marketing Flashcards
(123 cards)
1
Q
market led business
A
business develops products based on what customers want
high levels of market research carried out to determine customer wants
exist in highly competitive markets
marketing mix will be responsive to changes in external factors and consumer behaviour
2
Q
product led business
A
produces products that they believe customers will want and try to convince them to buy them
market research is not seen as important
new technologies are often market led
product is unresponsive to changing external factors
3
Q
desk research
A
involves researching and analysing information that has already been gathered eg web pages, financial statements, reports
4
Q
advantages of desk research
A
- quick information to gather
- does not require trained and paid interviewers or research companies
- already exists so is easy to look up
5
Q
disadvantages of desk research
A
- could be biased as it has been collected by someone else
- information is not fit for the exact purpose
- information might not be reliable
6
Q
field research
A
involves gathering brand new information suitable for the business’ exact needs
7
Q
advantages of field research
A
- field information will have no parts missing
- information is up to date
- fit for the purpose that is needed
8
Q
disadvantages of field research
A
- time consuming
- field information requires trained and paid interviewers or expensive research companies
9
Q
random sampling
A
sample is picked randomly
advantages- no bias is shown by the researcher
-saves time in selecting the sample
disadvantage - sample may not reflect the target market
-can be expensive as many calls may have to be made if customer lists are not up to date
10
Q
quota sampling
A
the researcher chooses from a group of people with certain characteristics
advantages- quick and easy method as group lists are pre paid
disadvantages- the exact sample from each group is not randomised so researcher bias could be involved
11
Q
stratified random sampling
A
a sample is selected that is representive of the target market
Advantages- samples represents the target market and there is no researcher bias as the sample is randomised
Disadvantages- takes time to work through population lists and select the exact sample required. The sample chosen could be geographically dispersed adding to the costs of research
12
Q
Describe cluster sampling
A
The population is split into smaller clusters which could represent the population on a small scale.
Advantages- saves time compared to researching samples and is one of the cheapest methods
Disadvantages - risk of the sample no being accurate enough to represent the target market
13
Q
Describe a telephone survey
A
A market researcher phones customers and asks questions
Advantages- easy to target specific customers and information can be obtained immediately
Disadvantages- customers can feel that telephone surveys are intrusive and only short surveys can be carried out
14
Q
Describe postal surveys
A
A survey sent to customers through the post and returned when completed
Advantages- easy to target specific customers and customers can choose to completed the survey when convent for them
Disadvantages- questions must be easy to understand and low return rate
15
Q
Describe an online survey
A
A website or email is used to ask questions
Advantages- reach a wide range or customers and software can be used to collate and analyse the results easily
Disadvantages- responses might be too brined and access to Internet must be available
16
Q
Describe a personal interview
A
Often conducted as a street survey
Advantages- allows 2 way communication so can see body language and encourage fuller responses
Disadvantages- takes time to conduct and customers can feel this is a nuisance and wish to not respond
17
Q
Describe a hall test
A
Product is given to customers to try and they give feedback
Advantages- good quality feedback can be gathered and inexpensive and easy to do
Disadvantages-customers opinions and feeling can be more difficult to analyse and customers might feel they need to be positive because they have been given the product free
18
Q
Describe a focus group
A
A group of customers who discuss the product and answer questions
Advantages- more in depth feedback and customers have agree to participate so considered responses are more likely
Disadvantages- opinions can be more difficult to analyse and strong personalities within the group can sway opinions
19
Q
Describe consumer audit
A
Ask customers to record their responses to products they have purchased
Advantages-gathered over a period of time so trends can be identified and more detailed feedback is gathered
Disadvantages- participants receive payments so can be expensive and information recorded can me inaccurate
20
Q
Describe test marketing
A
A new product is lauded in a regional area and the reaction is monitored
Advantages-changes can be made before launched to wider market and money is saved launching a product if it is unsuccessful
Disadvantages- customers in one are Ma not have tastes the same as wider market
21
Q
Describe electronic point of sale
A
Information of customers preferences are gathered
Advantages- gathers information on consumer behaviour and allows retailers to offer promotions tailored to customers actual needs
Disadvantages- expensive and time consuming to set up and information can be incomplete is customers shop elsewhere
22
Q
Name the 7 P’s of the marketing mix
A
Product Price Place Promotion People Process Physical evidence
23
Q
Describe product
A
Refers to what the business is selling. A product can either be a good or a service
24
Q
Describe the product life cycle
A
- Development (product being researched and developed)
- introduction (launched on to the market)
- growth ( customers aware of the product and are buying it)
- maturity (competition enters the market)
- saturation (product suffers due to competitors)
- decline (the product stopped being produced)
25
Describe the term extension strategy
As sales begin to fall as a product matures a business can attempt to inject new life into the product.
26
Describe possible extension strategies
- lowering the price of the product
- changing the place the product is sold
- altering the methods of promotion
- developing variations of the product
- rebranding the product
- changing the packaging
27
Describe a product portfolio
This means having a wide range of products on sale
28
Describe product line portfolios
Involves having similar products on sale. Greater profits can be gained from having many products on sale as different products will appeal to different market segments with different tastes
29
Describe diversified product portfolio
Involves having products for sale across completely different market segments. This variety spreads the risk across different markets in case one fails
30
Describe Boston matrix stars
Products that have a high market share in a high-growth market
31
Describe Boston matrix cash cows
Products that have a high market share of a low growth market
32
Describe Boston matrix question marks/problem children
Products that have a low market share in a market with height growth potential
33
Describe Boston matrix dogs
Products that have a low market share of a arrest with low growth
34
Describe advantages of a product portfolio
- spreads risk over different markets
- can meet the needs of different market segments
- newer products can replace those at the end of their life cycle
- range of products increases the awareness of the brand as a whole
- easier to launch new products with a large existing portfolio
- cash cows fund other riskier ventures
- stars allow business to be a market leader
- question marks give businesses an opportunity to invest and grow
- dogs can be divested to reduce losses
35
Describe cost plus pricing
Calculates the unit cost of a product and then adds a percentage mark up for profit
Advantages- quick and easy way of setting a price and ensures total costs are covered
Disadvantages- doesn't cover indirect costs and doesn't take into account external factors
36
Describe competitive pricing
Price is set similar to competitors
Advantages-avoids a price war and encourages competition
Disadvantages- other elements of marketing mix have to be better that competition to ensure sales
37
Describe skimming pricing
Price it set high and lowers over time
Advantages- increase in profits and lack of competition allows maximum prices to be charged
Disadvantages - high prices can put off customers and low initial sales
38
Describe penetration pricing
Prise is set low and increased over time
Advantages- encourages customers to try new product
Disadvantages - little profit at the start
39
describe Price discrimination pricing
Prices are altered depending on a discriminating factor
Advantages- ensures products appeal to different segments and allows for high profit margins on some price brackets
Disadvantages- harder to budget sales revenue in advance
40
Describe destroyer pricing
Set extremely low to force competitors out
Advantages - no competitors means they can increase prices again and they can increase market share
Disadvantages- can only be used by large companies who can afford to make losses when prices are low and could breach CMA anti competition regulations
41
Describe loss leader pricing
The price of some products are low to entice customers in to buy other products
Advantages- encourages repeat purchases and creates greater footfall
Disadvantages- customers may only buy the loss leader impacting on profits
42
Describe premium pricing
Permanently set higher than competition
Advantages- image of high quality and can attract customers
Disadvantages- customers looking for value for money will go elsewhere
43
Describe low pricing
Price permanently set lower the competitors
Advantages- attracts customers and has a high volume of sales
Disadvantages put off low prices as seen as low quality
44
Describe demand pricing
Price set in line with the economic laws of supply and demand
Advantages- ensures price charged is what customers will pay
Disadvantages- business needs effective research methods to establish demand level and prices need to be constantly recalculated
45
Describe factors affecting pricing strategies
- target market of the product
- demand for the product
- objectives of the business
- external factors
- cost of the product
46
Name channels of distribution
- Selling directly to consumers
- selling through retailers
- selling through wholesalers
47
Describe factors effecting channels of distribution
- finance available
- desired image of the product
- shelf life of product
- legal restrictions
- stage of product life cycle
48
Describe direct selling
Selling directly to the consumer from the manufacturer. This is the shortest channel of distribution. Businesses also retain control of how their product is marketed
49
Name methods of direct selling
- e-commerce
- mail order
- direct mail
- personal selling
- online shopping channels
50
Describe E-commerce
A business selling products using the Internet
Advantages- customers can be reached 24/7 globally, entire range can be shown online, online discounts can be offered to attract customers
Disadvantages- time consuming and expensive, customers wary or providing personal details online, need access to Internet , delivery costs
51
Describe mail order
Sells products through catalogue
Advantages- credit facilities often offered to customers, can order at a time that suits them, save money on staffing and store costs
Disadvantages- expensive to produce, not environmentally friendly and may not meet CSR aims
52
Describe direct mail
Business posts letter and brochures directly to customers
Advantages-specific market segments can be targets and wide geographical areas can be targeted
Disadvantages - can be perceived as junk mail, mailing lists can become out of date and waste money
53
Describe personal selling
Salesperson sells products directly to the customer
Advantages- allows a demonstration of product, feedback can be gathered from customer
Disadvantages - can find this a nuisance and staffing costs and commission can be expensive
54
Describe online shopping channels
Sells products on TV using shopping channels
Advantages- see demonstrations and encourages impulse buying due to short term bargain prices
Disadvantages- customers need to switch channel, delivery costs
55
Describe advantages of selling through a retailer
- close to customers
- promote the reduction for the manufacturer
- employ sales assistants to help sell product
- larger retailers buy in bulk
56
describe Disadvantages of selling through a retailer
- retailers take a cut of profit
- may alter the price of the product and so have an effect on the image of the product
- the product will face competition from other products stocked by the retailer
57
Describe hypermarkets and superstores
Massive supermarkets which sell many goods and services under one roof
Advantages- usually open 24/7 and huge range of products are offered to customers
Disadvantages - lack of competition can lead to poorer quality products
58
Describe convenience supermarkets
Smaller supermarkets appearing in convent locations
Advantages- caterer for changing needs of customers, prices can be slightly higher due to convenience factor
Disadvantages- limited choice of products, high level of wise as it is harder to predict customer numbers
59
Describe out - of-town retail parks
Outskirts of most major towns with good infrastructure
Advantages- infrastructure attracts customers, good product range for low prices due to bulk buying
Disadvantages - limited choice of stored , only suitable for customers with access to transport
60
Describe online retailers
Rather than setting up their own ecommerce site, some manufacturers will sell through retailers like this.
Advantages- sold worldwide 2/7
Disadvantages - customers cannot try products, delivery charges may put customers off
61
Describe discount stores
Advantages- products are sold at rock bottom which attracts customers looking for value
Disadvantages - limited product range compared to other retailers, some customers don't like the image of discount stores
62
Describe wholesalers
Manufacturers sell goods to wholesalers to disrupted to smaller retailers or direct to customers
63
Advantages for manufacturers using a wholesaler
- packaging and displaying goods is carried out by the wholesaler, saving the manufacturer time and money
- wholesalers buy in bulk, saves on smaller deliveries
- wholesalers promote products to retailers which saves promotion costs
64
Disadvantages for manufacturers using a wholesaler
- less profit as a cute is taken by wholesalers
- loses control of how the product is marketed
- manufacturer loses control of which retailers their product is sold to
65
Advantages of retailers using wholesaler
- retailers can save on storage by buying in small quantities
- benefit from promotions offered by wholesalers that they wouldn't get from manufacturers
- retailers can trial smaller orders of newer products and not be left with large amounts of unsold stock
66
Disadvantages for retailers of using a wholesaler
- more expensive as wholesalers add on a margin of profit
| - retailer misses out on exclusive deals by not going to the manufacturer
67
Describe promotion
Promotion is the process of raising awareness of products and persuading customers to buy them instead of going to competitors
68
Describe above the line promotion
Promotions that air said to be above the line use mass media to convey messages to consumers
69
Describe advantages of above the line promotion
- advertisement design is outsourced to advertising agencies meaning high quality adverts
- adverts can reach wide audiences across market segments
70
Describe disadvantages of above the line promotion
- business doesn't have direct control over which consumer their products are advertised too
- very expensive due to paying for adverts to be produced by experts
71
Describe TV advertising
Advertising products during commercial breaks
Advantages- colour sound and move than be used to appeal to customers,large national audience which covers all market segments
Disadvantages- channel ho to avoid adverts, very expensive especially in prime time slots
72
Describe commercial radio advertising
Advertising during commercial breaks on radio programmes
Advantages- more captive audience, use of jingles can make adverts more memorable
Disadvantages- no images which marks products hard to demonstrate
73
Describe newspaper advertising
Advertisement spaces can be used
Advantages- customers across large geographical area can be reached, specific segments can be targeted
Disadvantages - adverts are often black and white with no sound or movement, expensive to advertise in a national newspaper
74
Describe magazine advertising
Advertising spaces can be used
Advantages- in colour which improves impact, target specific market segments, often kept for future reference
Disadvantages- expensive especially for well known magazines,competitors often advertise in the same publication
75
Describe cinema advertising
Advertising products while the audience is waiting for film
Advantages- captive audience so can't switch channel, specific market segment, adverts can be enhanced with surround sound
Disadvantages - only see advert once, purposely arrive late to avoid commercials, remember the film rather than the advertisement
76
Describe Internet advertising
Advertising products on websites as pop ups and ad banners
Advantages- relatively cheap, can target specific market segments
Disadvantages- some customers ignore the advert, pop up blockers can prevent customers viewing the ad
77
Describe digital screens advertising
Advertising products in public places as moving images
Advantages- colour, sound and movement can be used for impact, viewed by a large audience
Disadvantages - expensive depending on location, be viewed as part of the scenery and be ignored
78
Describe billboards advertising
Advertising products in public places as posters
Advantages- viewed by large audience, people will see it many times
Disadvantages- often vandalised which can give a product a poor image, quality of poster can Be affected by the weather
79
Describe below the line promotion
Promotion that are said to be below the line do not use mass media
80
Describe advantages of below the line promotion
- businesses have more control over the customer that adverts are aimed at
- more affordable so is more suitable for small businesses
81
Describe disadvantages of below the line promotion
- the impact can often only last for a limited period
| - some customers dislike as they are intrusive
82
Describe why sales promotions are used
- to help launch a new product into a competitive market
- as an extension strategy at the end of a products life cycle
- to prise customers away from each competitors
- to reward existing customers so they stay loyal
83
Describe into- the - pipeline sales promotion
Into the pipeline sales promotions are offered by the manufacturer to encourage retailers to purchase products from them
84
Name methods of into the pipeline sales promotion
- trade credit
- merchandising material
- sales or return
- bulk buying discounts
85
Describe trade credit
Manufacturers offer retailers credit to pay goods later
Advantages- retailers can purchase stock and they pay for it once it's sold
Disadvantages-could lead to bad debt if they are unable to sell stock
86
Describe merchandising material
Free posters and display material are given to retailers
Advantages- enhance the look of them retail store
Disadvantages- retailers need to dispose of bulky displays at the end of promotion
87
Describe sale or return
Manufacturers give retailers the option to return stock that doesn't sell
Advantages- retailers can try new products without the risk of being stuck with unsold stock
Disadvantages- products could be returned in bad condition so there is waste
88
Describe bulk buying discounts
Discounts are used to encourage retailers to stock their products
Advantages- retailers save on unit costs allowing greater profit
Disadvantages- retailers may overstock and find they are unable to sell
89
Describe out of the pipeline sales promotions
Out of the pipeline sales promotions are offered by the retailer to encourage customers to purchase from them
90
Describe methods of out of the pipeline sales promotion
- special offers.
- free gifts
- vouchers and coupons
- loyalty schemes
- interest free credit
91
Describe special offers
This included BOGOF and other short term promotions on selected items
Advantages- allows customers to try new products and then buy again at normal price
Disadvantages- customers feel pressured into buying more than they need which leads to waste
92
Describe free gifts
to tempt customers to buy product again or for the First time
Advantages-gifts that require multiple tokens can encourage repeat purchases
Disadvantages - difficult to find a gift that appeals to all target markets
93
Describe vouchers and coupons
Give customers money off future purchases
Advantages-attracts new customers as they feel they are getting better value and encourages repeat purchases
Disadvantages-discounts offered by money off vouchers can reduce profits
94
Describe loyalty schemes
Allows customers to collect points which can be used for discounts or free products in the future
Advantages- promotions can be targeted to reflect actual customer preferences as information on customer habits are gathered
Disadvantages- time consuming and expensive to implement
95
Describe interest free credit
Retailers offer customers to pay for goods at a later date
Advantages- allows customers to buy products and pay when they can afford them
Disadvantages- lead to bad debt if many customers are unable to pay by the agreed date
96
Describe social media
Social media sites such as Facebook and Twitter are being used increasingly by businesses as a below the line promotion menthol
97
Describe advantages of social media as a below the line promotion method
- the target market can be contacted directly which saves marketing to uninterested consumers
- information can be uploaded immediately
- consumers can leave comments which can be used to improve the product
- social media is free to use
98
Describe disadvantages of below the pipeline promotion methods
- difficult to engage with new customers
- requires a lot of time to use social media effectively
- negative feedback can put other customers off
- negative feedback can be released instantly not allowing the business any time to release a statement in their defence
99
Describe apps for promotional purposes
Many businesses are now using apps designed for tablet, computers and smartphones to promote their business.
100
Describe advantages of using apps for promotional purposes
- apps can target promotions and information. On products that users will like based on their browsing history
- users of apps can share their experiences on social media sites
- apps have integrated services which increase usability
- ecommerce can be integrated increasing sale potential
- information can be updated quickly
101
Describe disadvantages of using apps for promotional purposes
- Apps require mobile Signal to be used
- limit to amount on information that can be put on apps
- apps cost money to develop
- most apps have a short shelf life
- customers uncertain about ecommerce due to security
102
Describe product endorsement
Product endorsement involves businesses using celebrities to promote the product
103
Describe advantages of product endorsement
- more likely consumers to purchase the product to be like them
- the product is advertised for free every time the celebrity is wearing it
- celebrities get good media coverage
- higher prices can be charged due to product exclusivity
- brand loyalty can be created for as long as the celebrity is involved
104
Describe disadvantages of product endorsement
- customers put off If the don't like the celebrity
- if celebrity gains bad publicity it will tarnish the image of the product
- expensive to pay the celebrity
- poor performance by celebrities will result in lower sales of product
105
Describe product placement
product placement involves businesses paying for products to appear in films, tv shows or video games
106
Describe advantages of product placement
- worldwide audiences as awareness of product is generated
- subliminal advertising as they are unaware of the promotion
- products can be identified with characters and result in sales
- merchandise spin offs can be sold increasing sales
107
Describe disadvantages of product placement
- time of exposure can be very short
- bidding wars between rival brands to appear in films which can be expensive
- consumers might be put off If associated with characters they don't like
- negative story line can put customers off
108
Describe public relations
Public relations (PR) is the act of controlling the image of a business that is perceived by the public.
109
Name public relation methods
- press conference
- press releases
- donations to charities
- sponsorship
- company visits
110
Describe press conferences
The media are invited to a business presentation where they are given information or new and allows the press to ask questions
111
Describe press releases
The media are provided with a written account of a business' newsworthy activities and events. Updated mission statements may also be released.this can be used to counteract bad publicity and can release information without questions
112
Describe donations to charities
Some businesses donate to charities anonymously while others use it as a public relations event. This can help the business achieve a positive image
113
Describe sponsorship
Some businesses will pay to sponsor an event , team or venue.this can help the business become popular with customers who support the sponsored event, team or venue
114
Describe company visits
Businesses may choose to open up their factories to the public for a limited period. The customer seems more friendly, approachable and open
115
Describe factors affecting methods of promotion
- the target market
- the finance available
- the marketing mix
- ethical practices
116
Describe the Advertising Standards Agency
The advertising standards agency is the governing body of all kinds of promotions. They ensure promotions are ethical, honest and decent
117
Describe people
People refers to who is representing a business or a brand. Those employed by the business are essential to the image and reputation of a business especially those that are customer facing,
118
Describe methods of being successful in the people element of the marketing mix
- trains staff well to deal with customers effectively
- regularly update staff on product/service developments
- ensure selection methods are rigorous
- monitor staff to ensure standards are maintained
119
Describe process of the marketing mix
Process refers to how a customer receives a service, this could be the process they go through to book a holiday, obtain a bank loan or even just select and pay for goods in a shop
120
Describe methods of being successful in the process element off the marketing mix
- ensures that outlet and call centres are well staffed
- offer live chat or FAQ services on the business website
- empower customer facing staff to make decisions
- regularly assess processes such as quests or ordering times
- introduce the latest technologies to improve processes
121
Describe physical evidence in the marketing mix
Physical evidence refers to what customers see that gives them clues about a business from the image it portrays
122
Describe methods of being successful in the physical evidence element of the marketing mix
- premises and vehicles that are modern and clean
- settings should coney the type of ambience to match the product or service on offer
- feedback and testimonials from previous customers should be promoted
123
Describe uses of technology in marketing
- Internet can be used to obtain information
- ecommerce can be used to sell products online
- social media can be used to interact with customers
- databases can be used to keep customer records
- texts and emails can be used to promote to customers
