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48 Cards in this Set
- Front
- Back
What is Marketing? |
The management process that identifies, anticipates & satisfies customer requirements profitability |
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What is a Market? |
A physical or non-physical place where sellers exchange goods/services with buyers for money |
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What are Consumer good markets? |
Where products such as food, cosmetics, furniture & magazines are sold |
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What are markets for services? |
Varied & could include services for individuals, such as banking or business services (Lawyer) |
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What is the housing market? |
Where people buy and sell property |
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What is the Commodity market? |
Where raw materials such as oil, copper, wheat & coffee are traded |
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What is market share? |
The proportion of sales in a total market that a business or product enjoys |
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Equation for market share? |
(One businesses sales/Total sales in the market) X 100 |
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How do businesses satisfy customers? |
Identify & anticipate what they want & carry out market research |
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What is a marketing strategy with examples? |
A set of plans designed to achieve marketing objectives E.g. Raise the price, improve packaging & advertising in exclusive magazines |
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What is Product orientation? |
Where a business focuses on the design & manufacture of the product itself rather than the needs/wants of customers |
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What is Market orientation? |
Where a business focuses on the needs of consumers when developing products |
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What is the marketing mix? |
The key elements in a firm's marketing strategy, commonly known as PRODUCT, PRICE, PROMOTION & PLACE |
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What is a marketing objective? |
Goal or a target for the market department/company to work towards & achieve in the future |
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What is market segmentation w/examples? |
Divide in the market, separated into certain/specific groups for a specific product/service, dependent on needs & wants such as Age, Gender, Lifestyle/Interests & Ethnicity |
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Benefits of market segmentation? |
Improving customer loyalty, avoid wasting promotional resources, meets customer needs & wants more & increase revenue by producing different products in different market segments |
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What is mass marketing w/examples? |
When a business targets multiple/various segments of the market E.g. Coca-Cola or Maccas |
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What is niche marketing w/examples? |
When a business targets a small/distinct & Specific segment of the market E.g. Tie Rack & Pet Airways |
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What is Market Research? |
The collection & analysis of information on consumers, competitors & trends in the market, doing it to discover needs/wants of consumer & position of product/company along with being eye-catching |
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What primary research Strategies are there? |
Testing & Observation, Focus groups, Questionnaires & Surveys |
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What secondary research is there? |
Already existing information on internet, easy to collect however may be unreliable due to date |
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Limitations of market research? |
Sampling is limited (Due to costs & time) however research to reduce risk of failing in market |
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What is a brand? |
Business identity, a method of promotion & the business image |
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Why are brands important? |
Promotes company (Advertises), Recognition (Familiarization), Attracts customers (Higher sales, Higher market share) |
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What is the role of packaging? |
Protect, Advertise, Inform & Appeal |
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What is the product life cycle? |
The level of sales at the different stages through which a product passes over time (Introduction, Growth, Maturity & Decline) |
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What is an extension strategy? |
Methods used to prolong the life of a product |
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What is the Boston Matrix? |
2x2 matrix which describes products according to the market share they enjoy & whether the market has any potential for growth (Star = High growth & market share), (Cash Cow = High Market share, Low growth), (Question mark = Low Market share, High growth) & (Dog = Low Market share & growth |
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Factors affecting price? |
Competitors, Cost to construct, Objective, Demand & Marketing mix |
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What is Penetration Pricing w/ad&disad? |
Setting a low starting price to establish in the market, then gradually raised later. E.g. Ryze. Ad: Attracts customers (low price). Disad: Customers may dislike price increase |
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What is Skimming pricing w/ad&disad? |
Set high price initially, lowering later E.g. Xbox. Ad: More revenue & profit earlier on. Disad: Maybe too expensive for customers |
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What is Psychological pricing w/ad&disad? |
Set a price slightly below a round figure E.g. All companies. Ad: Makes people thing it's cheaper Disad: Every company does it |
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What is Cost Plus w/ad&disad? |
Addina a percentage (Mark-up) to the costs of producing a product to get the price. Disad: Too expensive for some
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What is Loss leader pricing w/example, Ad&Disad? |
A product sold below cost to draw in customers E.g. Tesco Ad: More customers, more sales, more profit Disad: Making a loss on the loss leader product |
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What is Promotional Pricing w/example, Ad&Disad? |
Special price for limited time E.g. Clothes, Primark Ad: More customers Disad: Losing potential profit |
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What is Competitive Pricing w/example Ad&Disad? |
Pricing strategies based on the prices charge by rivals E.g. Asda Vs Tesco Ad: More competitive, cheaper Disad: Not particularly profitable
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What is Destroyer pricing w/ad&disad? |
Setting low price until rivals have gone out of business. Ad: Less competition, more customer variety Disad: Losing profit |
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What is Promotion? |
Businesses communicating with their customers to be able to sell their products |
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Above-the-Line promotion? |
Placing adverts using the media E.g. Tv, Radio, Internet, Magazines, Paper |
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Below-the-Line Promotion? |
Promotion not involving the media E.g. Sales promotion, Sponsors & Public relations |
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Factors affecting Promotion method? |
Cost, Market type, Product type, Stage in life cycle & Competition |
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What is place (distribution) In market mix? |
Where you can buy products & how it gets to the customer, aiming to make products available in right place, right time with right quantities |
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What is a distribution channel? |
Route taken by a product from the producer to consumer |
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What is Direct selling w/ad&disad? |
Where businesses sell products directly to customers. Ad: Keep all profit, low costs Disad: Harder to reach/target customers |
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What is a Retailers w/ad&disad? |
A business which buys goods from manufacturers & wholesalers & sells them in small quantities to consumers. Ad: More accessible, convenience & sales Disad: Sell less (quantity) & less profit |
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What is a Wholesaler w/ad&disad |
Business which buys goods from manufacturers in bug bulk & sells in smaller bulk quantities to retailers. Ad: Less transport, less cost Disad: Final price of product more expensive |
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What is an Agent/Broker w/ad&disad? |
An intermediary that brings together buyers & sellers (Specialist). Ad: Good knowledge, experienced & completes paperwork Disad: Charge commission on sales |
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Factors to consider with Place? |
Cost, Market (Producer/Consumer goods), Control, Nature of product (Product type, product features/characteristics) |