Business Studies - Section Four (Marketing)

Front 1

What is Marketing?

Back 1

The management process that identifies, anticipates & satisfies customer requirements profitability

Front 2

What is a Market?

Back 2

A physical or non-physical place where sellers exchange goods/services with buyers for money

Front 3

What are Consumer good markets?

Back 3

Where products such as food, cosmetics, furniture & magazines are sold

Front 4

What are markets for services?

Back 4

Varied & could include services for individuals, such as banking or business services (Lawyer)

Front 5

What is the housing market?

Back 5

Where people buy and sell property

Front 6

What is the Commodity market?

Back 6

Where raw materials such as oil, copper, wheat & coffee are traded

Front 7

What is market share?

Back 7

The proportion of sales in a total market that a business or product enjoys

Front 8

Equation for market share?

Back 8

(One businesses sales/Total sales in the market) X 100

Front 9

How do businesses satisfy customers?

Back 9

Identify & anticipate what they want & carry out market research

Front 10

What is a marketing strategy with examples?

Back 10

A set of plans designed to achieve marketing objectives E.g. Raise the price, improve packaging & advertising in exclusive magazines

Front 11

What is Product orientation?

Back 11

Where a business focuses on the design & manufacture of the product itself rather than the needs/wants of customers

Front 12

What is Market orientation?

Back 12

Where a business focuses on the needs of consumers when developing products

Front 13

What is the marketing mix?

Back 13

The key elements in a firm's marketing strategy, commonly known as PRODUCT, PRICE, PROMOTION & PLACE

Front 14

What is a marketing objective?

Back 14

Goal or a target for the market department/company to work towards & achieve in the future

Front 15

What is market segmentation w/examples?

Back 15

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

Front 16

Benefits of market segmentation?

Back 16

Improving customer loyalty, avoid wasting promotional resources, meets customer needs & wants more & increase revenue by producing different products in different market segments

Front 17

What is mass marketing w/examples?

Back 17

When a business targets multiple/various segments of the market E.g. Coca-Cola or Maccas

Front 18

What is niche marketing w/examples?

Back 18

When a business targets a small/distinct & Specific segment of the market E.g. Tie Rack & Pet Airways

Front 19

What is Market Research?

Back 19

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

Front 20

What primary research Strategies are there?

Back 20

Testing & Observation, Focus groups, Questionnaires & Surveys

Front 21

What secondary research is there?

Back 21

Already existing information on internet, easy to collect however may be unreliable due to date

Front 22

Limitations of market research?

Back 22

Sampling is limited (Due to costs & time) however research to reduce risk of failing in market

Front 23

What is a brand?

Back 23

Business identity, a method of promotion & the business image

Front 24

Why are brands important?

Back 24

Promotes company (Advertises), Recognition (Familiarization), Attracts customers (Higher sales, Higher market share)

Front 25

What is the role of packaging?

Back 25

Protect, Advertise, Inform & Appeal

Front 26

What is the product life cycle?

Back 26

The level of sales at the different stages through which a product passes over time (Introduction, Growth, Maturity & Decline)

Front 27

What is an extension strategy?

Back 27

Methods used to prolong the life of a product

Front 28

What is the Boston Matrix?

Back 28

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

Front 29

Factors affecting price?

Back 29

Competitors, Cost to construct, Objective, Demand & Marketing mix

Front 30

What is Penetration Pricing w/ad&disad?

Back 30

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

Front 31

What is Skimming pricing w/ad&disad?

Back 31

Set high price initially, lowering later E.g. Xbox.

Ad: More revenue & profit earlier on.

Disad: Maybe too expensive for customers

Front 32

What is Psychological pricing w/ad&disad?

Back 32

Set a price slightly below a round figure E.g. All companies.

Ad: Makes people thing it's cheaper

Disad: Every company does it

Front 33

What is Cost Plus w/ad&disad?

Back 33

Addina a percentage (Mark-up) to the costs of producing a product to get the price.
Ad: Guaranteed profit

Disad: Too expensive for some

Front 34

What is Loss leader pricing w/example, Ad&Disad?

Back 34

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

Front 35

What is Promotional Pricing w/example, Ad&Disad?

Back 35

Special price for limited time E.g. Clothes, Primark

Ad: More customers

Disad: Losing potential profit

Front 36

What is Competitive Pricing w/example Ad&Disad?

Back 36

Pricing strategies based on the prices charge by rivals E.g. Asda Vs Tesco

Ad: More competitive, cheaper

Disad: Not particularly profitable

Front 37

What is Destroyer pricing w/ad&disad?

Back 37

Setting low price until rivals have gone out of business.

Ad: Less competition, more customer variety

Disad: Losing profit

Front 38

What is Promotion?

Back 38

Businesses communicating with their customers to be able to sell their products

Front 39

Above-the-Line promotion?

Back 39

Placing adverts using the media E.g. Tv, Radio, Internet, Magazines, Paper

Front 40

Below-the-Line Promotion?

Back 40

Promotion not involving the media E.g. Sales promotion, Sponsors & Public relations

Front 41

Factors affecting Promotion method?

Back 41

Cost, Market type, Product type, Stage in life cycle & Competition

Front 42

What is place (distribution) In market mix?

Back 42

Where you can buy products & how it gets to the customer, aiming to make products available in right place, right time with right quantities

Front 43

What is a distribution channel?

Back 43

Route taken by a product from the producer to consumer

Front 44

What is Direct selling w/ad&disad?

Back 44

Where businesses sell products directly to customers.

Ad: Keep all profit, low costs

Disad: Harder to reach/target customers

Front 45

What is a Retailers w/ad&disad?

Back 45

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

Front 46

What is a Wholesaler w/ad&disad

Back 46

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

Front 47

What is an Agent/Broker w/ad&disad?

Back 47

An intermediary that brings together buyers & sellers (Specialist).

Ad: Good knowledge, experienced & completes paperwork

Disad: Charge commission on sales

Front 48

Factors to consider with Place?

Back 48

Cost, Market (Producer/Consumer goods), Control, Nature of product (Product type, product features/characteristics)