marketing Flashcards
(28 cards)
Cash cow
High market share, low market growth
Question mark
high market growth, low market share
Star
High market share, high market growth
Dog
Low market share, low market growth
Diversification - Ansoffs
New products, new market
MOST RISKY
high marketing budget needed
Market penetration - ansoffs
existing products in existing markets.
achieved through selling more products, to established customers or by finding new customers within the market
LOWEST RISK
potential risk to strategic drift
Product development
New products, existing markets
development products involves thinking about the needs of customers and how to outperform competitors.
MEDIUM RISK
High marketing budgets
Market development
Existing products into new markets
need for market research and segmentation
high marketing budget needed
price skimming
Charging HIGH prices initially that customers pay for and then lowers overtime
USED in introduction phase
- cannot last for long
- may slow down demand for products, giving competitors more time to develop alternative products
Price penetration
Lower price initially
- marketing objective - increase market share or sales volume
Benefits:
-catching competition off guard
- encourages word of mouth
- low price can act as a barrier to entry
- sales volume should be high, so distribution should be easier to maintain
drawbacks:
- temporary customers who aren’t brand loyal
- established competitors may be able to offer lower prices
- difficult to increase price later down the line
What are the kinds of segementation
- geographic
- demographic
- income
- behavioural
What is market targeting
deciding which segments to target
- differntiated = more than one segment in different ways
- undifferentiated- entire market the same way
- concentrated targeting= one or two segments
Market mapping reasons
- spot gap in marketing
- repositioning
- evaluate pricing strategies
- see demand for products
- shows declining products
- subject to bias
sampling
taking a group of people to represent an entire market
- simple random
- stratified = dividing population into groups and picking from desired group
- quota = people picked who fit category
Tech in marketing data
- allows for easy analysis of large data
- less subject to human error
- eliminates bias
- expensive
- ‘big data’ requires a lot of investment as well as a lot of money spent on training employees
Niche market
- premium pricing
- strong USP
- brand loyalty
- less opportunities for growth
- ## intense competition
Factors affecting the 7 Ps
- economy
- comeptition
- HR = skills and resources of employees
- finances
- suppliers - offering credit is not usually available to small businesses therefore find it difficult to offer low price as they don’t benefit from economies of scale
- product type
influences on PED
- brand loyalty/ strength of the business
- availability of substitutes
- income levels
- price levels
- nature of the goods
Predatory pricing
illegal under UK laws
charging such low prices it force other businesses out of the market
competitive pricing
- monitor competitor pricing to make their prices
psychological pricing
basing prices on customer expectations
Loss leaders
products sole below or at cost price. Lose money but make profit through enticing customers to the shop to them purchase other goods
Price discrimination
Charging different prices to different groups of people - age at the cinema more for adults than children
Kinds of promotion
- merchandising
- direct mail
- relationship marketing (loyalty cards, social media)
- event sponsorship
- advertisements
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