1.4 Marketing strategies Flashcards
(20 cards)
What is market segmentation?
Process of break down the total market to small market base on customer and factors
What are 4 method of market segmentation?
Geographic,demographic, psycho graphic, behavioural
What is geographic segmentation?
Break down market to smaller geographic location like country, state. (E.g : MC Donalds not use beef products in India)
What is demographic segmentation?
Dividing market into smaller market based on customer’s factors such as age,gender, income, education level,etc. ( E.g :Magazine separate male and female to different magazine fit to different gender.)
What is psychological segmentation?
Dividing market into smaller market base on customer lifestyle, interest, personalities , interests and value to a product (E.g : cloth store divide into different section, home cloth, work cloth, gym cloth)
What is behaviour segmentation?
Dividing market into smaller market based on customer’s knowledge, attitude toward a product (Flower shop have different flower decoration style for different events that attract customer like father’s day, mother ‘s day)
How can business differentiate their product from competitor?
- Lower price, better packaging, faster delivery, more application.
What are some strategies for product in the marketing mix?
Positioning, branding, packaging
What are price strategies that generate fast sell?
- Penetrating pricing : Set price of product as loweest as possible compare to competitor to gain immediate customer (Kmart)
- Loss leaders : Set price of a product below profit price, hope customer buy the product also buy other product that bring profit to business (Coles)
- Product - deletion pricing : Gather products and mark with low price to quickly remove old stocks.(Kmart)
What are price strategies that achieve the greatest financial return?
- Market skimming: Increase price of final product to cover the cost in design and production. (Apple)
- Demand based pricing : Increase price of product or service during a season or at high - demand point (Qantas, airlines, ski, hotel)
- Prestige pricing : Apply for prestige product with high quality come with high price .(Ferrari)
What are 4 pricing method?
- Cost - plus pricing : additional cost for service add to original cost (Vodafone)
- Competition - based pricing : Said to customer business will beat price of company that sell same product that cheaper than them (Dan Murphy 10% off competitor wines )
- Price point : Different price for similar product with different features (Vodafone)
- Psychological pricing: Make price look cheaper (Instead of $400 , write $399 make it cheaper)
What is interaction between price and quality?
- Price must match with quality of product, low price - low quality, high price - high quality
What are strategies of promotion mix?
- Personal selling: personal staff sell product directly to customer through communication
- Relationship marketing: Customer that loyal with brand will receive discounts, benefits
- Advertising : Use media to promote products
- Sales promotion : Discount prices, buy 1 get 1
- Publicity an public relations : Create events for business to generate awareness of the product
What are 2 communication strategies used by business?
- Opinion leader: Use celebrity to promote the product.
- Word of mouth: Invite regular people to review product
What are 3 common channels of the product?
- Producer to consumer: products and services produce by company go straight to customer (Hotels, dentist)
- Producer to retailer to consumer: Product send to retailer to easy spread to customer (Beat send products to electronic retailers like JB hi - fi to quickly access to customers)
- Producer to wholesaler to retailer to customer
What are 3 ways of distribution?
- Intensive distribution: Products available in a wide range of store (Milk, drink, foods)
- Selective distribution : Products availabel to a limit number of sotres (Myers, Cue)
- Exclusive distribution: Limited number of product that available (Tiffanny & Co)
What are 3 issues when distributing physical products?
- Transport: transport must be safe, fit with different products (Vegetables need cool, safe to be fresh)
- Warehousing : Need to know ensure the date of products in warehouse
- Inventory : Need to have sufficient amount of inventory to satisfy customer ‘s demand.
What are 3 other P’s?
People: customer
Process: customer ‘s experience when buy the product
Physical evidence: how things look in business, business environment, staff’s dress ,etc.
What is E-marketing and what it allows the business to do?
E -marketing is internet marketing, allow to reach more audience and global customer
Why global marketing and brand must be consider?
Because different countries have different understand of the brand’s word, different culture, income, knowledge.
