9 Marketing : The Marketing Mix Flashcards Preview

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Flashcards in 9 Marketing : The Marketing Mix Deck (36):
1

4 Ps

Product
Place
Price
Promotion

2

Price

~ business must make sure that the price matches the quality and is a price customers are willing to pay

3

Price : S.......

Skimming
~ A new product is more advanced than competitors
~ A high price is set which customers are will to pay for something more superior (unique)
~ when established , prices are lowered

4

Price : C... P...

Cost Plus
~ business looks at the price it paid for a product
~ % is added on profit to give the selling price

5

Price : P..........

Penetration
~ price is lower than competitors
~ New businesses
~ Short term strategy

6

Price : C.........

Competitor
~ similar prices charged
~ low product differentiation

7

Price : Pr........

Promotional
~ Reducing prices
~ Boost or sell of old stock
~ Attract customers

8

Product

Make sure customers will actually buy
~ product range
~ product life cycle

9

Image and design

~ customers feel good
~ good design may lead to good image

10

Invention

Entirely new product is invented and has an advantage over competitors

11

Innovation

~ Improvements or developments of existing ideas
~ develop an advantage over competitors

12

Invention and innovation : research and development

Introduce new and existing products

13

Research includes .....

~ market research

14

Development includes .....

Making prototypes

15

Branding

Brand is a name , term , design , symbol etc that identifies a seller

16

Product Life Cycle : introduction

~ product is launched
~ sales grow slowly
~ advertising is used

17

Product Life Cycle : Growth

~ sales grow rapidly
~ advertising
~ prices reduced (competitors)
~ profits

18

Product Life Cycle : Maturity

~ sales increase slowly
~ competition
~ competitive / promotional pricing
~ advertising to sustain growth
~ profits fall

19

Product Life Cycle : Decline

~ sales fall
~ loses appeal
~ competition
~ advertising reduced
~ production stopped

20

Place

-distribution of goods / services (how they reach the customer)

21

Place: Physical Distribution

- Getting the product to the customer
- Some businesses sell directly
- Small
- Only tangible products

22

Place : Digital Distribution

- Electronically
- No physical movement of products
- Downloaded digitally

23

Channels of Distribution

Producer —

24

Place : Regional Distribution Centre

- Large warehouse
- Store products to be sold later

25

Promotion

Any form of communication a business uses to inform , persuade or remind people about a product

26

Promotion : Point of Sale Promotion

Consumers purchase in a retail outlet

27

Promotion : Point or Sale Promotion : competitions

Boost sales however the cost / packaging of the prize may be expensive

28

Promotion : Point or Sale Promotion : Price Reductions

Sell of old products , not much profit

29

Promotion : Point or Sale Promotion :Free Samples

Encourage people to by full version however cost of making ( selling free)

30

Promotion : Point or Sale Promotion : Loss Leaders

Lower the price of 1 or 2 items to attract customers

31

Promotion : Advertising : Tv

- large businesses
- high cost

32

Promotion : Advertising : Radio

- product cannot be seen
- local
- cheaper than to

33

Promotion : Advertising : Printed media

- local = cheaper
- Leaflets are cheap
- customers have a record

34

Marketing Mix : New business

- more advertisement
- keep up with competitors

35

Marketing mix : Established business

- competition so they must change up their mix

36

Market data

Information that will help a business make marketing decisions e.g changes in demand , target market , market share and effect of promotion