1.3 Flashcards
Promotion
Allows business to communicate with its customers and potential customers, creates awareness
Above-the-line promotion
Involves any form of advertising through the media, such as TV or radio
Below-the-line promotion
All other forms of promotion that are not advertising, such as sales promotion
Brand
Used to distinguish businesses from their competitors in the form of something easily recognisable such as a logo or slogan
Social trends
Allows businesses to maximise their brands: social media, viral marketing, emotional marketing
Price
Determines the demand for a product as well as the contribution of a product and the profit margin for the business
Dynamic pricing
Price can fluctuate with the level of demand, such as hotel rooms
Penetration pricing
Initial price is low in order to undercut competitors and over time the price may increase as demand grows
Price skimming
Initial price is high and is lowered over time, such as when the well established Apple comes out with a new product
Competitive pricing
the business sets pricing based on competitors prices, avoids price wars
psychological skimming
bases prices on the nearest whole number to trick consumers into thinking the price is lower. for example £9.99 appears cheaper than
£10
cost-plus pricing
bases the price on the unit costs and then adds a % as a mark-up.
distribution
how the product gets to the customer, the key is to make it easy and convenient for the customer to maximise sales
wholesales
take bulk quantities from manufacturers and distribute them across a network of retailers
ways of adapting price to reflect social trends
- auction sites
- price comparison sales
- personalised pricing
- subscription pricing
what influences distribution
- control over promotion and pricing
- expectations of customers
- nature of the products
- scope/scale
product life cycle
- introduction
- growth
- maturity
- saturation
- declinr
cash cows
(high market share, low market growth)
successful products in mature markets, generate high revenue that can be invested in other areas, little promotion required
dogs
(low market share, low market growth)
invest to revitalise or discontinue the product
stars
(high market share, high market growth)
a leading brand in the market, distribution must be effective to ensure product availability
question marks
(low market share, high market growth)
fast growing market but not yet an established product, requires heavy investment to develop and ensure success
boston matrix
the impact of market share and market growth on a business by using 4 categories (dogs, stars, cash cow, question marks)
marketing strategies
a set of plans that aim to achieve a specific marketing objective, such as building customer loyalty
adapting the marketing mix for mass markets
product: find ways to differentiate
price: competitive pricing + managing costs
promotion: heavy advertising and promotion used
place:
