Topic 2 - Marketing Flashcards
(69 cards)
1
Q
What is marketing?
A
finding out the needs of customers and fulfilling those needs in order to increase sales
2
Q
What can the marketing department do to increase sales?
A
- Carry out market research to identify customer needs.
- Make decisions on the Marketing Mix which are appropriate to the target audience.
- Inform customers about their products and services and persuading them to buy them
3
Q
What is market research?
A
the collection of data on consumer habits to help decision-making
4
Q
What is primary research?
A
data collected first hand
5
Q
What is an advantage of primary research?
A
- directly focused on research objectives
- more up to date
- provides more detailed insights
6
Q
What is a disadvantage of primary research?
A
- time consuming + expensive
- risk of survey bias (samples may not be representative of population)
7
Q
What are some examples of Primary research?
A
- questionnaires
- interviews
- testing/trails
- focus groups
8
Q
What is an advantage of questionnaires?
A
- easy + cheap to carry out
- easy to target customers
9
Q
What is a disadvantage of questionnaires?
A
- people may not understand questions
- people may not be interested in the product
10
Q
What is an advantage of interviews?
A
- questions can be explained
- easy to target certain types of consumers
11
Q
What is a disadvantage of interviews?
A
- expensive
- not everyone likes being interviewed
12
Q
What is an advantage of testing/trails?
A
- good way to see if the product is what people want
- reduces risk involved in producing large quantities
13
Q
What is a disadvantage of testing/trails?
A
- people/area tested must be representative of the trials market otherwise findings won’t help business
14
Q
What is an advantage of focus groups?
A
- people chosen will be representative of potential customers
15
Q
What is a disadvantage of focus groups?
A
- only in small groups
- expensive
16
Q
What is secondary research?
A
when a business uses info that already exists
17
Q
What are the advantages of secondary research?
A
- cheap + quick to collect
- wide range of data is available
18
Q
What are the disadvantages of secondary research?
A
- might not be exactly what a business wants
- might be out of date
- may be difficult to analyse/understand
19
Q
What are some examples of secondary research?
A
- Census data
- Websites
- Internal data
- Newspapers & magazines
- data published by other companies
20
Q
What is qualitative data?
A
data based on opinions or those being asked
21
Q
What is quantitative data?
A
data based on facts and numbers
22
Q
What is market segmentation?
A
splitting the market for a product or service into different groups or categories
23
Q
What are five ways the population could be divided?
A
- age
- gender
- income
- location
- lifetstyle
24
Q
What are the benefits to market segmentation?
A
- helps target specific market
- better meet of customer needs
- avoid wasting money on broad adveristy
25
What is the marketing mix (the 4 Ps)?
- product
- price
- promotion
- place
(RRRRRRREMIX)
26
Four features of a good product?
- innovative (e.g. unique, creative, original).
- made to a good standard (high quality).
- functional (it does what it is supposed to do).
- meets the needs of the customer.
27
What is the product life cycle?
a cycle which charts the stages through which a product passes over time
28
What are the 4 stages of the product life cycle?
1) introduction
2) growth
3) maturity
4) decline
29
Advantage of product life cycle?
if a business knows what stage of life its products are in it can use different marketing techniques at each stage
30
Disadvantage of product life cycle?
- not all products follow the same life cycle
31
What is price skimming?
- setting a high price before other competitors come into the market
32
What are the advantages of price skimming?
- achieve high profit margins
- can pay of some development costs
33
What are the disadvantages of price skimming?
- cannot last for long
- distribution could be a challenge
- may slow down the volume growth of demand for the product
34
What is penetration pricing?
- Setting a relatively low initial entry price, typically lower than the intended fixed price, to attract new customers
35
What are the advantages of penetration pricing?
- increases market share
36
What are the disadvantages of penetration pricing?
- could result in lower profits
37
What is competitor pricing?
setting prices based upon what competitors are charging
38
What are the advantages of competitor pricing?
- not a competitive advantage
- can help attract customers away from competitors
39
What are the disadvantages of competitor pricing?
- has to use another way to attract customers
- may damage profit margins
40
What is promotional pricing?
the short term use of price reductions and special offers to increase sales
41
What are the advantages of promotional pricing?
- It can convince customers to buy
- It may increase customer loyalty
- It generates excitement about a product
- Help sell old stock
42
What are the disadvantages of promotional pricing?
- may alter a customer's price expectations
- may make customers question the quality
- can lower long-term profits
43
What is cost plus pricing?
when a business looks at how much it cost them to create/buy the product and then adds a percentage to ensure they make a profit.
44
What are the advantages of cost plus pricing?
- costs are being covered
- prices relatively easy to calculate
- predict more reliably what the overall profit margin will be
45
What are the disadvantages of cost plus pricing?
- may lead to products that are priced un-competitively
46
What is advertising?
Communicating a message about products or services to customers
47
What are some advertising methods?
- social media
- websites
- television
- print media
- radio
48
What is an advantage of social media?
- cheap to use
- can target large, specific audiences.
- quick to communicate
49
What is a disadvantage of social media?
- message may be distorted through social media users
- may be expensive to target all forms of social media
50
What is an advantage of websites?
- more potential customers.
- can use moving images as well as detailed written information.
- can link the customer to purchase immediately / directly.
51
What is a disadvantage of websites?
- may be costly
- hard to differentiate as many competitors have websites
52
What is an advantage of television?
- can reach a very large audience across the country = more potential customers
- audio-visual impact can be very persuasive.
- can be targeted at a particular audience
53
What is a disadvantage of television?
- very expensive
- easy to skip through the ad
54
What is an advantage of print media?
- good for targeting specific customers
- high quality gloss pictures makes product look attractive.
- cut-out, money off coupons encourage consumer action
- can include lots of details
55
What is a disadvantage of print media?
- newspaper sales falling
- expensive
- readers may ignore
56
What is an advantage of radio?
- Can target different groups through different stations
- Memorable, catchy jingles.
57
What is a disadvantage of radio?
- product can’t be seen
- smaller audience than TV
58
What is point of sale promotion?
promotion taht occurs at the point of sale
59
What are some point of sale methods?
- price reductions
- loss leaders
- competitions
- free samples
59
What is physical distribution?
selling of products using physical presence
60
What is an advantage of producer - customer distribution?
- direct contact with customer
- can describe product physically
- customer may pay immediately
61
What is a disadvantage of producer - consumer distribution?
- if business grows it may be hard to deal with many customers
62
What is an advantage of producer - retailer - customer distribution?
- producer can send large delivery to retailer
- products sell better in convenient location
63
What is a disadvantage of producer - retailer - customer distribution?
- the producer may get a lower price
64
What is an advantage of producer - wholesaler - retailer - customer distribution?
- producer can sell to a wholesaler in large quantities
- can help with convenience of customers
65
What is a disadvantage of producer - wholesaler - retailer - customer distribution?
- producer may get a lower price
- product may be in a damaged condition
66
What is digital distribution?
distribution of goods + services digitally by downloading from websites
67
What is an advantage of digital distribution?
- customers can access products + service 24/7
- available quickly/ instantly
- business can sell throughout world
68
What is a disadvantage of digital distribution?
- not all goods are suitable for digital distribution
- more competition
- not all customers have access to internet
