4 P Flashcards
(36 cards)
what are the 4ps
Product, price, place, promotion
What are the 4cs
Customer solution, cost, communication, convenience
How do 4ps and 4cs pair up
product-customer solution
cost-price
communication-promotion
convenience-place
What is CRM and what does it do
Customer relationship management:
Keeping existing customers and maintain theri loyalty
4 methods CRM can use
Frequent interaction
Targeted marketing
Customer service report
social media
What is U.S.P
Unique selling point
3 benefits of USP
- gives focus for promotion
- free media promotion as they highlight USP
- Opportunity to sell unique product at high price
- Customer easily identify what’s different
4 stages of product life cycle
Introduction, growth, maturity(saturation), decline
2 Appearances of Introduction
- Expenditure is high
- revenue is low as awareness is built
2 Appearances of growth
- sales increasing rapidly
- revenue starts to overtake expenditure as more and more people know about the product
2 Appearances of maturity
- Competition is high since everyone probably has a product
- Sales slow down
2 Appearances of decline
- Sales much slower
- start to consider withdrawal from market
Explain extension strategy in 3 points
- slight modification of existing design
- New or additional promotion
- New features on existing products
3 characteristics of development impacting cash flow
High development cost to design the product
cash flow negative
no revenue coming in
4 characteristics of Introduction impacting cash flow
Promotion cost is high
cash flow remain negative
not many people know about the product
little revenue
3 characteristics of growth impacting cash flow
Still heavy promotion cost
revenue streams are much higher
possible positive cash flow
2 characteristics of maturity impacting cash flow
Sales are high
promotion cost become low
positive cash flow
2 characteristics of decline impacting cash flow
Likely price reductions
little sales
reduced cash flow
Price, promotion, place, product at introduction 4 features
- low penetration price or high skimming price
- Informative ads to raise customer awareness
- Limited space for sale
- basic model
Price, promotion, place, product at growth 4 features
- Could lead to higher price
- Customer need to be convinced making multiple purchases, establishing brand loyalty
- growing number of outlets in areas with strong demands
- Planning of product improvement
Price, promotion, place, product at maturity 4 features
- Competitors will enter market so price needs to be competitive
- Focus switch from gaining new customers to retaining existing customers
- Largest number of outlets
- New modification and extension strategy
Price, promotion, place, product at recession 4 features
- Price low to get rid of stockpile
- Ads low and designed to inform the price is low
- Eliminate unprofitable outlets
- Slowly withdrawing from market
Whats portfolio graph
Business position itself so when one product is declining. another product is at growth or intro
What are the 2 factors customers consider when purchasing a product
- Intangible attributes
- tangible attributes
