Marketing Flashcards

Question

whats geographic segmentation

Answer 1

geographical area e.g. climate conditions, culture, food

Answer 2

socioeconomic grouping, how much they earn, lower income then may value lower prices more

Answer 3

when they buy (seasonal), how much they buy, brand loyalty, the benefit they want from a product

Answer 4

-large customer base so more profits/sales -economies of scale, lower production costs and higher profit margins -brand recognition, strong brand awareness

Answer 5

-more competition -less personalisation, mass market designed to appeal to broad range so doesnt meet specific preferences -lower profit margins, can sell in large volumes but lower profit as needs to stay competitive with lower prices

Answer 6

-less competition, stronger presence -higher profit margins, can charge premium prices -customer loyalty as meets specific needs

Answer 7

-limited customer base -higher costs as requires specialist production/materials -limited growth potential

Answer 8

-product/service type -competition, need for differentiation -resources/production -objectives, growth? survival? competition?

Answer 9

-strengths of business e.g. leadership, size, connections -employees e.g. skills -competitors -market conditions -politics

Answer 10

-price -benefits they offer -brand image -level of service

Answer 11

-subsitute availability -proportion of income -luxury/necessity -addiction -brand loyalty -USP -time period -intellectual property -cost of switching

Answer 12

% change of quantity demanded / % change of price PED is always negative

Answer 13

demand is price elastic -as price increases, quantity demanded falls by a greater than proportionate amount -as price decreases, quantity demanded increases by a greater than proportionate amount

Answer 14

-price inelastic -as price increases, quantity demanded falls by less than proportionate amount -as price increases, quantity demanded increases by less than proportionate amount

Answer 15

-if price increases then total revenue increases -if price decreases then total revenue decreases -business should increase prices to increase TR IF INELASTIC

Answer 16

-if price increases then revenue decreases -if price decreases then revenue increases -business should decrease prices to maximise TR IF ELASTIC PED

Answer 17

-helps predict effects of changes in economic cycle on sales -luxury products with higher YED see greater sales volatility over a business cycle than necessities where demand less sensitive to changes -important to have diversified product range -higher value added products increase profit margins as high YED +low PED

Answer 18

normal goods - positive income elasticity luxury goods - income elasticity bigger than 1 necessities - income elasticity bigger than 0 and less than 1 (e.g. 0.2, 0.8) inferior goods - negative income elasticity

Answer 19

when YED between -1 and infinity: -as incomes increase/decrease, Qd falls/increases by a greater than proportionate amount when YED between 0 and -1: -as incomes increase/decrease then Qd falls/decreases by less than proportionate amount

Answer 20

normal necessities (between 0 and 1): -as income increases then Qd increases by a less than propotionate amount normal luxuries (between 1 and infinity): -as income increase, Qd increases by greater than propotionate amount

Answer 21

attention (raise awareness), interest (make customers want to know more), desire, action (encourage purchases)

Answer 22

-mass media -e.g. TV, radio, print ads, outdoor media, billboards, posters -good for awareness but less likely to generate action -higher costs for only short ads

Answer 23

-reaches smaller but targeted audiences -e.g. PR, search engines, paid search, social media, events -direct contact with customers -builds stronger customer relations -drives individual response, community around the business -lower costs, easier to monitor

Answer 24

-target market -informative/persuasive? -cost /financial state -type of product

Answer 25

pros -creates positive image successful PR relies on media looking positively on a story cons risky - could be overlooked but could provide large exposure

Answer 26

pros -higher product awareness through associating with events /sports -smaller businesses can make use of deals to increase exposure of brand cons -corporate sponsorships deals are battled for to win contracts

Answer 27

pros -promotes action cons -use caution as they could see it as invasion of privacy -complaints/negative publrcy Sales promotions

Answer 28

pros * short term boost to sales, attracts customer loyalty BRB marketing, could include free hospitality events cons -costs alot, returns need to justify initial outlay, in form of higher sales + profits in long term

Answer 29

paid social * When you pay for advertising on social media platforms * Good way to break through algorithms and connect with audiences that are unlikely to connect with you otherwise * Useful for promoting content that’s converting well and reinforcing the messaging you convey through organic social -Can use paid campaigns to tap into precise consumers you want to reach through audience targeting

Answer 30

* When you use free social media to build and engage a following * A good way to engage directly with customers, manage reputation, encourage user generated content * Is free so less cost Good way to promote company and products to a loyal audience while extending network

Answer 31

-a campaign that's proven to be very successful t well known + shared by many -creates a "buzz" around a brand * shared widely:.more awareness often uses humour lemotion to get attention

Answer 32

pros -encourages repeat purchases + brand loyally -easier to persuade retailers to stock product -differentiation, easier to identify brand -reduces prize elasticity cons -high ad costs - must be prominent + maintain awareness -risk of copycat ideas - must enforce legal protection -high research + development costs - maintain leading status

Answer 33

pros -low costs targeted marketing + detail of customer needs -monitors impact of promotions on sales immediately -can track buying habits + adjust offerings to needs -viral marketing leads to quick sharing cons - have to manage data -need expertise + time so higher costs -cheapness and ease of digital so more growth of competition

Answer 34

-position of product life cycle -boston matrix -type of product -marketing objectives -target market -competition -positioning

Answer 35

-how ppl react with environment and equipment they use

Answer 36

augmented - extras e.g. brand name, guarantee of after sales service tangible - features of the product e.g. reliability, design

Answer 37

intro - low price to gain sales, high price if high demand growth - maintain high price maturity - cutting price to sustain sales decline - cut price to boost sales

Answer 38

intro - limited number of versions as just launched growth - develop other models maturity - focus on best sellers as demand not growing as fast decline - focus only on most profitable

Answer 39

intro - raise awareness growth - raise awareness maturity - promote benefits compares to competitors decline - reduce promotion to focus on most cost effective methods

Answer 40

-increase promotional spending -revamp product -find new target market segments -find new usage occasions e.g. seasonal -improve quality -cut price -sales promotion e.g. discounts

Answer 41

-Historical sales of product (degree of past success) market conditions e.g. competitiveness and ability to compete -steepness of decline (if shallow, still popular) -how much itll cost to extend life + likely return of investment -financial stability, can they afford it? -do they have other popular products that they can use to invest and extend another product

Answer 42

-market demand consumer preferences -products that align with current trends -technological advancements - could either make them obsolete or enhance -competition/market saturation-" -economic conditions -marketing + promotion - could boost awareness -product quality-contiuous improvements so longer cycle -customer feedback/loyalty -distribution channels - more availability (depends on finance) -seasonal /fashion trends

Answer 43

stars - high market growth, high relative market share cow - low market growth, high relative market share question mark - high market growth, low relative market share dog - low growth, low relative market share

Answer 44

-visualise strengths and weaknesses of product portfolio -analyses position of products relative to market and helps decide suitable marketing strategies -helps plan product portfolio, ensures they constantly revise it against changes in demand -maintains balanced product portfolio

Answer 45

-only a snapshot to business position, little predictive value e.g. economic downturn -ignores other factors that determines success of business e.g. leadership/culture -high RMS/MG doesnt gurantee profitability, usefulness relies on expertise of managers -ignores external factors

Answer 46

build?, maintain?, protect?, harvest?, divest?, revamp?

Answer 47

-invest to maintain status in market -competitive pricing -invest in marketing campaigns -build brand loyaltyw

Answer 48

-hold and milk position -retain market share by keeping customers satisfied -defend position through competitive pricing

Answer 49

-discontinue/build/divest -be selective , invest in marketing/market research to improve appeal of product -decide if investment is worth it to rectify, research why its not competitive

Answer 50

divest ( sell off or stop production) -revamp ( product extension strategies e.g. rebrand, new target market, new packaging) -be selective as dogs are cash negative

Answer 51

pros -better market overview -increased revenue as market dominance, understands buying behaviours -more control of pricing strategy, more flexibility cons -risk of losing customers -risk of starting price war -time consuming -prone to error

Answer 52

pros -easy to calculate -price increases when costs increases -managers confident each product is being sold at a profit cons -ignores PED -may not take competition into account -prodit lost if price set below what customer prepared to pay -sales lost if price set above -less incentive to control cost

Answer 53

cons -low initial price creates expectations of permanent low prices, damages loyalty -attracts customers only looking for a bargain -may result in retaliation from competitors who want to maintain market share when does it actually work --demand in markt must be very price elastic -increase in sales and market share needs generate lower unit costs to make lower prices affordable -prices kept low to deter competition

Answer 54

-for products that create excitement e.g. early adopters -for products in intro/growth stage of cycle -needs high quality and brand image to support high prices -must be enough buyers to actually pay the price -competitors must be deterred from entering the market

Marketing Flashcards

(79 cards)