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Business | Theme 1 > 1.3 The Marketing Mix and Stratagies > Flashcards

1.3 The Marketing Mix and Stratagies Flashcards

1
Q

What makes up the 4P’s

A

Price, Product, Place, Promotion

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2
Q

What are Parts of the Traditonal Design Mix

A

Function- the way that something works

Economic Manufacture - does the design allow the product to be made + sold profitably, production costs

Aesthetics - how the product appeals to the customer in terms of the look and feel

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3
Q

What is Sustainability

A

making a product without affecting the long term supplies of the inputs into the product

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4
Q

Whats a brand

A

is a product that is easily distinguished from other products so that it can be easily communicated and effectivly marketed

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5
Q

What are the benifts of effective branding

A

adds significant value ( from customers point of view)
able to change higher prices + demand is more price inelastic
builds customer loyalty and aspiration

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6
Q

What are the types of branding

A

Service Brand
Product Brand
Corporate
Own Label Brands
Umbrella ( “Family Brands”)

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7
Q

What is Product Brands

A

associated with specific, products, fast moving consumer goods brands

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8
Q

What is service brands

A

added value to services, either delivered face to face or online eg. Vue, Banking

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9
Q

What is Umbrella ( “Family”) Brands

A

brands that are designed to more than one product eg. Cabury owns Dairy Milk, Creme Egg

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10
Q

What is Corporate Brands

A

refers to the practice of promoting the brand name under all products eg. their name

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11
Q

What is Own Label Brands

A

when businesses have their own take on a high brand product eg. Tescos Finest, Essential Waitrose.

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12
Q

What is Global Brands

A

easily recognised around the world and can be highly popular eg, Coca Cola, McDonald’s

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13
Q

What is Brand Extention

A

when a business uses a brand name on a new product that has some of brands characteristics eg. Lucozade + Lucozade Sport

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14
Q

What is Brand Streching

A

where a brand is used for a diverse range of products, not always connected

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15
Q

What are the uses of promotion

A

Encourage customers to buy from them and not competitors
encourage brand streching
create awareness
change attitudes
create image

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16
Q

What is the main aim of promotion

A

awareness of the existance and positioning of products within the market

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17
Q

Whats in the Promotional Mix

A

Public Relations, Direct Marketing, Personal Selling, Sales Promotion, Advertising

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18
Q

What are the key factors influencing promotional mix

A

stages of product life cycle
nature of the product
competiton
marketing objectives + budgets
Target Market

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19
Q

What is Advertising

A

helps you to reach out to potential customers and encourage them to buy your products or services
is paid for communication
mass market advertising is very expencive

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20
Q

What are the Advantages of Advertising

A

wide coverage
control of the message
repition means the message will be hurd effectivly
effective for building loyalty

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21
Q

What are the Disdvantages of Advertising

A

oftern expensive
impersonal
one way communication
lacks flexability
limited ability to close a sale

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22
Q

What is Personal Selling

A

promotion on a person to person basis
two way communications
highly priced, low volume and high technical products rely heabily on personal selling

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23
Q

What are the Advanatges of Personal Selling

A

high customer attention
adaptable
apportunity to close the sale
potential for development of relationship
potential for development of relationship
Interactivity

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24
Q

What are the Disdvanatges of Personal Selling

A

high costs
labour intensive
expensive
can only reach a limited number of customers

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25
Q

What is Sales Promotion

A

tactical, point of sale material or other incentives designed to stimulate purchases.
Short term incentives to increase sales
example are free samples, BOGOF, Coupons, Discounts, Loyalty Points

26
Q

What are the Advantages of Sales Promotion

A

effective at achieveing a quick boost of sales
encourages customers to trial a product or switch brands

27
Q

What is Public Relations

A

create good will towards an indevidual business, cause or product
having a good business relationship with public whilst impoving reputation

28
Q

What is Public Relations aims

A

achieve favourable publicity
communicate effectivly with customers and other stakeholders

29
Q

What is Direct Marketing

A

directed through mail, email, social media or phone to indeviduals or business

30
Q

Direct Marketing uses

A

allows to generate a specific response from targeted groups of customers
-> allows to focus on several objectives
- increasing sales to existing customers
- build customer loyalty
- generating new businesses.

31
Q

Direct Marketing Advanatges

A

focus limited resources on targeted promotion
can personalise the message
easily to test different marketing messages

32
Q

Direct Marketing Disadvanatges

A

responses rates vary
negative image of junk email + spam
databases expensive to maintain and keep accurate

33
Q

What are the stages of Price Setting

A

devlop pricing objectives
asses of target market’s ability to purchases
Determine demand for product
Analyse demand cost and profit relationship
Evaluate competitors prices
Select Pricing Strategy + tactics
Decide on price

34
Q

Business Objectives that will influence Pricing

A

**Financial - **maximise profit, achieve a target level of profits, achieve a target rate of return, maximise sales revenue, imporve cash flow.

**Marketing - ** maintain/ improve market share, beat/ prevent competition, increase sales, build a brand

35
Q

Factors affecting pricing decisions

A

Stage of Product Life Cycle
Market Share
Market Objectives
Market Positioning
Competitor Pricing
Costs
Price Elastciity of Demand

36
Q

What are Price Takers

A

have no option but to charge same as market

37
Q

What are Price Makers

A

able to fix their own price

38
Q

What are Price Leaders

A

market leaders whose price chanages are followed by leaders

39
Q

What are Price Followers

A

follow the price - changing lead of the market leader.

40
Q

What is price skimming

A

set a high price to maximise profit and is sold to different market segments at different times. Then top segment is skimmed of high price.

41
Q

What is Penetration Pricing

A

offer at a low introducing price and aims to gain market share quickly, build customer loyalty, price can be increased once target market share has been reached

42
Q

What is Price Wars

A

each business aims to increase market share by price reduction but the result is destructive spiral of reductions
might be seen as good but in long term will be seen as less competitors

43
Q

What is psychological pricing

A

are to do with how much customers brain work with pricing. For example things being 99p are seen as cheaper to customers

44
Q

What is a loss leader

A

is a product that is priced below the normal price but make a gain as you go buy other things whilst you are there

45
Q

what is dynamic pricing

A

is a strategy in which businesses set flexible prices for products or services based on current market demands

46
Q

What is Distrubution

A

refers to the various methods in which goods/ services move from the manufacturer to the end customer

47
Q

what is the four stage distribution channel

A

Manufacture -> Whole Sale -> Retailer -> Customer

48
Q

what is the three stage distribution channel

A

Manufacture -> Retailer -> Customer

49
Q

what is the 2 stage distribution channel

A

Manufacture -> Customer

50
Q

What is the product life cycle

A

a theoretical model which describes the stages a product goes through over its life.

Development, Introduction, Growth, Maturity, Decline / Withdrawal

51
Q

Describe the development stage

A

often complex
absorbs significant resources
may not be successful
may involve a long lead time before sales are achieved
market research is done
makes new product ideas do not reach the launch phase

52
Q

Describe the introduction phase stage

A

new product launches into the market
low level of sales
high unit costs
usually negative cash flow
heavily promotion to make customers aware of the product
low capacity utilisation

53
Q

What are the strategies are used in the intro stage

A

aim encourage customer adoption
high promotional spending to create awareness and inform people
either skimming or penetration pricing
limited, focused distribution
demand initially from “early adopters”

54
Q

Describe the growth stage

A

expanding market but arrival of competitors
fast growing sales
rise in capacity utilisation
product gain market acceptance
cash flow can become positive
unit costs fall with economies of scale
the market grows profits rise and new entry of competitors

55
Q

what are the strategies in the growth stage

A

advertising to promote brand awareness
intensive distribution
go for the market penetration + price leadership
improve the product

56
Q

Describe the Maturity stage

A

slower sales growth as rivals enter the new market
high level of capacity utilisation
cash flow should be be strongly positive
prices and profits fall
weaker competitors starts to leave the market

57
Q

strategies for mature products

A

manage capacity + productions
promotion focuses on differentiation
intensive distribution
enter new segments
attract new users
re positioning
develop new users

58
Q

Describe the decline stage

A

falling sales
market saturation and / or competition
decline in profits + weaker cash flows
more competitors leave the market
decline in capacity utilisation

59
Q

What are reasons products reach decline stage

A

technological advancements
change in customer tastes + behaviour
increased competition
failure to innovate + develop products

60
Q

how can you extend the product life cycle

A

lower price
change promotion
change product - re styling for improvement
alternative distributing channels
develop new market segments
re positioning the products

61
Q

what are the weaknesses of the product life cycle

A

the shape and duration of the cycle varies from product to product
its difficult to recognise exactly where a product is on its product life cycle
length cannot be reliably predicted
decline is not inevitable

Business | Theme 1 (5 decks)

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