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Marketing Flashcards

(60 cards)

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1
Q

What is the purpose of marketing?

A

To meet the needs of customers and the organisation

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2
Q

What is marketing?

A

The anticipating and satisfying of customers wants in a way that delights the customer and meets the needs of the organisation

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3
Q

What are the 7 p’s?

A

Product
Price
Promotion
Place
People
Process
Physical environment

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4
Q

What is product?

A

The item or service for sale

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5
Q

What is price?

A

How much customers pay for the product

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6
Q

What is promotion?

A

The process of communicating information about goods and services that they’re selling to target customers

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7
Q

What is place?

A

Where consumers make the purchase

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8
Q

What is people?

A

Anyone directly or indirectly involved in the business

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9
Q

What is process?

A

The activities involved in delivering the good or service

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10
Q

What is physical environment?

A

The physical environment experienced by the customer

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11
Q

What is sales value?

A

The total financial worth of all the items sold

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12
Q

What is the value of using sales volume as a marketing objective?

A
  • easy to measure
  • easy to understand
  • useful for comparison (with other products in the same market)
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13
Q

What is the market size?

A

Total revenue generated by the sales of all products and services in a given market
Indicates the potential sales for a firm
Influences the level of competition

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14
Q

How is market growth calculated?

A

(Market size in current year - market size in previous year) / market size in previous year x 100 = market growth (%)

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15
Q

What are the 4 factors influencing market growth?

A
  • economic growth (if a country’s wealth is growing, ad is likely to rise)
  • the nature of the product (markets with luxury products tend to grow more rapidly when economic growth is high)
  • changes in taste
  • social changes (the way in which people live)
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16
Q

How is sales growth calculated?

A

(Sales in that year - sales in previous year) / sales in previous year x 100 = sales growth (%)

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17
Q

How is market share usually calculated?

A

Sales of one product or brand or company / total sales in the market x 100

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18
Q

Why is market share a good measure of a businesses success?

A

It compares a firms success with that of its competitors. A firms market share can only increase if they are performing better than their competitors

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19
Q

What is a market leader?

A

The firm with the largest amount of market share

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20
Q

Why do businesses want to increase brand loyalty?

A
  • to gain regular, repeat purchases from loyal customers
  • so they can reduce costs by not spending as much money on promoting and advertising
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21
Q

What are some examples of ways in which businesses have tried to improve brand loyalty?

A
  • McDonalds aiming to maintain the Golden Arches as the most widely recognised corporate logo in the world
  • Lush being able to set a premium price in comparison to other retailers
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22
Q

Why is brand loyalty an important marketing objective?

A
  • displays high levels of customer satisfaction
  • enables the business to sell more and charge higher prices
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23
Q

What is the main drawback to setting brand loyalty as a marketing objective?

A

It is difficult to measure objectively - they are not static

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24
Q

What is market positioning?

A

When a business tries to appeal to particular market segments or try to attract new market segments

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25
What are some examples of marketing objectives?
- innovation/ increase in product range - security/survival - ethicality/ the environment
26
Why do businesses set marketing objectives?
- to improve coordination by giving teams and departments a common purpose - to improve efficiency - to motivate staff by setting realistic, challenging goals - to establish priorities
27
What are the benefits to setting marketing objectives?
- help ensure that decisions are consistent; because they are all designed to reach the same goal - provide clarity for employees - efficiency can be improved
28
What are some drawbacks to setting marketing objectives?
- external and internal changes are not always predictable so objectives may be based on incorrect assumptions - some objectives may conflict e.g increasing market share — but cutting prices may mean a target of increasing sales revenue isn’t reached
29
What are the external factors that influence marketing objectives?
- competitors actions and performance - technological changes - economic factors (growth/recession in the economy, interest rates) - suppliers (capability to supply) - ethicality and the environment - political and legal factors (pressures on issues such as obesity and introduction of new laws such as sugar tax)
30
What are the internal factors that influence marketing objectives?
- corporate objectives (overall aims of the organisation) - finance (dictates how many resources are allocated where and therefore the difficulty level of their objectives) - Human Resources (size and capabilities of the workforce) - nature of the product - resources available
31
What is primary market research?
Information that has been gathered first-hand for the specific business that gathered it
32
What are some examples of primary market research?
- observation - surveys (telephone, internet, postal) - focus groups
33
What are some benefits of primary market research?
- relatively cheap - considers actual customer behaviour
34
What is a drawback of primary customer research?
may delay the introduction of a (potentially successful) strategy
35
What is secondary market research?
Examining pre-published documents (also known as desk research)
36
What is a positive of secondary market research?
- relatively cheap - quicker and easier to collect- quick decisions can be made off of it
37
What are some drawbacks to secondary market research?
- information may be dated and therefore misleading - there may be no relevant data to meet the specific needs of the business
38
What is qualitative market research?
Collection of information about the market based on subjective factors such as opinions and reasons
39
What are some benefits of qualitative market research?
- in-depth, greater insight can be reached - can highlight issues the business was not previously aware of
40
What are some drawbacks of qualitative market research?
- expensive to gather as it usually requires a skilled personnel to interpret it - it is difficult to tabulate the data and compare it with other data as opinions are usually unstructured
41
What is quantitative data?
Numerical data that is collected about consumers in a market
42
What are the benefits of quantitative market research?
- summarises data in a concise and meaningful way - use of numerical data makes it easier and more comparable - numerical data can be used to identify trends and project future trends
43
What are some drawbacks of qualiatiative market research?
- it only shows ‘what’s rather than explaining why so it is not helpful in understanding reasons behind trends - can lack reliability and validity if the sample is biased or too small
44
What is market mapping?
The use of a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market
45
What are the four labels of a market map?
High price (up), low price (down), high quality (right), low quality (left)
46
What are the benefits to market mapping?
- helps identify a firms closest rivals, in order to plan suitable competitive strategies - helps to identify gaps/ niches in the market a firm could fill by introducing a new product/ image - (if carried out through market research) can help a firm understand the publics perception of an organisation/ business/ brand - shows the overall level of competition in a market
47
What are the drawbacks to market mapping?
- can be an oversimplification of a product/ businesses position - very subjective — making them potentially inaccurate/ biased - gaps in a market may appear because consumers are not interested in a certain combination of features
48
What is sampling?
Gathering data from a group of respondents who represent the entire target market
49
What are the benefits of sampling?
- can provide a good indication of the likely behaviour of the whole market - using sampling before making marketing decisions can avoid expensive marketing errors - can be used flexibly — can allow the business to focus information gathering on a small market segment. Small samples for complex information and large samples for only brief responses
50
What are the drawbacks of sampling?
- may be unrepresentative (may target the wrong people) - may be bias in the questions or answers that are encouraged - may be difficult to locate suitable respondents (e.g people who listen to a particular radio programme)
51
What are some of the statistical techniques used in the interpretation of marketing data?
- confidence intervals - correlation - extrapolation
52
What are confidence intervals?
- a plus or minus figure used to show the accuracy of sampling - used to assess the reliability of sampled data (when trying to forecast figures such as sales data)
53
What is the confidence level?
The degree to which statistics are a reliable predictor of actual events
54
What factors influence the confidence interval?
- sample size - population size - percentage of sample choosing a particular answer
55
When plotting a correlation scatter graph, what goes on each axis?
X axis: independent variable (what’s changing) Y axis: dependent variable (what’s being measured)
56
What is extrapolation?
Using previous patterns of numerical data in order to predict values in the future
57
What is seasonal variation?
When there are peaks/ troughs at particular, regular times
58
How do you calculate extrapolation?
Average increase/decrease per — / number of —
59
What are the strengths of extrapolation?
May help to ensure steady growth become the norm
60
What are the weaknesses of extrapolation?
- It is less reliable if there are fluctuations - It assumes that past changes will continue and doesn’t take into account changes in the business environment that will influence sales - ignores qualitative actors such as changes in tastes and fashion - ignores the product life cycle

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