Markets Flashcards

Question

What is the market share influenced by?

Answer 1

marketing focus economic situation competitors actions

Answer 2

A market that is constantly changing | -sellers respond to the changing needs or buyers by improving existing products and services or introducing new ones

Answer 3

``` The environment changes in technology social trends - fashion Competitive environment consumer tastes ```

Answer 4

Music Airline High street coffee shops Online retailers

Answer 5

tastes and preferences technology environmental reasons Competition

Answer 6

Is about putting a new idea or approach into action. Practical application of new inventions into marketable. products or services -commonly described as 'the economically successful exploitation of ideas'

Answer 7

Formulation of new ideas for products or processes

Answer 8

Launching new or improved products or services into the market

Answer 9

Finding better or more efficient ways of producing existing products or services

Answer 10

Gain a competitive advantage Differentiates the product allowing them to have a competitive advantage First mover advantage - when the business is first to the market Benefits the brand as gives you a strong reputation Increased market share Demand would be inelastic to price - only business that offers it

Answer 11

higher prices and profitability opportunity to build early customer loyalty Enhanced reputation as an innovative company increased market share

Answer 12

``` Unit costs go down as efficiency increases improve quality more responsive customer service greater flexibility higher profits ```

Answer 13

research into competition and how to respond to it understand customer trends - their needs and wants technology

Answer 14

HR organisation structure Research and development Flexible working - zero hour contracts, part time, temp or. full

Answer 15

Exists when the outcome of a particular situation is impossible to predict

Answer 16

Is a known possibility of an unfavourable outcome that can be estimated with probabilities

Answer 17

Actions of competitors Macro-economic factors - business cycle, inflation Government - tax, government spending Dynamic market that are constantly changing Geopolitical events - wars, natural disasters

Answer 18

A market orientated approach is an outward looking approach and means a business reacts to what the customer wants. The decisions taken are based around information about customers needs and wants - most successful businesses -an outward looking approach to new product development where the focus is on what products the consumer wants

Answer 19

A product orientated approach is an inward looking approach focussing on innovation, means the business develops products based on what it is good at making or doing, rather than what a customer wants. - usually criticised as often leads to unsuccessful products particularly in well-established markets

Answer 20

Market research concentrates on understanding the needs of the consumer and then adapting or producing products to meet these needs Reduces the risk of new product development Business has a sensitivity to customer requirements

Answer 21

Customer loyalty as you are producing to requirements Reduces risk failure and increases chances of success Competitive advantage- USP Brand loyalty Word of mouth promotion May be easier to charge a higher price - price inelastic

Answer 22

Higher costs - market research, developing and launching products, costs for training and adapting of production techniques Can be time consuming Changing consumer trends

Answer 23

An inward looking approach to new product development where the key focus is on what products can be made and the production process Informed by scientific research and technical development -research and development Concentrate on producing high quality products and then later look to create a market for them Most common with technologically advanced products where the consumer does not have the technical knowledge or insight to realise that this product could exist or that they would want it

Answer 24

``` Save costs from market research Don't have to re-train people as there is limited change First mover advantage - innovative Spend money on research and development harder for rivals to copy ```

Answer 25

May not be high demand High risk of failure Often leads to unsuccessful products particularly in well-established market

Answer 26

To assess potential demand for a p/d, to see if it will sell and if so how much To see which promotions would best suit a launch of the p/s To assess the competition, where do potential customers shop, do they have a substitute or complimentary To build the customer profile

Answer 27

creates prices that are better suited to the market and customer less uncertainty - know and understand the market to react and prepare for changes in the market to become market orientated to create a marketing plan based on data

Answer 28

the original data gathered by the researcher info doesn't exist yet, so can't be found on internet will use this data to make specific decisions about the business

Answer 29

Questionnaires, loyalty cards, test marketing, interviews, focus groups, observation, consumer panels

Answer 30

research consisting of series of questions for the purpose of gathering information, open or closed

Answer 31

A structured conversation where one participant asks questions and other answers - the questions are tailored and based on the answers given

Answer 32

Where researchers watch how people or consumers behave and interact in the market under natural conditions

Answer 33

Group discussions where customers discuss issues such as there opinions on the product that haven't been launched yet - one off customers

Answer 34

Cards that collect data on the shopping habits of their customers

Answer 35

Small groups of consumers discussing their experiences of the business - people who regularly feedback on aspects of the marketing mix, work with them over a long time

Answer 36

Limited launch of product to see how well it sells

Answer 37

does it tell you anything meaningful | May only uncover consumer views on minor things

Answer 38

gathering and processing data can be expensive Many firms may lack the expense to conduct extensive surveys May lack funds to pay specialist market research. agencies

Answer 39

Validity Budgeting constraints Time constraints Reliability of data

Answer 40

Takes time to create and analyse data

Answer 41

depends on the accuracy of the data collected - unrepresentative samples, based interviews

Answer 42

Directly focused on research purposes Tends to be more up-to-date Provides more detailed insights into consumers views

Answer 43

Time consuming, costly to obtain, risk of survey bias - may not be representative of the population

Answer 44

based on opinions, attitudes, beliefs and intentions | Aims to understand why customers behave in a par t ocular way or how they may respond to a particular product

Answer 45

Opinions are often obtained from a small group of people so findings may not be statistically valid costly and time-consuming

Answer 46

Focus groups | interviews

Answer 47

research based on larger samples and are more statistically valid Results will be numerical form Various form of surveys- telephone, email, postal, online

Answer 48

Uses data that already exists and has been collected by someone else for another purpose Internal - from the firm itself External - data that has been published by another organisation

Answer 49

In order to launch a product in a restricted area to see if it is successful before spending money on a national launch

Answer 50

``` Annual reports Internal data Government sources News Trade journals Market research reports EU and International reports ```

Answer 51

backwards look at previous objectives and reports on whether they have been met - financial data. - used for investors - forward look at future objectives - Able to see competition in market

Answer 52

Data from inside the business - sales receipts - see what the best seller is - pick up any patterns and trends in data

Answer 53

ONS - office of national statistics - information on the economy - Helps for the business to plan for sales - GDP high or employment

Answer 54

business news updates | e.g on competition or suppliers for supply chains

Answer 55

Industry specific management/newspaper | e.g the grocer, marketing week

Answer 56

Specialist market research companies such as MINTEL

Answer 57

World Bank, WTO, IMF, WEF, CIA fact book

Answer 58

can be outdated | May not be specific to information needed

Answer 59

Bias, validity, reliability

Answer 60

is the data trustworthy S - trustworthy original source P - is the research methodology clear and consistent - sampling method

Answer 61

Does the data match what you are looking for

Answer 62

Sampling methods needs to represent the whole population you are interested in Was the data produced by someone with a interest in a particular result

Answer 63

Websites Social Networking Databases

Answer 64

software can highlight what customers are saying about a brand or product set up surveys to analyse results

Answer 65

Capabilities of modern IT has transformed market research | Easier to learn about customer buying habits

Answer 66

To understand your customer and to tailor advertising products to each customer = customer loyalty

Answer 67

Hootsuite | Sproutsocial

Answer 68

A market segment is a group of people with similar needs

Answer 69

Geographic, Demographics, Psychographic, behaviour

Answer 70

Values, attitudes, personality, lifestyle

Answer 71

Region, country, climate

Answer 72

Why does a customer by a product? When do they buy it? Usage rate

Answer 73

Occurs when business focusses on a narrow segment of the market with specific needs

Answer 74

Occurs when a business' products/services appeals to a wide target market

Answer 75

Is how an individual products or brands are seen in relation to their competition by the consumers, May stem from pricing, marketing or quality

Answer 76

Occurs when businesses make their product a little different from competing products. This may involve giving it unique features

Answer 77

Is the use of a grid showing two features of a market, such as price and quality. Individual brands or businesses are added to the grid to show potential niches or gaps in the market -Products are compared to. all competitors

Answer 78

A business opportunity that no-one else's fulfilling

Answer 79

Enables a business to spot gaps in the market | Can help a business differentiate its products from the competition

Answer 80

Can be hard sometimes to categorise the same products and services Identifying a gap does not mean there is a need for the product More market research must be done May be subjective

Answer 81

Is the value of the finished good or service over and above the cost of achieving it. This is achieved when a business increases the worth of its factor inputs by creating a new output

Answer 82

Land Labour Capital Enterprise

Answer 83

Input + transformation process- added value+output

Answer 84

``` Manufacturing Market Branding/logo Technology Customer service Unique selling point Exclusivity convenience ```

Answer 85

Competitive edge - customer loyalty/ satisfaction Charge a higher price Creating a point of difference from the competition Protecting from competitors trying to steal customers by charging low prices Focussing a business more closely on its target market segment

Answer 86

Promotion price place product

Answer 87

aesthetics function costs

Answer 88

The combination of facts to help the business to take into account customer needs when selling a product

Answer 89

Refers to the way in which all aspects of a product design are considered, including; function, aesthetics and economic manufacture

Answer 90

Function Aesthetics Economic manufacture

Answer 91

The way in which the products perform - need to wrk and be reliable and do the job it was designed for - if not, may not satisfy customers and may cease production

Answer 92

Refers to the degree of beauty and style as perceived by the user -some will consider this to be a key differentiating feature and will place precedence over the two areas

Answer 93

The product has to make a profit and must be capable of being manufactured at a cost below the selling price if it to be viable

Answer 94

Changes are made to reflect the social trends

Answer 95

Refers to the way society as a whole behaves and the values that determine the behaviour -can alter the relative importance of the different elements of the design mix

Answer 96

Resource depletion Ethical sourcing Recycling and reusing Waste minimising

Answer 97

Reduction in the number or amount of resources When resources start to deplete, the prices increase effecting the economic manufacture -Non renewable become scarcer and costs increase

Answer 98

Making a product with affecting long term suppliers of the inputs of the products

Answer 99

Aims to eliminate waste before it is produced and reduce its quantity and toxicity - Prevention is the goal, followed by reuse, recycling, treatment and appropriate disposal - Helps keep production costs low and reduce environmental footprint

Answer 100

Not wasting resources or damaging the lives of employees | Consumers avoid buying products associated with child labour or sweatshops

Answer 101

A characteristic, name, symbol that distinguishes one product from another supplier

Answer 102

Involves using variety of methods to communicate with customers and persuade them to buy your product

Answer 103

Awareness Interest Desire Action

Answer 104

Advertising Public relations Sales promotions Direct marketing

Answer 105

Brochures, leaflets, choice of advertising media, radio, tv , print

Answer 106

Refers to the combination of different types of promotion. used by a business The elements must be integrated in a cohesive, consistent and logical manner to achieve the marketing aims of the. business

Answer 107

The use of short term incentives to encourage buyers to purchase

Answer 108

competitions, vouchers, deals, money off, coupons

Answer 109

Costs of competitions Effectiveness Consistent with brand image Likely impacts on sales

Answer 110

Is communicating with the media and other interested parties to enhance the image of the business and its products and therefore increase sales -costs no money, unless a professional company is hires to carry out PR

Answer 111

Speeches, PR stunts, sponsorships

Answer 112

Telemarketing, sales people

Answer 113

Sponsorships, direct marketing, personal selling

Answer 114

Association of a product with a popular celebrity or sports person can increase sales and the profile of a product

Answer 115

marketing activity that is aimed directly at the customer such as leaflets door to door, direct mail

Answer 116

Face to face contact with customers

Answer 117

- reach a wide coverage - control of the message - use the brand to build loyalty

Answer 118

-expensive

Answer 119

- can be cheap | - large audience

Answer 120

- bad pr | - cannot control the way the story is covered by media

Answer 121

- cheap | - tailored/control who see it

Answer 122

- may not get read | - small audience

Answer 123

- can entertain and interest the consumer - immediate action or purchase - can encourage brand switching

Answer 124

-often short term effects

Answer 125

- greater engagement - build customer relationship - two way communication can answer customer queries

Answer 126

- expensive - only reach a limited number of customers - luxury items

Answer 127

- target market - social trend - stage in product life cycle - competition - technology - costs of promotion - finance

Answer 128

a characteristic name or symbol that distinguishes one product from another suppliers

Answer 129

brands associated with specific products

Answer 130

brands that add perceived value to services either delivered face to face or via online and apps

Answer 131

brands that are assigned to more than one product | -makes different product lines easily identifiable by the consumer by grouping them under one brand name

Answer 132

promoting the brand name of a corporate entity, as opposed to specific products or services

Answer 133

an example of corporate branding where retail outlets sign their corporate branding to a range of goods and services

Answer 134

easily recognised and operating worldwide | -brands are based on familiarity, availability and stability

Answer 135

- awareness of brand and sales - perceived added value leading to ability to charge premium price - an umbrella brand allows you to launch new products successfully under that brand - reduced PED - protects against competition, promotes loyalty - can sell a brand as it have value on a balance sheet

Answer 136

how a business can gain competitive advantage by being the only business in the market to offer that product or service

Answer 137

- focus on USP - communicates the functional message and any symbolism or values that consumer might identify with the brand - the more the consumer identifies with the brand, the more persuasive the advertising is = sales

Answer 138

USP advertising sponsorship social media

Answer 139

- hashtags on twitter are aw way of altering customers following a popular topic that your brand has an association with it - events - businesses can take photos and hashtags in some popular events

Answer 140

- added value - brand loyalty - brand awareness

Answer 141

- adding and building trust - providing value in a fun and creative way through daily content, apps, videos - interacting with customers - having accountability - dealing with complaints

Answer 142

- social media - websites - viral marketing - emotional branding

Answer 143

enables users to create and share content or to participate in social networking

Answer 144

- a strategy that encourages people to pass on messages to other about a product or service electronically - uses social media and online platforms - aims to increase brand awareness or to achieve other marketing objectives

Answer 145

- refers to the practice of using the emotions of a consumer to build a brand - designed to appeal to a customers emotion, human need or perceived aspiration

Answer 146

the approach which a business decides on for setting the price of its products or services

Answer 147

- number of USP's - amount of differentiation - PED - level of competition in the business environment - strength of brand - stage in the product life cycle - costs and the need to make profit

Answer 148

where the retailer wants to know with some certainty what the gross profit margin of each sale will be -Full cost plus pricing seeks to set a price that takes into account all relevant costs of production..

Answer 149

that the business will know that its costs are being covered. - takes few resources no need to do market research - consistent rate of return

Answer 150

- This method ignores the concept of price elasticity of demand -business to charge a higher depending on the responsiveness of customers to a change in price - the business has less incentive to cut or control costs - inefficient - inaccurate budgets can cause loss

Answer 151

setting a high price to maximise profit when a new product is launched into a market - product is sold to different market segments at different times - top segment is skimmed off first with the highest price

Answer 152

-to maximise profit per unit to achieve quick recovery of development costs

Answer 153

- works well for products that create excitement amongst early adopters - best used in introduction or early growth stage of product life cycle

Answer 154

- high quality products and brand image to support higher price - enough buyers prepares to pay higher price - competitors must be deterred from entering market

Answer 155

offering a product at a very low introductory price

Answer 156

- to gain market share quickly - build customer usage and loyalty - build sales of higher priced related items

Answer 157

- low initial price can create an expectation of a permanent low price - may cause customers to switch making it harder to increase price - may just attract customers who are looking for a bargain - low customer loyalty to brand - likely to result in retaliation from established competitors, who will try to maintain market share

Answer 158

prices are deliberately set very low by a dominant competitor in the market in order to restrict or prevent competition -now illegal

Answer 159

Psychological pricing is the business practices of setting prices lower than a whole number. The idea behind psychological pricing is that customers will read the slightly lowered price and treat it lower than the price actually is

Answer 160

The aim of psychological pricing is to make the customer believe the product is cheaper than it really is. Pricing in this way is intended to attract customers who are looking for "value".

Answer 161

- doesn't guarantee sales | - can make a customer feel manipulated

Answer 162

Competitive pricing is a strategy where a product's price is set in line with competitor prices

Answer 163

- very simple to implement as it requires basic research and insight into who your competitors - low risk

Answer 164

- not a long term strategy - the business needs some other way to attract customers. It has to use non-price methods to compete – e.g. providing distinct customer service or better availability.

Answer 165

the price of a product is determined by adding a percentage in addition to the cost of making the product

Answer 166

- easy to calculate - prices increases implemented when cost rise - mangers can be confident each product is being sold at a profit

Answer 167

- ignores PED - no account of competition - profit is lost if price is set below what the customers are prepared to pay - sales lost if price is set above the price customers are willing to pay - Businesses have less incentive to control costs

Answer 168

- number of USP's, differentiation - PED - level of competition - strength of brand - stage in product life cycle - costs and the need to make profit

Answer 169

- online sales | - pricing comparison sites

Answer 170

how to get products to the right place for the customer to make their purchase 4ps

Answer 171

- opportunity cost | - risk

Answer 172

-important aspect is whether your product is a planned purchase or whether It is an impulse purchase

Answer 173

buying in an unplanned way | -implies the need to maximise distribution and to make sure of great displays

Answer 174

- distribution and displays become less important as the customer will look for the item they want - therefore the supplier doesn't need to offer such generous retail profit margins

Answer 175

the flow that moves a product through the stages from production to final consumption

Answer 176

- every part of the shop floor space has an actual cost and an opportunity cost - the cost of missing out on the profits that could be generated by selling other goods

Answer 177

- traditional physical channel - direct to retailer - be your own retailer - direct online - online retail

Answer 178

- small producers sell to wholesalers who they sell to small independent shops - the profit mark-up applied by the middleman adds to the final retail price - a smaller producer cannot afford to deliver individually to lots of small shops

Answer 179

- large producers cut out the middleman and sell directly to retail chains - cost-effective but exposes the server to tough negotiations from the retail chains on price and credit terms - large retailers demand the manufacturers pay for special offers and price promotions

Answer 180

-large producers are known for iconic product design and control of their own distribution, displays and sales by running their own shops

Answer 181

- producer sells directly to the consumers - mail order or online - makes sure producer keeps 100% of the products selling price

Answer 182

-small firms often lack the ability and finance to build a successful e-commerce sales platform

Answer 183

- online distribution | - changing from product to service

Answer 184

- most shops stock low ranges of sizes aimed at the average 65% of the market - the wider range of sizes you keep on shelves or in stockrooms the fewer number of items you will have the room to display or store - opportunity cost -not an issue for online retailers

Answer 185

- selling services has been affected by modern online trends as much as anything else - most changes to services is how they are booked which is mostly online

Answer 186

factors that make it hard for firms to break into an existing market

Answer 187

electronic commerce carried out online

Answer 188

- where do customers buy and who from | - how do they buy

Answer 189

involves a business using more than one type of distribution channel

Answer 190

- allows more target market segments to be reached - customers expect to be able to buy in different ways - higher sales - retailers have no stock but can buy it online

Answer 191

- potential for channel conflict - competing with retailers by also selling direct - loss of profit margin to intermediaries such as retailers and distributors - that be retained by selling direct - danger that pricing strategy becomes confused for customers

Markets Flashcards

(215 cards)