business unit 3 marketing

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what is marketing?
the anticipation and satisfying of customers wants in a way that delights the consumer and meets the needs of the organisation
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what is the marketing department responsible for?
market research, promotion for a business, building brand loyalty, setting prices, new product development,management of social media, placement of products in the shop
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what is relationship marketing?
form of marketing where the business builds relationships based on the customer satisfaction, rather than one off sales
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what is a physical market?
a shop or market where a business actually meets the customer
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what is a non physical market?
a shop or market which is online such as websites,letters and online retailers
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what are the benefits of physical markets?
it puts customers into a trap of placement of products, you can persuade easier, you can create a lasting relationship, customers can try and see products.
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what are the benefits of non-physical markets?
it doesnt need a shop to have items in so its cheaper and cost effective, more likely to have a bigger target market
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what are the disadvantages of physical markets?
customers may not want to communicate, the shop is not always open or avaliable geographically, there can be a limited number of customers
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what are examples or marketing objectives?
sales value,market size,market and sales growth, market share,brand loyalty
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what is sales value and volume?
sales volume-measures the number of items sold or produced. sales value-measures the financial worth of items sold.
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what is the sales value and volume formula?
sales value= sales volume x average price
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what is the formula for market growth?
market size in current year-market size in previous year/market size last year (x100)
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what is market size?
the volume of sales or a product or value of sales in a product.This matters because it shows the potential a firm can access
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what is sales growth?
the percentage change in sales for a specific business or product over a period of time
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what is the formula for sales growth?
sales this year-sales last year/ sales last year (x100)
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what is market share?
the percentage or proportion of total sales a product or service achieved by a firm or specific brand of product.
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what is market share formula?
sales of one brand/product/company/ total sales in the market (x100)
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what is brand loyalty
the measurement of degree of attatchment that a consumer has for a particular brand of product
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why do business' conduct market research?
they need to know what their consumers want and want to know what else is happening in the market
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what is quantitive data
statistics and numbers and closed questions
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what is qualitative data
data collected which gives us feelings, emotions and opinions e.g reviews
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what are the benefits of quantitive data?
its more accurate, its easy to analyse and put into a graph to interpret, helps us come to a simple conclusion, it saves time, could be cheaper too
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what are the benefits of qualititive
you can get more in depth feedback which is helpful for a niche market, you get a clearer look at what customers really want, everything customers say is what they really want
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what is primary research?
gathering of new information for a specific purpose
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what are the advantages of primary research?
directly aimed questions, latest info form market place and can assess customer behaviour through precise questioning
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what are the disadvantages of primary research?
sample sizes can be smaller, risk of bias, expensive
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what is secondary research?
collecting data which already exists e.g loyalty cards, finance documents
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what are the advantages of secondary research?
based on actual sales figures, larger sample, can be obtained without cost, gives a good market overview
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what are the disadvantages of secondary research?
data not updated regularly, not tailored to business, needs, past data for a reason.
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what is market mapping
a technique which analyses markets by looking at the features that distinguish different products or firms
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what are the advantages of market mapping?
helps spot rivals, can assess perception of brands, shows level of competition.
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what are the disadvantages of market mapping?
can over simplify, an be based on incorrect assumptions of a brand, doesn't highlight reason for gap in the market
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what is random sampling?
everyone in the population has equal chance of being interviewed
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what is quota sampling?
selects people in proportion to consumer profile within the target market
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WHat is stratified sampling?
Only asks part of the population with grates in relation to the product
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What interpretation tools can be used in interpreting market data?
Confidence levels,extrapolation and correlation
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What are confidence levels?
the probability or range of outcome for a given reasearch finding
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What can influence confidence levels?
Which sampling method is used, how big the sample was,how varied answers were
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What's extrapolation?
Looking at past trends and patterns to predict future trends
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What's correlation?
The relationship between two independent variables which can have a positive or negative effect
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What is elasticity?
Factor which tells us how demand changes in relation to a number of factors like income and price
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What is price elasticity demand?
%change in demand / % change in price
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How do you work out percentage change?
New-old/old
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What does the answer show if it's 1 or 1?
1=price elastic product and if it's 1 the product has unitary elasticity
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What does a price elastic product mean?
That an initial change in price will see a more than proportionate change in demand
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What factors effect PED?
Availability of substitutes, necessity of the product,the time period,how expensive the product is and the brand loyalty people have to the product
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What's an elastic product
A product where they are many substitutes, luxury e.g car
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What is and inelastic product
A product with barely any substitutes, low proportion of people's income,necessary
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What is income elasticity demand (YED)
A measurement of how demand will b effected by a change in income where products can be effected in a positive or negative way
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What is the formula for income elasticity deman?
%change in demand/% change in income
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What does a negative, positive or more than 1.5 mean
-= inferior product, += normal good,
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What's an inferior product
Products that as income rises the demand falls, good in recession usually costs litttle money
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What's a normal product
Product that as income rises so does demand
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What a luxury product
Further split from normal goods
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What is segmentation?
A split or divide in the market into parts that reflect different customers needs and wants.
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An example of segmentation
Magazines
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What is the process of segmentation
Conducting research, identify common tastes or habits, focus on one segment
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What is demographic segmentation
Based on age gender social class residency
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What's geographical segmentation
Identifying customers according to the area they live in
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What's income segmentation
relation to household income and where customers are likely to spend their dosh
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What's behavioural segmentation
Dividing the market into segments based on knowledge, attitudes, and responses to the product e.g fashion,games,dietary requirements,vegan,gluten free
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whats targeting
deciding which precise segment to target a product at sonsidering: the size of the segment, the potential growth rate and whether competitors are more suited to catering for the same segment.
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whats positioning
aiming for the minority.
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what is niche marketing
targeting a product or service at a smaller segment of the market
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benefits of niche marketing
low competition, personalisation, targeting customer
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drawbacks of niche marketing
lower profits, changes in demand,not alot of info for data collection
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whats mass marketing
aiming a product at all or most of the market
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benefits of mass marketing
large scale, higher revenue,higher profit
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drawbacks of mass marketing
effect of standardization,more competition
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how can we have product differentiation in mass marketing
design, branding and packaging.clever promotion and advertising campaigns to boost image and sales.various distribution methods
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whats product proliferation
achieving product differentiation through products to serve different tastes
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whats the marketing mix?
elements of a business' approach to marketin that enables it to satisfy and delight its customer.has seven parts.
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what are the 7 elements of the marketing mix
price, product,place,physical environment,process,promotion,people.
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what type of product is a consumer product?
consumer products are sold to individual customers (B2C)
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what type of product is an industrial product.
a product sold to other business'
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what are convinience products?
products purchased frequently with minimum though and effort,widely avaliable,low cost .
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what are shopping products?
products which take abit more time and thought before purchase and usually have a higher brand loyalty
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what are speciality products?
products whose purchase is planned by consumers who seek out these products theyre less readily avaliable and and the image of the brand is important here.
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how many parts does a product have in marketing?
3-core benfits, tangible and augmented
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what are some product features?
reliability/durability, functions/compatibility, size and/or weight, convienience, fashion, aesthetics and value
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what parts are there in a product lifecycle?
development,introduction,growth,maturity ,decline and extension
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Other cards in this set

Card 2

Front

market research, promotion for a business, building brand loyalty, setting prices, new product development,management of social media, placement of products in the shop

Back

what is the marketing department responsible for?

Card 3

Front

form of marketing where the business builds relationships based on the customer satisfaction, rather than one off sales

Back

Preview of the back of card 3

Card 4

Front

a shop or market where a business actually meets the customer

Back

Preview of the back of card 4

Card 5

Front

a shop or market which is online such as websites,letters and online retailers

Back

Preview of the back of card 5
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