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Flashcards in Marketing Deck (22)
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1

What are the four Ps in marketing?

Product
Price
Promotion
Place

2

What does product mean in the 4 Ps?

Business must come up with a product that people will want to buy. It must fulfil some of the customer's needs or wants

3

What does price mean in the 4 Ps?

The price must be one that the customer thinks is good value for money. This isn't the same as being cheap

4

What does promotion mean in the 4 Ps?

The product must be promoted so that potential customers are aware that it exists

5

What does place mean in the 4 Ps?

It must be sold in a place that the customer will find convenient

6

What is a mass market?

Contains very large numbers of customers buying ordinary products such as bread

7

What is a niche market?

Smaller group of customers who buy more specialist products

8

Give 5 examples of what the market can be separated into.

•Age - teenager, elderly etc
•Social class - professionals and unemployed
•Location - Popularity of something in a certain place
•Culture or religion - Different groups have their own unique product
•Gender - Some businesses target some items at men, women, boys and girls

9

Name the 7 point of sale promotions.

•Buy one get one free
•Discounts
•Competitions
•Free gifts
•Product trials
•Point-of-sale advertising
•Use of credit

10

Give 6 examples of customer service.

•Accurate product information
•Reliability
•Dealing with customer questions and concerns
•Fulfilling the requirements
•Delivering on time
•After-sales support and warranties

11

What does SWOT mean?

Strengths
Weaknesses
Opportunities
Threats

12

How is SWOT analysis useful?

It uses it to analyse its self and other factors in the market. It can then use the results to help decide on its marketing strategy

13

How do you work out a mark-up?

Work out how much the product costs and then add a percentage mark-up.

14

How do you work out a profit margin?

Work out how much the product costs and increase by the required profit margin.

15

How do you work out a gross profit margin?

Gross profit margin = gross profit divided by sales

16

How do you work out net profit margin?

Net profit margin = net profit divided by sales

17

What does quantitative mean?

Quantitative information is anything you can measure or reduce to a number.

18

What does qualitative mean?

Qualitative information is all about people's feelings and opinions.

19

Why would there be a gap in the market?

Sometimes a group of customers will have a need that isn't being met

20

What is a product trial?

When a customer buys a product for the first time to try it out

21

What is repeat purchase?

When customers come back after their first purchase to buy the product again and again

22

Why do firms advertise?

To make consumers aware of new products
To remind costumers about existing products
To persuade costumers to switch from rival products
To promote the business's brand image
Ultimate aim is to sell more products and help the business grow