Flashcards in Unit 3 - marketing Deck (37):
What is market growth?
The % increase of sales in the market
What is market share?
The percentage of all sales in the market made by one firm
What is market mapping?
It is used to identify the position of different brands within a market
What is sampling?
This is the size and type of people chosen when carrying out research
What is correlation?
Comparing 2 sets of data to show how closely linked they are
What is a confidence interval?
The possible range of outcomes for a given confidence
What is extrapolation?
Predicting what will happen based on previous trends
What is market segmentation?
Dividing the market into different subgroups that each have different needs
What are the 3 types of goods?
What is the Boston Matrix?
This plots the position of each product in terms of market share and relative market growth
What are the 4 parts to the Boston Matrix?
Rising stars-high share high growth
Problem children-low share high growth
Dogs-low share low growth
Cash cows-high share low growth
WHat should a firm do with its problem children?
Let them die out if they don't think they are going to go anywhere or use the money generated from the cash cows to invest in the, and try and turn the into rising stars
What is the product life cycle?
This shows the sales of a product over its life
What are the 5 stages of the PLC
Development, introduction, growth, maturity, decline.
What can a firm do to prevent a product dying out?
Use extension strategies, e.g. Promotion or redesign product
What is penetration pricing?
Selling at a low price at first before raising it
What is price skimming?
Selling at high prices that give high profit margins
What is e-commerce
Trading over the internet
Why is technology good for the marketing department?
Can target consumers more specifically
Can extrapolate more easily
Can communicate with consumers more easily
Can use 'relationship marketing'
What is elastic demand?
When the change in price/income leads to a greater percentage change in the quantity demanded
How does a rise in price affect a business selling goods or services that are elastic in demand?
The demand for the product is going to decrease by a bigger % than the change in price
What does a firm do after it has segmented the market?
It then targets the consumers it wishes and positions itself in the market in the way it wishes
What's is market positioning?
This is how a product is viewed by the customers
Why might a firm want to change its market positioning?
It may want to gain competitive advantage
It may have had bad PR and want to change how it is seem
What are the advantages of targeting a mass market?
-large scale production can cut unit costs
-potential for huge revenues
-increases brand awareness
-access to more markets
What are the advantages of niche marketing?
-may be less competition
-a firm can adapt to meet the demand of the customers better
-less advertising costs
What are the 7Ps?
For which kind of businesses is the quality of the product more important?
For those selling goods, particularly shopping and speciality goods
Why might people be more important than product for some firms?
If they deliver a service
What are the different ways of promoting/selling?
Sales promotions-short term incentives to encourage consumers to purchase
Direct selling, e.g. Door to door, direct mail
What are loss leaders?
Very low prices that are used to encourage to buy other, fully priced products
Psychological pricing, what is it?
Prices that are set to give an impression of good value, e.g. £99 rather than £100
What is a price taker?
A small business that tends to follow the prices set by other firms.
WHat is cost plus pricing?
Calculating costs and then setting a mark-up to allow for risk and help the firm to make a profit by setting a price that exceeds costs
What is a traditional method of getting products to the consumer?
WHy might it depend on the business as to whether e-commerce should be used?
It depends on a number of things:
-what is being sold
-how much competition there is in the market and therefore whether or not there is a need to invest in e-commerce
-how much face to face contact needs to be had with customers
-how much money a firm has
-the expertise a firm has in IT