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Business studies > Unit 3 > Flashcards

Unit 3 Flashcards

1
Q

What will marketing objectives focus on?

A
  • Sales volume and value
  • Market size
  • Market and sales growth
  • Market share
  • Brand loyalty
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2
Q

What is sales volume?

A

amount of sales expressed as a number of units sold
(20 tonnes of wool)

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3
Q

What is sales value?

A

Amount of sales expressed as total sum of money spent by consumers
(£3 million expenditure on clothing)

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4
Q

What’s the Equation for market size?

A

units sold X price

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5
Q

What is market size?

A

Total sales value or sales volume in a given market

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6
Q

How to calculate Market growth?

A

(Change in size of market/original size) X 100

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7
Q

How to calculate market share?

A

(Business’ personal sales/Market sales) X 100

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8
Q

What’s brand loyalty

A

When customers keep returning to buy a recognised brand.

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9
Q

What’s Branding?

A

Creating and identity for a business distinguishing it from competitiors

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10
Q

What are the internal influences on marketing objectives?

A
  • Finance (budgets, cash flow targets, ROI targets)
  • HR (staff trained enough?, staff being informed)
  • Operations (meet demand, Implementing marketing decisions, logistics of new market)
  • Corporate objectives
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11
Q

What are external influences on marketing objectives?

A
  • Competitors actions (pricing, promotional activities, marketing budget)
  • Market factors (social factos, legislation, demographics)
  • Technology change (E-commerce, social media, production capabilities)
  • Ethics and environment (consumer expectation, pressure groups)
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12
Q

What’s market research?

A

The collection and analysis of data and information to inform a business about its market.

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13
Q

Two types of market research and what they are?

A

Primary-research gathered by the business itself
Secondary-research that’s already been done

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14
Q

Examples of Primary research

A

-Surveys
-Interviews
-Focus Groups
-Observations

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15
Q

What are the pros and cons of primary research?

A

Pro-meet exact requirements of the business
Cons-relatively expensive and takes time to obtains

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16
Q

Examples of secondary research

A

-Internet
-Books
-News articles

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17
Q

What are the pros and cons of secondary research?

A

Pro-quick, cheap
Cons-may be out of date, may not be specific to the business

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18
Q

What’s qualitative and quantitative research?

A

Qualitative–non statistical information (mainly opinion based)

Quantitative-statistical data (numbers and percentages)

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19
Q

What’s market mapping?

A

diagrammatic technique enabling the business to display perception of customers.

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20
Q

Types of sampling techniques

A

Random-each person has an equal chance of being selected

Quota-population is segmented into subgroups before a judgement is made selecting the most representative individuals

Stratified-population is segmented into subgroups before respondents are randomly selected from that subgroup.

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21
Q

What’s a correlation?

A

-Identifying a relationship between 2 variables

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22
Q

What are the types of correlation?

A

Positive-2 variables move in same direction

Negative-2 variables move in opposite direction

Zero-there is no relationship between factors

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23
Q

What’s a confidence level?

A

The degree of certainty with which a business believes an outcome will occur

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24
Q

What’s a confidence interval?

A

Parameters within which a confidence level applies

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25
Q

What does extrapolation mens?

A

Using past data to predict future outcomes

26
Q

How does technology bring value to interpreting market data?

A

-Gather and analyse large amounts of data quickly and accurately
-Track and interpret spending habits
-Collect consumer opinions from around the world
-Encourage consumer feedback
-Enable two way communication

27
Q

What does Price elasticity of demand mean (PED)?

A

A measure of how responsiveness demand is to a change in price

28
Q

What does it mean if a product is price elastic?

A

A change in price will lead to a more than proportional change in demand

29
Q

What does it mean if a product is price inelastic?

A

A change in price will lead to a less than proportional change in demand

30
Q

What’s the formula for PED?

A

(% change in quantity demanded)/(% change in price)

31
Q

What are factors influencing PED?

A

-Availability of substitutes
-Price of competitor goods
-Time
-Branding
-Income
-Nature of the good

32
Q

Problems of forecasting PED

A

-PED is constantly changing in a dynamic world
-Difficult finding accurate information
-Price elasticity changes over different price ranges
-Tastes and fashions change constantly
-Competitors are improving their products

33
Q

What is income elasticity of demand (YED)?

A

A measure of the responsiveness of the demand to a change in income

34
Q

What’s the formula for income elasticity of demand (YED)?

A

(%change in quantity demanded)/(%change in income)

35
Q

What is YED determined by?

A

-whether good is a luxury or a necessity
-level of income of a consumer

36
Q

What is market segmentation?

A

when a market is split into subgroups of consumers with similar characteristics

37
Q

How might a market be segmented?

A

-Demographic
-Geographic
-Income
-Behavioural

38
Q

How can demographic be divided?

A

-Age
-Gender
-Education
-Race
-Religion
-Family size
-Stage in life

39
Q

Benefits of market segmentation

A

-Most profitable and least profitable consumers can be identified
-Least profitable markets can be avoided
-Easier to identify new products
-Helps improve existing products
-Advertising can be more specific

40
Q

What does targeting mean and what is it influenced by?

A

Deciding which market segment to target
influenced by
-Mission and objectives
-Perceived level of demand
-Degree of competition
-Nature of the product
-Understanding needs and wants

41
Q

What does positioning refer to?

A

Where a product is placed in the market relative to its competitors

42
Q

Influences on positioning

A

-Internal constraints
-Internal strengths
-Market conditions
-External environment

43
Q

What’s the 7Ps of the marketing mix?

A

1) Product
2)Price
3)Promotion
4)Physical Environment
5)Place
6)People
7)Process

44
Q

Influences on the marketing mix

A

The market
Market research
Positioning relative to competitors
Internal constraints
Actions of competitors
The economy

45
Q

What does Product refer to?
(marketing mix)

A

The good/service provided by a firm

46
Q

Whats the Boston Matrix?

A

A method used to analyse a businesses product portfolio
-Rising star (high share, high growth)
-Cash cow (high share, low growth)
-Problem child/question mark (low share, high growth)
-Dog (low share, low growth)

47
Q

What’s the product life cycle?

A

Used to track stages that a product goes through during its life

48
Q

What are the stages of the product life cycle?

A
  • Development
  • Introduction
  • Growth
  • Maturity
  • Decline
  • Extension strategies
49
Q

What’s new product development (NPD)?

A

bringing new products or service tor market

50
Q

Influences on New Product Development (NPD)

A
  • Technology
  • Competitors actions
  • Entrepreneurial skills of managers/owners
51
Q

What does Price refer to?
(marketing mix)

A

Amount of money the customers has to pay to receive the good or service

52
Q

What are the 3 Pricing decisions?

A

-Penetration pricing
-Price skimming
-Dynamic pricing

53
Q

What does penetration pricing mean?

A

Setting a low initial price for a new product to gain share then raising the price in the future

54
Q

What does price skimming mean?

A

Setting a high initial price for a new product then lowering them later (mostly after costs are covered)

55
Q

What does dynamic pricing mean?

A

Price changes frequently and quickly in response to changes in demand

56
Q

What does promotion refer to?
(marketing mix)

A

Activities designed to communicate with the market to increase the visibility of a businesses product

57
Q

What are promotional decisions influenced by?

A
  • Segmentation,targeting and positioning process
  • Internal constraints
  • External influences (technology, competitors actions, environmental issues)
58
Q

What does branding refer to?

A

A method involving creation of an identity for the business distinguishing it from other firms

59
Q

What is relationship marketing?

A

focuses on building a longer term relationship with valued customers rather than focusing on short term sales

60
Q

Methods of promotion through technology

A
  • Social media
  • Email
  • Search engine optimisation
  • Content marketing
  • Viral marketing
61
Q

What does place refer to?
(marketing mix)

A

The physical location as well as the distribution channel it travels through to get to the manufacturer

62
Q

What is a distribution channel?

A

Routes that a product takes to get from producer to consumer

Business studies (11 decks)

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