1.3 marketing mix and stategy Flashcards Preview

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Flashcards in 1.3 marketing mix and stategy Deck (67)
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1

what is sustainability?

- making something using materials which will still be around for future generations

2

what are the 5 stages in the product lifecycle?

- development
- introduction
- growth
- maturity
- decline

3

what is sales and cash flow like in the development stage?

- high costs
- no sales
- no revenue
- no profit
- negative cash flow

4

what is sales and cash flow like in the introduction stage?

- negative cash flow
- high costs
- low revenue
- no profit
- low unit sales

5

what is sales and cash flow like in the growth stage?

- increase in sales
- decrease in costs
- little profit
- improving cash flow

6

what is sales and cash flow like in the maturity stage?

- high cash flow
- high sales
- high revenue
- low costs
- high profit
- little competition

7

what is sales and cash flow like in the decline stage?

- decrease in sales
- decrease in revenue
- lower cash flow but still positive
- decreased profit

8

what is a pricing strategy?

- adopted over the medium to long term to achieve marketing objectives
- have a significant impact on marketing strategy

9

what is cost plus pricing?

- cost of unit + mark up

10

what is an advantage of cost plus pricing?

- easy and straight forward

11

what are disadvantages of cost plus pricing?

- there will be companies selling the product cheaper

12

what is penetration pricing?

- setting a relatively low initial entry price to gain market share

13

what are advantages of penetration pricing?

- increase market share

14

what is a disadvantage of penetration pricing?

- it attracts people looking for low prices not customer loyalty

15

what is hook and bait pricing?

- when the product is cheap but the compliments to use it are expensive

16

what is skimming?

- involves setting a high price before other competitors come into the market

17

what is a disadvantage of skimming?

- people may not want to buy it

18

what is discriminatory pricing?

-when a firm charges a different price to different groups of customers for an identical good or service, for reasons other than cost of supply

19

what are advantages of discriminatory pricing?

- allows an unprofitable business to avoid going bankrupt
- some groups benefit from cheaper prices
- spreads out demand and avoids congestion

20

what are disadvantages of discriminatory pricing?

- unfair
- decline in consumer surplus

21

what is dynamic pricing?

- businesses set flexible prices for products or service based on current market demands

22

what are advantages if dynamic pricing?

- can be used to boost sales
-can help increase demand

23

what are disadvantages of dynamic pricing?

- reduces customer loyalty

24

what is competitive pricing ?

- where competitor prices are the main influence on the price set

25

what are advantages to competitor pricing?

- may be adjusted if necessary
- prices set on the basis of correct data

26

what are disadvantages of competitor pricing?

- you need resources to implement it
- difficult to implement for companies with smaller revenues

27

what is psychological pricing?

- using price as a way of influencing consumers behaviour or perceptions

28

what is a brand?

- a product that is easily distinguishable from other products so that it can be easily communicated and effectively marketed

29

what is branding?

- the marketing practice of creating a name symbol or design that identifies and differentiates a product from other products

30

what is product branding?

- gives an item an identity within the marketplace