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