Marketing Mix- Price And Product Flashcards

1
Q

Brand

A

The identifying symbol, name or trademark that distinguishes a product from its competitors

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2
Q

New product development (NPD)

A

The design, creation and marketing of new goods and services

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2
Q

Marketing mix

A

The four key decisions on product, price, place and promotion that must to be taken fro effective marketing

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3
Q

Importance of new. product development

A

-Changing consumer tastes and preferences
-Increasing competition
-Technological advancement
-New opportunities for growth
-Risk diversification
-Improved brand image
-Use of excess capacity

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3
Q

Benefits of effective USP

A

-Promotion that focuses on differentiating
-Opportunities to charge higher prices due to unique features
-Free publicity from media reporting on the USP of the product
-Higher sales compared to undifferentiated products

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4
Q

Unique selling point (USP)

A

The special feature of a product that makes it different from its competitior’s products

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5
Q

Product positioning

A

Consumers views of a product or service compared to its competitors

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6
Q

Product portfolio analysis

A

Analysing the range of existing products of a business to help allocate resources effectively between them

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7
Q

Product life cycle

A

The pattern of sales for a product from launch to withdrawal from a market

-Introduction
-Growth
-Maturity or Saturation
-Decline

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8
Q

Extension strategy

A

A marketing plan to extend the maturity stage of the product before a new one is launched

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9
Q

Boston matrix

A

A method of analysing the product portfolio of a business I terms of market share and market growth

Cash cow- low market growth, high market share.
Maturity.

Star- high market growth, high market share.
Growth.

Question mark- high market growth, low market share.
Introduction

Dog- low market growth, low market share.
Decline.

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10
Q

Action taken on Boston matrix products

A

-Building- supporting question mark products w additional advertising or further distribution outlets

-Holding- continuing support for star products so that they maintain their good market position

-Milking- take positive cash flow from established products and investing it in other products

-Divesting- identifying the worst performing dogs and stopping the production and supply of these products

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11
Q

Limitations of using Boston matrix

A

-Does not tell the manager what will happen to the product next
-Only a planning tool and is criticised to be too simple
-Assumes higher rate of profits are directly related to high market shares

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12
Q

Main determinants of pricing

A

-Costs of production
-Competitive conditions in the market
-Competitors prices
-Business and marketing objectives
-Price elasticity of demand
-Whether it is new or existing product

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13
Q

Cost-plus markup or mark-up pricing

A

Adding a fixed markup for a profit to the unit cost of buying in a product

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14
Q

Contribution cost pricing

A

Setting prices based on variable costs of making a product, in order to ask contribution towards fixed costs and profit

15
Q

Competitive pricing

A

Making pricing decisions based on prices set by competitors

16
Q

Price discrimination

A

Charging different groups of consumers different prices for the same good or service

17
Q

Dynamic pricing

A

Offering products at prices that changes according to he level of demand and customers ability to pay

18
Q

Penetration pricing

A

Setting a relatively low price to achieve a high volume of sales

19
Q

Market skimming

A

Setting a high price for a new product when a firm has unique product w low price elasticity

19
Q

Psychological pricing

A

Setting price at a level which matches consumers view about a products perceived value