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BS T2 > Marketing > Flashcards

Marketing Flashcards

1
Q

Market

A

all the producers and consumers of a given product

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2
Q

Marketing

A

the anticipation, identification, creation and satisfaction of consumer needs and wants

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3
Q

Product oriented firm

A

a business that focuses on production processes and products

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4
Q

Market oriented firm

A

a business that focuses on identifying consumer needs and wants using market research

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5
Q

Marketing mix

A

the combined elements of a marketing strategy focused on the design, price, promotion and place of sale of a product

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6
Q

Niche marketing

A

a marketing strategy aimed at a small, specialised market

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7
Q

Niche market

A

a small part or segment of a large market consisting of consumers with specialised tastes or preferences.

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8
Q

Market conditions

A

features or characteristics of a given market, including the degree of competition between producers and the numbers, types and spending levels of different groups of consumers.

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9
Q

Expanding market

A

a market in which a consumer demand and sales revenues are rising over time; there is an upward trend in sales

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10
Q

Contracting market

A

a market in which a consumer demand and sales revenues are falling over time; there is a downward trend in sales

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11
Q

Disposable income

A

personal income that is available to spend or save after the deduction of taxes

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12
Q

Price competition

A

rivalry between similar businesses over the selling prices of their competition

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13
Q

Non-price competition

A

rivalry between businesses over different features of their products, such as quality, image, and packaging, and their customer services, after-sales care and advertisements

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14
Q

Market segmentation

A

grouping together consumers who have similar characteristics, preferences and buying habits

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15
Q

Market segment

A

an identifiable group of individual or business consumers sharing similar characteristics or preferencesan identifiable group of individual or business consumers sharing similar characteristics or preferences

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16
Q

Target market

A

a group of consumers that a business will design its products and marketing strategies to appeal to

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17
Q

Lifestyle segmentation

A

dividing up consumers into groups according to their hobbies, interests and opinions

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18
Q

Socio-economic group

A

a group of consumers with similar social, economic and/or educational status

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19
Q

Name the objectives of marketing

A 
Raise consumer awareness of a product
Improve brand image
Maintain or increase market share
Enter new markets
Maintain customer loyalty and retention
Maintain or increase sales and profits
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20
Q

Explain Product from the 4Ps

A

The design and quality of the product and its packaging. How it compares to rival products

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21
Q

Explain Price from the 4Ps

A

Price at which the product is sold and the pricing strategies that are used. What kinds of pricing strategies exist?

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22
Q

Explain Place from the 4Ps

A

Channels of distribution to final customers. Where and how the product is sold

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23
Q

Explain Promotion from the 4Ps

A

Brand name and product image; advertising and other promotions to raise consumer awareness

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24
Q

Explain the advantages and disadvantages of mass marketing

A

Advantages: Creates opportunities for business expansion, increased sales and profits, business can benefit from marketing economies of scale
Disadvantages: More competition, mass marketing can be expensive as it has to apply to everyone

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25
Q

Explain the advantages and disadvantages of niche marketing

A

Advantages: less competition, product quality becomes more important rather than price, customers willing to pay a higher price, lower advertising costs
Disadvantages: opportunities for sales and growth are limited, many niche companies that specialize in only one product are at risk of failing

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26
Q

What are the advantages of market segmentation?

A

Marketing becomes more effective, ability to appeal to the preferences of those consumers in the different market segments. Gaps in the market can be identified. Increase in sales and profits

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27
Q

Market Research

A

The collection and analysis of data about consumers’ preferences, spending patterns and other market conditions

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28
Q

Quantitative data

A

numerical information

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29
Q

Qualitative data

A

written or verbal information

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30
Q

Primary research

A

new data collection from “field research”

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31
Q

Secondary research

A

desk-based research using data from existing sources

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32
Q

Test Marketing

A

a limited field trial of a new product or promotion to test consumer reaction

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33
Q

Random sampling

A

choosing consumers to interview or survey at random

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34
Q

Quota Sampling

A

choosing consumers to interview according to pre-specified characteristics, such as age or sex

35
Q

Sampling Bias

A

choosing consumers to interview or survey who are not fully representative of those in the target population in terms of their characteristics, buying behaviour, tastes or opinions

36
Q

Market Leader

A

the firm with the largest share of a market or market segment measure by its share of the total number of units sold or total value of sales per period

37
Q

Name methods of primary data collection

A

Face to face interviews
Telephone and online surveys
Postal surveys
Consumer panels – asking a group of customers or “focus group” to give their opinion on new products
Observation (e.g. counting the number of shoppers visiting a shopping mall at different times of the day)
Test marketing (also called field trials) – used to test a focus group of the market before releasing the product to the whole market.

38
Q

What are internal sources?

A

Internal sources are accounting records; stock records; records of customer orders; sales records showing variations in sales over time, by season and by area; opinions of retailers

39
Q

What are examples of external sources?

A

External sources are:
Government reports and statistical publications
Market reports published by specialist market research organisations
Newspapers magazines and journals
Trade associations
Publications from competing organisations
The Internet

40
Q

What are some sources of inaccurate market research?

A

Sampling bias – abiasin which asample is collected in such a way that some members of the intended population are less likely to be included than others.
Questionnaire bias – can happen due to misleading or badly worded questions.
Response bias – is the tendency of a person to answer questions on a survey untruthfully or misleadingly. For example, they may feel pressure to give answers that are socially acceptable.
Other – biased results may have been presented on purpose; or statistics may be out of date and may not reflect the latest market trends.

41
Q

Product benchmarking

A

comparing rival products so that a firm is able to match or improve on them

42
Q

Reverse engineering

A

taking apart competing products to discover their strengths and weaknesses and how they were made

43
Q

Branding

A

the process of creating distinctive and durable perceptions of a product in the minds of consumers

44
Q

Brand name

A

a name used to identify and distinguish specific goods, services or businesses from others

45
Q

Product life cycle

A

the profile of sales and profitability of a product over its commercial lifespan

46
Q

Extension strategies

A

marketing methods used to extend sales and the profitable life of a mature product

47
Q

Product portfolio

A

the range of different products produced and marketed by a business at any given point in time

48
Q

Cost plus pricing

A

adding a mark-up for profit over the average cost of producing a product

49
Q

Destruction pricing

A

: strategy where a product or service is set at a very lowprice, intending to drive competitors out of the market, or create barriers to entry for potential new competitors

50
Q

Price war

A

intense price competition between rival businesses

51
Q

Price skimming

A

setting the initial price high at product launch in order to maximise profit in the short run when where is little or no competition

52
Q

Penetration pricing

A

setting price low at a product launch to encourage sales and consumer acceptance of the new product

53
Q

Promotional pricing

A

reducing the price of a product for a short period of time to boost sales

54
Q

Psychological pricing

A

using prices to influence consumer perceptions of a product

55
Q

Price elasticity of demand

A

the responsiveness of consumer demand to a change in price

56
Q

Price elastic demand

A

when a small change in price causes a significant change in demand

57
Q

Price inelastic demand

A

when a chance in price causes only a small change in demand

58
Q

Logistics

A

the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods. Includes managing inventories, transportation and distribution systems

59
Q

Distribution channel

A

the people and organisations involved in the physical movement and transfer of goods and services from producers to consumers

60
Q

Retailer

A

a business organisation specialising in the sale of products to consumers

61
Q

Wholesaler

A

an intermediary that buys and stores products in bulk from producers and sells small quantities to retailers

62
Q

Delivery lead time

A

the time lag between placing an order for a product and its delivery

63
Q

Above-the-line promotions

A

marketing communications using mass advertising media

64
Q

Below-the-line promotions

A

marketing promotions that do not use mass media

65
Q

Informative advertising

A

advertising that provides factual information about goods, services or organisations. This helps increase product credibility and generate good reputation. Governments use informative advertising

66
Q

Persuasive advertising

A

advertising designed to influence consumer preferences, encourage brand switching and increase sales.

67
Q

Public relations

A

actions to establish and maintain a good company and product image with the general public

68
Q

Point-of-sale promotions

A

promotions targeted at the customer at places where a product is displayed or sold

69
Q

Personal selling

A

face to face marketing communications with a customer

70
Q

Marketing budget

A

the money allocated to the marketing of a product

71
Q

What is a product life cycle? Explain the stages

A

A product life cycle describes the stages a product goes through in relation to sales and revenue from when it was first thought of until it finally is removed from the market. The main stages are introduction, growth, maturity, and decline Other stages include product development and extension

72
Q

What are extension strategies?

A

Strategies used to extend the maturity stage of a product. These include finding new markets for the product, adapting the product or the packaging to improve its appeal to consumers, increased advertising and other promotional activities (longer warranty periods; free delivery)

73
Q

What do businesses have to consider when setting the price of a product?

A

Costs of production and level of profit required
Amount of competition
The level and strength of consumer demand
Is the product unique?
Brand image?
Marketing objectives?

74
Q

Explain the advantages and disadvantages of having 2 distribution channel

A

Producer – Consumer
Advantages: Business retains full control of the distribution channel
Can build close relation ship with consumers
Distribution cost are lower because there is no middle man adding mark up
Producer controls all parts of the marketing mix
Quickest method of getting the product to the customer
Disadvantages: Consumers are not always able to try before they buy
Delivery costs may be high if there are customers over a wide area
Storage costs must be paid for by producer
All promotional activities must be carried out and financed by the producer

75
Q

Explain the advantages and disadvantages of having 3 distribution channels

A

Producer – Retailer - Consumer
Advantages: Consumers can try the product before buying
The cost of holding inventories of the product is paid by the retailer
The retailer will pay for advertising and other promotional activities
Retailers are usually more conveniently located for consumers
Disadvantages: The retailer takes some of the profit away from the producer
Business has no relationship with final consumers of its product
The producer must pay for delivery costs to the retailers
Retailers usually sell competitors products as well

76
Q

What does a wholesaler do?

A

acquires goods from a manufacturer, farmer or miner, holds them in a distribution center and then sells them to retailers

77
Q

Give examples of Above the Line promotion

A

Uses mass advertising media to increase sales. e.g. TV, Radio, Newspapers

78
Q

Give examples of Below the Line promotion

A

Uses product placement and endorsements by famous celebrities; public relations; personal selling; and sales incentives

79
Q

Why is brand loyalty important?

A

Repeat purchases from loyal customers who continue to buy the product even if the competitors product is more appealing. Protects market share. Customers may pay a higher price for the brand. Reduces price elasticity of demand for the product

80
Q

Marketing Strategy

A

a plan detailing the marketing objectives of a business and the actions and resources needed to achieve them

81
Q

Customer protection laws

A

legal controls on businesses designed to protect consumers from misleading or inaccurate marketing claims, unfair trading practices and the production and sales of damaged, faulty or dangerous

82
Q

Market entry

A

targeting promotion and sales of a new or existing product at a group of consumers, often overseas, that has not previously been targeted by the producer

83
Q

What are some examples of marketing strategies?

A

Grow sales of an existing product
Grow sales with new products: Introducing updated versions or extensions of current products; and introducing new and innovative products
Grow market share: Often relies on aggressive marketing tactics as growing market share can only be achieved by taking away sales from competitors
Gain sales in a niche market
Maintain the status quo: Important if product is reaching maturity and competition is increasing. Strategy aims to maintain the same level of market share.
Exit a market

84
Q

What are the problems of entering overseas markets?

A

Language barriers, different cultures, customs and tastes, different legal controls and taxes, exchange rate risks, increased risks of non-payment

BS T2 (2 decks)

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