Unit 3b Flashcards
(102 cards)
1
Q
What are the 4 P’s of Marketing?
A
They are:
Product
Promotion
Place (Distribution)
Price
The 4 P’s working together to create a desire in the consumers mind for the product being marketed.
2
Q
What’s are the 5 parts of a product?
A
Quality
Design
Features
Benefits
Product/Service mix (things like warranty and installation)
Products can be services too.
They constantly strive to stay ahead of the competition and repeat sales.
3
Q
What economic factors can affect price?
A
Profit and Demand
4
Q
What is the discount pricing strategy?
A
-Lowest price
-Consumer getting deal
-Sacrifice quality
5
Q
What is the premium pricing strategy?
A
-High price
-Perception of quality
6
Q
What is the psychological pricing strategy?
A
-Ending in .99, .97
-Increases sales
7
Q
What is cost?
A
the amount of money it takes to produce the
product
8
Q
What is loss?
A
Sales price of product does not cover expense
9
Q
What is the break-even point?
A
Sales price is equal to expenses
10
Q
What is profit?
A
Sales is greater than expenses
11
Q
What’s the place (channels of distribution)?
A
The methods that a business uses to sell and
distribute its product.
12
Q
What is a direct channel?
A
-Selling directly to the consumer
13
Q
What’s an indirect channel?
A
Having one or more intermediary. Importers, wholesalers or retailers.
14
Q
What are the 3 indirect channels?
A
Importers, wholesalers or retailers.
15
Q
What’s the intermeditary channel?
A
Businesses that take possession of a good before consumers do.
NOTE: This adds costs to the product.
16
Q
What’s the importer channel?
A
-Someone who seeks out foreign products to bring into his/her country.
-Negotiates distribution with foreign manufacturer
-Buys the manufactured merchandise
-Stores it in Canada
-Sometimes sells it
17
Q
What’s the wholesaler channel?
A
-Buys goods from producers or importers and resells them to retailers.
-Manufacturers usually ask for a minimum amount
quantity of goods.
-Smaller stores do not have the money or space for
large orders.
-Wholesalers are usually located close to retailers and
can store a large quantity of goods
18
Q
What’s the retailer channel?
A
-Linked directly to the customer
-Buy merchandise that consumers want.
-Have it in stock when consumers want it
-Display the merchandise
19
Q
What are specialty channels?
A
-Any indirect channel of distribution that does not involve a retail store.
Including:
-Vending Machines
-Telemarketing
-Catalogue Sales
-online
-Door-to-door
20
Q
What is promotion?
A
Any attempt to sell a product
21
Q
What are coupons?
A
Offer consumers money off a product
22
Q
What are contests?
A
An exciting way to increase brand
recognition and sales.
23
Q
What are premiums?
A
Giveaways – something a consumer gets free with the purchase of a product.
* Can be unrelated to the product
* Usually carry the company’s logo (brand recognition)
* Customer loyalty cards – Scene Cards, Sephora VIP
24
Q
What are samples?
A
small trial sizes of products
25
What are special events?
marketers organize special events
to attract customers and increase product sales.
Example: autograph signing, celebrity appearances
26
What are the 2 C's of Marketing? (actually a C and a D)
Competition and Demographics (Customers)
27
What is the competitive market?
-Consists of all of the sellers of a product
-Expressed in terms of total dollars spent annually on this product
28
What is market share?
The percentage of the market that a company or brand has (ex. Coke has 26% of soda market, while Pepsi has 15%, etc).
29
What is a market segment?
Part of the overall market that has similar characteristics
30
How can a company increase market share?
-Increasing the size of the overall market (ex. creating energy drink segment)
-Increase market share by decreasing sales of competitors.
31
What is indirect competition?
Competition between products or services that are not directly related to each other. (ex. watch a movie or go laser tag)
32
What is direct competition?
Competition between products that are similar. Compete mainly on image (ex. Apple vs Samsung)
33
What is discretionary income?
Income left over after paying for taxes
34
What is disposable income?
Income left over after paying for basic necessities
35
What are demographics?
The study of obvious characteristics that categorize people (ex. Age, Gender, Family Status, Income level, Geography, Education)
36
What are demographics used for?
They are used to determine the target market for your idea or product
37
What is the target market?
A specific group of customers whose needs and wants a company will focus on satisfying. (ex. mature market needs dentures)
38
What are Pre-Customers?
Customers aged 0-9 and their gatekeepers/parents who buy products for them. The product must appeal to both the customer (gatekeeper) and consumer (kid), making it a double market.
39
What are Allowance customers?
Customers aged 10-15, and don't have a regular income (rely on allowance). Parents/gatekeepers still have a influence but they start to make their own decisions.
40
What are Youth Market Customers?
Customers aged 16-19 and still rely on gatekeepers for money, but they have disposable money from part time jobs. This is a very attractive market for cell phones, electronics etc.
41
What is the post-secondary market?
They are customers aged 20-25, and are more independent then Youth market customers. They are either attending uni/college, or working. It's a attractive market for furniture, bedding and products similar to that that are needed for an independent life. They make purchase decisions that become habitual, and develop brand loyalties that last for years.
42
What is the family formation market? (nesters)
They are customers that are aged 25-40, and are mostly focused on their career, marriage, home and children. It's an attractive market for furniture, insurance, cars, and major appliances.
43
What is the establishment market?
They are customers aged 40-55, and have higher disposable income due to higher salaries. They are an attractive market for quality goods, luxury goods, vacations, and investments.
44
What is the mature market?
They are customers aged 55+. It is the fastest growing market today, and they have the most disposable income, due to their children being gone. It's an attractive market for homes and vacations.
45
What is the family life cycle?
Single, married (no kids), married (kids), separated, divorced, widowed, blended family
46
What is income level?
Grouped by how much money they have or earn. (ex. Kellogs targets all levels, while Mercedes targets higher levels.)
47
How is income level determined?
Income level is determined by:
-Postal codes
-Employment
-Number of children
-Education
48
What should you be wary about concerning ethnicity in a target market?
-If you do not understand the culture of your
consumer, you risk offending them, especially when exporting to another country.
-You need to consider cultural differences before going into a new market
49
What are lifestyles?
The way people live, which includes their values, beliefs and motivation.
50
What are psychographics?
-Psychographic segmentation breaks down customers into groups that influence buying behaviors such as: beliefs, values, lifestyle, social status, opinions and activities.
-It differs from behavioral segmentation because it identifies the motivation behind behavior, instead of the numbers.
-Though different, it often goes hand in hand with demographic segmentation
-Demographics tells you who the customer is, but psychographics tells them why they buy
-Demographic data is quantitative, while psychographic data is qualitative.
51
What does marketing do?
-Sell what a business makes
-manage the business's brand(s)
includes research, development, sales, distribution, advertising & promotion`
52
What's branding?
The marketing practice of creating a name, symbol or design that
identifies and differentiates a product from other products.
53
What's a brand name?
a word or a group of words that a business uses to
distinguish its products from competitors’ products.
54
What's a logo/trademark?
a special symbol that is associated with the product.
55
What's a slogan?
a short catchy phrase that is usually attached to the company’s
name & logo
56
What does the product lifecycle (PLC) do?
The Product Lifecycle illustrates a product’s sales over time (lifetime), and measures popularity.
It applies to both products and services.
57
What is product infancy?
-Brand new product
-Barely known
-Little sales
-High cost to produce
-High price
-Has early adopters
58
What is product growth?
* Growing consumer awareness
* Sales increase
* Production increases
* Costs decrease
* Market share increases
* Advertising increases
* Competition enters market
* Innovation of product
* Lower prices
59
What is product maturity?
* Product popularity has peaked
* Sales level off
* Advertising high
* Inform consumers about product
* Product – Function and Form
* Price
* Availability
* Fierce competition
* Replacement sales
60
What is product decline?
* Sales drop off
* Popularity drops
* Spending drops
* Can be repositioned with innovation
* New Design
* New Feature
* New Colour
61
What is product decision point?
* Obsolete – Replaced by newer and better technology
* Low sales
* Decide whether to continue with product.
62
What is a trend?
A long lasting pattern of consumer behavior (ex. Environmentalism, Family, Healthy Lifestyle)
63
What's a fad?
* A product or service that
becomes very popular
quickly but then fades away
just as fast.
64
What's a niche market?
- Specialized group of consumer (ex. audiophiles)
65
What is market research?
The collection and analysis of info relevant to a marketing strat
66
What's consumer research?
Discovers what type of products consumers want and predicts the overall sales potential
67
What is market research?
Identifies specific groups of consumers who would use a particular product or service
68
What is motivational research?
Looks at what motivates our buying decisions
69
What is pricing research?
Looks at can the company sell the product for a competitive price and still make a profit
70
What is competitive research?
Look's for opportunities where competition is weak, or determines what competitors are doing
71
What is product research?
Examines each detail of a product and analyzes impact on the market
72
What is advertising research?
What is the most effective way to get the message out of customers?
73
What's primary data?
Current information that researchers collect and analyze
74
What's test marketing?
-Produce a limited quantity of a new product
and introduce it into one or two areas
- London, Kingston often selected in Ontario
- People may be unaware that this is taking
place
- Expensive and may be kept secret so
competitors can’t influence results
75
What's internal information services?
- Business can analyze its own sales records,
inventory data, advertising and promotional
results
- Can gather data on products and consumer
behavior
- Called Data Mining
76
What are surveys?
- Carefully planned questions that are used to
gather data
- Most surveys use Closed-ended questions:
- Yes/No questions
- Agree/Disagree
- Select a, b, c or d
- Why?
- Easy to answer and score
77
What are open-ended questions?
- Allow people to develop their own answers
- These take longer to answer and are harder
to analyze. For example:
- What do you like most about root beer?
- When do you usually drink root beer?
78
What's observation?
- Watch the behavior of people using things like two-way glass and cameras.
79
What are focus groups?
- Company-arranged meeting of potential
customers
- Determine if there is a large enough market
for product
- Test products, get opinions on product
80
What's secondary data?
Information that others have collected:
- Websites
- Database
- Books
- Magazines
- Often this information is free and can provide
a background for the company’s research
strategy
81
What is accounting?
The process of recording, analyzing and interpreting the
financial activities of a business
82
What are transactions?
A financial event that changes the financial position of a
business
83
What's book keeping?
Recording transactions
84
What are assets?
Anything owned by a business that has value. (ex. Cash, cars, land)
In Business we use Accounts Receivable
* Money owed to a business
* you have done the business but not received that money
for it yet...but you will in the near future
85
What are liabilities?
A debt of an individual or business
* E.g. Bank Loan, Mortgage
In Business we use Accounts Payable
* Money that a business owes
* you have the product or used the service but not paid for
it yet...but you will in the near future
86
What's owner's equity?
The difference between the business assets
(what the business owns) and the business liabilities (how much money a business owes)
This is what a business would have left if they paid off all
their debts
ASSETS - LIABILITIES = OWNER’S EQUITY
87
What is the owner's equity equation?
ASSETS - LIABILITIES = OWNER’S EQUITY
88
What is the accounting equation?
A = L + OE
A(ssets) = L(iabilities) + O(wners) E(quity)
89
What's a balance sheet?
* Summarizes information about Assets, Liabilities and
Owner’s Equity
* A snapshot that shows how a business is doing on a given
day
90
What do you put in the heading of a balance sheet (in order)
Centre:
* Line 1- Who? (Business or person’s name)
* Line 2- What? (Balance Sheet)
* Line 3- When? (Date)
91
How should you write the assets in a balance sheet?
1. Title that says Assets underlined and centered
2. Write assets in order of liquidity (Cash & accounts receivable at the top, building & land at the bottom). First asset should have a dollar sign
3. Write total assets, and beside it add them all up. Add a line below your last asset, double lines under your total and a dollar sign. IT SHOULD BE IN LINE WITH TOTAL LIABILITIES AND OWNER'S EQUITY.
92
How should you write the liabilities in a balance sheet?
1. Title that says Liabilities next to the asset one, underlined and centered
2. List liabilities in order of maturity (accounts payable first, mortgage payable last). Add a dollar sign on first liability
3. Add them all up and write total liabilties with a line above it to show you're adding, and add a dollar sign
93
How should you write owner's equity in a balance sheet?
1. Write Owner's Name, Capital in the same row as your last asset
2. Write Owner's Equity underlined and centered above it
3. Next to it, subtract total assets from total liabilities and add a single line below, and add a dollar sign
4. Below that, write Total Liabilities and Owner's Equity, and add up Total Liabilities and Owner's Equity (above). Add a double underline under this total, and add a dollar sign.
94
What is an income statement?
A financial statement used to help a business
calculate and report its profit or loss on
business operations
95
What's revenue?
Money received from sale of goods or services
96
What's expenses?
Costs needed in order to run the business and help earn revenue
97
What's net income?
When revenue is higher then expenses
98
What's net loss?
When Revenue is less then expenses
99
What do you put in the heading of a income statement?
The Three Line Heading indicates:
- Who? Name of business
- What? Name of statement
- When? Accounting period for which the
figures have been collected (NOTE: This is written
slightly different than on the Balance Sheet)
100
How should you write Revenue in a income statement?
1. Add a Revenue title with center and underline
2. Write your Revenue streams in order of money earned (high-low), with a dollar sign on the first one. Add a line under the last number.
3. Write total revenue under this, and add up the total two rows over from Total Revenue (it should be diagonal to your last revenue amount. Add a dollar sign
101
How should you write Expenses in a income statement?
1. Add a Expense title under your Total Revenue, which is centered and underlined
2. List expenses alphabetically, with a dollar sign on the first number. Add a line under the last amount
3. Add Total Expenses, and add them up in the same row as total revenue, and add a line under it.
102
How should you write net income/loss in a income statement?
1. Under total expenses, write net income or net loss (depends if you gain or loose money)
2. Subtract Total revenue from total expenses in the same row as them and double underline.
