BUSINESS IGCSE EDEXCEL UNIT 4 FLASHCARDS (copy)

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IGCSE Edexcel Business Studies unit 4 - marketing

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64 Terms

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market research

collection, presentation and analysis of information relating to the marketing and consumption of goods and services

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reasons for market research

  1. to identify customer needs

  2. to identify gaps in the market

  3. to reduce risk

  4. to inform business decisions

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untapped

supply, market or talent that is available but has not yet been exploited

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primary research

gathering of new information that does not exist

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methods of primary research

  1. questionnaires

  2. focus groups/consumer panels

  3. observation

  4. test marketing

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consumer panels

groups of customers asked for feedback about products over a set period

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secondary research

collection of data that already exists

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methods of secondary research

  1. media

  2. competitors

  3. internal data

  4. publications

  5. business websites

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quantitative data

information that can be quantified that is expressed in numbers

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qualitative data

information about attitudes, beliefs and intentions usually expressed in words

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advantages of social media

  1. broad reach

  2. ability to target

  3. cheap

  4. personal

  5. fast

  6. easy

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market

set of arrangements that allows buyers and sellers to communicate and trade in goods and services

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marketing

identifying customer needs and satisfying them profitably

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methods of customer loyalty

  1. reward cards

  2. free gifts

  3. charitable donations

  4. partnership deals

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product oriented

business focuses on the design and manufacture of the product itself rather than the needs of the customers

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market oriented

business focuses on the needs of consumers when developing products

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market share

proportion of sales in a total market that a business or product enjoys

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market analysis

quantitative and qualitative assessment of a market

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mass market

very large markets where products with mass appeal are marketed

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niche market

smaller market usually within a large market or industry

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changes in the market

  1. changing customer needs

  2. changing customer spending patterns

  3. increased competition

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market segments

part of a whole market where a particular customer group has similar characteristics

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methods of market segmentation

  1. demographic

  2. geographic

  3. psychographic

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socio-economic groups

division of people according to social class based on employment status

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advantages of market segmentation

  1. increase in revenue

  2. customer loyalty

  3. minimise waste of promotional resources

  4. wider range of products

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marketing mix

elements of a firm’s marketing that are designed to meet the needs of customers

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stages of product development

  1. generating ideas

  2. analysis

  3. development

  4. test marketing

  5. commercialisation and launch

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product life cycle

level of sales at the different stages through which a product passes over time

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stages of product life cycle

  1. development

  2. introduction

  3. growth

  4. maturity and saturation

  5. decline

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extension strategies

methods used to lengthen the life of a product

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product portfolio

range of products a business is currently marketing

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boston matrix

2Ă—2 matrix that describes products according to the market share they enjoy and whether the market has potential for growth

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star

high market share high market growth

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cash cow

high market share low market growth

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question mark

low market share high market growth

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dog

low market share low market growth

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factors that affect price

  1. costs

  2. marketing mic

  3. objectives

  4. taxes

  5. competition

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cost plus pricing

adding a markup to the costs of producing a product to get a price

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mark up

percentage added to costs that makes a profit for the business

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penetration pricing

setting a low price initially and increasing it once established

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competition based pricing

pricing strategies based on the prices charged by rivals

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destroyer pricing

setting a low price until rivals has gone out of business

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skimming

setting a high price initially then lowering it

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loss leader

product sold below cost to draw in customers

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promotional pricing

  1. discounts and sales

  2. psychological pricing

  3. loss leaders

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distribution channel

route taken by a product from the producer to customer

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intermediary

person or organisation that helps to arrange agreements or business deals between other people and organisations

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wholesalers

persons or businesses that buy goods from manufacturers and sell them in smaller quantities to retailers

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retailers

businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to consumers

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bulk breaking

dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers

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e-commerce

use of electronic systems to sell goods and services

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benefits of e-commerce to consumers

  1. cheaper

  2. 24/7

  3. wide range

  4. can shop from anywhere

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benefits of e-commerce to businesses

  1. lower start up costs

  2. 24/7

  3. less paper

  4. wider market

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direct selling

business sells directly to consumers

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above the line promotion

placing adverts using media

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below the line promotion

any promotion that does not involve media

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merchandising

the way in which goods are arranged and placed in a store

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advertising

communication between a business and its customers where messages are places in the media to encourage the purchase of products

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advantages of above the line promotion

  1. huge audiences can be reached

  2. opportunity to target

  3. great impact

  4. sound and movement

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disadvantages of above the line promotion

  1. expensive

  2. short lived message

  3. delay

  4. rivals’ products advertised as well

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public relations

attempt by a business to communicate with interested parties

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exposure

advertising and publicity that is used to sell a product or service

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brand

having a unique name/logo/identity

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branding

a name/symbol/design that identifies and differentiates a product from other products