Marketing Flashcards

Question

Disadvantages of a varied product portfolio

Answer 1

- if 1 product gains a bad rep, may impact all - difficult to monitor and manage - very expensive (duplicated efforts in R&D & marketing) - R&D of many different products - cost of purchasing and machinery maintenance for different products might be high - staff training on different products • time-consuming and expensive

Answer 2

Name of the product Appearance of packaging to give a new image Size, variety and shape, making it different from original Price (up or down) to reach a different market segment Methods of Promotion and/or advertising Place the product is sold, ie online?

Answer 3

``` Low price High price Promotional pricing Cost-plus pricing Psychological pricing Market skimming Destroyer pricing Loss leaders Penetration pricing Pricing discrimination ```

Answer 4

Price charged lower than competitors Customers will buy as it’s cheaper than alternatives

Answer 5

Price charged is higher than competitors Customers will think its higher quality

Answer 6

Lower than normal for a short period Customers think it’s a good deal, ie BOGOF

Answer 7

Cost of making the product plus a % added Ensures costs are always covered and a profit is made

Answer 8

Price charged to make customers think it’s cheaper than it is, ie £9.99 Tricks people into thinking product is cheaper

Answer 9

High price charged for new and unique product. Maybe decreased once competitors arrive High price as there is little/no competition

Answer 10

Price deliberately very low Forced competitors out of the market, then charge higher after

Answer 11

Price charged is lower than cost of making the product Attracts customers who then buy other products • overall profit

Answer 12

Product is introduced at a low price and increased once product is more known Encourages to buy and then slowly rise

Answer 13

Changing price depending on market Favours market segments

Answer 14

See how hey can stay ahead of competition Market place is constantly changing

Answer 15

The actual product (is it perishable?) The desired image/exclusivity The availability of finance Reputation of wholesalers/retailers Legal restrictions

Answer 16

Selling DIRECTLY to consumers Producer ———————> consumer Selling through RETAILERS Producer ———-> retailer —> consumer Selling through WHOLESALERS Producer -> wholesaler -> retailer -> consumers

Answer 17

Advs: + bulk buying means distribution and storage costs down + wholesalers may promote • low advertising costs for producers + risk of not selling now put on wholesaler Disadv: - manufacturer loses control over what will happen to product - less profit for each individual product - customer loyalty is harder to maintain

Answer 18

Supermarkets Discount retailers E-trailers Convenience retailer

Answer 19

Often very large orgs that but large quantities Mainly supply food and drink but increasingly started to supply other products, ie homeware Have put many smaller businesses out of business in some times

Answer 20

Provide products at a cheap price Have become very popular in UK due to the economic climate Growth of those resulted in other retailers having to discount their own products

Answer 21

Shopping online, ie Amazon Low overhead costs Requires large warehouses

Answer 22

Normally a small shop with limited amount of products Often found in busy residential areas - more expensive than large retailers Don’t have the same buying powers

Answer 23

Internet selling Personal selling Direct mail Mail order and TV shopping

Answer 24

Selling through websites and social media Adv: World wide customers But only 24/7 Product info/stock updated easily Disadv: Customers can’t see/handle products Customers may not want to share card details Time delay between ordering and receiving

Answer 25

Trained staff member sells directly to customers Adv: Allows sales member to demonstrate how product works and to answer any q’s Disadv: Customers may feel pressured into buying the product

Answer 26

Posting letters/leaflets directly to homes of potential customers Adv: Specific market segments can be targeted TMT large geo area covered Disadv: Customers might not like May not even look (junk mail)

Answer 27

Adv: Convenient to customers as they can look in their own times Disadv: Expensive to produce catalogues

Answer 28

``` Adv: If people like celeb: role model & want to buy product to be like them Reach ready made fanbase Competitive edge Successful celeb = increased sales Promotes good name for org ``` Disadv: Expensive! Celebs negative actions could lead to bad rep Celeb must match with product and image

Answer 29

Press release: written statement that communicated activities within the organisation Sponsorships: organisation sponsor events with lots of public attention Charity donations: organisations might donate sums of money to help and also seem socially responsible

Answer 30

Manufacturers encourage retailers to stock their products ``` POS materials (Peters, displays) Staff training ```

Answer 31

Retailers encourage customers to buy from them Dress samples Loyalty schemes Vouchers Special offers

Marketing Flashcards

(55 cards)