Marketing, Markets, and Strategy Review

Comprehensive practice flashcards covering basic business concepts, market dynamics, market structures, marketing mix, pricing strategies, and promotional methods.

What is the purpose of a business according to the notes?

To add value, meet customer needs, and generate profit.

How are needs and wants defined and distinguished?

A need is essential for surviving, whereas a want is desired but not essential.

What is the difference between goods and services?

Goods are tangible products you can touch, while services are intangible actions performed for a customer.

What is market research and what is its primary goal?

Market research is gathering information and markets to reduce a risk before making a decision.

How are primary research and secondary research defined in terms of features, examples, and costs?

Primary research is new data collected first hand (e.g., surveys and focus groups) which is specific but expensive. Secondary research is data that already exists (e.g., government reports) which is cheap and fast but may not be specific.

What is the distinction between quantitative and qualitative data?

Quantitative data is numerical data used to spot trends, while qualitative data is opinion-based data used to understand motivations.

What is market segmentation and what are its four bases?

Market segmentation is dividing a market into groups of customers with similar characteristics. The bases are Demographic (age, gender, income), Geographic (location), Psychographic (lifestyles, values), and Behavioural (how customers act, like brand loyalty).

What are dynamic markets?

Markets that change constantly due to competition and technology.

How are demand and supply defined?

Demand is the quantity of a product customers are willing and able to buy at a given price. Supply is the quantity of a product producers are willing and able to sell at a given price.

What causes a movement along a demand/supply curve versus a shift of the curve?

A movement along the curve is a change in quantity demanded/supplied caused by a change in price. A shift of the curve is a change in demand/supply at every price caused by non-price factors (e.g., income, costs).

What does Price Elasticity of Demand (PED) measure, and what is elastic vs. inelastic demand?

PED measures how much quantity demanded changes when price changes. Elastic demand changes proportionally more than price, while inelastic demand changes proportionally less than price.

What does Income Elasticity of Demand (YED) measure, and how do normal and inferior goods behave?

YED measures how demand changes when consumer income changes. For a normal good, demand rises as income rises. For an inferior good, demand falls as income rises.

How do Perfect Competition and Monopoly market structures differ?

Perfect Competition consists of many small firms selling identical products. A Monopoly is a market dominated by one firm with significant power to set prices.

What is the marketing mix (4Ps)?

The combination of product, price, promotion, and place decisions used to market a product.

What is branding and what are its benefits?

Creating a distinct image for a product so it stands out and builds customer loyalty.

What is a USP?

A feature that makes a product different from and better than competition.

What are the four stages of the product life cycle?

Introduction, growth, maturity, decline.

What are the four categories in the Boston Matrix and their characteristics?

Star (high share + growth, needs investments), Cash Cow (high share, low growth, generates steady profit), Question mark (low share, high growth, uncertain, needs investment), and Dog (low share, low growth, usually considered for withdrawal).

What are the five pricing strategies described in the notes?

Penetration pricing (setting low price initially to gain market share), Price Skimming (setting high price to maximise profit before lowering it), Competitive (setting prices based on rivals), Cost-plus (adding fixed profit margin on top of the cost production), and Psychological pricing (to influence perception).

How do above the line and below the line promotion differ?

Above the line uses mass media to reach an audience. Below the line uses more targeted methods (direct mail, sales promotions).

What is the difference between niche marketing and mass marketing?

Niche marketing targets a small, specific segment of the market, whereas mass marketing targets the whole market with one offer.