Flashcards: Marketing Fundamentals — 35 cards

What does marketing involve regarding customer needs?

Identifying and satisfying customer needs.

How do businesses respond to changing spending patterns?

By adapting marketing decisions to changing customer needs and market conditions.

How is market share calculated?

Market share equals business sales divided by total market sales times 100.

What distinguishes a mass market from a niche market?

A mass market targets a large, broad group; a niche market targets a small, specialized segment.

Which criteria can be used to segment markets?

Age, income, location, gender, and lifestyle.

What does market segmentation allow a business to do?

Divide a market into customer groups with different characteristics and needs.

What must businesses evaluate when choosing between mass and niche markets?

The advantages and disadvantages of each market type.

What is market research?

The collection and analysis of information about customers and markets.

What distinguishes primary research from secondary research?

Primary research collects new information directly, secondary uses existing information.

Name one method used in primary research.

Questionnaires or surveys.

Name another method used in primary research besides questionnaires.

Interviews.

Give one example of a secondary research source.

Competitor websites.

Give another example of a secondary research source besides competitor websites.

Government sources.

What is sampling in market research?

Selecting a smaller group from a target market to provide research data.

What are the main stages in the product life cycle?

Introduction, growth, maturity, and decline.

Name one extension strategy for a product.

Entering new markets.

How does brand image affect a product?

It influences how customers perceive the product.

List one pricing method used by businesses.

Cost-plus pricing.

What should businesses consider when recommending a pricing method?

The circumstances of the given situation.

Give another example of an extension strategy besides entering new markets.

Finding new uses for a product.

Give a third example of an extension strategy.

Adapting the product or packaging.

Give a fourth example of an extension strategy.

Increasing advertising or sales promotion.

What are the types of distribution channels for selling products?

Direct selling and selling through retailers, wholesalers, or agents.

Name some sales promotion methods used to boost sales.

Vouchers, reward schemes, competitions, and special offers or discounts.

Which advertising methods are commonly used?

Social media, direct or targeted emails, leaflets, and billboards.

What is the definition of Ecommerce?

Buying, selling, or delivery of services through electronic systems like the internet.

Give examples of ecommerce activities.

Mobile phone or internet banking, online shopping, and online ticketing.

What is the marketing mix in marketing strategy?

The combination of product, price, place, and promotion decisions.

What should businesses consider when recommending a marketing mix?

The importance and interaction of its different elements in the situation.

What is one benefit of entering new markets in other countries?

It can increase sales and spread business risk.

Name a disadvantage of entering new markets in other countries.

Cultural differences.

Name another disadvantage of entering new markets in other countries.

Lack of knowledge.

Name a third disadvantage of entering new markets in other countries.

Legal requirements.

What do legal controls protect customers from?

Misleading promotion and faulty goods.

How do legal controls affect businesses?

They affect how businesses carry out marketing.