1
Q
What is the purpose of marketing?
A
promoting its products or services to attract and retain customers
2
Q
What is the key term of marketing?
A
satisfying customers’ wants in a way that delights the consumers and also meets the needs of the organisation
3
Q
What is the first stage of marketing
A
The first stage of marketing is to conduct market research in order to discover the wants of customers and the factors that influence those wants
4
Q
What is the marketing mix?
A
a business tool composed of the seven P’s used to market a product or service and influence consumer purchasing decisions
5
Q
What are the “7 ps” in marketing mix?
A
-product
-price
-promotion
-place (distribution)
-people
-process
-physical environment (physical evidence)
6
Q
Why do organisations use the marketing mix?
A
Organisations use the marketing mix in order to achieve their marketing objectives
7
Q
What is the definition of marketing objectives?
A
The goals of the marketing function in an organisation
8
Q
What is the definition of sales volume?
A
Measures the number of items sold or produced (such as the number of televisions sold)
9
Q
What if the definition of sales value?
A
Measures the financial worth of the items sold (e.g. £30 million of televisions)
10
Q
What is the equation for sales value?
A
Sales value = sales volume x average price
For example :
If a ‘99p store’ sells 100,000 items at 99p each, then its sales volume is 100,000 items and its sales value is £99,000
11
Q
What is the definition of market size?
A
The volume of sales of a product (e.g. the number of computers sold) or the value of sales of a product (e.g. the total revenue from computer sales)
12
Q
What is the definition of market growth?
A
The % change in sales (volume or value) of a generic product or service, over a period of time.
13
Q
What is the equation of market growth
A
Market growth (%) = ( (market size in year - market size in previous year) / Market size in previous ) X100
14
Q
What factors influence market growth?
A
- economic growth : if countries wealth grows 3 % per annum (year), sales likely to rise in any given market
- the nature of the product : markets dealing with luxury products, tend to grow rapidly when economic growth is high
- changes in taste : as lifestyles change, new products, more popular while other decline
- social changes : way people live influence product sales
- fashion
15
Q
What is the definition of sales growth?
A
The % change in sales (volume or value) for a specific business or product over a period of time
16
Q
What is the equation of sales growth?
A
Sales growth (%) = ( (sales in that year - sales in previous year) / Sales in previous year) X 100
17
Q
What is the definition of market share?
A
The % or proportion of the total sales of a product or service achieved by a firm
18
Q
What is the equation for market share?
A
Market share = (Sales of one product or brand or company / Total sales in the market ) X100
19
Q
What is the definition of brand loyalty?
A
A measure of the degree of attachment that a consumer has for a particular brand or product. High brand loyalty for one product will reduce the likelihood of a consumer switching to another brand
20
Q
What is an example of marketing objectives?
A
- market positioning:
- try attract new market segments
21
Q
What are the values of setting marketing objectives?
A
- to act as a focus for decision making and effort
- to motivate staff, improve performance by setting challenging, realistic, targets
22
Q
What are some benefits of setting marketing objectives?
A
-SMART (specific, measurable, achievable/attainable, realistic, time) set clear objectives, helps ensure staff meet same goal
-enable staff see if they succeeded or failed to meet expectations
-if members of department or team have common purpose, enabling managers to provide more united & coordinated approach to problem solving
-measurable and timed objectives allow managers and individuals to improve efficiency, practices worked effectively & staff able to learn from previous mistakes
23
Q
What are some problems of setting marketing objectives?
A
Unpredictable external environment: Market changes, competitor actions, and economic downturns can make previously set objectives obsolete or difficult to achieve.
Internal conflict and resistance: Objectives that are imposed rather than agreed upon can lead to low motivation and productivity. There can also be a conflict between different departments or individual goals, such as sales staff driven by commission vs. long-term brand building.
24
Q
What is external influences?
A
External factors are those outside the business, such as the state of the economy and the actions of competitors
25
What are some examples of external influences on marketing objectives and decisions?
Economic factors
Inflation, interest rates, and unemployment: These can impact consumer spending power and the cost of borrowing, influencing pricing decisions and marketing budgets.
Global factors
Globalization: Companies face competition from international players and may have opportunities to expand into foreign markets.
26
What is internal influences?
Internal influences are those factors within a business, such as its workforce, resources and financial position
27
What are some examples of internalP influences on marketing objectives and decisions?
- business/corporate objectives :
overall aims of organisation, key influence on functional obj. Marketing department ∴ ensure objectives consistent with corporate obj.
- finance :
business with healthy financial situation can afford more resources into marketing, ∴ can set more challenging objectives.
28
What is the definition of market research?
The systematic and objective collection, analysis and evaluation of information that is intended to assist the marketing process
29
What important pieces of info do collection and analysis of data show organisation?
- achieving objectives :
- has the firm achieved its target sales figure or its desired percentage market share?
- identifying trends :
- are sales rising or falling? Is the trend stable or unpredictable?
- comparisons :
- how are the firms sales performing relative to competitors?
30
What is the definition of primary market research?
the process of gathering new, first-hand data directly from a target audience to meet a specific business purpose
31
What is the definition of secondary market research?
the process of gathering and analyzing data that has already been collected by others
32
What are the examples of primary market research?
- experiment
- observation
- surveys :
- personal interviews
- postal surveys
- telephone surveys
- internet surveys
- focus groups
- test marketing
33
What are the benefits of focus groups?
Cost-effective and fast: Compared to quantitative studies, focus groups can be less expensive and provide actionable feedback in a shorter timeframe, making them a quick way to get results.
Tests concepts: Businesses can test new ideas or marketing strategies with a target audience before a full-scale launch, allowing for refinement based on immediate reaction
34
What are the drawbacks of focus groups?
Costly and time-consuming: Organizing and running focus groups is expensive, involving costs for recruitment, facilities, incentives, and analysis.
Lack of honesty: Participants may hesitate to express true opinions, especially if they are unpopular or sensitive, leading to inaccurate data
35
What are the benefits of internet surveys?
Low Cost: Online surveys eliminate expenses associated with traditional methods such as printing questionnaires, postage, and manual data entry or hiring interviewers.
Speed and Efficiency: Data collection is rapid, with responses often received within days, allowing businesses to access and analyze results in real-time. This enables quick decision-making and fast action based on timely insights.
36
What are the drawbacks of internet surveys?
- the sample will tend to biased towards people with a particular interest in the product or service
- they will be less relevant for organisations whose target market does not use the internet
37
What are some key sources of secondary market research?
Internal company data: Existing information like sales history, customer records, and previous research can provide valuable insight
Government and public bodies: National and international government agencies publish reports and statistics on the economy, demographics, and industry trends. Examples include data.gov or Eurostat.
38
What are the Benefits of secondary market research?
Saves time and money: Data is pre-collected, making it much faster and cheaper to access than primary research like surveys or interviews. Accessing rival information online is often inexpensive
Reduces risk: It can be used to test an idea's viability before investing in costly primary research. If the research shows the market is already saturated, a business can change its strategy or abandon the idea
39
What are the drawbacks of secondary market research?
- the information may be dated and therefore could be misleading
- since info is available to other organisations, unlikely to give business any advantages over its competitors.
- may be no relevant secondary data to meet specific needs business.
-As data collected by other organisations for own use, secondary user not know level of accuracy & reliability of data.
40
What is the definition of qualitative market research?
Collection of info about the market based on subjective factors such as opinions and reasons
41
What are the benefits of qualitative market research?
Improves customer relationships: A better understanding of customer needs can lead to improved customer satisfaction and loyalty, reducing churn in the long term
Trend spotting: Qualitative methods can help identify emerging trends and shifts in consumer behavior early on, giving a business a competitive advantage.
42
What are the drawbacks of qualitative market research?
Time and cost:
Qualitative research can take weeks or months to complete, as it involves arranging and conducting in-depth interviews or focus groups. It can be expensive because it requires specialist skills to recruit participants and analyze the large volume of data gathered.
Unrepresentative and biased results:
The sample size is often small, which makes it difficult to generalize the findings to the entire target market. There is a risk of bias in selecting the sample, meaning the group may not reflect a wide range of opinions.
43
What is the definition of quantitative market research?
Collection of information about the market based on numbers.
44
What are the benefits of quantitative market research?
- Numerical data makes easier compare results with other organisations, such as competitors, or other divisions of same organisation
- Numerical data used to identify trends & project future trends.
45
What are the drawbacks of quantitative market research?
-Lack of depth: It provides numerical data but often fails to explain the motivations, attitudes, and emotions behind consumer choices
- can lack reliability & validity if sample biased or too small.
46
What is the definition of market mapping?
technique that analyses markets by looking at the features that distinguish different products or firms.
47
What are the benefits of market mapping?
Identifies market gaps: Helps businesses spot unmet customer needs and opportunities to develop new products or services.
Analyzes competition: Provides a clear view of the competitive landscape, including who competitors are, their strengths and weaknesses, and how they are positioned. ures being considered.
48
What are the drawbacks of market mapping?
Loss of economies of scale: Producing smaller batches of different products is more expensive per unit than producing large quantities of a single, generic product.
49
What is the definition of confidence interval (margin of error)?
The plus or minus figure used to show accuracy of statistical results arising from sampling
50
What are the Factors influencing the confidence interval?
Sample size: Decreases the width. A larger sample size provides more information and leads to a more precise estimate, resulting in a narrower interval.
Confidence Level: Increases the width. A higher confidence level (e.g., 99% vs. 95%) requires a wider range to be more certain that it contains the true population parameter.
51
What is the definition of extrapolation?
Using previous patterns of numerical data in order to predict values in the future
52
What are the Strengths of extrapolation?
- Easy to use:
Extrapolation is a straightforward method that can be applied with basic calculations or visual analysis of trends, making it accessible to a wide range of users
- Low data requirement:
Unlike some advanced predictive models, extrapolation can function with relatively small datasets, making it suitable for situations where extensive data collection is not feasible
53
What are the drawbacks of extrapolation?
- less reliable if there are fluctuations. Seasonal & cyclical changes are rarely repeated exactly. Many seasonal factors relate to weather, notoriously unpredictable.
- ignores qualitative factors, such as changes in tastes and fashion.
- ignores product life cycle, suggests most products, experience growth, ultimately decline in sales.
54
What is the definition of price elasticity of demand?
The degrees for which the quantity demanded of a good or service is affected by a change in price
55
What is the definition of income elasticity of demand?
The degree to which the quantity demanded of a good or service is affected by a change in consumer income
56
What is the calculation for price elasticity of demand?
Price elasticity of demand = % change in quantity demanded / % change in price
57
What is the calculation of income elasticity of demand?
Incomes elasticity of demand =
% change in quantity demanded / % change in income
58
What are the 3 price elasticity of demand?
- elastic demand :
-if change in price lead to greater % change in quantity demanded than % change in price, calculation yield answer>1
- inelastic demand :
-if change in price leads to smaller % change in quantity demanded than % change in price, Calu yield answer<1
- unit (or unitary) elasticity :
-name is given to situation where both % changes are same, given answer of (-)1
59
What is the definition of market segmentation?
The classification of customers or potential customers into groups or sub-groups [market segmentation], each of which responds differently to different products or marketing approaches
60
What are the 4 classifies market segments?
- demographic segments :
- examples such as classifying consumers according to age, gender, marital status, family size & family life cycle
- geographic segments :
- examples such as classifying consumers according to region, country, urban/rural & ACORN (A Classification Of Residential Neighbourhoods)
- income segments :
- examples such as classifying consumers according to family income, occupation, & social class
- behavioural segments :
- based on consumers’ attitudes to particular product
- types of segmentation in this category are often classified as examples of demographic segmentation
61
What are the benefits of market segmentation?
- increase market share :
- organisation can identify market segments, have not been reached & adapt its products & marketing to reach those segments
- identify ways of marketing a product :
- company recognises its customers’ characteristics can target its advertising to media used by that market segment
62
What are drawbacks of market segmentation?
Increased expenses: Segmentation leads to higher costs because businesses must invest in extensive market research and then develop and produce different products, run separate promotional campaigns, and manage more inventory for each segment
Potential for wrong assumptions: Segmentation relies on the assumption that people within a demographic share the same needs, which may not be accurate, leading to misjudging customer motivations.
63
What is the definition of market targeting?
Deciding on the consumers/market segment(s) to whom you tend to sell your products or brand
64
What is the definition of niche marketing?
Targeting a product or service at a small segment of a larger market
65
What are some advantages of niche marketing?
Less competition: Operating in a niche market means facing fewer competitors, allowing a business to become a leader in its specialized field.
Higher profitability: Businesses can often charge premium prices for specialized products and services, leading to higher profit margins.
66
What are the disadvantages of niche marketing?
- lower profits
- changes in demand
- market entry
67
What is the definition of mass marketing?
Aiming a product at all (or most) of the market
68
What are the advantages of mass marketing?
- large-scale production
- high revenue
- barriers to entry
- research and development
- brand awareness
69
What are disadvantages of mass marketing?
Lack of economies of scale: Small-scale production due to a single, generic product can lead to higher unit costs
High number of rivals: The large size and growth opportunities of mass markets attract many competitors
70
What is the definition of market positioning?
Where your product or brand stands in relation to the products or brands of other businesses
71
What factors decide marketing positioning?
- attributes and benefits of the product
- competition
- product user
- pricing
- product use or application
72
What are the Influences of elements of the marketing mix?
- finance
- cash flow
- discounts
- marketing budget and cost of promotions
- technology :
- technologically advanced products
- sophistication of the organisation’s database
- lower costs
- online selling
- social media
73
What effects of changes in the elements of the marketing mix?
- product
- price
- promotion
- place
- people
- process
- physical environment
74
What is the definition of industrial market?
Where a firm sells its products to another business
75
What are the main features of industrial marketing?
- larger transactions
- specialist buyers and sellers
- quality
- informative advertising
- pricing
- buyers-sellers relationship
76
What is the definition of Boston matrix?
business tool used to analyze a company's product portfolio by categorizing products into four groups based on their market share and market growth rate Stars, Cash Cows, Question Marks, and Dogs
77
What is the definition of product life cycle?
The stages that a product passes through during its lifetime- development, introduction, growth, maturity and decline
78
What are the 5 stages of the product life cycle?
1) development
2) introduction
3) growth
4) maturity
5) decline
79
What is the definition of extension strategies?
Methods used to lengthen the life cycle of a product by preventing or delaying it from reaching the decline stage of the product life cycle
80
What are the main types of extension strategies?
- attracting new market segments
- increasing usage among existing customers
- modifying the product
- changing the imagine
- targeting new geographical markets
- promotions, advertising and price offers
81
What are the 3 types of distribution channel?
- traditional :
- producer → Wholesaler → Retailer → Consumer
- modern :
- producer → Retailer → Consumer
- direct :
- producer → Consumer
82
What is the definition of distribution channels?
Channels or routes through which a product passes in moving from the manufacturer to the consumer
83
What is the definition of multi- channel distribution?
This exists when firms use more than one type of distribution channel
84
What are the factors influencing the method of distribution?
- size of the retailer
- type of product
- technology
- geography of the market
- complexity of the product
- degree of control desired by the manufacturer (producer)
87
What is the definition of E-commerce?
The buying and selling of goods and services through the use of electronic media
88
Economies of scale definition
the cost advantages that a business gains by increasing its output, leading to a lower average cost per unit
Business A Level
flashcards
Decks in class (20)
# Cards
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Unit 386
-
Unit 457
-
Unit 559
-
Unit 638
-
unit 144
-
unit 235
-
unit 754
-
Unit 7 - Analysing External Environment To Assess Opportunity And Threats: Political And Legal39
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7.1 - Mission, Corporate Objectives And Strategy26
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7.2 - Analysing The Existing Internal Position Of A Business To Assess Strengths And Weaknesses: Financial Ratio Analysis48
-
7.540
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7.4 Analysing The External Environment To Asses Opportunities And Threarts: Political And Legal Change14
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Unit 8 - Ansoff’s Matrix15
-
Unit 8 - Porters Generic Strategies18
-
Unit 9.11 Assessing A Change In Scale28
-
Unit 9.14 Assessing Greater Use Of Digital Technology15
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Unit 9.12 Assessing Innovation17
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Unit 9.13 Assessing Internationalisation14
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Unit 9.14 Assessing Greater Use Of Digital Technology5
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Unit 10.15 Managing Change18
