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Section 7 - Marketing Flashcards

(52 cards)

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1
Q

What is marketing?

A

A management process of identifying, anticipating + satisfying customers’ wants profitably

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2
Q

What is a brand?

A

A named product that is seen as different

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3
Q

What is an own brand?

A

A product sold under the name of a retailer rather than the manufacturer

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4
Q

What is product mix?

A

The number of products made by a business

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5
Q

What is product range?

A

A group of similar products made by a business

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6
Q

What are the advantages of a business widening their product portfolio?

A
  • Grow as a business so more profit
  • Less risk, spread risk so others to fall back on
  • Greater selection for consumers
  • Wider range to support original product
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7
Q

What are the disadvantages of a business widening their product portfolio?

A
  • More responsibility
  • Quality decrease as not focussing on one as much
  • More staff needed so higher costs
  • Poor publicity on one product can impact others
  • Costs to keep developing them
  • Product may fail as not enough market research done
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8
Q

What is a product life cycle?

A

A model showing the lifespan of a product’s sales from launch to being taken off the market

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9
Q

What are the stages of a product life cycle?

A
  • Research + development
  • Intro
  • Growth
  • Maturity
  • Decline
  • Extension strategy
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10
Q

What is price?

A

The amount charged to a consumer for a good or service

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11
Q

What factors influence the price set?

A
  • Quality of the product
  • Target market
  • Manufacturing costs
  • Originality of product, USP
  • Brand reputation
  • Competitors
  • Location
  • Innovation
  • Profit you want
  • Stage of product life cycle
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12
Q

What is cost plus pricing?

A

Cost of producing the product plus a percentage on top to create profit (mark up)

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13
Q

What are the advantages of cost plus pricing?

A

-Guaranteeing profit to cover costs

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14
Q

What are the disadvantages of cost plus pricing?

A

-No consideration of competition

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15
Q

What is competitive pricing?

A

Basing the price of your product on the amount competitors charge for a similar product

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16
Q

What are the advantages of competitive pricing?

A

-Customers generally willing to pay

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17
Q

What are the disadvantages of competitive pricing?

A
  • Don’t stand out from competitors

- Not much profit

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18
Q

What is skimming pricing?

A

Charging high prices to begin with + then reducing over time

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19
Q

What are the advantages of skimming pricing?

A
  • Lots of profit from start

- People will often pay lots for something new

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20
Q

What are the disadvantages of skimming pricing?

A

-Innovative, constantly need to be coming up with new products

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21
Q

What is penetration pricing?

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A

Charging lower prices to begin with + increasing over time

22
Q

What are the advantages of penetration pricing?

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A
  • Lots of profit when product becomes popular

- Gain loyal customers easily

23
Q

What are the disadvantages of penetration pricing?

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A
  • May reduce sales when price increases

- Low initial profit

24
Q

What is loss leader pricing?

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A

Pricing below cost price at a loss to attract customers

25
What are the advantages of loss leader pricing?
-Attracts customers, may buy other things too
26
What are the disadvantages of loss leader pricing?
-Lose money
27
What is advertising?
- Paid for method of promotion - A method of promotion to make people more aware of your business through putting adverts in places for people to see so they know about your business
28
What are the advantages of advertising?
- Seen by lots of people | - Seen lots of times so message conveyed effectively
29
What are the disadvantages of advertising?
- Not individually targeted, very general | - Expensive
30
What is sales promotion?
The process of persuading a potential customer to buy the product i.e. loyalty cards, coupons
31
What are the advantages of sales promotion?
- Encourages people to try product + potentially switch brand - Quick boost in sales - Increases sales
32
What are the disadvantages of sales promotion?
- Can damage brand image - Can only be effective short term - Lowers profits - May expect further promotions
33
What are the methods of promotion?
- Advertising - Sales promotion - Public relations - Person selling
34
What is public relations?
The way in which a company manages their relationship with different parts of the public e.g. customers, media
35
What are the advantages of public relations?
- Credibility + trust in company - Creates a good brand image - Long lasting effect
36
What are the disadvantages of public relations?
- Message can be twisted (especially by media) | - No guarantee message will reach target market
37
What is personal selling?
Where businesses use people to sell the product after meeting face to face with the customer
38
What are the advantages of personal selling?
- Personal, adaptable - High customer attention - Persuasive - Increases customer relations
39
What are the disadvantages of personal selling?
- Labour intensive - Only reaches a limited number of customers - Can be expensive
40
What are the factors affecting which channel of distribution to use?
- Convenience for customer - Distance from customer - Cost of holding stock - Likelihood of customer access online - Amount of control - Product
41
What is product portfolio?
The range of different products a business sells
42
What are some methods of sales promotion?
- Discounts - Product trials - Free gifts - BOGOF - Competitions - Point of sale advertising - Use of credit
43
What is a channel of distribution?
The way the product gets from the producer to the customer
44
What is the traditional channel of distribution?
Producer-->wholesaler-->retailer-->customer
45
What is the modern channel of distribution?
Producer-->retailer-->customer
46
What is the direct channel of distribution?
Producer-->customer
47
What are the advantages of the traditional channel of distribution?
- Only have to sell to wholesaler, easier to sell - Sell in large quantities - Gives customer choice
48
What are the disadvantages of the traditional channel of distribution?
-Lower profit margins, have to sell for cheaper
49
What are the advantages of the modern channel of distribution?
- Higher profit margins, can sell at higher price | - Manufacturer can get customer feedback
50
What are the disadvantages of the modern channel of distribution?
-Could make more profit through traditional
51
What are the advantages of the direct channel of distribution?
- Very high profit margins - Faster - Cheaper - Relationship w/ customers
52
What are the disadvantages of the direct channel of distribution?
-Lots of work, make product + find customers

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