Business Revision Cards

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  • Created by: Emead98
  • Created on: 28-05-14 15:21
Why do people do people market their product?
To reduce of product failure, understand their customers, communicate products effectively to encourage customers to buy them, keep up to date with market trends
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What are the stages of the marketing process?
1. Market research to identify and understand customers. 2. Developing and testing products and services. 3. Communicating products and services to customers
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What is a market segmentation?
It is a group of customers in a market that have similar characteristics and needs
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What is the benefits of market segmentation?
Helps the business to carry out market research, to tailor products to customer needs, and target promotions at specific groups
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What are the three stages of market research?
Planning and designing the research, doing the research, analysing the information
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What is a product trial?
A product trial is when consumers buy a product for the first time to assess whether or not they want to buy it again.
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Why do businesses aim to keep customers loyal?
So that they make repeat purchases. This will generate sales and revenue
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What methods might be used for ummm businesses to keep customers loyal?
Special promotions, reminder adverts, product innovations, customer loyalty schemes (loyalty cards)
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In the product life cycle 1 what is introduction?
Introduction is when the product is launched into the public.
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What is growth?
It is if the launch is successful sales increase sharply and the product may make a profit for the first time.
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What is maturity?
Sales growth slows down but repeat customers continue to buy and customers become loyal. The market becomes saturated as rivals bring out competing products.
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What is decline?
Eventually the product is outdated and there is a big fall in sales leading to withdrawel
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How can businesses use extension strategies?
Slightly changing the product so that it has fresh appeal to the product or appeal to a new market segment
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What is a product mix or product portfolio?
It is when businesses sell a range of products
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What can product portfolio do to make businesses make decisions about business?
What products to launch and when, when to withdraw a product and what products are doing well now and in the future and how to increase sales
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What is cash flow?
Cash flow is the movement into and out of a product it changes over the life of a product
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On the product life cycle 2 what is introduction?
When the net cash flow is negative (more money goes out than in)
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What is the growth phase?
Net cash flow is positive but small
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What is maturity and decline phase?
At maturity cash flow is likely to be positive. In decline businesses will start to experience cash flows issues.
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What is the Boston Matrix?
It is a product portfolio analysis tool used to plan the development of products
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What is the star?
A very successful product but growth has to be funded to keep up with demand and cash flow may be a problem
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What is cash cow?
Little growth but an established and profitable product that can support others
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What is problem child?
(charlotte) presents a problem should the business invest to increase sales
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What is dog?
Few prospects but should the business continue to sell it if it is profitable and it funds other products.
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What is a brand?
A named product which consumers see as being different from other products and which they can associate and identify with
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What benefits come from branding products?
Consumers are more willing to trail products in the brand range. Brands encourage consumer loyalty. Consumers trust brands leading to repeat purchases. Brands charge premium prices. Consumers have greater awareness of brands.
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What are the disadvantages of not having a brand?
Very little difference between products of one business compared to another. There is nothing to differentiate product buying
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What does a market map show?
It shows the difference between strong branded products
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What is product differentiation?
About making a product different from others
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How does product differentiation help businesses?
To position their products and target different market segments to get an advantage over rivals.Consumers can see that their needs are being met more effectively/
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How can a business differentiate a product?
A unique and catchy product name, quality, design formulation or function, packaging, customer service, differentiation across the value chain.
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What is a marketing mix 1
The marketing mix is a combination of factors which help a business to take into account customer needs when selling a product.
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What aree 4 p's (marketing mix) that make it up?
Product, place, price and promotion
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What should a business consider when differentiating a product from others?
Who is the product targeted at, what will be the product range, what will be the USP, What will the brand be about, what will be the formula, and what will the packaging be.
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Why is price important?
Gives the customers an indication of quality. The price can have a significant influence on demand. Branded products usually have a higher price than non-branded products as they are more expensive to produce and promote.
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Other cards in this set

Card 2

Front

What are the stages of the marketing process?

Back

1. Market research to identify and understand customers. 2. Developing and testing products and services. 3. Communicating products and services to customers

Card 3

Front

What is a market segmentation?

Back

Preview of the front of card 3

Card 4

Front

What is the benefits of market segmentation?

Back

Preview of the front of card 4

Card 5

Front

What are the three stages of market research?

Back

Preview of the front of card 5
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