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BM Business theme 1 > Marketing mix and strategy > Flashcards

Marketing mix and strategy Flashcards

(94 cards)

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1
Q

What is the marketing mix used for

A

The marketing mix provides a framework for business to create and implement successful marketing strategies

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2
Q

What are the 4Ps of the marketing mix

A

Price
Place
Product
Promotion

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3
Q

What is meant by promotion in the marketing mix

A

Sales promotion
Advertising
Public relations
Direct marketing

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4
Q

What is meant by place in the marketing mix

A

Channels
Market coverage
Assortment
Location
Inventory
Transport

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5
Q

What is meant by price in the marketing mix

A

Pricing
Pricing strategy
Allowances
Discounts
Payment terms

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6
Q

What is meant by product in the marketing mix

A

Features
Branding
Packaging
Services
Warranties

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7
Q

What is the design mix

A

It refers to the combination of elements that make up a products design

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8
Q

What are the 3 elements of the design mix

A

Function- the purpose of the product or service

Aesthetics- How the product looks and feels

Cost

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9
Q

What does function refer to

A

The intended purpose of the product and the specific tasks it is designed to perform

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10
Q

What does Aesthetics refer to

A

The products visual and sensory appeal e.g. its form, shape, colour and texture

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11
Q

What does Cost refer to

A

Cost of production must be considered as it directly affects the price point of the product sold

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12
Q

What is the main role of promotion

A

generating customer awareness

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13
Q

What are types of promotion

A

Digital communications
Sponsorship
Sales promotion
Personal sales
Direct marketing
Advertising
Public relations

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14
Q

How does advertising work

A

Promotion occurs through paid channels such as tv, radio and print media.

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15
Q

Advantages and disadvantages of advertising

A

ADV- It is able to reach large audiences and increase brand awareness.
Can also create a specific brand image

DISADV- Can be expensive

Can be difficult to measure how effective it will be

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16
Q

How does direct marketing work

A

Involves communicating directly with consumers

email, text, call, social media

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17
Q

Advantages and disadvantages of Direct marketing

A

ADV- Businesses can target specific audiences
Direct marketing is measurable

DISADV- Can be intrusive

Can be costly, especially if the business does not have an established customer base

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18
Q

How do sales promotions work

A

Offering temporary incentives such as buy one get one free, loyalty cards and discount coupons.

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19
Q

ADV and DISADV of sales promotions

A

ADV- .Can quickly boost sales.
.Can help clear out stock
.encourage impulse purchases

DISADV-
.Can be expensive especially if there is heavy discounting
.Can attract deal seeking customers who are not loyal
.May reduce the sales of full priced products

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20
Q

How does personal selling work

A

When a salesperson interacts with potential customers one-on-one. (can be in person or digitally)

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21
Q

ADV and DISADV of personal selling

A

ADV-
/Allows businesses to build relationships with their customers
/Enables personalised advice and guidance to customers

DISADV
/Can be expensive due to hiring and training staff
/Can be limited as it can be difficult to scale to large audiences

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22
Q

How does a sponsorship work

A

It is an agreement where a company provides support (usually financially) to an organisation in exchange for exposure.

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23
Q

ADV and DISADV of sponsorships

A

ADV-
/Can help to build brand awareness
/Create emotional connections
/Reach new customers

DISADV-
/Can be expensive, especially for high profile events or teams
/May not directly drive sales
/May be subject to bad publicity if the sponsored entity is in a scandal

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24
Q

How does digital communications work

A

It is any form of marketing that is delivered electronically for example social media.

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25
ADV ad DISADV of digital communications (marketing)
ADV- /Can be targeted to highly specific consumers /Can provide real time engagement and feedback DISADV/ Can easily be ignored /May require significant investment in technology /May be subject to data privacy regulations /May not be effective for reaching older customers
26
What is branding
It is the process of creating a unique and identifiable feature that differentiates a product or company from its competitors
27
Why is branding important
/Establishes recognition and identity /Builds trust /Differentiates a business or product /Creates an emotional connection /Branding supports marketing and advertising
28
What are the three types of branding
Product branding Own brand product Manufacturer/corporate branding
29
What is manufacturer / corporate branding
The use of a company name or logo to promote all of the products or services offered by the company
30
What are the ADV of corporate branding
Creates strong brand recognition and reputation Allows the company to leverage existing reputation Helps build economies of scale by promoting multiple products under one brand -> reduce marketing costs
31
What are the DISADV of corporate branding
If a company's reputation is damaged, it can have a negative impact on all products offered If the company faces intense competition in one market (e.g smartphones) it may affect the sales of all other products (e.g. laptops)
32
What is product branding
Use of unique name, design or symbol to promote a specific product
33
ADV of product branding
Distinct identity for the product, helps to differentiate from competitors Can help to build customer loyalty and trust by associating the product with a specific quality
34
DISADV of product branding
Cost of creating and promoting a new branf for each product can be expensive May be difficult to build a new brand for each product Different products within the brand may have different levels of quality
35
What is own brand product branding
The use of a retailers name to promote a specific product or service
36
ADV of own brand product branding
Helps retailers differentiate themselves from competitors Offer products at a lower cost than branded ones Help build customer loyalty by offering exclusive products
37
DISADV of own brand product branding
Own brand products may have a lower perceived quality than branded products
38
What are the benefits of strong branding
Added value to products or services Ability to charge premium prices Reduced PED
39
Ways to build a brand
USP - features that make a product / service stand out from competitors Advertising - compelling ads raise brand awareness and create strong emotional connection with the audience Sponsorship - helps brands gain exposure and build their rep Social media - Build a loyal following and create a community around the brand
40
What is viral marketing
Where a business use online platforms to promote their products by creating content at specific times
41
What is emotional branding
A strategy where companies build strong emotional connections with customers by appealing to their values, beliefs and emotions
42
What are the 7 pricing strategies
Cost plus Price skimming Penetration Psychological Competitive Predatory loss leader
43
What is the pricing strategy cost plus
Cost of production + a mark-up to determine the final price.
44
What is price skimming
The business sets a high price for a new product or service when first introduced to the market business will then gradually lower the price to ensure sales continue
45
What is the pricing strategy penetration
Sets a low price for a new product / service Once the business has enough customers they will start to raise the price
46
What is the pricing strategy predatory
Sets prices so low that it drives competitors out the market illegal in many countries as it is considered anti - competitive
47
What is the pricing strategy competitive
The business sets prices based on competitors prices
48
What is the pricing strategy psychological
Takes into account the customers emotions, beliefs and attitude. 9.99 instead of 10
49
What is the pricing strategy loss leader
where a price is set deliberately below the cost of production in order to attract customers wo will buy other more profitable products e.g. bread
50
What are the factors that influence the choice of pricing strategies
Number of USPs - high differentiation can command higher prices PED- lower prices if the product is price elastic. Higher prices if the product is price elastic Level of competition - low prices to stay competitive Strength of the brand - strong brand = premium prices stage in product life cycle - introduction = low prices growth = rising prices maturity = lowered prices how much a product costs and the need to make a profit
51
What are the 3 different distribution channels
Four stage distribution Three stage distribution Two stage distribution
52
Explain a four stage distribution channel
Consists of : producer, wholesaler, retailer , consumer. Commonly used for products such as groceries, clothing and electronics
53
Explain a three stage distribution channel
consists of : producer, retailer , consumer Eliminates the wholesaler stage with the producer selling directly to the retailer used for products of high demand and high profit margins e.g. laptops
54
Explain a two stage distribution channel
consists of : producer , consumer Eliminates both the wholesaler and retailer. This is commonly used for products sold online or through direct sales channels
55
How has the growth of e - commerce affected distribution
Online distribution has became increasingly popular due to the convenience. Many business now dropship, this allows them to sell products without holding stock
56
What are the five stages of the product life cycle
Development Introduction Growth Maturity Decline
57
What is cash flow
The movement of money into and out of a business over time
58
What is the development stage of the product life cycle
focus on designing and developing a product usually incurs high costs for r and d , and market research
59
What are the implications of the development stage
Cash flow is usually negative marketing strategy is focused on creating awareness and interest in the product
60
What is the introduction stage of the product life cycle
Begins when the product is launched Slow sales growth as the product is still new
61
What are the implications of the introduction phase
Cash flow is usually negative as their is high costs for promotion and advertising Marketing is focused on awareness and interest
62
What is the growth stage of the product life cycle
When sales begin to rapidly increase Business shifts focus to building market share and increasing production to meet demand
63
What are the implications of the growth phase
Cash flow usually turns positive as sales rev increases and EOS is achieved marketing strategy begins to differentiate the product from competitors
64
What is the maturity stage of the product life cycle
Slowing sales growth as the product has reached its peak
65
What are the implications of the maturity phase
Cash flow is usually positive as sales rev continues to come in , EOS is still achieved Marketing strategy aims to maintain market share and increase profitability
66
What is the decline stage of the product life cycle
When sales begin to decline as the product becomes obsolete or replaced by newer products business shift focuses to managing the products decline and reducing costs
67
What are extension strategies
The techniques used by businesses to extend the life of a product beyond its natural life cycle
68
What are the two types of extension strategies
Product related Promotion related
69
What is a product related extension strategy
Involves changing or modifying the product in order to make it more appealing to customers.
70
What are promotion related extensions
Changing the marketing and marketing of the product to extend its life cycle.
71
What are 3 examples of promotion related strategies
Changes to advertising Price Promotions sales promotions
72
What are 3 examples of product related strategies
Product improvements Line extensions Repositioning
73
What is the Boston Matrix
A tool used by businesses to analyse their product portfolio and make strategic decisions about each product
74
What does the matrix classify products into using
Their market share Their market growth rate
75
What are the 4 categories of the boston matrix
STAR - High, High Question mark - High, low Cash cow- low, high Dogs- low, low
76
What is a cash cow
Products with a high market share in a market that is no longer growing
77
What is a question mark
Products with a low market share in a high growth market (Have potential to become stars if invested in)
78
What is a star
High market share in a high growth market
79
What is a Dog
Products with a low market share in a market that is not growing
80
What are the characteristics of a cash cow
Generate significant positive cash flow Low potential Business invests minimal resources Marketing efforts focus on maintaining their market share
81
What are the characteristics of a question mark
Negative cash flow as businesses invest to increase market share and turn them into stars If there is no growth the product may be discontinued Marketing efforts focus on increasing their market share
82
What are the characteristics of a Star
Significant positive cash flow potential for continued growth Marketing focuses on brand recognition businesses usually focus on maximising their potential
83
What are the characteristics of a Dog
Little revenue for the company No growth potential Businesses often move away and focus on more profitable products Marketing for dogs is minimal or zero
84
What are mass markets
Large numbers if customers who have similar needs and wants
85
What marketing strategy does a business use in a mass market
focus on building brand awareness and appealing to a broad audience. Advertising campaigns aim to reach as many people as possible
86
What is a niche market
Smaller groups of customers with specific needs and wants subsections of mass markets
87
What marketing strategy does a business use in a niche market
Targeting a specific segment of the population and building a relationship with them messages often include technical information relevant to the specific needs of the target market
88
What marketing strategy does a business use when doing B2B
Focuses on selling products to other businesses emphasis on building relationships and demonstrating how your product can help messages are more technical and focus on features and benefits relevant to other businesses
89
What marketing strategy does a business use when doing B2C
Focuses on selling directly to consumers Emphasis on building brand loyalty and creating a positive customer experience messages are often more emotional and focus on the lifestyle benefits
90
Why is customer loyalty key for a business
It drives repeat purchases which helps to reduce marketing costs for new products.
91
What are 3 ways to increase consumer loyalty
Customer service Loyalty cards saver schemes
92
How does customer service improve customer loyalty
Positive customer service experience means they are more likely to return and recommend the business to others
93
How do loyalty cards improve customer loyalty
Offer rewards or discounts for repeat and frequent purchases. encourages consumers to buy more, more often
94
How do saver schemes improve brand loyalty
Offer discounts or special pricing for customers

BM Business theme 1 (5 decks)

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