Higher Business - Marketing

Market Research

100

Compare desk from field research (2)

Desk research is second hand info. WHEREAS, field research is first hand.

Desk research is relatively inexpensive as it is easily accessible on the internet WHEREAS, field research is more expensive as it requires paid interviewers

Desk research may be out of date, making the info. less reliable. WHEREAS, field research is more up to date as it primary info. making it more relevant 

Desk research may not be specific to the businesses' needs WHEREAS, field research can be made specific to meet the business' needs

200

Define a Market-Led Business

A market-led business is a business that focuses on identifying and meeting customer needs through market research. 

300

Compare random from quota sampling 

Random Sampling - picking consumers at random Quota sampling involves dividing the population into groups based on characteristics such as age

400

Define what is meant by a 'habitual', 'impulsive' and 'informed' purchase 

Habitual - requires little thought/routine purchases/usually essential purchases

Impulsive - Unplanned/spur of the moment purchases/just because it caught your eye

Informed - lots of research involved/bigger purchases

500

Discuss methods of market research (4)

Focus Group - detailed feedback/qualitative info difficult to analyse 

Face to Face - can ask follow up qs/get more info/time consuming + expensive, trained interviewers 

Postal - target customers in specific areas/junk mail

Product

100

Identify the stages of the product life cycle (6)

Research & Development 

Intro

Growth

Maturity 

Saturation

Decline

200

Describe the impact on sales and profits at each stage of the product life cycle (6)

Research - no sales/no profits 

Intro - low sales/no profits

Growth - Sales increase/no profits

Maturity - Sales and profits @ peak

Saturation - sales and profits start to decrease

Decline - sales are low/profits low

300

Describe three possible extension strategies (3)

Rebrand/Change the use/variation/lower price/change place/change promotion

400

Describe the benefits of having a product portfolio (4)

Spread the risk of failure 

Easy to launch new products

Increase brand recognition 

Appeal to diff. market segments 

500

Describe the categories of the Boston Matrix (4)

Cash Cow - high market share/low growth

Star - high market share/high growth

Dog - low market share/low growth

Problem child - low market share/high growth

Price

100

Identify two potential pricing strategies

Premium 

Penetration 

Skimming 

Loss Leader

Destroyer 

Psychological 

Competitive 

Discrimination 

200

Compare penetration pricing with skimming 

Skimming - high to low

Penetration - low to high

300

Discuss the use of Loss Leader Pricing (2)

Adv - attract more customers/encourages loyalty 

Dis - Can reduce profits/low quality perception

400

Describe Psychological Pricing 

Set below a whole rounded number in order to convince the customer they are getting a bargain

500

Describe Cost Plus Pricing

A set percentage mark-up is added to the cost of producing the product to ensure a profit

Promotion

100

Identify methods of advertising (4)

TV

Radio

BillBoards

Cinema

Social Media

200

Compare into and out of the pipeline promotion

Into - manufacturer promotes the product to retailers or wholesalers 

Out of - retailer promotes the product to customers, 

300

Describe two into the pipeline promotion methods

• Point-of-sale displays - Manufacturers supply eye-catching stands or promotional materials to retailers to display the product prominently in-store. Example: A new soft drink displayed at the end of an aisle with branded signage.
• Sale or return - Retailers are allowed to return unsold stock to the manufacturer. This reduces the risk for retailers and encourages them to try new products.
• Dealer loader - Retailers receive extra stock or free products if they buy in bulk. Example: A wholesaler offering "buy 10 boxes, get 2 free" to encourage larger orders.
• Promotional gifts - Manufacturers provide retailers with free branded items such as pens, posters or uniforms to promote the brand in-store.
• Staff training - The manufacturer provides training to retail staff to ensure they understand the product and can sell it effectively. Example: A tech company sending trainers to stores to teach staff about a new phone's features.

400

Describe two out of the pipeline methods of promotion

• Special offers and discounts - Reducing the price of a product for a short time. Example: "20% off this weekend only."
• Buy One, Get One Free (BOGOF) - Customers receive a free item when buying one. Popular with food or personal care products.
• Money-off coupons or vouchers - Discounts given at the point of purchase or for use later. Example: Supermarket till receipts offering £5 off your next shop.
• Free samples or demonstrations - Customers can try a product before buying. Common for cosmetics or food items.
• Free gifts - Customers receive a free item when buying a product. Example: A free toy with a fast-food kids' meal.
• Free delivery - Often used by online retailers to increase sales. Encourages customers to complete their purchase.
• Loyalty cards - Customers collect points for repeat purchases. Example: A coffee shop stamp card offering a free drink after 10 purchases.
• Competitions or prize draws - Entry with a purchase, offering a chance to win. Builds excitement and increases customer engagement.
• Credit facilities - Customers can buy now and pay later. Common for furniture or electronics retailers.

500

Describe methods of PR available to a Business

• Press releases and press conferences - Sharing news with the media to gain coverage. Example: Announcing the launch of a new product, a major expansion, or responding to negative publicity.
• Sponsorship - Supporting events, sports teams, or causes in exchange for publicity. Example: A supermarket chain sponsoring a local football team and having its logo on the team's kit.
• Corporate social responsibility (CSR) - Supporting community or environmental causes to improve reputation. Example: A business planting trees or helping fund a local youth centre to show social responsibility.
• Charitable donations - Giving money or resources to charities to improve public goodwill. Example: A company donating a share of profits to health charities, which can encourage ethical consumer behaviour.
• Celebrity endorsements and appearances - Using well-known individuals to build brand profile. Example: A celebrity appearing at a new store opening to attract media attention.
• Crisis management - Responding to negative press or problems with clear, confident communication. Example: Issuing a public statement after a product recall or service failure.

Place + Extended

100

Identify the elements of the extended marketing mix 

People

Process 

Physical Evidence 

200

Discuss the use of direct selling (Manufacturer --> Consumer) (4)

Advantages:

• Allows full control over how the product is sold
• Higher profit margins as there are no middlemen
• Direct contact with customers can build loyalty

Disadvantages:

• Can be expensive to set up and run own sales operation
• Limited reach compared to retail or wholesale networks

300

Describe the factors an organisation might consider before selecting a channel of distribution (3)

 Type of Product – suitable transportation/storage for type of product; product durability eg electrical, frozen food, flowers, liquid, livestock 

 Finance available – if finance is limited this may affect the choice of channel selected 

 Image of Product – channel should reflect the quality of the product eg high quality distributed through exclusive, up-market retailers 

Legal restrictions – some products can only be sold in certain ways/places eg cigarettes/alcohol/medicines

  Where the product is in its life cycle – as it progresses through growth to maturity it needs to be more available to the market 

 Distribution capability of the organisation – does it have transport or does this need to be outsourced

  Technical products – if highly technical it may need to be demonstrated through direct sales

400

Describe four types of technology that the marketing department can use. 

Access - customer details

Excel - sales and profits

Social Media - promotion 

E-Commerce - place

500

Discuss the use of retailers in the channel of distribution (manufacturer --> retailer --> consumer) (2)

Advantages:

• Retailers can reach a wide customer base
• Retailers handle sales and customer service
• Easier for producers to focus on manufacturing

Disadvantages:

• Retailers take a share of the profit
• Producers have less control over pricing and product presentation