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Business studies > Unit 3 > Flashcards

Unit 3 Flashcards

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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
What does extrapolation mens?
Using past data to predict future outcomes
26
How does technology bring value to interpreting market data?
-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
What does Price elasticity of demand mean (PED)?
A measure of how responsiveness demand is to a change in price
28
What does it mean if a product is price elastic?
A change in price will lead to a more than proportional change in demand
29
What does it mean if a product is price inelastic?
A change in price will lead to a less than proportional change in demand
30
What's the formula for PED?
(% change in quantity demanded)/(% change in price)
31
What are factors influencing PED?
-Availability of substitutes -Price of competitor goods -Time -Branding -Income -Nature of the good
32
Problems of forecasting PED
-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
What is income elasticity of demand (YED)?
A measure of the responsiveness of the demand to a change in income
34
What's the formula for income elasticity of demand (YED)?
(%change in quantity demanded)/(%change in income)
35
What is YED determined by?
-whether good is a luxury or a necessity -level of income of a consumer
36
What is market segmentation?
when a market is split into subgroups of consumers with similar characteristics
37
How might a market be segmented?
-Demographic -Geographic -Income -Behavioural
38
How can demographic be divided?
-Age -Gender -Education -Race -Religion -Family size -Stage in life
39
Benefits of market segmentation
-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
What does targeting mean and what is it influenced by?
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
What does positioning refer to?
Where a product is placed in the market relative to its competitors
42
Influences on positioning
-Internal constraints -Internal strengths -Market conditions -External environment
43
What's the 7Ps of the marketing mix?
1) Product 2)Price 3)Promotion 4)Physical Environment 5)Place 6)People 7)Process
44
Influences on the marketing mix
The market Market research Positioning relative to competitors Internal constraints Actions of competitors The economy
45
What does Product refer to? (marketing mix)
The good/service provided by a firm
46
Whats the Boston Matrix?
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
What's the product life cycle?
Used to track stages that a product goes through during its life
48
What are the stages of the product life cycle?
- Development - Introduction - Growth - Maturity - Decline - Extension strategies
49
What's new product development (NPD)?
bringing new products or service tor market
50
Influences on New Product Development (NPD)
- Technology - Competitors actions - Entrepreneurial skills of managers/owners
51
What does Price refer to? (marketing mix)
Amount of money the customers has to pay to receive the good or service
52
What are the 3 Pricing decisions?
-Penetration pricing -Price skimming -Dynamic pricing
53
What does penetration pricing mean?
Setting a low initial price for a new product to gain share then raising the price in the future
54
What does price skimming mean?
Setting a high initial price for a new product then lowering them later (mostly after costs are covered)
55
What does dynamic pricing mean?
Price changes frequently and quickly in response to changes in demand
56
What does promotion refer to? (marketing mix)
Activities designed to communicate with the market to increase the visibility of a businesses product
57
What are promotional decisions influenced by?
- Segmentation,targeting and positioning process - Internal constraints - External influences (technology, competitors actions, environmental issues)
58
What does branding refer to?
A method involving creation of an identity for the business distinguishing it from other firms
59
What is relationship marketing?
focuses on building a longer term relationship with valued customers rather than focusing on short term sales
60
Methods of promotion through technology
- Social media - Email - Search engine optimisation - Content marketing - Viral marketing
61
What does place refer to? (marketing mix)
The physical location as well as the distribution channel it travels through to get to the manufacturer
62
What is a distribution channel?
Routes that a product takes to get from producer to consumer

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