Theme One - Meeting customer needs and marketing

?
  • Created by: Rachelcfx
  • Created on: 26-03-19 20:51
Market
Any medium in which buyers and sellers interact and agree to trade at a price
1 of 63
Niche Market
Small part of the overall market that has certain special characteristics (i.e. specialised or luxury product/service). Focuses on a narrow or small market segment.
2 of 63
Mass Market
Very large market with a high sales volume. Occurs when one standardised product is aimed at the largest groups of consumers for that product/service.
3 of 63
Segmented customers
When a business divides them into groups (i.e. through income, age or tastes) and tries to cater for their separate preferences
4 of 63
Dynamic markets
Constantly changing. Sellers respond to the changing needs of buyers by improving existing products and services or introducing new ones. Sellers respond to competitors changes in order to stay competitive.
5 of 63
Stable markets
The pace of change is slow. Market size and share are fairly constant with little variation in price. Innovation is rare and may just consist of minor changes to existing products.
6 of 63
Product innovation
When new technologies make it possible to create completely new products. This can appeal to customers and increase sales, as well as creating whole new markets that grow rapidly.
7 of 63
Process innovation
Using new technologies to improve production methods, so that costs are reduced without loss in quality. If costs can be reduced by more efficient methods of production, this means price can be reduced stimulating demand and market growth.
8 of 63
Marketing
Process of promoting and selling products or services, including market research and advertising. This is how the business connects to its customers.
9 of 63
What are the three main areas of the digital economy concept?
Supporting infrastructure, e-business, e-commerce
10 of 63
What are the three types of marketing plans and what do they mean?
Offensive (try to increase sales or develop new markets), Defensive (reacting to competition and trying to maintain market share) or a mix.
11 of 63
What is the difference between direct and indirect competition?
Apple and Samsung smartphones are in direct competition whereas Armani and Apple are not in direct competition but if a consumer buys an iPhone they may not have enough for a suit as well.
12 of 63
How do consumers benefit from competition?
Lower prices, more choice, newer products, improved reliability, better quality
13 of 63
How does the economy benefit from competition?
Resources are used more efficiently as businesses strive to succeed. More productivity and more international competition, boosting exports and growth.
14 of 63
Risk
Concerned with things that can go wrong where the chance of mishaps can be calculated. Action is possible to reduce risk.
15 of 63
Uncertainty
Unpredictable, uncontrollable and can create both minor and major problems.
16 of 63
What are the four steps of risk management?
Assess risk, plan policies and controls, implement safeguards, monitor and evaluate
17 of 63
Contingency planning
Undertaken to ensure that proper and immediate follow-up steps will be taken by management and employees in an emergency (i.e. an earthquake)
18 of 63
Market Research
Any kind of activity that gives a business information about its products or service, its customers or the market it operates in. Helps a business make better informed decisions, understand consumer behaviour and be responsive to needs.
19 of 63
Product orientation
A business concentrates on the production process and the product itself. Creating and developing a technically impressive product and trying to sell it. (product research, product testing, product focus)
20 of 63
Market orientation
Concentrates on the wants of the customer and is led by the market. More likely to produce and product a customer wants (competitive advantage and brand loyalty) (market research, market testing, customer focus)
21 of 63
Marketing
The management process responsible for identifying, anticipating and satisfying customer requirement profitably. This includes research, analysis, planning and the marketing mix.
22 of 63
What are the 8 main marketing objectives?
Increase sales, increase profits, competitive advantage, brand image, target a market/segment, position/reposition a product, prevent losses, develop a range of products
23 of 63
Marketing Mix
Refers to all elements of a firms marketing strategy that are used to make their products more attractive to customers. (PRICE, PRODUCT, PROMOTION, PLACE)
24 of 63
Operations management
All aspects of production including the sourcing of all inputs and the efficient organisation of all resources used in production.
25 of 63
Design Mix
The way in which function, aesthetics, and economic manufacture are combined in the overall design of a product.
26 of 63
What are the three main social trends that adapt the design mix?
Sustainability, ethical considerations and the economy
27 of 63
What are the 6 types of promotion?
Advertising, sales offers, digital, sponsorship, direct sales
28 of 63
What are the 6 types of branding?
Product branding, multiple branding, umbrella branding, corporate branding, own label branding, personal branding
29 of 63
Added Value
The difference between the selling price of a product/service and the costs of its material inputs
30 of 63
Unique Selling Point
A feature of a product or service that sets it apart from its competitors
31 of 63
Viral marketing
Any strategy that encourages individuals to pass on a marketing message to someone else
32 of 63
Emotional branding
The creation of brands that appeal to a consumer's emotional side rather than the logical side.
33 of 63
Pricing strategy
The approach which a business decides on for setting the price of its product or service
34 of 63
What are the 6 pricing strategies?
Competitive pricing, Cost plus, Penetration, Predatory, Psychological, Skimming
35 of 63
Competitive pricing
Accepting the market price or following a price leader where products are very similar
36 of 63
Cost-Plus pricing
Calculate average cost per unit and then add a profit margin.
37 of 63
Penetration pricing
Setting a low price with limited short term profit in order to build a market share before switching to a more profitable price
38 of 63
Predatory pricing
Very low prices, often below cost, intended to drive competitors out of business. This is illegal in the UK but hard to prove intent.
39 of 63
Psychological pricing
Setting a price designed to put notions of value or exclusiveness in the minds of consumers.
40 of 63
Skimming
A high price, sometimes temporarily, aimed at getting extra revenue with limited sales.
41 of 63
Distribution
Concerned with getting products to the right place for consumers at the right time
42 of 63
Distribution channel
The route taken by the product as it moves from the producer to the customer
43 of 63
The 4 stage distribution channel diagram
Producer ---> Wholesaler ---> Retailer ---> Customer (producer can focus on production and does not worry about dealing with retailers, saves on storage and warehouse costs, wholesaler markets the product which may not be as effective as wanted)
44 of 63
The 3 stage distribution channel diagram
Producer ---> Retailer ---> Customer (found in many modern markets, such as with cars there is only one producer. This enables the producer to directly control the supply and marketing of the product)
45 of 63
The 2 stage distribution channel diagram
Producer ---> Customer (i.e. farm shops and bakers. Producers have to do more but benefit from maximising the revenue they keep by not having to share it with wholesalers/retailers)
46 of 63
What are the effects of online retailing for customers?
Easy to compare prices/reviews, can search precisely for what they want, no crowds or congestion, shop at convenience, no geographical limits
47 of 63
What are the effects of online retailing for businesses?
Lower start up costs, lower processing costs, reach consumers globally, fast payment processing, gather data for market research
48 of 63
eRetailing
an umbrella term for all forms of online sales to consumers
49 of 63
Marketing objectives
Long term marketing goals and targets that a business is trying to reach
50 of 63
Marketing strategies
Used to meet the marketing objectives set by the business
51 of 63
The product life cycle
Shows the different stages a product passes through as it moves from an idea to the end of its life. There are five stages associated with it: Development, Introduction, Growth, Maturity and Decline.
52 of 63
Economies of scale
Reductions in average cost brought about by an increase in output e.g. bulk-buying raw materials
53 of 63
Extension Strategy
A way of prolonging or renewing the life cycle of a product, most commonly used during the mature stage of its life cycle
54 of 63
The Boston matrix
A method of analysing a company's products in terms of their market share and growth potential (STARS, PROBLEM CHILDREN, CASH COWS, DOGS)
55 of 63
Product portfolio
The range of products that a business provides, sometimes called the product mix
56 of 63
Mass marketing as a marketing strategy
Ignores market segment differences and has one strategy for the whole market. Aims to attract all kinds of buyers distributing an attractive product at an attractive price. Standardised, heavily promoted and widely available. Maximise exposure.
57 of 63
Niche marketing as a marketing strategy
Differentiated and specifically aimed at the niche segment. Focuses on one section of the market that is likely to respond positively. Good understanding of the wants of consumers and strategy should focus on them.
58 of 63
B2B Marketing
Business-to-business. Process of selling products/services to business buyers for use in their companies. Aimed at individuals who act as buyers for their organisation (there can be numerous meetings before a transaction occurs)
59 of 63
B2C Marketing
Business-to-consumer. Selling directly to consumers who buy products/services for personal use. Consumers buy products usually pay a standard price, however this can vary depending on quantity or negotiation.
60 of 63
Customer loyalty
A preference for a product or brand based on experience or emotional attachment which inclines buyers to repeat purchases and stay away from rivals.
61 of 63
Customer service
Appreciating the value of the customer and pleasing them is key. Customers should feel valued, receive good advice and find the service friendly. Things that go wrong should be put right in an effective and caring way to ensure customer loyalty.
62 of 63
h
h
63 of 63

Other cards in this set

Card 2

Front

Niche Market

Back

Small part of the overall market that has certain special characteristics (i.e. specialised or luxury product/service). Focuses on a narrow or small market segment.

Card 3

Front

Mass Market

Back

Preview of the front of card 3

Card 4

Front

Segmented customers

Back

Preview of the front of card 4

Card 5

Front

Dynamic markets

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Key Definitions resources »