1.3 Marketing Mix and Strategy Flashcards
(34 cards)
Define penetration pricing
Setting a low price initially at launch.
Define price skimming
Setting price high at launch.
What is predatory pricing?
Setting prices extremely low to eliminate competition.
What is psychological pricing?
Setting price slightly below a round figure e.g. £9.99.
What is cost-plus pricing?
Ensuring all production cost is covered and adding a mark-up.
What is drip pricing?
Advertising only one part of price and revealing other charges later in buying process.
What is dynamic pricing?
Price changing depending on day, time, etc.
What is personalised pricing?
Uses data related to specific shopper to set unique price.
State 5 factors that determine appropriate pricing strategy.
- Differentiation/USP.
- PED.
- Amount of competition.
- Strength of brand.
- Stage in product life cycle.
What is subscription pricing?
Charging customer a monthly fee for product/service.
What are the 3 elements of design mix?
- Aesthetics.
- Function.
- Economic Manufacture.
State 2 examples of waste minimisation.
Two from:
1. Changes to packaging.
2. Compressed or concentrated products.
3. Refill packs.
4. Recycled materials used as raw material.
5. Recyclable packaging.
State 3 examples of ethical sourcing.
- Fairtrade.
- Ethical Supply Chain.
- Organic Products.
What are the 4 stages of product life cycle?
- Introduction
- Growth
- Maturity
- Decline
State 2 advantages and disadvantages of television advertising
Advantages:
1. Reaches a global audience.
2. Offers a chance to show product in work.
3. Can target your audience.
Disadvantages:
1. Costly.
2. Declining use of cable tv.
State 2 advantages and disadvantages of newspaper and magazines advertising.
Advantages:
1. Affordability.
2. Can target audience.
Disadvantages:
1. Declining readership.
2. Low ability to target customer emotions.
State 2 advantages and disadvantages of radio advertising.
Advantages:
1. Less expensive.
2. Reaches a vast audience.
Disadvantages:
1. Absence of visual element.
2. Reduced use of radio.
State 2 advantages and disadvantages of posters and billboards.
Advantages:
1. Reaches a vast audience.
2. Strong visual effect.
Disadvantages:
1. Weather and vandalism.
2. Can not target audience.
3. Costly.
State 2 advantages and disadvantages of websites marketing.
Advantages:
1. Can include loads of information.
2. Effectiveness can be measured.
3. Cheap.
Disadvantages:
1. Ad blocking.
2. Lots of users detest them.
State 2 advantages and disadvantages of social media.
Advantages:
1. Large audience.
2. Low cost.
Disadvantages:
1. Time consuming.
2. Need to stay engaged and active.
State 3 benefits of strong branding
- Added value.
- Ability to charge premium prices.
- Reduced PED.
State 4 ways to build a brand.
- USP’s/differentiation.
- Advertising.
- Sponsorship.
- Use of social media.
What is viral marketing?
Creating engaging content about product/service that spreads quickly.
What is emotional branding?
Connecting with customers’ emotions to foster loyalty.
