Unit 3 - marketing Flashcards Preview

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Flashcards in Unit 3 - marketing Deck (37):
1

What is market growth?

The % increase of sales in the market

2

What is market share?

The percentage of all sales in the market made by one firm

3

What is market mapping?

It is used to identify the position of different brands within a market

4

What is sampling?

This is the size and type of people chosen when carrying out research

5

What is correlation?

Comparing 2 sets of data to show how closely linked they are

6

What is a confidence interval?

The possible range of outcomes for a given confidence

7

What is extrapolation?

Predicting what will happen based on previous trends

8

What is market segmentation?

Dividing the market into different subgroups that each have different needs

9

What are the 3 types of goods?

Convenience
Shopping
Speciality

10

What is the Boston Matrix?

This plots the position of each product in terms of market share and relative market growth

11

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

12

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

13

What is the product life cycle?

This shows the sales of a product over its life

14

What are the 5 stages of the PLC

Development, introduction, growth, maturity, decline.

15

What can a firm do to prevent a product dying out?

Use extension strategies, e.g. Promotion or redesign product

16

What is penetration pricing?

Selling at a low price at first before raising it

17

What is price skimming?

Selling at high prices that give high profit margins

18

What is e-commerce

Trading over the internet

19

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'

20

What is elastic demand?

When the change in price/income leads to a greater percentage change in the quantity demanded

21

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

22

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

23

What's is market positioning?

This is how a product is viewed by the customers

24

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

25

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

26

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

27

What are the 7Ps?

Price
Place
Product
Promotion
Physical environment
Process
People

28

For which kind of businesses is the quality of the product more important?

For those selling goods, particularly shopping and speciality goods

29

Why might people be more important than product for some firms?

If they deliver a service

30

What are the different ways of promoting/selling?

PR
Merchandsing
Sales promotions-short term incentives to encourage consumers to purchase
Direct selling, e.g. Door to door, direct mail

31

What are loss leaders?

Very low prices that are used to encourage to buy other, fully priced products

32

Psychological pricing, what is it?

Prices that are set to give an impression of good value, e.g. £99 rather than £100

33

What is a price taker?

A small business that tends to follow the prices set by other firms.

34

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

35

What is a traditional method of getting products to the consumer?

Producer>wholsesaler>retailer>consumer

36

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

37

Name on benefit of market segmentation to a business

It allows the business to understand the needs of different groups within the market better.