1.3 Flashcards
(16 cards)
1
Q
advertising
A
- reach large audiences and increase brand awareness
- can create a specific brand image
X expensive
X effectiveness difficult to measure
X consumers tune out ads
2
Q
direct marketing
A
- through email, text or social media
- target specific audiences and personalise messages
- measurable so can track results and adjust strategy accordingly
X intrusive, may be seen as spam
X costly if there is no established consumer database
3
Q
sales promotion
A
- encourage purchase by offering temporary incentives or discounts
- quickly boost sales or customer engagement
- clears stock out
- impulse purchases
X can be expensive if heavy discounting is required
X can attract deal seeking customers who are not brand loyalty
4
Q
personal selling
A
- sales person interacts one on one with customers
- builds relationships and understands specific needs
- personalised advice and guidance
X expensive due to cost of hiring and training sales staff
X difficult to scale to large audiences
5
Q
sponsorship
A
- help build brand awareness and credibility
- create emotional connections with target audiences
- support specific business objectives, such as entering new markets
X expensive for high profile events
X may not directly drive sales
Xsubject to negative publicity
6
Q
cost plus
A
- cost of production then adds mark up to determine final price
7
Q
price skimming
A
- high price when first introduced
- helps business recover development costs
- lower prices eventually to ensure sales continue
8
Q
penetration
A
- low price when first introduced
- effective to capture market share
- raise price when customers start being loyal
9
Q
predatory
A
- sets prices low to drive competition out of market
- illegal in many countries, as it harms consumers by reducing choice in market
10
Q
competitive
A
- prices based on competitors
- effective in highly competitive markets to maintain market share
- business must continue to adjust accordingly
11
Q
business to business
A
- focuses on selling products to other businesses
- emphasis on building relationships and demonstrating how your product aids success
- more technical and focus on features and benefits relevant to other businesses
12
Q
business to consumer
A
- focuses on selling directly to consumers
- focus on building brand loyalty and creating positive customer experince
- advertising messages are often emotional and focus on lifestyle benefits
13
Q
four stage distribution channel
A
producer, wholesaler,retailer, consumer
14
Q
three stage distribution
A
producer, retailer, consumer
15
Q
two stage distribution
A
manufacturer, consumer
16
Q
A
