Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Marketing > Flashcards

Marketing Flashcards

1
Q

Identify the purpose of marketing

A 
Satisfy the needs of customers 
Keep ahead of competition 
Inform customers about the launch of new products 
Remind customers of existing products 
Increase the organisations market share
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Describe the importance of marketing

A

It helps organisations meet customers needs and also makes customers aware of what products are available.

However, it may be carried out differently, depending on the product or service and the type of organisation.

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

What must an organisation combine a successful mix of for marketing to be successful?

A

The right product
Sold at the right price
In the right place
Using the most suitable promotion

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

Describe the term market growth

A

It can be achieved by obtaining a LARGER MARKET SHARE.

Means taking customers from existing businesses or attracting new customers to buy the product

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

Describe the term market share

A

It’s percentage of all the sales in the market for that product

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

Describe the term target market

A

It can be more successful and cost effective for organisations to target specific customers with their products rather than a whole market

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

Give benefits of target marketing

A

Improves customer satisfaction as the customers needs are being met this means they will buy the product or service

Customers will be more loyal to the product and keep buying

The correct price can be set for the product

Market share can increase

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

Describe market segmentation

A

Customers can be divided up into different categories depending on a number of factors.

This can help in finding out which customers are most likely to buy a specific product this means a group of potential customers can be identified and then targeted and persuaded to buy the product.

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

Identify and describe ways in which a market can be segmented

A

Age - the product is targeted towards a particular age group

Gender - product is targeted towards men or women

Income - targeting the profit according to level of income

Lifestyle - targeting people according to hobbies and interests

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

Describe market research

A

Provides managers with information about what customers want and need and what will influence them to buy a product

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

Outline reasons what market research is used to find out

A

Consumer wants regarding existing products

What makes consumers buy a firms products

Consumer reaction to new products

Information about the company’s competitors

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

Describe the importance of market research

A

Provides information which can help firms develop marketing plans by finding out what people want because, otherwise, they would not sell their product and would lose out to the competition

Helps firms find out why some products are more successful than others, and how to make their product more successful

Helps firms avoid costly mistakes such as making products that people don’t wish to buy

Allows firms to decide on the target market such as the particular segment of consumers a firm wishes to sell to

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

Identify the types of market research

A

Desk research

Field research

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

Describe desk research (secondary information)

A

This involves the use of secondary data - I.e. information from a previously published source.

There is a range of secondary data which is available from within the organisation and from out with the organisation

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

Describe the two types of secondary data available in desk research

A

Internal information - such as sales records, financial information

External information - such as newspapers, government statistics and internet

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

Give benefits of desk research

A

It already exists, therefore it is relatively inexpensive to obtain and use

It is obtained easily as the information is readily available

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

Give costs of desk research

A

Data may be out of date
Information may also be available to competitors
Information may contain bias

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

Describe field research (primary information)

A

Involves the use of primary information which is gathered first hand for the organisations own purpose

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

Give advantages of field research

A

It is more reliable as it has been gathered first hand and the source can be verified

It is more likely to meet the needs of the organisation

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

Give costs of field research

A

It is more expensive to use as the data has to be collected and processed

It takes time to gather the information

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

Identify what must be considered when deciding on the most suitable method of research

A

Cost
Time available
Alternatives

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

Identify methods of market research

A 
Postal surveys
Telephone surveys 
Focus group 
Personal interviews 
Social networking sites
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Describe postal surveys

A

Sending out/delivering questionnaires to people through the post

Cheap to operate

Returns from people can be low

Questions need to be simple so that people are able to fill in without misunderstanding

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

Describe telephone surveys

A

Researcher questions people in their own homes by telephones

Cheap to operate

A large number of people can be targeted

People do not like being bothered at home

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Describe focus groups

A

People are selected to discuss specific ideas or products.

Normally has a chairperson who encourages the discussion

Its qualitative information which can be difficult to analyse

Time consuming to do

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Describe personal interviews

A

Face to face interviews which can be in the home or in the steer

Mistakes and misunderstandings can be cleared ho
Communication is 2-way

Can be expensive as researchers require training

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Describe social networking sites

A

Many businesses now use sites such as Facebook and Twitter to communicate with their customers and this can include asking their opinions

Large numbers of customers can be contacted
Customers will respond quickly

Customers may not have Facebook or twitter accounts
Competitors can view information as its public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Identify the 4Ps of marketing

A

Product
Price
Place
Promotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Describe the product - the actual item for sale

A

The product must meet the needs of the customer and benefit the customer.

The product may be goods or a service.

Different versions of the same basic product may be offered by competing firms and can vary greatly in terms of quality, style and packaging etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Describe researching and developing a new product

A

Through enterprising ideas, businesses have to create products that customers will buy

This can be expensive and time consuming as the product has to be created and tested, perhaps a number of times, before it can each the customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Identify the steps involved in developing a new product

A 
Generation the idea
Testing the new idea 
Create a prototype 
Test marketing the new product 
National launch
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Describe the first step involved in developing a new product

A

Generation the idea

A number of issues need to be considered, such as the will the new product t meet the objectives of the business? Will the new product contribute to the continued growth of the business?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Describe the second step involved in developing a new product

A

Testing the new idea

Is there a market for the new product? This stage of the product development process will involve carrying out market research to test consumers reactions to the suggested product. Consumers may suggest slight alterations and modifications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Describe the third step involved in developing a new product

A

A prototype of the product will be developed using the details that the market research indicated that consumers wanted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Describe the forth step involved in developing a new product

A

The business may often decide to test market the new product in a small geographical area, in order to test consumer response, before it launches the product nationally. If the consumer response if favourable, then the product is likely to be launched nationally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Describe the 5th/final step involved in developing a new product

A

National launch

This is where the product enters the ‘introductory’ stage of its product life-cycle. This is a very costly operation, since a national launch will need advertising and promotional campaigns to tell customers about the new product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Outline the purpose of the product life cycle

A

Shows the different stages a product will pass through and the level of sales that can be expected at each stage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Identify the stages in the product life cycle

A

Introductory stage
Growth stage
Maturity stage
Decline stage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Outline the introductory stage

A

The product is introduced to the market.

Few sales at this stage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Outline the growth stage

A

Sales are rising quickly as more customers will become aware of the product

41
Q

Outline the maturity stage

A

Product is well known in the market and growth begins to slow down. Competition increases and the price of product falls. This stage makes the most profit

42
Q

Outline the decline stage

A

Sales and profits start to fall as new and more advanced products enter the market and customers no longer want the product

43
Q

Describe branding

A

A brand is a product or a range of products with a unique and easily recognisable character.

We all recognise Heinz, Cadbury and Virgin, not lonely by the logo, but also by the packaging, taste and advertising etc

The aim of the manufacturer is to market to product, so that its INSTANTLY RECOGNISABLE to the consumer, and appears to be better than other, similar products.

44
Q

Give advantages of branding

A

Easier to launch new products because once a customer is loyal to a brand, new products under that brand will be looked at in the same way

Brand loyalty can develop when customers feel that that brand is the best available for that particular good or service. This could increase market share for the business

Can save money on marketing or advertising because each new product under the brand name will not need to be marketed separately

Customers can be reassured that they are buying a quality product

There may be a good after sales service available for customers

45
Q

Give disadvantages of branding

A

One fault with a product may affect the perception of the whole product range.

Brands can be copied and fake products can be produced and sold to try and give the impression they are the real item

It is time consuming and expensive for a business to establish a brand which impacts upon profitability

It is very difficult to change a well established brand. Customers may resist change

46
Q

Describe price - what the customer has to pay for the product or service

A

The product must be priced so that an organisation covers its costs and can make a profit. If the product has too high a price the customer will not buy it, particularly if a competitor has a similar more reasonably priced product on the market

47
Q

Outline factors to consider when setting the price of a product

A

Cost of production
Competitors prices
Level of profit the organisation wishes to make
The place where the product is sold
Level of promotion/advertising carried out

48
Q

Identify pricing strategies

A 
Cost-plus pricing 
Competitive pricing 
Price skimming 
Destroyer pricing 
Promotional pricing 
High price 
Low price 
Psychological pricing
49
Q

Describe cost plus pricing

A

The firm calculates the cost of producing the product and adds on a percentage to that price to arrive at the selling price

50
Q

Describe competitive pricing

A

Rival companies charge similar prices for similar products

51
Q

Describe price skimming

A

Firms often charge high prices for new products. Some consumers are prepared to pay this price in order to have the product first

52
Q

Describe destroyer pricing

A

Prices are lowered in order to force competitors out of the market. Some competitors will not be able to compete at the low price and so leave the market. Prices can then be increased once the competition has been eliminated

53
Q

Describe promotional pricing

A

Prices are reduced for a short period of time. This strategy is used by a company that wants to inject new life into a product or reduce stock levels quickly

54
Q

Describe high price

A

Setting prices higher than competitors

55
Q

Describe low price

A

Setting prices lower than competitors

56
Q

Describe psychological pricing

A

Making the customer think a product is cheaper than it really is by charging 99p rather than £1

57
Q

Describe factors to consider when choosing a business location

A

Government grant and incentives
Grants can be made available to businesses to encourage them to locate in an area

Parking facilities
Customers need easy access to the business otherwise they may go elsewhere

Good transport links
Services such as gas, electricity and water and good access to motorways and train stations etc

Competition
A business could locate further away to avoid competitors or it may choose to locate nearby to increase their share of the market

Customers
A business may need to locate near to where the customers are in order to meet their needs

Available employees
Employees with the right skills and education need to be close by

58
Q

Describe distribution

A

The way in which the product reaches the customer I.e. where it is sold and how it gets there - is important to the success of the product

59
Q

Identify methods of distribution

A

Road
Rail
Air
Sea

60
Q

Describe road as a method of distribution

A

The road network is used to transport goods using large trucks, lorries and vans

61
Q

Give advantages of using road as a method of distribution

A

Can be cheaper than other methods

Many types of goods can be delivered

Can be delivered to the customers door

62
Q

Give disadvantages of using road as a method of distribution

A

Speed limits mean goods may be delayed

Fuel costs are high

Traffic jams and road works can cause delays

63
Q

Describe rail as a method of distribution

A

The rail network is used to transport goods

64
Q

Give advantages of using rail as a method of distribution

A

Less delays than road

Large orders can be transported

65
Q

Give disadvantages of rail as a method of distribution

A

Train station may not be close to delivery destination

66
Q

Describe air as a method of distribution

A

Goods are delivered by aircraft

67
Q

Give advantages of air as a method of distribution

A

Goods can be delivered worldwide

Quicker than by sea

68
Q

Give disadvantages of air as a method of distribution

A

Can be expensive

Airport may not be close to destination

69
Q

Give advantages of using sea as a method of distribution

A

Goods can be delivered worldwide

Can transport large products

70
Q

Give disadvantages of using sea as a method of distribution

A

Can be expensive

Can be time consuming

71
Q

Describe factors to consider when choosing a channel of distribution

A

The type of product being sold - e.g. a pizza delivery service would need to be near customers

The finance available to the organisation to either distribute their own stock by having vans and lorries or pay others to deliver for them

The desired image of the product -e.g. distribute in supermarkets or exclusive shops

Government restrictions -e.g. wind farms and power stations are far away from towns and cities

72
Q

Describe promotion - methods used to persuade customers to buy the product

A

Promotion is the way in which the organisation makes the consumer aware of the features and benefits of new and existing products

An organisation promotes its products or services to gain new customers or retain existing ones

73
Q

Identify the aims of promotion

A

Inform customers about the product
Persuade customers to buy the product
To remind consumers that an established product still exists

74
Q

Identify the factors that can affect the choice of promotion

A

Cost
Audience to be reached
Advertising used by competitors
Market segment to be targeted

75
Q

Describe advertising

A

Advertising is used to increase awareness of not only new products to the market but also existing products

76
Q

Identify methods of advertising

A

Television
National newspapers
Magazines

77
Q

Give advantages of using television as a method of advertising

A

Adverts can be targeted at a large audience

Products can be made appealing using catchy tunes, colour and movement etc

78
Q

Give disadvantages of using television as a method of advertising

A

Can be expensive

Many viewers change channels when adverts come on

79
Q

Give advantages of using national newspapers as a method of advertising

A

Wide audience can be reached

Products can be aimed at certain segments of the market

80
Q

Give disadvantages of using national newspapers as a method of advertising

A

No sound or movement can be shown

Can be an expensive way of advertising

81
Q

Give advantages of using magazines as a method of advertising

A

As magazines tend to use colour when advertising, this can have a high impact

Can target a particular segment of the market

82
Q

Give disadvantages of using magazines as a method of advertising

A

Can be an expensive way to advertise

People tend to get annoyed with too many adverts in a magazine

83
Q

Describe the impact changes in technology have on businesses

A

Businesses can get access to customers in different ways both to inform them about new and existing products and also to conduct market research to find out what customers want, like or dislike

84
Q

Describe internet advertising

A

Businesses can have their own websites to promote their products as well as Facebook and Twitter accounts and YouTube.

Other websites such as newspaper sites include pop-up adverts used to target customers

85
Q

Give advantages of internet advertising

A

A global market can be reached 24/7

Products can be demonstrated

Products can be targeted to a particular market

86
Q

Give disadvantages of internet advertising

A

Many people get fed up with adverts popping up

Can be expensive to have advert specially designed

87
Q

Describe why businesses may use social networking sites

A

A business may be able to gain access to customer information, allowing them to target marketing and products according to customers likes and interests

88
Q

Give advantages of text messaging

A

Messages are received instantly

Large number of customers can be targeted

89
Q

Give disadvantages of text messaging

A

Can only include a small amount of information

Need access to the customers mobile number

90
Q

Describe online surveys

A

Allow businesses to find out information from customers quickly. Many businesses include a pop up window asking customers to comment on the website. Other businesses send a customer an email after their goods have been delivered with a link that sends the customer to an online survey

91
Q

Give advantages of online surveys

A

Cheaper and quicker than postal surveys
Immediate responses can be analysed
Valuable researched data can be gathered

92
Q

Describe celebrity endorsement

A

Celebrities advertise products. Customers associate with the celebrity and buy the product

93
Q

Give disadvantages of celebrity endorsement

A

Consumers associate products with the personality

Gives a good image to the business/product

94
Q

Give disadvantages of celebrity endorsement

A

Large payments to celebrities

If the celebrity gets negative publicity this can affect the image of the business/product

95
Q

Describe product placement

A

A firm pays for its products to be used in films or TV programmes.

For example BMW paid for the character James Bond to be seen driving its cars

96
Q

Identify special offers that can tempt customers to buy a product

A 
Free samples 
Credit facilities 
Demonstrations 
Competitions 
Free offers 
Coupons/vouchers
97
Q

Describe ethical marketing

A

Ethics means doing what is right. It is seen to be good business practice to behave ethically, although this is not always the case and businesses can receive bad publicity such as for using child labour to make products

98
Q

Describe ethical issues in marketing

A

Market research
Invasion of privacy (e.g. obtaining research data without permission)

Target customers and market
Targeting the vulnerable (e.g. children and the elderly)
Excluding potential customers from the market

Pricing
Price fixing - agreeing a certain price with competitors

Advertising and promotion
Issues over truth and honesty - are the adverts telling the truth about products they are selling

Business (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions