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GCSE Business > Marketing > Flashcards

Marketing Flashcards

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1
Q

The 4 channels of distribution

A

Manufacturer
Wholesaler
Retailer
Consumer

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2
Q

Selling to wholesalers

A

Where manufacturers sell their products straight to a wholesaler who then sells it to consumers or retailers

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3
Q

Pros of selling to wholesalers

A

.Don’t need to communicate with consumers

.Wholesaler already has costumers so products can get sold quicker

. No need for large storage as the wholesaler will bulk buy products

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4
Q

Cons of selling to wholesalers

A

. Poor costumer service from wholesaler may affect the manufacturers reputation

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5
Q

Selling directly to retailers

A

Is where the manufacturer sells directly to retailers

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6
Q

Pros of selling directly to retailers

A

. Retailer can help to promote products which increases sales

. Using retailers means products can be sold in more places so more potential customers

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7
Q

Cons of selling directly to retailers

A

. It can be hard for new firms to persuade retailers to stock their product

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8
Q

Selling directly to consumers

A

Is where manufacturer sells products directly to consumers

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9
Q

Pros of selling directly to consumers

A

. It is the cheapest channel for consumers which may attract customers due to a cheaper price

. Can easily be done eg: via telesales

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10
Q

Cons of selling directly to consumers

A

. Manufacturer may need a large stock to store products which increases costs

. Delivery has to be arranged which is expensive if customers live far apart

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11
Q

4 Ps

A

Product
Price
Promotion
Place

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12
Q

Ways businesses promote their product

A

Advertising
Sponsors
Public Relations
Sales promotion

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13
Q

Where are products advertised

A 
Newspapers/Magazines
Posters and Billboards
Leaflets,flyers and business cards
Television
Internet
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14
Q

What is advertising

A

Where a business pays a fee for promotion of its product or firm

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15
Q

Where can businesses get sponsors

A

Sports

Television

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16
Q

What is sponsorship

A

Where firms give money to organisations and events in return of their name being displayed at the event

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17
Q

Pros of sponsors

A

Can create a high profile for your business or brand name

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18
Q

Cons of sponsors

A

If the sponsorship starts to get bad publicity it will affect the image and reputation of the business

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19
Q

What is a public relation

A

Are firms that work with the media eg doing TV interview or a press release

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20
Q

Pros of public relations

A

It can be cheap and easy to get a firm noticed by a wide audience

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21
Q

Cons of public relations

A

Once the firm has spoken to the media it has little control over what the public sees and hears. This could potentially damage and businesses image and reputation

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22
Q

Types of sales promotion

A 
Competitions
2 for 1 offers
Free samples
Coupons 
Point of sales display
Free gifts
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23
Q

Pros of sales promotion

A

It can encourage new customers to try a product

Boosts sales short term and long term as the customer may return if they liked the product

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24
Q

Cons of sales promotion

A

Regular sales promotion might make the prodict feel a less of a luxurious item

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25
Pros of social media advertising
Social media is quick,easy and cheap Can quickly respond to potential customers
26
Cons of social media advertising
Negative comments can be seen and spread quickly therefore may put off potential customers to the business/product
27
Why do firms promote a product
To inform customers of the product To persuade customers to buy the product To create or increase sales
28
What are the 5 pricing strategies
``` Price penetration Loss Leader Price Skimming Competitive pricing Cost-plus pricing ```
29
Price Penetration
Where firms charge a very low price when a product is new to attract potential customers
30
Pros of price penetration
Good way to establish a market share for a product in a competitive market Loyal customers will continue to buy products despite the price increase
31
Cons of price penetration
The product will make very little profit in the short term
32
Loss Leader
This is where price is set below costs. The firm does not make a profit but the idea is that customers buy other products as well eg: games consoles are priced below cost but firm rely on the games that go with it for profit
33
Price Skimming
This is where a business charge a high price when a product is new. This is done due to the high demand. Over time the price os gradually lowered when the demand lowers
34
Pros of price skimming
The high price helps the firm to increase revenue High price makes the product more desirable as it will be seen as a luxurious item. This improves the firm's image
35
Competitive pricing
This is where firms charge a similar price to competitors
36
Cost-Plus pricing
Where the firm works out the total cost of the product and adds a certain amount of money onto it based on the amount of profit they want to make
37
2 ways cost plus pricing is done
Using a mark up | Using a profit margin
39
Boston Matrix Products
Question Marks Dogs Cash Cows Stars
40
Star Product
an innovative product that is in high demand in which the company earns a high amount of sales and profit
41
Question Product
a product that is low in demand due to competition or just a casual product. Company may need to innovate that product in hopes to achieve a star product or alter the marketing mix
42
Cash Cow Products
a product that has a constant flow of income but a low market growth which may be due to it being out of date or trend resulting in the comapany creating a new version of the product to attract more sales and profit
43
Dog Product
a product that is completely out of fashion and demand. Unless it is innovated these types of product will not generate enough profit for the business to survive resulting in bankruptcy
44
Market Growth and Share of Star products
High Market Share | High Market Growth
45
Market Growth and Share of Question products
High Market Growth | Low Market Share
46
Market Growth and Share of Cash Cow products
Low Market Growth | High Market Share
47
Market Growth and Share of Dog products
Low Market Growth | Low Market Share
48
Stages of product life cycle
``` Research and Development Introduction Growth Maturity Decline ```
49
Sales and Profit during development and introduction
Low Sales | Low Profit
50
Sales and Profit during growth and maturity
High Sales | High Profit
51
Sales and Profit during decline
Low Sales | Low Profit
52
Ways markets are segmented
Age Income Location Gender
53
What does market research mean
It means a business will be able to identify customers needs and find ways to satisfy them
54
Benefits of market research
Increased Sales Stay Competitive Create targeted marketing
55
What is primary research
Consists of gathering your own data
56
What is secondary research
Consists of using existing data
57
What is quantitive data
Data that is of numerical value
58
What is qualitive data
Data based on opinions and feelings
59
Types of Primary Research
Questionnaires and Phone surveys Interviews Focus Groups
60
Pros of Primary Research
Questionnaires are Cheap Phone Surveys and Interviews are quickly responded to Focus Groups are faster than interviewing individual people
61
Cons of Primary research
Questionnaires don't get many responses Phone Surveys and Interviews are expensive Quieter individuals in focus groups are not heard
62
Types of Secondary Research
Internet research Newspapers and magazines Government publications
63
Pros of secondary research
Cheap Easily found and instantly available
64
Cons of secondary research
Outdated Not always relevant Not specific
65
Place and location of a business
Products must be sold in a place convenient for the customer. Place also refers to channel of distribution used for a product and which channel is most convenient for the customers

GCSE Business (6 decks)

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