Section 5-marketing Flashcards

Question

The changing marketing research...

Answer 1

The marketing mix of business will need to evolve as business grows and the environment it operates in changes

Answer 2

All businesses will be trying to reach a situation where they have no competition Product-as the business will achieve high dales, there would be little incentive to develop new or improved products; quality therefore may suffer Price-prices can be set high, resulting jn high profits Promotion-once customers are aware of business, then there may be little need to spend on promotion Place-the might be fixed through the location of the business, but access to firm's products may be chosen more to suit the convenience of the business rather than customer

Answer 3

If a business is successful, it will make profit. If it makes a lot of profit then other businesses will look to enter the market in order to benefit from high profits too. Product- constant development of existing products and the development of new products will be necessary;quality and customer service will be very important, as having USP will be essential to successfully compete and survive in the market Price-price reductions may take place in order for the firm to remain competitive against ruval businesses-profits may decrease Promotion-increase in promotional activity to attract new customers and keep existing customers coming back to business Place-greater focus on the customer's requirements which might increase distribution or operating costs

Answer 4

Marketing will change as the needs of consumers change. Not only will the goods and services that demand change,but so will the way customers find out about products, as well as how they make their purchases.

Answer 5

How a business gets its products to customers

Answer 6

Manufacturers sell products to a wholesaler,then consumers or retailers buy the products from the wholesaler. This channel is good for manufacturers that make lots pf a particular product and don't need to communicate much with the consumer. -selling to wholesaler means the manufacturer gets bulk order and doesn't have to store lots of stock. -The wholesaler will already have customer, so products can reach lots lf potential customers -And if retailers buy from wholesaler,it means the product will end up being solid in even more places,so reach even more customers

Answer 7

-Selling directly to retailers means that the manufacturer can provide the retailer with product knowledge so the retailer can provide better customer service -so the customers have higher satisfaction with products -the retailer can help to promote products, which may help increase sales -using retailers means the products are sold in more places, so more potential customers exposed to them

Answer 8

This can be done via telesales -often cheapest channel for consumer -But it can be time-consuming for firms to sell products to individual customers, especially of each customer only buys small quantities -Also have to arrange delivery goods,which can be difficult and expensive if the customers are in lots of different places -Channel is good for firms who din't have loads lf customers or firms selling ine-off items

Answer 9

-Access to larger number of customers for producer -saves costs for producer Disadvantages: -Increased price at each level -Producer may lose control of how and where product is sold

Answer 10

E-commerce allows goods and services to be bought on internet M-commerce allows goods and services to be brought using a wireless mobile device such as smartphone or tablet

Answer 11

-business can access wider markets so have more potential customers, so sales increase -growth of m-commerce also means that a business sales may increase as becomes easier for customers yo buy product online -E-commerce saves money on paper-can be viewed online by customer -may be able to close high street shops which saves money on property and staff costs -can locate more in remote areas where wages tend to be lower -all these savings means lower prices than high street shops-increasing sales

Answer 12

-No personal contact with customers -websites must be actively managed,be easy to use,engaging and contain up to date information regarding products -businesses must have ability to process returns efficiently -security systems must be maintained -increased costs of distribution to national and international locations -more competition

Answer 13

Sales Image Price

Answer 14

1.Research and development-first of a product's life cycle as used to develop an idea and turn into marketable product 2.Introduction-product is launched and put on sale for first time. This is usually backed up with lots of advertising and sales promotion. Place is also important as no point launching product no one wants to buy 3. Growth-demand increases until product becomes established 4. Maturity-demand reaches its peak during stage. Promotion becomes less important but still will advertise product. As product's popularity grows,businesses will try to make product more widely available. Towards the end of this phase, the market becomes saturated and there's no more room to expand. 5. Decline-demand starts to fall as rivals products takeover over

Answer 15

Introduction: Price penetration-to gain foothold in market and to ensure successful launch Price skimming-product is innovative or business has a strong brand name Cost-plus pricing-ensure business makes profit for each item sold Growth: -price penetration and low prices to build sales,prices may increase once product becomes more established -price skimming and high prices if rival product have not been launched on market Maturity: -prices lowered and competitive pricing may be used to match or undercut prices of new products launched onto market by rivals Decline: -prices cut further to boost sales and promotional offers may be used -May use loss leader

Answer 16

-If business increases price then likely to sell less, as demand from the customers will fall -if the decrease in demand is only small as customers are loyal to product,revenue will then increase -however, if competitors with similar products sold at similar prices then an increase in price could lead to large decrease in demand as such revenue will fall -price decreasing-can lead to a large increase in demand,which will increase revenue, although it does not guarantee that price will cover the costs

Answer 17

Amount of money charged for a good or service

Answer 18

Price skimming involves setting up high prices before other competitors come into market -often used for launch of a new product which faces little or no competition, usually due to to product possessing new,advanced technological features

Answer 19

Advantages: -potential for high profits,which can help pay for research and development costs -product/brand may get a reputation for quality encouraging brand loyalty -additional profits mad can be invested Disadvantages: -cannot last for long as competitors launch rival product which puts pressure on price -may slow down growth in sales of product ss more expensive and more customers cannot afford or are not willing to pay high charged price

Answer 20

-when a firm charges low price when a product is new to get lots of people to try it -often used by new business to support a new product launch to draw consumers away from competition -may result in loss of profits for business

Answer 21

Advantages: -builds customer loyalty -can help develop long-term profitability by having higher sales and a higher market share Disadvantages: -in short term, it is likely to result in lower profit that would be case if prices were set high -may be difficult to raise the selling price in future

Answer 22

A business looks at the prices charged by competitors to indicate what price to charge. Prices are then set based on these prices.  Often used when there is strong competition in a market and customers are faced with a wide choice of where to buy.  Customers may buy from the cheapest provider or from one offering the best customer service.  Customers will be mindful of what is a reasonable / average price in the market.  If there is little competition, this pricing method will not be important.

Answer 23

Advantages: Selling prices should be line with rivals, so prices should be competitive and attract customers Disadvantages: • Strategies, other than price, may be needed to attract customers e.g., providing better quality, excellent customer service or better availability. It often leads to special offers or sales promotions. • The business will need to research what its competitors are charging, which could increase costs and lower profits.

Answer 24

Where a price is set deliberately at or below the cost of production in order to attract customers who will also, hopefully, buy other, more profitable products.

Answer 25

Involves setting the price by adding a fixed amount or percentage to cost of making or buying product

Answer 26

Advantages: -a profit is guaranateed osn each item sold -makes sure production costs are covered Disadvantages: -if mark-up is set too high, he price may be expensive compared to rivals and therefore uncompetitive

Answer 27

-gap in market identified -new invention or idea -existing product has declining sales -new fashions and changing customer requirements

Answer 28

Functionality Reliability Aestethics Quality Economics/costs

Answer 29

Benefits: -will increase overall sales for business and may extend life-cycle of existing products -may appeal new market segment -charge higher prices before competitors bring similar product -good for firm's reputation-people interested in future products Risks: -can be costly and time-consuimhg -resources may be wasted -may not produce on large scale at low enough cost -poor quality-poor reputation

Answer 30

-unique selling point -will allow to charge higher prices and creates customer loyalty -will able to develop brand for its products,where customers will return to make repeat purchases -customers more likely to buy other products that are associated with same brand,which they perceive as being good value

Answer 31

A name,term,design,symbol or any other feature that identifies one seller's good or service as distinct from of other sellers

Answer 32

-reputation for high quality products so more customer loyalty -can charge higher prices -Top brands will be on shelves of markets

Answer 33

Adding more or different features Using new packaging Targeting new markets Changing advertisements Lowering price

Answer 34

A range of different products a business sells

Answer 35

Way for firm to analyse its products portfolio. Market share of each product is considered and how fast the market product is growing Question marks: -all new products -small market share but high market growth -aren't profitable yet and need heavy marketing to give chance of success Dogs: -low market share and growth -business will either get what profit they can before discontinuing them,or sell them Cash cows: -bring in plenty of money -high market share but low market growth-maturity stage -costs are low since they already been promoted and produced in high volumes Starts: -have high market share and growth

Answer 36

-To inform current and potential customers about existing and new products -to explain potential benefits -to persuade customers to buy -to compete with other businesses and show difference -to encourage growth through more sales to existing customers or selling in new markets -to present,change or improve image of business

Answer 37

2 for 1 offers Point of sales displays Coupons Free gifts and samples Competitions

Answer 38

Newspapers Magazines Television Internet Billboard

Answer 39

Presents/promotes the product to target audience through different communication media such as TV,radio,cinema,billboards/posters etc.

Answer 40

Advantages: -wide coverage -control of message -repetition -effective for building brand awareness and loyalty Disadvantages: -expensive -impersonal -one way communication -lacks flexibility -limited ability to close a sale

Answer 41

Competitions 2 for 1 offers Free samples Voupons Point of sale displays Free gift Benefits: -effective at achieving a quick boost in sales -encourages customers to trial a product or switch brands Disadvantages: -sales affect may only be short-term -customers may come to expect or anticipate further promotions -may damage brand image

Answer 42

Advantages: • Relatively inexpensive to set up and manage • Encourages engagement with the customer • Customers can sign up, follow and comment on activities and promotions • Can target specific market segments • Social media widely used – ideal way to reach a large target audience Disadvantages: • Some customers may not use social media • Negative comments can go viral • Too much traffic; messages can be ignored or missed • Experience and time is required to manage social media accounts effectively

Section 5-marketing Flashcards

(66 cards)