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Flashcards in marketing mix Deck (26):
1

what are the 7P's?

price
place
process
promotion
product
people
physical environment

2

what are industrial goods?

goods that firms sell to each other often known as business to business. they're often not the final end user of the product

3

define consumer goods

goods sold directly to the end user of the product to satisfy our needs and wants

4

what are convenience goods?

goods that consumers buy frequently with little thought or effort and they want them to be readily available

5

shopping goods are...

goods that consumers think more about buying and will compare products and prices but they still want them to be easily accessible

6

what are speciality goods?

products that consumers will plan to buy and then find it, and are usually willing to travel to do so e.g. sports car

7

what is a product life cycle?

the different stages in the life of a product and the pattern of sales at each stage

8

what are extension strategies?

the methods used to prevent falling sales and extend the life of a product

9

define product portfolio analysis

this analyses the market position of all the products of a business to assess how well they are doing in the market

10

what is the boston box matrix?

this is a method of product portfolio analysis that analyses a products market position in terms of market share and growth

11

define new product development

this is when a firm creates a new or improved product of service for an existing market

12

what are the 5 stages of the product life cycle in order?

introduction
development
growth
maturity
decline

13

name 2 ways how a business might use extension strategies to prolong the maturity stage of a product?

modify the product e.g. new, added, extra ingredients

promote more heavily - more advertising

14

how would profits look in the growth stage?

low

15

what would competition be like in the maturity stage of the product life cycle?

intense

16

what are the 4 parts of the boston matrix?

rising star
problem child
cash cow
dog

17

if a business had a high market share, but a low market growth, which part of the boston matrix would it be in?

cash cow

18

if a business had a low market share and a low market growth, what part of the boston matrix would it be in?

dog

19

which characteristics does a problem child in the boston matrix have?

low market share and high market growth

20

name 2 ways in which a business could be influenced to develop a product

having a product which is coming to the end of its lifecycle- declining

competitors actions; it may be necessary to match them to keep up with competition

21

give 1 value of new product development

firms can develop a USP which can help to differentiate it from the competition

22

what are 2 problems of new product development?

many ideas for new products never make it into production

some firms do better by focusing on a small core of products and deliberately have narrow ranges

23

what are pricing strategies?

the longer term pricing policies of the business used to achieve a firms objectives

24

define penetration pricing strategy

setting a low price to gain market share when breaking into a new market of trying to achieve a sudden increase in market share in a market the firm already operates in

25

what is a price skimming strategy?

setting a high price to gain a high profit margin often done when launching a new product. the price may be lowed later as the initial impact wears off. products must have a very strong USP for this to work

26

define what marketing mix means

the 4P's are a combination of price, product, promotion and place that influence consumers decision to buy a product or not. the 7P's add people process and the physical environment