Business > Unit 3 - Decision Making To Improve Marketing Performance > Flashcards

Unit 3 - Decision Making To Improve Marketing Performance Flashcards

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1
Q

What are logistics

A

the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. Getting something A to B

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2
Q

What are internal influences on the operational objectives

A

Resources
Corporate objectives
Finance
HR
Marketing
Leadership and culture
Nature of the product

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3
Q

What are external influences on the operational objectives

A

Technological change
Legal factors
Marker and competitors
Political factors
Economic factors
Suppliers
Environmental factors

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4
Q

What’s an example of a cost objective

A

✓reducing unit costs
✓reduced fixed costs
✓reduced variable costs

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5
Q

What is the operations process

A

Inputs (land, labour, capital)
↓
Transformation process
↓
Outputs (goods and services)

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6
Q

What are stages in the production procces

A

Raw materials
Manufacturing
Transportation
Retail
Disposal/ recycling

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7
Q

What is added value

A

Selling price - cost of production
(Adding to the selling price)

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8
Q

What is added value

A

Selling price - cost of production
(Adding to the selling price)

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9
Q

What are speed of response objectives

A

(time of customer placing order to getting it)
•Businesses can compete by providing goods or services faster than competitors
• time of response

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10
Q

What are flexiblity objectives

A

•product- ability to switch one product to another
•volume- ability to change level of output
•mix- ability to provide alternatives
•delivery- ability to adapt to changes in time and volume

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11
Q

What are dependability objectives

A

Ability of a business to deliver reliability on-time
✓quality
✓punctuality
✓durability

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12
Q

What are environmental objectives

A

✓reducing carbon footprint
✓minimising waste
✓recycling
✓transporting efficiently
✓using renewable resources

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13
Q

What is labour productivity

A

The output per worker
Total output / Number of employees

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14
Q

What is labour intensive

A

replys on the skill if the workers more than equipment
e.g. hairdressers

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15
Q

What is capital intensive

A

Involves and machinery and equipment to produce goods
e.g. car manufacturers

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16
Q

Influences on labour productivity

A

• training/ skill of workers
• motivation
• complexity of a product
• capital equipment available

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17
Q

What is unit cost (average cost)

A

Total cost/ total
If unit cost is higher than than expected managers analyse why
•are suppliers too expensive
•high level of defects and waste?
•is labour productivity low

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18
Q

What are the types of market research and what are they

A

Primary market research data collected by the business it’s collected and analyzed e.g. customers that came in store that day and what they bought. consists of questionnaires, surveys, focus groups, interviews, businesses data and observation

  • Secondary data that already exists and isn’t collected by the business itself.
    It’s usually cheap and can be other businesses financial information and your reports or reading newspapers but it’s not specific to the business and can be timed consuming searching through the internet
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19
Q

What is quantitative data

A

Data in numerical form - numbers and stats it’s usually gathered through surveys

-doesn’t explain why

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20
Q

What is qualitative data?

A

Data in descriptive form, conveys people’s emotions and feelings, open questions, normally with less people not as reliable statistically and not easily measurable

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21
Q

What is market’s mapping?

A

It analyzes the market conditions to identify the position of one product or brand relative to others in the market
e.g. how it is perceived
It’s shown on a grid with two axes of different qualities against each other for example quality against price.

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22
Q

What is sampling?

A

A group of people or itemselected to represent the target population.

All the people managers might want to interview are known collectively as the target population and it’s not possible to interview them all so instead they choose a sample.

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23
Q

What are the pros of sampling?

A

-Save money as a whole because the
whole target population doesn’t have to be considered
- provides insight to the market
- quicker

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24
Q

What are the cons of sampling?

A

– might not be representative of the whole population
– may be a badly chosen sample

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25
What contributes to the value of sampling?
– how representative it is – sample size – how sampling was conducted – how people are selected
26
How do you interpret market data?
Gather the market data in analyse it then interpret it using; - Dash correlation - extrapolation - confidence intervals
27
What is correlation?
The apparent relationship between one factor in another e.g. higher price leads to lower demand - businesses can identify key influences on demand - correlation gives a value between 1 and - 1 the higher the figure the stronger the correlation
28
Cautions about correlation:
- only shows the apparent relationship - doesn't prove that one thing leads to another - doesn't show direction of relationship
29
What is extrapolation ?
Method of extending data and forecasting sales by looking at what happened in the past and determining to what extent it will continue in the future
30
What is confidence level?
Sampling gives an insight to the target population but it isn't 100% accurate and the confidence levels show the probability that the findings are correct. E.g. a 95% confidence level will show their 95% sure that the data is reliable Depends on: - size of sample – how sample was created – margin of error (confidence interval)
31
What is a confidence interval?
The possible range of outcomes for a confidence level e.g.95% of researchers are confident that there will be a £200,000 to £300, 000 sale (big margin of error)
32
What does it mean when price is elastic?
Quantity demanded changes when price changes. If the value of price elasticity is greater than 1 then demand is said to be elastic. When price increases – the increase in price leads to a bigger percentage decrease in the quality demanded and revenue falls When price decreases – the decrease in price leads to a bigger percentage increase in the quantity demanded and revenue rises.
33
What does it mean when prices inelastic?
Quantity demanded doesn't really change when the price changes. If price elasticity of demand is less than one it's inelastic. When price increases – the increase in price leads to smaller percentage decrease in the quantity of demand revenue rises When price decreases – the decrease in price list of smaller percentage increase in the quantity demanded and revenue falls
34
What are the two types of elasticity?
– price elasticity of demand – income elasticity of demand
35
What is targeting within a market?
Focusing on a particular market segment.
36
What are the benefits of operating in a niche market?
– USP – can charge higher prices – less competition – high market share can charge hire prices – can move into the mainstream market over time
37
What are the benefits of operating in a niche market?
– USP – can charge higher prices – less competition – high market share can charge hire prices – can move into the mainstream market over time
38
Drawbacks of operating within a niche market?
- a niche market usually isn't big, the business is at risk even for you lose a few customers - total profits relatively low - if the niche becomes more popular, bigger businesses may come and take over
39
What is mass marketing?
When a business decides to provide products that meet needs of a large proportion of the market.
40
Benefits of operating within a mass market
– more profit – more sales and customers – economies of scale – more revenue
41
Drawbacks of mass marketing?
– more competitors – hard to stand out – need more investment – more advertising needed
42
What is positioning?
When a business identifies the benefit and price combination of a product compared to competitors, refers to how their product is viewed relative to their competitors.
43
What are marketing objectives?
Goals set by the marketing department to support overall business objectives, e.g., increasing market share or improving brand awareness.
44
What are the two main types of market research?
Primary Research: First-hand data collection (e.g., surveys, interviews). Secondary Research: Existing data (e.g., reports, market data).
45
What is a market map?
A diagram that identifies how brands are positioned based on factors like price and quality.
46
What are the main types of market segmentation?
Demographic (age, gender, income) Geographic (location) Psychographic (lifestyle, values) Behavioral (buying habits)
47
What are the three main targeting strategies?
Mass Marketing: Targeting the whole market. Niche Marketing: Targeting a small, specific market segment. Segmented Marketing: Targeting multiple segments with tailored marketing strategies.
48
What are the 7Ps in the marketing mix?
Product (features, design) Price (pricing strategies) Place (distribution channels) Promotion (advertising, PR) People (customer service) Process (customer journey) Physical Environment (store layout, packaging)
49
Name key pricing strategies.
Penetration Pricing (low initial price to gain market share) Price Skimming (high initial price, lowered over time) Competitive Pricing (pricing based on competitors) Psychological Pricing (e.g., £9.99 instead of £10)
50
What are common promotional strategies?
Advertising, sales promotions, public relations, social media marketing, and sponsorship.
51
What are the stages of the product life cycle?
Introduction (launch phase) Growth (increasing sales) Maturity (peak sales) Decline (sales fall)
52
What strategies can extend the product life cycle?
Rebranding, updating features, expanding to new markets, or introducing new uses.
53
How does the Boston Matrix support marketing decisions?
Helps businesses allocate resources by identifying which products need investment, promotion, or discontinuation.
54
What is price elasticity of demand (PED)?
Measures how responsive demand is to a change in price. Elastic Demand (PED > 1): Demand changes significantly with price. Inelastic Demand (PED < 1): Demand changes little with price.
55
What is the purpose of branding?
To create a unique identity, build customer loyalty, and differentiate products.
56
What are key benefits of digital marketing?
Cost-effective targeting Real-time analytics Improved customer engagement
57
What are the types of distribution channels?
Direct Channels: Selling directly to consumers. Indirect Channels: Using intermediaries like retailers or wholesalers.
58
What factors influence marketing decisions?
Internal Factors: Budget, objectives, and resources. External Factors: Competition, economic climate, and technological change.
59
What are marketing objectives?
Targets related to sales, market share, brand loyalty, and customer satisfaction.
60
Give examples of quantitative marketing objectives.
Sales growth, market share, number of units sold.
61
Give examples of qualitative marketing objectives.
Customer satisfaction, brand awareness, brand loyalty.
62
What internal factors influence marketing objectives?
Corporate objectives, financial position, operational issues, HR capabilities.
63
What external factors influence marketing objectives?
Market dynamics, economic environment, competitor actions, technological change.
64
What is market research?
The process of gathering, analysing and interpreting information about a market.
65
Differentiate between primary and secondary research.
Primary is new/original data; secondary is existing data.
66
Give examples of primary market research.
Surveys, interviews, test marketing, focus groups.
67
Give examples of secondary market research.
Government publications, trade press, market reports, internal data.
68
What is sampling?
The process of selecting a representative group from the population for research.
69
What is extrapolation in market analysis?
Using past data trends to predict future performance.
70
Name two limitations of extrapolation.
Assumes trends continue; ignores external changes.
71
What is price elasticity of demand (PED)?
The responsiveness of demand to a change in price.
72
What does it mean if PED > 1?
Demand is price elastic – a change in price leads to a larger % change in demand.
73
What does it mean if PED < 1?
Demand is price inelastic – a change in price leads to a smaller % change in demand.
74
What is income elasticity of demand (YED)?
The responsiveness of demand to changes in income.
75
What is market segmentation?
Dividing a market into distinct groups of buyers with different needs or behaviours.
76
Give examples of segmentation methods.
Demographic, geographic, behavioural, psychographic.
77
What is targeting in marketing?
Selecting one or more segments to aim marketing efforts at.
78
What is positioning?
Establishing a brand or product in a certain way in the minds of consumers.
79
What are the elements of the marketing mix?
Product (features, quality), Price (strategy), Place (distribution), Promotion (advertising).
80
What is the product life cycle?
The stages a product goes through: development, introduction, growth, maturity, decline.
81
What is an extension strategy?
A method used to prolong the life of a product, e.g. new packaging or targeting new markets.
82
What is the Boston Matrix?
A portfolio analysis tool classifying products as Stars, Cash Cows, Question Marks or Dogs.
83
What are common pricing strategies?
Cost-plus, penetration, price skimming, competitive, psychological pricing.
84
What is penetration pricing?
Setting a low price to enter the market and gain share.
85
What is price skimming?
Setting a high price initially then lowering it later.
86
What are elements of the promotional mix?
Advertising, sales promotion, personal selling, public relations, direct marketing.
87
What factors influence promotional decisions?
Target audience, budget, nature of product, competitor actions.
88
What is meant by 'place' in the marketing mix?
How a product is distributed and made available to customers.
89
What are distribution channels?
Ways of getting the product from producer to consumer – direct or indirect.

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