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a level business > UNIT 3 > Flashcards

UNIT 3 Flashcards

1
Q

market capitalisation definition

A

total value of all shares in a business

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2
Q

marketing definition

A

process of identifying, anticipating and meeting customer needs

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3
Q

4 steps of marketing

A

recognising demand
anticipating demand
stimulating demand
satisfying demand

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4
Q

market size definition

A

total value of total volume of goods sold

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5
Q

market growth

A

when sales increase, interest increases

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6
Q

mass market

A

lots of companies producing the same product, usually quite affordable

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7
Q

niche market

A

small, specialised market

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8
Q

market share

A

% of sales in a market, by one business

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9
Q

how to calculate market share

A

total sales of business/total sale in market
all then times by 100

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10
Q

5 marketing AIMS

A
  1. understanding customer needs and wants
  2. developing new products
  3. improving profitability
  4. inc market share
  5. increase brand awareness
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11
Q

3 marketing objectives

A
  1. grow market share
  2. grow market size
  3. increase brand loyalty
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12
Q

influences on marketing ( internal examples )

A

• cost of campaign
• availability of finance
• staff expertise
• size and culture of business

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13
Q

influences on marketing ( external factors )

A

PESTLE

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14
Q

primary market research

A

data collected by a specific business/ individual for a specific purpose

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15
Q

secondary market research

A

data already exists, the individual/ business decides how to interpret the data

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16
Q

examples of primary research

A

interviews, surveys, focus groups

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17
Q

examples of secondary research

A

online, MINTEL, newspapers

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18
Q

3 advantages of primary research

A
  • specific to your business
  • up to date data
  • this is data no competitors can access
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19
Q

3 disadvantages of primary research

A

timely
costly
results bias

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20
Q

3 advantages of secondary research

A

highlights gaps in the market
accessible immediately
broadens knowledge of opinion

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21
Q

3 disadvantages of secondary research

A
  • may be out of date/ irrelevant
  • competitors can access
  • might be not accurate
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22
Q

whats the difference between qualitative and quantitative data

A

quantitive data portrays opinions and how consumers feel, however qualitative data produces numerical results

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23
Q

define sampling

A

selecting a representative group of people from the target market

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24
Q

2 advantages of sampling

A

quick and easy
large sample means reliable results

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25
Q

name the 4 types of sampling

A

convenience- available pps
random- random selection
quota- same characteristics
cluster- more similiar characteristics

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26
Q

define extrapolation

A

predicting trends in the future
based on past results
the further predicted in the future, the increase in risk

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27
Q

define market positioning

A

views of consumers, establishing the image of a brand in the consumers mind

28
Q

whats product differentiation

A

distinguishing product/ service from rival firms

29
Q

whats a market map

A

a grid that shows a range of positions for 2 features in a business
for example: price and quality

30
Q

advantage and disadvantage of a market map

A

A- spots gaps in the market
A- useful for analysing competitors
D- how reliable is the research?

31
Q

what does PED stand for

A

price elasticity of demand

32
Q

if a product has a ped less than -1, is it elastic or inelastic

A

elastic

33
Q

whats a unitary elastic good

A

a change in demand which equals to the demand in price

34
Q

name the 4P’s

A

price, product, place, promotion

35
Q

how to calculate PED

A

% change in demand/ % change in price
all times by 100

36
Q

name the 5 influences in PED

A
  • product will be more elastic if more substitutes are available
  • more expensive= more elastic
  • luxury= elastic , necessity= inelastic
  • the more addictive, the more elastic
  • short term= elastic, long term= inelastic due to substitutes
37
Q

whats the difference between an elastic and inelastic good

A

an elastic good is a luxury, an inelastic is a necessity. the demand of an inelastic good will not change with the price

38
Q

whats YED

A

how quantity demanded changes with income

39
Q

calculation for YED

A

% change un quantity demand/ % change in income

40
Q

what is market segmentation

A

dividing criteria, making market share smaller

41
Q

market segments

A

people who have similar characteristics and buying habits

42
Q

6 examples of market segments

A

behavioural- when do they buy
income
demographic
geographic
occupation
education

43
Q

benefits of market segmentation

A
  • makes consumers easier to target
  • higher levels of loyalty
    -better reputation
44
Q

what does STP stand for

A
  • segment - divide
  • think- which to appeal
  • position- product in consumers mind
45
Q

whats a market strategy

A

set of plans to achieve market objective

46
Q

whats the product life cycle

A

introduction, growth, maturity, decline

47
Q

what goes quick through the life cycle

A

up to date trends eg: slime, loombands

48
Q

advantages of market maps

A

spot gaps in the market and is useful for analysing competitors

49
Q

what is the boston matrix

A

a grid which categorises businesses products, according to market share and growth

50
Q

what does the star stand for in the boston matrix

A

growth stage
new, successful products

51
Q

what does the cash cow stage in the boston matrix

A

product is already established, doesnt need promoting
high customer loyalty
maturity stage

52
Q

what does the problem child stand for in the boston matrix

A

INTRODUCTION
low market share
issues for business

53
Q

what does the dogs stand for in the boston matrix

A

DECLINE
product which should be withdrawn
unsuccessful

54
Q

name the 6 pricing strategies

A

price penetration
price skimming
cost plus pricing
dynamic
psychological
competitive

55
Q

adv and disadv of price penetration

A

adv- loyal customer base
disadv- may turn consumers

56
Q

adv and disadv of price skimming

A

adv- initial sales covers research
disadv- may put off consumers and lead them to question quality

57
Q

adv and disadv of cost plus

A

a- control over price
d- profit loss potential

58
Q

adv and disadv of psychological pricing

A

a- increased sales
d- lack prestige

59
Q

dynamic pricing adv and disadv

A

a- inc revenue and customer satisfaction
d- confusing to create and timely

60
Q

adv and disadv of competition pricing

A

pricing based off awareness and adjusting to competitors
adv- takes market share
disa- reduced profit

61
Q

5 influences on pricing strategy

A

costs
unique selling point
target market
stage in PLC
brand image

62
Q

whats distribution

A

refers to making a product/ service available when and where consumers need it

63
Q

whats the difference between retailing and e tailing

A

retailing is in a physical shop however e tailing is online

64
Q

name the 4 channels of distribution

A
  1. manufacturer- customer ( perishable or small business )
  2. manufacturer- retail- consumer
  3. manufacturer- wholesaler-retail- customer
  4. manufacturer- agent - wholesaler- retail- customer
65
Q

benefits of distribution channels

A

try on products
displays to attract
advice and help
enjoy experience

66
Q

benefits of online

A

cheaper for business
open 24/7
access to all countries

67
Q

disadvantage of online

A

shipping cost
cannot try on immediately
waiting

a level business (7 decks)

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