2.2 Flashcards
What does the marketing mix, often represented by the 4Ps, provide for businesses?
The marketing mix provides a framework for businesses to create and implement successful marketing strategies
Q: What are the key elements of a marketing strategy according to the 4Ps?
A: The 4Ps represent the key elements: Product, Price, Place, and Promotion.
What does the product design mix refer to?
A: The product design mix refers to the combination of elements that make up a product’s design, including function, aesthetics, and cost.
Q: What are the two main types of products?
A: Products can be tangible goods (physical items) or intangible services (something the customer pays for but cannot necessarily touch
: Why is it important to balance the elements of function, aesthetics, and cost in product design?
A: Balancing these elements helps the product to be both functional and attractive, while also being cost-effective for both the manufacturer and the consumer.
What does the function of a product refer to?
A: The function of a product refers to its intended purpose and the specific tasks it is designed to perform.
Q: What do aesthetics refer to in product design?
A: Aesthetics refer to the product’s visual and sensory appeal, including its form, shape, color, and texture.
Why is the cost of production important in product design?
A: The cost of production must be considered as it directly affects the price point at which the product can be sold.
Q: What are the typical stages in the product life cycle?
A: The typical stages are development, introduction, growth, maturity, and decline.
What are the implications for cash flow and marketing at each stage of the product life cycle?
A: The implications vary at each stage of the product life cycle, and companies should tailor their marketing strategies and manage their cash flow for long-term profitability.
What are the five stages in the product life cycle?
A: The five stages are Development, Introduction, Growth, Maturity, and Decline.
What characterizes the Development stage of the product life cycle?
A: The focus is on designing and developing the product. Cash flow is usually negative due to high costs, and marketing aims to create awareness and interest.
What characterizes the Introduction stage of the product life cycle?
A: The stage begins with the product launch, characterized by slow sales growth and negative cash flow. Marketing efforts focus on creating awareness and generating interest.
What characterizes the Growth stage of the product life cycle?
A: Sales increase rapidly, cash flow turns positive, and marketing focuses on building market share and brand loyalty.
Q: What characterizes the Maturity stage of the product life cycle?
A: Sales growth slows, cash flow is positive, and marketing aims to maintain market share and increase profitability through cost-cutting and finding new markets.
Q: What characterizes the Decline stage of the product life cycle?
A: Sales decline, cash flow turns negative, and the focus shifts to managing the decline by reducing costs. The marketing strategy may involve discontinuation, price reduction, or finding new uses for the product.
What are extension strategies in the context of the product life cycle?
A: Extension strategies are techniques used by businesses to extend the life of a product beyond its natural life cycle, including product-related and promotion-related strategies.
Q: What are the two types of extension strategies?
A: The two types are product-related extension strategies (modifying the product) and promotion-related extension strategies (changing marketing and promotion).
What is the purpose of product differentiation for a business?
A: Product differentiation is an attempt to distinguish products from competitors, create a unique selling point, develop a competitive advantage, increase demand, boost brand loyalty, and enable the business to charge higher prices.
Q: Can you provide examples of successful product differentiation?
A: Examples include Hyundai offering a three-year warranty when the industry standard was one year and Green & Black using Fairtrade cocoa and sugar in their chocolate production.
What are the two main pricing strategy options businesses usually focus on?
A: Businesses usually focus on high profit margin, lower volume pricing strategies (price skimming strategy) or lower profit margin, higher volume strategies (penetration pricing strategy).
Q: What factors should businesses consider when choosing a pricing strategy?
A: Businesses should consider the number of Unique Selling Propositions (USPs), technology, level of competition, strength of the brand, stage in the product life cycle, costs, and the need to make a profit.