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Flashcards in Marketing Deck (47):
1

Describe Product-Led Marketing

Product being offered is the best on the market
Little or no competition exsists

2

Describe Market Led Marketing

Business finds out what customers want and what influences their purchases then modify their products based on these findings.

3

Name the 4 types of customer buying behaviour

Routine Response
Limited Decision Making
Extensive Decisions Making

4

Describe 'Routine Response' Customer buying behaviour

buying low involvement, frequently purchased low cost items with very little search and decision making being carried out.
Purchased almost automatically

5

Describe 'Limited Decision Making' customer buying behavior.

Buying a product occasionally which may require a moderate amount of time for info gathering.

6

Describe 'Extensive Decision Making' customer buying behaviour

Purchasing of an unfamiliar, expensive product which requires a high degree of thought before buying.

7

What can market research find out?
(4)

- size and nature of market
-Characteristics of market segment (age, income)
- Effectiveness of promotions
- Anticipation of future requirements
-Amount consumers willing to pay
- Competitors

8

Describe Field Research

Gathering of first hand information for a specific purpose, this can be conducted by the company or through a market research organisation.

9

Describe Desk Research

Gathering of second hand information to be used for a different purpose from what it was initially gathered for.

10

Advantages of Field research
(3)

- relevant
- up-to-date
-accurate

11

Disadvantages of Field Research
(2)

- time consuming
- expensive

12

Advantages of Desk Research
(2)

-Quickly accessible
-Cheap/free

13

Disadvantages of Desk Research
(2)

-not relevant - too broad
-Out of date

14

Describe a Questionnaire and give an advantage and disadvantage.

- Questionnaire is a list of written questions to ensure all respondents are asked the same questions in the same way, they can be posted emailed or put on companies website.
A- Removed need for trained interviewer, bringing down cost of conducting research
D- Questions cant be as specific as they must be easy to understand

15

Describe Personal Interviews and give an advantage and disadvantage.

- Personal interviews are spoken questions conducted face-to-face, can be conducted in shop, on street or in homes.
A- enables explanation of question and follow up questions to be asked
D- Time consuming as difficult to find people willing to take part.

16

Describe telephone interviews and give an advantage and disadvantage.

- Interview conducted over the phone, this is usually a random call targeting customers by their postcode or using past contact info.
A- covers large geographical area without travelling
D- customers might feel privacy is invaded

17

Describe Test Marketing and give an advantage and disadvantage.

- Selling product in limited location for a limited period of time in order to asses consumer reaction before full launch.
A- Modifications can be made to product before full launch
D - customers may give favorable replies out of kindness which is unreliable

18

Describe Discussion Groups and give an advantage and disadvantage.

Discussion about the product chaired by an experienced interviewer, can be conducted over the internet.
A- Gain detailed opinions
D- Qualitative info only

19

Describe Observation and give an advantage and disadvantage.

-watching customer spending habits e.g counting visitors to a store
A- Doesn't require trained staff
D- Reasons for consumer behavior not knows so assumptions made

20

Random Sampling
1 benefit 1 cost

sample is chosen at random
A - free from bias
D- requires very large sample to operate effectively

21

Quota sampling

Population divided into segments and researcher has to get a quota amount of samples from each segment.

22

Cluster sampling

Population divided into geographical clusters and a random sample is taken from each cluster.

23

Stratified Random Sampling

Population is divided into 'strata' e,g, by age, gender. A random sample is taken from each strata.

24

3 INTERNAL sources of desk research

Sales figures
stock figures
customers comments and complaints

25

3 EXTERNAL sources of desk research

Government publications
Competitors info
Newspapers and magazines

26

MARKETING MIX
Product

good or service provided by the business

27

MARKETING MIX
Price

Amount charged for the product

28

MARKETING MIX
Place

way in which product is distributed to consumers

29

MARKETING MIX
Promotion

way in which consumers are persuaded to buy the product

30

MARKETING MIX
Physical Evidence

Physical layout of premises

31

MARKETING MIX
People

Employees of the business

32

MARKETING MIX
Processes

customer service processes e.g returns

33

Objectives of a Pricing Policy
(5)

Profit maximisation
Sales maximisation
Enter new markets
Increase market share
Develop brand loyalty

34

Describe and give one advantage of;
Cost-Plus Pricing

- business decides how much profit they want to make on each unit, average cost of producing product is calculated and percentage 'mark-up' added to selling price.
A- can ensure they'll cover their costs and make profit.

35

Describe and give one advantage of;
Competition Based Pricing

-Rival companies charge similar prices for similar products.

A- Avoids price war with competitors

36

Describe and give one advantage of;

Skimming

-Product with little competition is set at a high price at launch then as time goes on the price is gradually lowered to reach a new market segment.

A- Ensures profits are made at each stage of product life cycle.

37

Describe and give one advantage of;


Penetration

Low price is set at introduction in order attract customers and to break their existing brand loyalty to similar products.

A- once brand loyalty established, price is raised to ensure costs are covered and profit made.

38

Describe and give one advantage of;

Price Discrimination

- Different groups of customers are charged different prices for the same product depending on their circumstances and level of demand.

A- Maximises sales during off-peak times

39

Describe and give one advantage of;

Destroyer

- Product is priced artificially low in order to undermine competitors and remove them from the market.

A- Once competition removed, price is restored to previous level and business can enjoy high profits.

40

Describe and give one advantage of;

Loss Leader

- Retailers reduce price of a few products to loss making levels in order to attract consumers into the shop.

A- Once in the shop, customers likely to buy other full price products leading to increased overall products.

41

Advantages of using a wholesaler

-Manufacturers have less cash tied up in stock, don't have to cover storage costs.
- Manufacturers do not need to meet cost of carrying out small deliveries to retailers or individual customers
- Wholesalers provide link between manufacturers and retailers, showing what sells and what doesn't.

42

Disadvantages of using a wholesaler
2

-Profits shared with wholesaler.
-Wholesalers have control over how products are displayed to consumers.

43

Advantages of using a Retailer
2

- Retailer meets risk and cost of storing product.
-Retailer takes on immediate after-sales services

44

Disadvantages of using a Retailer
1

-Manufacturers loose control over pricing and presentation of product.

45

Independent Retailers

One or two outlets offering a personal service in convenient location.

46

Multiple Chains

Retailing company operating more than 10 branches.

47

Supermarket

Store with 2,000+ square feet and at least 3 checkouts, selling a wide range of products.