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Bussiness 📖 > Maketing P3 > Flashcards

Maketing P3 Flashcards

(60 cards)

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1
Q

Penetration pricing

A

Low prices are set to break into a market or to achieve a sudden increase in market share

E.g - charge low prices on apps
Spotify so people become hooked after trial phase ends

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2
Q

Price skimming (creaming)

A

Firm charges highest initial price that customers will pay + then lower over time

E.g - customers buy at higher price and still do over time when prices are lowered builds customer loyalty

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3
Q

Predator pricing

A

Low prices in order to drive other firms out of the market

E.g illegal in uk

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4
Q

Cost plus pricing

A

Adding % (mark up) to the costs of producing a product to get the price

E.g - you choose how much profit you make

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5
Q

Psychological pricing

A

Impression of value
E.g - £3.99 instead of £4

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6
Q

Competitive pricing

A

Pricing strategies based on Prices charged by rivals

E.g - beat competition and gain competitive edge resulting in your business getting more sales

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7
Q

Design mix and social trends

A

Environmental issues

Waste minimisation

Ethical supply chain

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8
Q

Environment issue

A

Design for reuse/ recycle

Ethical sourcing

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9
Q

Waste minimisation

A

Product last long time

Smaller - lighter

Reduce packaging + manufacture of disposable goods

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10
Q

Ethical supply chain

A

Consumers interested in buying from ethical businesses

How products made key issue for many consumed

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11
Q

Differentiation and usp

A

Higher prices can be charged

Amount of competition

Strength of brand

Price and elasticity of demand

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12
Q

Dynamic pricing

A

Varying price for a product or service to reflect changing market conditions

Price comparison websites

Availability of auction sites

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13
Q

Personalised pricing

A

Using data such as purchase history and demographic data to set a unique price

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14
Q

Subscription pricing

A

Charging customers a regular monthly fee for the use of a service or access to a specific product

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15
Q

Price elasticity of demand PED-

A

Quantity demanded of a good or service is affected by change in price

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16
Q

Price elasticity demand

A

Price results in a greater change in demand

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17
Q

Price inelastic demand

A

Change in price results in a proportionally smaller change in demand

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18
Q

Factors influencing price elasticity of demand

A

Habit / addiction —> inelastic

Availability of substitute —> elastic

Brand loyalty —> inelastic

Necessity —> elastic

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19
Q

Income elasticity of demand YED

A

Value of income is above 1 demand income elastic

Value of income elasticity of demand is below 1 demand is said to be income inelastic

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20
Q

Product lifestyle

A

Stages through which a product passes from development to being withdrawn from sale

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21
Q

Extension strategies

A

Increase market share for given product or service - keep it in maturity phase

Special editions

Modifications to product

Change in promotion / packaging

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22
Q

Value of product lifecycle

A

Product lifecycle is process of examining a product + making strategic decisions

Design

Pricing + promotion —> optimise product each stage of its cycle

Help companies determine if they need to develop new products in maturity or decline stage

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23
Q

Boston matrix

A

Total product portfolio analysis that classifies product according to the market share of the product + the rate of growth of the market in which the product is sold

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24
Q

Product portfolio

A

Range of product a business will sell

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25
Star
Heavy advertising needed Potential to be a future cash cows
26
Problem child (?)
Small market share in rapidly growing industry Large amount of market research + promotion Aim to be a star/ cash cow
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Cow
High revenue Established product Little advertising needed
28
Dog
No real future May become unprofitable
29
Product lifecycle
Stages through which a product passes from its development to being withdrawn from sale
30
Changing from product to service
Tetiary sector has grown at the expense of primary sector Music - from CDS to streaming Films from DVDS to Netflix Newspaper
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Objective of distribution
Products available right place + right time in right quantities
32
Distribution channel
Moves product through stages from production to final consumption
33
Changes in prosecution
Online distribution Business to consumer ( B2C) - click and collect
34
Business to business (B2B) advantage
Lower start up cost — fixed and variable are lower Offer goods to wider market More choice where to locate
35
Business to business (B2B) disadvantage
Increase competition Lack of human contact Technical problems
36
Direct selling advantage
Consumers preference buying direct Expand customer base Higher margins
37
Retailer
Easy shopping experience Personalisation Targeted discounts
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Nature of product
Tangible or intangible goods or service that a company offers to its customers
40
Cost
Expense incurred for making a product or service that is sold by a company
41
Control
Control reputation/ customer reputation
42
Market
Type of customer values so can determine distribution
43
Product lifestyle
Stages through which a product passes from its development to being withdrawn from sale
44
Development
Spending large amounts on creating + preparing products to sell No sale rev
45
Introduction
Launch of product No sales cash flow negative Penetration Advertising sales large amount of above line advertising
46
Growth
Becoming popular + known = new customers build brand Sales increase Competition/ phsychological offers Market research business could target new market segments
47
Maturity
Sales at highest most profitable stage lots of competition Most profitable / cash flow Competition pricing Steady promotion billboards
48
Decline
Demand is dropping Reducing cash flow as product becomes less popular Price drop to try to sell more of declining product Less promotion
49
Extension strategies
Increase market share for given product or service —-> keep it in maturity phase rather than go into decline Special editions Modifying product Change in promotion / packaging
50
Value of product lifestyle
Product lifestyle process of examining product + making strategic decisions Pricing promotion — optimise product each stage of its life cycle Help companies determine if they need to develop new products in maturity or decline phase
51
Boston matrix advantage
Business has a balances portfolio Sufficient cash cows to fund the problem child Not to many stars as they maybe a drain on financial resource
52
Boston matrix disadvantage
Market growth inadequate measure of a market attractiveness Focus on market share + market growth ignores issues such as developing sustainable competitive advantage Dog may still be profitable to business
53
Marketing strategy
Set of plans that aim to achieve a specific marketing objective
54
Maketing objective
Become the market leader in an area E.g create website take online bookings
55
Strategy for mass market
Product - similar products may need to develop a USP to stand out Price - competitive pricing Promotion - invest heavily in promotion + advertising Place - multiple channels of distribution
56
Strategies for niche market
Place - selective choose distribution channels Product - strong USP designed to focus on the need of specific customer Price - less competition higher prices Promotion - targeted promotion / specialises
57
Strategies to business to business + business to consumer
Outbound making strategies - direct mail , e,aols Inbound marketing strategies attracting customers to websites - blogging social media Hybrid strategy combination of t(em birth
58
Develop customer loyalty
Regular communication Excellent customer service Customer incentives - loyalty cards Personalisation Preferred treatment - VIP lounge
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