Booklet 6- The Matketing Mix Flashcards
(95 cards)
1
Q
Marketing mix
A
The combination of elements, used by a business to enable it to meet the needs and expectations of a customer
2
Q
Brand
A
Identification of a firm- logo, colour and name
3
Q
USP
A
A feature that distinguishes your product from others
4
Q
Differentiation
A
Making your product different to your competitors
5
Q
Product
A
The good or service a consumer buys
6
Q
Price
A
How much the customer pays
7
Q
Promotion
A
How the customer is persuaded to buy
8
Q
Place
A
How the product is distributed to the consumer
9
Q
The product life cycle
A
Not all products make it through to the last stage of the cycle and not all finish as like Coca Cola it is still at the maturity stage
10
Q
Introduction (the product life cycle)
A
The product is launched so sales are often slow.
Te costs are incured when product is launched through free samples.
11
Q
Growth (the product life cycle)
A
Once consumers are aware, sales may start to grow rapidly. Customers repeat purchases at this point cost may fall as production increases (economy of scale)
12
Q
Maturity (the product life cycle)
A
Sales start levelling off as the product is well established.
13
Q
Decline (the product life cycle)
A
Sales will eventually start to decline due to change in tastes. Products may be withdrawn or sold to another business but can still make a profit
14
Q
How to use an extension strategy
A
- change price
- change promotion
- change the product/upgrade
- develop a new market segment E.g lucazade
15
Q
Disadvantages of an extension strategy
A
- may lose its originality
- less demand E.g cottage cheese
- more money on r+d
16
Q
Benefits of using the product life cycle
A
- identifies when and where spending is required
- helps a business manage portfolio
- can help with marketing decisions
17
Q
Disadvantages of using a product life cycle
A
- doesn’t provide solutions
- not accurate
- time consuming
- expensive
18
Q
The Boston matrix
A
Looks at market growth and market share
19
Q
The difference between the product life cycle and the Boston matrix
A
Product life cycle is per product where as the Boston matrix is per company
20
Q
Question marks
A
Low market share on a fast growing market. They have potential but need investment
•is it worth taking the risk
21
Q
Stars
A
Valuable to the business as high market share and high market growth
22
Q
Cash cows
A
Stars usually turn into cash cows as high market share likely to be profitable. Theses are matured products that need to be well managed for continued profits.
23
Q
Dogs
A
Rarely worth investing but can make enough money to break even
24
Q
Advantages of the Boston matrix
A
- useful tool for annalysing product portfolio decisions
* uses a snapshot of current position
25
Disadvantages of Boston matrix
* doesn't consider environmental factors
* product life cycle varies
* it's biased
* ignores competitiors
26
Penetration pricing
Cheap at first and when hooked the price rises
27
Price skimming
Starts off high to gain as much profit as possible whilst it's new then decreases
28
Competitive pricing
Setting price based on what rivals charged
29
Psychological pricing
99p instead of £1
30
Promotion is
One element of the marketing mix focuses on getting the message across the customer
31
Advantages and disadvantages of advertising
* can focus your advertising
* covers a large audience
BUT
•expensive
•can miss some customers due to stereotype
32
Advantages and disadvantages of direct selling
•makes them feel flattered
BUT
•expensive
•requires extensive research
33
Advantages and disadvantages of social media
```
•wide audience
•little or cheap costs
•most people use it
BUT
•not everyone uses it
•lots of fake websites
```
34
Above the line promotion
Mass media
E.g. TV and radio
35
Below the line promotion
Non-media
E.g. Sponsorships and direct mail
36
Why is it important to pick the right promotional strategy
* wastes money
| * wrong advertising can make or break a product
37
Place is
How the product is distributed to a consumer
38
Distribution channel
The roots to get the products to the customer
39
Multi-channel distribution
Involves more than one type of distribution
E.g online and in store
40
Advantages of a multi-channel distribution
* allows more target market segments to be reached
| * customers expect products to be available or to find an alternative
41
Disadvantages of a multi-channel distribution
* complex to manage
* conflict may occur - competing with retailers by also selling direct
* not only company multichannel distribution e.g Samsung
42
Benefits of international market
* spreads risk
* spreads brand awareness
* more revenue
43
Drawbacks of international marketing
* name may be taken abroad
| * brand name may mean different abroad
44
Corporate branding/ company branding
The same brand on every product
E.g Heinz, cadburys
45
Advantages of company branding
* brand awareness
* improves image of the company
* saves money in advertising due to loyalty
46
Disadvantages of company branding
* one product can harm the companies image
* expensive to promote and maintain
* social media can harm image -horse meat
* may be expensive product as high recognition
47
Which element of marketing mix is the most Important?
All equal but some companies dominate more but all are attended to
48
Advantages of the Boston matrix
* useful tool for annalysing product portfolio decisions
| * uses a snapshot of current position
49
Disadvantages of Boston matrix
* doesn't consider environmental factors
* product life cycle varies
* it's biased
* ignores competitiors
50
Penetration pricing
Cheap at first and when hooked the price rises
51
Price skimming
Starts off high to gain as much profit as possible whilst it's new then decreases
52
Competitive pricing
Setting price based on what rivals charged
53
Psychological pricing
99p instead of £1
54
Promotion is
One element of the marketing mix focuses on getting the message across the customer
55
Advantages and disadvantages of advertising
* can focus your advertising
* covers a large audience
BUT
•expensive
•can miss some customers due to stereotype
56
Advantages and disadvantages of direct selling
•makes them feel flattered
BUT
•expensive
•requires extensive research
57
Advantages and disadvantages of social media
```
•wide audience
•little or cheap costs
•most people use it
BUT
•not everyone uses it
•lots of fake websites
```
58
Above the line promotion
Mass media
E.g. TV and radio
59
Below the line promotion
Non-media
E.g. Sponsorships and direct mail
60
Why is it important to pick the right promotional strategy
* wastes money
| * wrong advertising can make or break a product
61
Place is
How the product is distributed to a consumer
62
Distribution channel
The roots to get the products to the customer
63
Multi-channel distribution
Involves more than one type of distribution
E.g online and in store
64
Advantages of a multi-channel distribution
* allows more target market segments to be reached
| * customers expect products to be available or to find an alternative
65
Disadvantages of a multi-channel distribution
* complex to manage
* conflict may occur - competing with retailers by also selling direct
* not only company multichannel distribution e.g Samsung
66
Benefits of international market
* spreads risk
* spreads brand awareness
* more revenue
67
Drawbacks of international marketing
* name may be taken abroad
| * brand name may mean different abroad
68
Corporate branding/ company branding
The same brand on every product
E.g Heinz, cadburys
69
Advantages of company branding
* brand awareness
* improves image of the company
* saves money in advertising due to loyalty
70
Disadvantages of company branding
* one product can harm the companies image
* expensive to promote and maintain
* social media can harm image -horse meat
* may be expensive product as high recognition
71
Which element of marketing mix is the most Important?
All equal but some companies dominate more but all are attended to
72
Advantages of the Boston matrix
* useful tool for annalysing product portfolio decisions
| * uses a snapshot of current position
73
Disadvantages of Boston matrix
* doesn't consider environmental factors
* product life cycle varies
* it's biased
* ignores competitiors
74
Penetration pricing
Cheap at first and when hooked the price rises
75
Price skimming
Starts off high to gain as much profit as possible whilst it's new then decreases
76
Competitive pricing
Setting price based on what rivals charged
77
Psychological pricing
99p instead of £1
78
Promotion is
One element of the marketing mix focuses on getting the message across the customer
79
Advantages and disadvantages of advertising
* can focus your advertising
* covers a large audience
BUT
•expensive
•can miss some customers due to stereotype
80
Advantages and disadvantages of direct selling
•makes them feel flattered
BUT
•expensive
•requires extensive research
81
Advantages and disadvantages of social media
```
•wide audience
•little or cheap costs
•most people use it
BUT
•not everyone uses it
•lots of fake websites
```
82
Above the line promotion
Mass media
E.g. TV and radio
83
Below the line promotion
Non-media
E.g. Sponsorships and direct mail
84
Why is it important to pick the right promotional strategy
* wastes money
| * wrong advertising can make or break a product
85
Place is
How the product is distributed to a consumer
86
Distribution channel
The roots to get the products to the customer
87
Multi-channel distribution
Involves more than one type of distribution
E.g online and in store
88
Advantages of a multi-channel distribution
* allows more target market segments to be reached
| * customers expect products to be available or to find an alternative
89
Disadvantages of a multi-channel distribution
* complex to manage
* conflict may occur - competing with retailers by also selling direct
* not only company multichannel distribution e.g Samsung
90
Benefits of international market
* spreads risk
* spreads brand awareness
* more revenue
91
Drawbacks of international marketing
* name may be taken abroad
| * brand name may mean different abroad
92
Corporate branding/ company branding
The same brand on every product
E.g Heinz, cadburys
93
Advantages of company branding
* brand awareness
* improves image of the company
* saves money in advertising due to loyalty
94
Disadvantages of company branding
* one product can harm the companies image
* expensive to promote and maintain
* social media can harm image -horse meat
* may be expensive product as high recognition
95
Which element of marketing mix is the most Important?
All equal but some companies dominate more but all are attended to
