Some topic 2 mostly 3 Flashcards
(35 cards)
The marketing mix:
- price
- products
- place
- promotion.
Cost plus pricing:
You get the cost to make the product, multiply it by a fixed amount to make a certain amount of profit.
Competitor pricing:
Set a price on what competitors prices are if the product is simular of identical to yours.
Promotional pricing:
The reduction of price to attract customers to sell more products with smaller margins. E.G:
- BOGOF
- multipacks
- 3 for 2
Price skimming:
This is where the product is more advanced than that of competitors and therefore a price I set high as customers will pay for new technology.
Penetration pricing.
When a business is new to the market a price is set lower than business competitors as they are not very well known.
Stages of a products life:
Introduction - growth stage - majority stage - decline stage.
Extension strategies to stop the decline.
- adapt product.
- change shape, colour, flavour.
- 2 for £2
- new product which is very simular.
- update it.
Advantages of selling directly to customers:
- relationships with customer. Loyalty.
- you get all the profit.
- quicker.
- cheaper.
A wholesaler is :
A person or company that buys and sells in large quantities at lower prices to retailers.
Advantages of wholesalers:
- sell to small shop.
- buy in large quantities.
- regular purchases from the business.
- good for marketing
- less stress and work for company.
Innovations are:
Improving existing products.
Invention
Coming up with a new, unique product.
Digital distribution benefits:
- faster to reach customers.
- can sell tiered access.
- can keep in contact with customers.
Digital distribution disadvantages:
- privacy.
- intense online competition.
- the initial set-up cost.
- many customers expect everything digital to be free.
Types of sales promotion:
- price reduction
- loss leaders.
- competitions
- free samples.
Loss leaders:
A product below cost price to attract customers into the shop. To spend more money.
Why use competitions ?
- promotes our business.
- get more regular customers.
- easy to do via social media.
- cheap
Why do businesses use free samples:
- introduce new customers.
- to get regular customers.
- easy to do in the street.
- you can get feedback.
The jones effect:
If everyone else has one they would want to join the crowd.
Early discounts to events:
- more organised
- more sales revenue
- predicts sales and profits.
Internal recruitment:
When the business fills a vacancy from a existing member of staff
External recruitment:
Filling a vacancy from an applicant not related to the business.
Job description:
A document that describes the duties of a worker.
