Changes in the market eg new competitor/ technology meaning unfair is out of date Secondary research may be in the wrong format Sample may not reflect target population Lack of finance to conduct thorough research Decisions following research could still be poor

AQA A-level Business (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions