Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

buisness > unit 3 > Flashcards

unit 3 Flashcards

1
Q

4 functions of a business

A

operations
finance
HR
Marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is marketing

A

The process of identifying, anticipating(predicting) and satisfying customer needs profitably

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are objectives

A

statements of specific outcomes that are to be achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are corporate objectives

A

those that relate to the business as a whole

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are examples of functional change and how does it support marketing

A

raising finance-investment in new products
introduce quality assurance and lean production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is quantitative research

A

concerned with and based on data
addresses research questions such as ‘how many ?’,’who’,’when’,’where?’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is qualitative research

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is sampling in market research

A

involves gathering data from a sample of respondents, the results of which should be representative of the population

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

benefits of sampling in market research

A

even a relatively small sample size can provide useful research insights.

using sampling before making marketing decisions can reduce risks and costs

sampling is flexible and relatively quick

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

drawbacks of sampling in market research

A

Biggest risk = sample is unrepresentative of population- leading to incorrect conclusions

risk of bias in research questions
Less useful in market segments where customer tastes and preferences are changing frequently.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is random sampling

A

-simple sampling method, useful if product has mass appeal
-not a completely unplanned method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is quota sampling

A

-chosen with the aim of representing the overall population
-may develop bias
-cannot be used to predict the behaviour of the whole population as accurately

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is stratified sampling

A
  • a group of respondents are selected randomly before the survey is carried out, from a list but within very specific sub-groups. e.g age, gender income levels. Survey is then carried out.

More suitable for mail, email and phone surveys

  • less bias, because of randomness
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

factors influencing the choice of sampling methods

A

-Time to complete research and make decisions

  • costs involved and financial situation of the firm

-stage of life cycle for the firm and its product

  • is it a new or existing firm- if existing, you know about the audience

-mass or niche market
mass- wide appeal
niche- smaller appeal e.g gluten free bread

-target audience

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is market mapping

A

the process of using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the aspects of the market which firms need to analyse in market research

A

size of the market- is it big enough!
growth in the market- Does the market have enough future potential?
market structure- what level of competition?
segmentation of the market-who will the company be targeting?
social trends- changing lifestyles, demographics and fashions?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are the reasons for analysing the market

A

-is the product viable
-identify future trends
-identify opportunities and threats

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is correlation

A

A statistical technique which looks at the strength of the relationship between two variable and how they are related. For example, the relationship between advertising expenditure and sales increases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are the types of correlation

A

positive, negative, no

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is the difference between correlation and causation

A

correlation does not automatically mean that the change in one variable is the cause of the change in the values of the other variable. Causation indicates that one event is the result of the occurrence of the other event.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is the independent variable

A

The variable that causes a change in the other e.g increasing the investment in promotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is the dependent variable

A

The variable that is impacted by the independent variable e.g The resulting rise in demand.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is the value of correlation

A

between -1 and +1

higher the value the stronger the correlation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

how can a negative correlation be good

A

increasing customer service- decrease in complaints

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is positive correlation

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what is a confidence interval

A

help businesses to understand how reliable an estimate is and how confident they can be to act on the data when planning strategy and making decisions.

gives the percentage probabiliy that an estimated range of possible values includes the actual value being estimated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is extrapolation

A

A method of forecasting that looks at what is happening in the past and to continue the trend into the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what can extrapolation be used for

A

-Measuring performance, did they meet the forecast?
-workforce planning, how many staff will they need to satisfy demand?
-Marketing department can plan what strategies they will need to hit the forecast?
- plan production levels and schedules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

methods of extrapolation

A

-Asking individual experts’ views

-individual management hunches based on past experience

finish off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what are the advantages of extrapolation

A

Used to predict future sales, which can help in planning operations, workforce requirements, making efforts, etc.

Can be done relatively quickly at little cost
can be based on past years data
useful in steady predictable markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

disadvantages of extrapolation

A

Not reliable in dynamic fast changing markets, e.g technology
- does not factor in unexpected external changes, e.g economic changes
-Assumes past trends will continue
-Forecasts may result in a firm only achieving their forecasts rather than actual growth.
- data might be biased e.g a fast food company carrying out studies on health benefits of some of its ingredients.
- forecasts too far into the future will have little value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

benefits of market analysis

finish off

A

to see opportunities/ gaps in the market.
to know what we should invest in to be successful, and how it will impact the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

implications of incorrect forecasting

finish

A

will produce poor business planning therefore wasted resources if overestimated, for example raw materials.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is test marketing

A

involves replicating all elements of a product launch, scubas the promotion, distribution and pice, to a specific planned smaller geographic region or demographic group to judge the viability of the product in the market before a full scalen launch.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

what are the benefits test marketing

A

Actual sales results can be used to inform decisions

Minimises risk and firms do not wast high costs on a product launch if it is not going to be successful

can generate feedback to modify the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

what are the drawbacks of test marketing

A

Tastes in one area may not translate to the rest of the market

Can be costly and time consuming

Many Gove competitors time and opportunity to respond if test marketing delays the full launch

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

use a wide range of modern technology to gather data and analyse their market:

A

-Internet data including websites, social media, blogs
-CCTV in store
-store card, for example Tesco club card
-sales data using EPOS
-online questionnaires and internet surveys

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

what are the advantages of gathering and analysing data for marketing decision-making

A

-Data can be processed and analysed quickly and in a greater depth using ICT
-Customer database can be constructed using customer data collected. It can then be used as part of an effective direct marketing campaign ad to continue to modify and adapt the product portfolio to customers’ changing tastes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what are the disadvantages of gathering and analysing data for marketing decision-making

A

-Too much information, hard to analyse and may actually slow down decision making
-Trends can be misunderstood and mistakes can be made as data can be gathered too quickly
- can be costly to acquire the required technology to be able to gather the data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

what is elasticity

A

measures the responsiveness of demand to a change in a relevant variable- such as price or income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

what is Price Elasticity of Demand

A

Price elasticity of demand measures the extend to which the quantity of a product demanded is affected by a change in price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

what is the price elasticity of demand (PED) formula

A

%change in quantity demanded
_________________________________

% change in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

How do you tell is the result is Elastic goods, Inelastic goods, Unitary elasticity.

A

Elastic goods= an answer greater than 1, where demand will change with a price change

Inelastic goods= Less than 1, where demand is relatively unresponsive to a change in price

Unitary elasticity= an elasticity of 1, any price change is cancelled out by the demand change.

remember to ignore signs e.g -

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

how do you calculate percentage change

A

change/ original x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

what are the factor influencing PED

A

brand strength-

Necessity-

-Habit

-Availability of substitutes

-time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

what is the formula for income elasticity of demand

A

%change in quantity demanded
_________________________________

%change in consumer income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

what are inferior goods

A

negative income elasticity of demand, demand falls as incomee rise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

examples of products that income elasticity is positive for

A

fine wines
consumer durable- 3G monile phones
sports and leisure facilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

examples of products that income elasticity negative for

A

Staple food products
mass transport
beer and takeaway pizza

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

what are luxury products

A

when income grows proportionally more money is spent on these products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

what are necessities

A

As income grows, proportionally less is spent on these product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

what is income elasticity of demand

A

Measures the relationship between a change in quantity demanded for good and a change in real income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

what are the key elements of effective marketing

A

identifying customer needs
meeting customer needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

what is niche marketing

A

focusing on meeting the needs of a small number of customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

what is mass marketing

A

being able to meet the needs of a very large number of potential customers

e.g BP and O2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

examples of nice marketing

A

anythinnglefthanded.co.uk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

advantages of niche marketing

A

-The business can respond quickly if needs of customers change
-effective mareting expenditure
-less likely to be major competition, higher prices = more profitability
-easier to design marketing mix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

disadvantages of niche marketing

A

-vulnerable to market changes
-A successful niche may attract competition, exploit advantages of scale. May be bought up by larger competitor, good and bad.
-Lower level of sales and risk of costs increases.- internet shopping allows niche businesses to function- less costs.
new arrivals could have a considerable impact
-changing consumer tastes will have a considerable impact-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

advantages of mass market

A

Although the profit margin on each unit may be small, very high sales mean high profits overall

-less likely to be significant change in the market therefore more stable revenue

-economies of scale therefore lower costs per unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

disadvantages of mass marketing

A

likely to attract competition which may reduce profit margins
-less responsive to change in customer needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

what is meant by socio-economic groups

A

a persons position in society
measured by A,B,C1,C2,D,E

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

what is monopoly

A

when you only have a few companies operating in a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

advantages of monopoly

A

charge higher prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

why segment the market

A

Match customer needs
enhance profits for business
opportunities for growth
retain more customers
target marketing communications
gain share of the market segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

what are the different socio economic groups

A

A-Higher managerial or professional
B-Intermediate managerial or professional
C1-Supervisory, clerical, junior managers
C2-
D-
E-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

what is the process of segmentation

A

income- certain goods/services are aimed at individuals with certain levels of disposable income. For example: Rolex, Porsche, Aldi

Geographical region- Firms can look at where particular consumer types live, what the income levels are like, whether it is rural or inner city.
Acorn ( a classification of residential neighbourhoods) is a system that segments markets according to a variety types of households.

Behavioural segmentation:

Lifestyle- hobbies, tastes and interests all influences buying behaviour
-level of brand loyalty
-benefits sought by costumers
-purchase occasion
-frequency of usage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Benefits of market segmentation

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Difficulties of market segmentation

A

Firms can find it difficult to identify the most important segments for a product
-constant research is needed to keep up to date
-products may become too specific to one market segment not catering to the tastes of others thereby reducing sales
-companies may ignore potentially lucrative segments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

How did lego differentiate its market
(context)

A

realised demographics were too narrow; brought out new range of lego- pink blocks
-revenue increased dramatically
became to stereotypical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

what is market targeting

A

Deciding the market segments the company will aim to sell their products/ services to; known as their target market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

what is concentrated marketing

A

A product is aimed at a very well defined and specific market segment (niche). It allows firms to focus and avoids the need for mass production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

what is Differentiated marketing

A

Targeting several different market segments with different products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

what is undifferentiated marketing

A

Targeting the whole mass market with one product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

what is product proliferation

A

when a firm sell a range of products aimed at a different markets. For example Volkswagen motor company owns a range of different brands including Audi, Bentley, Bugatti, Lamborghini, Porsche, seat, Skoda and Volkswagen.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Market positioning

A

Where a firm’s products/services are in a market in relation to its rivals. A firm will do this based on factors such as price, value, quality, product use.
Aim to creat a Unique selling point

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

What is unique selling point (USP)

A

something that differentiates it from its rivals to provide it with a sustainable competitive advantage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

what are economic brands

A

low quality
low price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

what are cowboy brands

A

low quality
high price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

what are bargain brands

A

high quality
low price
aldi

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

what are premium brands

A

high quality
high price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

what are the 7 p’s that a marketing team has to do + explanation

A

Product - product or service that the customer buys

price- how much the customer spends on the product

promotion- how the customer is found and persuaded to buy

place- how the product is distributed to the customer

physical environment- the elements of the physical environment the customer experiences

people- the people who make contact with customers. in delivering the product (customer service).

process- The systems and processes that deliver a product to a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

what is a marketing mix

A

the elements of a firm’s approach to marketing that enables it to satisfy and delight its customers. (7p’s)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

what are some key implications of an extended marketing mix

A

-Each of the businesses functions needs to work even more closely together- (customer service)

  • Technology becomes increasingly important (e.g role of IT in e-commerce and customer communications)

-intangible elements such as branding play an enhanced role

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

how do businesses add physical, process and people to the mix connects marketing closer to HRM and operations

A

-Layout and design of premises; ambience, ease of movement

-transaction process; website design; operational support

-customer service; skills and experience; CRM

85
Q

How is product used in premier inn hotels

A

Hotel accommodation and related services. proposition- ‘a good night sleep guaranteed’

86
Q

how is price used in premier inn hotels

A

Dynamic pricing; changes depending on night approx £69 per night

87
Q

how is promotion used in premier inn hotels

A

TV advertising; online and social media

88
Q

how is place used in premier inn hotels

A

Predominantly sold direct; emphasis on online booking

89
Q

how is people used in premier inn hotels

A

Hotel reception staff; restaurant and bar

90
Q

how is process used in premier inn hotels

A

Online booking

91
Q

How is physical used in premier inn hotels

A

Branding, staff uniforms, hotel ambience, facilities

92
Q

why is it called marketing mix

A

Because each element of the marketing mix is related to the others

Elements of the mix should work together to achieve the desired effect

93
Q

what is the importance of the marketing mix

A

Business need to use all elements of the 7p’s.
-if you do not take each of them into account the product is likely to fail.

94
Q

How to use Marketing Mix

A

Although all P’s must be present, the emphases, the emphasis will be different - depending on th product and target market.

95
Q

which p would easy jet emphasise on

A

price

96
Q

which p would magazines emphasis on

A

place

97
Q

which p would Dyson emphasis on

A

poroduct

98
Q

which p would BMW emphasis on

A
99
Q

What are the key influences on marketing mix

A

Business resources- particuliarly finance- impacts what activities can be undertaken (e.g promotion, new product development)

Technology- rapid technological change impacting on all aspects of the marketing mix, not just product and promotion.

importance of Customer Relationships- need to generate repeat business and build customer loyalty increasingly important. Marketing mix needs to reflect this.

100
Q

how does marketing mix help deliver marketing strategy

A

1choose which customer to serve- —–Market segmentation
-Targeting
2.Decide how to serve those customers
- product differentiation
-Marketing positioning

101
Q

what is a product

A

A product is anything that is capable of satisfying customer needs

102
Q

what are the layers of a product

A

middle-core product
actual product- (quality, features, packaging, design, brand name)
Augmented product- (warranty, Pre-sale support, After-scale service)

103
Q

what are consumer products

A

-Bought by final consumers for personal consumption
-Differ in the way consumers buy them

104
Q

what are industrial products

A

Bought for further processing or for use in conducting a business
- Brought by other businesses, not consumers

105
Q

what are the 3 main kinds of industrial products

A

-material and parts
-capital items
-suppliers and services

106
Q

what are the key features of marketing industrial products

A

-Specialist buyers and sellers- often dealing with professional ‘buyers’

-Buyer- seller relationship- strong emphasis on customer relationship

-Transaction value- Purchase value often sustainable

-quality and price

-support

107
Q

what is the product life cycle

A

A theoretical model which describes the stages a product goes through over its life.

108
Q

what are the key uses of the product life cycle

A

Forecast future sales trend
Help with market targeting and positioning
Help analyse and manage the product portfolio

109
Q

what are the stages of the product life cycle

A

Development (research)
introduction
growth
maturity
decline/end

110
Q

what might business do if it has a lot of products that are declining in the product life cycle chart

A

Launch new products

111
Q

why is time on the x axis and not individual times

A

because you do not know how long the product will last for. Different products last for different amount of time

112
Q

what is the research and development stage

A

Market research is carried out, expensive period, no sales

113
Q

what is the introduction/launch of the product life cycle stage

A

sales begin and start. slowly as customers are getting to know the product. This stage will involve a lot of expenditure on promotion and publicity. The firm will need to convince their distributions to stock the new product.

114
Q

what is the growth stage of the product life cycle.

A

Sales are accelerating, people are beginning to buy more of it and it is becoming successful. More outlets for the product need to be found. Firm should start to break even on costs and begin making a profit.

115
Q

what is the maturity stage of the product life cycle.

A

Sales rate begins to slow down. Perhaps a competitor has launched something similar that is impacting sales, or customers want something new. At this stage firms should consider introducing new versions of this product, to keep sales up.

116
Q

what is a saturated market

A

when their is no more customers

117
Q

what is a solution to saturation

A

bringing out new features/ versions of products (e.g apple bringing out new versions)

118
Q

what is in the decline of the product life cycle

A

Sales begin to fall as the product becomes less popular. At this stage a firm will need to make a decision, sales should be boosted again by spending more on marketing or should the product be withdrawn from the market.

119
Q

when should a business start reinvesting in other versions of the product

A

late growth/early maturity

120
Q

How has CAD (computer aided design)helped with product development

A

speeds up the process, faster for the product to enter the market

121
Q

why are products scrapped before launch

A

-inadequate demand
-action of competitors
-change in the external environment
-production problem
-high costs
-does not fit in the firms product range
-life cycle expected to be too short

122
Q

what statergies does a business have at the introduction stage

A

-Aim- encourage customer adoption
-Higher promotional spending to create awareness and inform people
-Either skimming or penetration pricing
- limited focussed distribution
- demand initially from early adopters

123
Q

strategies in the growth stage

A

-Advertising to promote brand awareness
-Increase in distribution outlets- intensive distribution
- target the early majority
- go for Market penetration
- continuing high promotional spending

124
Q

strategies in maturity stage

A
  • Manage capacity + production
  • promotion focusses not differentiation
    -persuasive advertising
    -intensive distribution
    -enter new segments (Tesla- drop prices)
    -attract new users
    -Repositioning
125
Q

strategies for the decline stage

A

maintain market share
harvest by spending little on marketing the product
rationalise by weeding out product variations
price cutting to maintain competitiveness
promotion to retain loyal customers
distribution narrowed

126
Q

why do products enter the decline stage

A

technological advance
changes in consumer tastes and behaviour
increased competition
failure to innovate and develop the product

127
Q

what are extension strategies + example

A

strategies taken to extend the life of the product.

128
Q

what are the extension strategies

A

-change packaging
-changing price - e.g Tesla
-change promotion (e.g promotional message)
-look for alternative distribution channels
-develop new market segment
-find new uses for the product.
-reposition the product- vinyl records- collectors

129
Q

what are the weaknesses of the product life cycle model

A

The shape and duration of the cycle varies from product to product

130
Q

what is conglomerate

A

business owned by one company which operates different sectors

131
Q

what is product portfolio analysis

A

assesses the position of each product or brand in a firms portfolio to help determine the right marketing strategy for each

132
Q

what is the Boston matrix

A

a product portfolio analysis tool used to plan the development of a product, a way of categorising products.

133
Q

what stage of the Boston matrix who maturing of the product life cycle be at

A

cash cows- low market growth, high relative market share

134
Q

categories of the Boston matrix

A

-stars high high
-cash cows low high
-question marks high low
-dogs low low

135
Q

where would dog link to the product life cycle

A

decline

136
Q

where would question mark link to the product life cycle

A

market entry

137
Q

where would stars link to the product life cycle

A

growth

138
Q

what is the difference between the product life cycle and Boston matrix

A

product life cycle is concerned with individual products, and concerned with sales over time
Boston matrix is concerned with the firms portfolio of product, focuses on cash flow of products

139
Q

what does the relative market share mean on on the x axis of Boston matrix

A

measure of the firms strength in the market

140
Q

what does the market growth mean on on the y axis of Boston matrix

A

measure of market attractiveness

141
Q

strategy for question marks

A

invest to increase market share
substantial investment to achieve goth at the expense of powerful competitors
invest in promotion and other aspects of marketing
Build selectively

142
Q

strategies for stars.

A

investment to sustain growth
build sales and/or market share
spend to keep competitors
at bay
investment to maintain or increase leadership position
repel challenges from competitors

143
Q

strategies of cash cow products

A

Defend market share
sim for short term profits
little need for investment
little potential for further growth
reduce investment in order to maximise short term cash flow and profits
use profits from cash cows to invest in new products

144
Q

strategies for dog products

A

phase out or sell off(divest)
not worth. investing in
any profit made has to be re-invested just to maintain market share
uses up more management time and resources than can be justifies
divest or, at most, focus on a defendable niche

145
Q

what are dog products

A

product that have either failed or products that are in decline phase of their life cycle.
low share of a slowly growth market
not going anywhere and no real potential

146
Q
A
147
Q
A
148
Q
A
149
Q

how valuable is the Boston metrix model

A

a useful tool for analysing product portfolio decisions
-but it is only a snapshot of a current position
-has little to no predictive value
focus on market share and market growth ignores issues such as developing a sustainable competitive advantages

150
Q

what is penetration as a pricing stratergy

A

lowering price of new product to compete with rivals then slowly increase product price

151
Q

what is skimming as a pricing statergy

A

new version of a product, which has many loyal consumers. making customers pay a premium

152
Q

what is predator pricing

A

pitch products at a low level- price can be matched at a short term, then not in a long term. Damaging rivals profit margins.

153
Q

what is loss leading

A

picking key product offerings from portfolio of goods. sell products at not profitable prices. Making customers buy other products with loss leading profits. Increasing customers from other competitors.

154
Q

psychological pricing

A

alon aside other strategies. Trying to give products appearance that they are cheaper that they really are. ending in odd number e.g £499 instead of £500. making customers feel as if they have made a steal.

155
Q

what is discrimination pricing

A

charging different market segments at different amounts. cinemas- child seats are generally cheaper. also with genders.

156
Q

what is dynamic pricing

A

charging different prices to different customers depending on the time at which the customer buys the product. depends on there willingness to pay the different prices. Hotels and airlines.

157
Q

what is place also known as

A

distribution

158
Q

what are channels of distribution

A

the journey of the product from the manufacturer to consumers

159
Q

what are intermedieteries

A

anything that comes between the manufacturer and consumer

160
Q

what is a wholesaler

A

a business that sells goods at a large quantity for low prices e.g costco

161
Q

what are agents

A

act on behalf of the producer to accept payments, have specialist knowledge. E.g trailfinders

162
Q

benefits of using intermediaries

A

increases product profit
efficiency of distribution costs
have specialist knowledge

163
Q

negatives of using intermedieries

A

the intermediaries take money which lowers profit.
less exclusiveness

164
Q

methods of distribution

A

direct to the consumer through various methods:
websites
catalogues and mail order
representatives and sales teams
vending machines
telesales-selling over the phone

165
Q

what is the main function of a distribution channel

A

provide a link between production and consumption

166
Q

key functions that organisations that form in a particular channel create

A

information
promotion
contact
negotiation
physical distribution
financing
risk taking

167
Q

why is china so important to uk businesses

A

economy 50 x larger than in 1980
movement towards technology

168
Q

what will influence they type of distribution method a business will use

A

-nature of the product
-the market
-the business
-legal issues

169
Q

nature of the product

A

perishable, fragile
technical, complex
customised?
is it convenient
desired image for the product any intermediaries need to be suitable and relevant for the product.

170
Q

the market

A

is it geographically spread
does it involve selling overseas
the extent and nature of the competition.

171
Q

the business

A

size and scope- in-house sales force
marketing objectives
does it already have an established distribution network
how much control does it want over distribution

172
Q

what are the factors that influence the choice of distribution method

A

profit margins- the more intermediaries in the distribution channel the lower the margin for the producer

distribution costs- retailers help firms to ensure their products are available in all destinations without having to pay their own distribution costs.

control required over display and brand image- for example Tesco and Levis court battle and high end fashion brands wanting to only be available in suitable retailers and their own stores.

proximity- how close does the firm need to be to its customers?

convenience for customers and type of product- for example, convenience goods must be easier for customers to access as they often rely on impulse purchases.

173
Q

what is multi-channel distribution

A

involves a business using more than one type of distribution channel.

174
Q

what is an example of a multi-channel distribution

A

apple customer electronic devices

450+ retail stores in 15 countries
online stores
multiple retail partners

175
Q

benefits of multi channel distribution

A
176
Q

drawbacks of multi channel distribution

A
177
Q

what is promotion

A
178
Q

main aims of promotion

A

to ensure that customers are aware of the existence and positioning of products

persuade customers. that the product is better than competing products

remind customers about why they want to buy

179
Q

uses of promotion

A

-increase sales
-attract new customers
-encourage customer loyalty
-encourage trail
-create awareness
-inform
-remind potential customers
-reassure new customers
-change attitudes
-create an image

180
Q

what does AIDA stand for

A

Awareness
interest
desire
action

181
Q

what are the main aims of the promotional mix

A

-advertising
-sales promotion
-personal selling
public relations/publicity/sponsorship
-direct marketing

182
Q

what are the key factors influencing promotional decisions and strategy

A

-stages of product life cycle
-nature of the product
-competition
-marketing objectives and budget
-target market

183
Q

what are the advantages of advertisement

A

wide coverage
control of message
repetition means that the message can be communicated effectively
effective for building brand awareness and loyalty

184
Q

what are the disadvantages of advertising

A

often expensive
impersonal
one way communication
lacks flexibility
limited ability to close a sale.

185
Q

what is e-commerce

A

buying and selling goods and services through the internet

186
Q

whit is m-commerce

A

purchasing goods through mobile devices

187
Q

advantages of digital marketing

A

-larger global reach
-reduced costs through lower overheads
-24/7 availability
-faster buying process
-cheaper advertisement

188
Q

disadvantages of digital marketing

A

-cannot try on clothes on use products (aftershave)
- security risks
-less customer service- personal touch that closes the sale. lack of direct contact with consumer
-increased and international competition.

189
Q

what is digital marketing

A

involves anticipating and satisfying customer wants using technology, specifically social media, use of search engine marketing and digital display alerts such as leaderboards, banner, pop ups

190
Q

what is social media marketing (SMM)

A

the use of social media websites and platforms to promote products and services and connect with audience.

191
Q

reasons to utilise Social media social media

A

-helps to improve your brand
offers chance to engage audience, respond to posts, get immediate feedback on your company’s offerings.
-$18 billion of products left in baskets
promotes customer service
impact on sales and conversion rates
-become a thought leader- trend at certain times- helps business to realise what the customers want
-study the competitions- you can see what they are doing and create a better product
-improve search engine result page (SERP)
-boost website traffic, funnels customers into your business
-attracts top-of-funnel leads, McCarthy and stone-face took ads 4.3x more
-Earn greater ROI
-helps to retarget missed customers
-keep up with industry trends
-inquire/hire talent

192
Q

example of social media advertisement by a business

A

Cadbury worldwide hide
partnership with google maps- egg hunt

193
Q

what is viral marketing

A

spread info about product between people by word of mouth or through internet based communication at an increasing rate

social media offers a perfect platform for viral marketing

194
Q

advantages of viral marketing

A

allows businesses to reach customers that ordinarily would not be targeted by its traditional marketing campaigns
-extended reach allows the company to enter new markets and expand their growth.
, a fraction of traditional advertising campaigns, essentially free when customers infectiously share their positive experiences with a company’s product.

195
Q

disadvantages of viral marketing

A

consumers tend to share negative reviews than positive reviews.
horse meat in the beef burgers in supermarkets.
-effects of viral marketing is hard to measure as it is difficult to determine if a lead or sale resulted from it.
-if customers believe the viral campaign will compromise their security they will not share.

196
Q

examples of sales promotion

A

coupons
money off
competitions
demonstrations
free samples
loyalty points- traps customers, also provides data
free gifts
point of sale displays- brings your eyes to where the products sold
BOGOF- buy one get one free
merchandising
trade in offers

197
Q

advantages of sales promotion

A

effective at achieving a quick boost in sales
encourages customers to trail a product or switch brands

198
Q

disadvantages of sales promotion

A

sales effect may only be short-term
customers may come to expect or anticipate further promotions
may damage brand image

199
Q

what is personal selling

A

promotion on a person tot person basis
two way communications
meeting with potential customers to close a sale
by telephone, at meetings, in retail outlets and by knocking on doors
highly priced, low volume and highly technical
products rely heavily on personal selling

200
Q

benefits of personal selling

A

high customer attention
messages is customised
interactivity
persuasive impact
potential for development of relationship
adaptable
opportunity to close the sale

201
Q

drawbacks of personal selling

A

high costs
labour intensive
expensive
can only reach a limited number of customers.

202
Q

what is public relations

A

those that create goodwill toward an individual, business, cause or product

203
Q

what are the main aims of public relations

A

-to achieve favourable publicity about the business
-to build the image and reputation of the business and its products, particularly amongst customers
-to communicate effectively with customers and other stakeholders.

204
Q

what are typical PR activities

A

promoting new products
enhancing public awareness
projecting a business image
promote social responsibility
projecting business as a good employer
obtain favourable product reviews

205
Q

what is pr in relation to sponsership

A

sponsorship takes place when a payment for an event, person, organisation is given in return some consideration of benefit.
-a specialised form of public relations
- common in world of sport
-should benefit both sides

206
Q

what is direct marketing

A

promotional material directed through mail, email, social media or phone to individuals or businesses.

207
Q

why is direct marketing used

A

-allows businesses to generate a specific response from targeted groups of customers
-allows a business to focus on several marketing objectives

208
Q
A
209
Q
A

buisness (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions