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Business > Theme 1.3 Marketing mix and stratergy > Flashcards

Theme 1.3 Marketing mix and stratergy Flashcards

(62 cards)

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1
Q

What is marketing

A

Marketing involves getting the right product to the right place, at the right price and promoting your product so that the consumers know about it.

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2
Q

What is the Marketing mix ( 4 P’s)

A

Place
Product
Price
Promotion

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3
Q

What is the design mix 3 aims

A

Function
Costs
Aesthetics

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4
Q

What is a product

A

A product is anything that is capable of satisfying customer needs

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5
Q

Features of Products that emphasise Function

A

Longer product life cycle
Lower promotional costs
More predictable and stable demand
Build reputation for quality

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6
Q

Features of Products that emphasise Aesthetics

A 
High added value
Demand fuelled by customer aspiration 
Potentially shorter product life cycle
Attracts imitation = need for design protection
Need for greater promotional support
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7
Q

Features of Products that emphasise cost

A 
Brand development costs are reduced
Demand fuelled by lower price
Demand increases when there is a decline in the economy
High levels of competition 
Low promotion costs
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8
Q

What is sustainability

A

Making a product without affecting the long-term supplies of the inputs into the product

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9
Q

What is a product portfolio

A

A product portfolio is a group of products that a company sells

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10
Q

What is a brand

A

A brand is a method of differentiating one product from another so that it can be easily communicated and effectively marketed.

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11
Q

What is a brand name

A

the name / logo / design / colour (etc) of the distinctive product.

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12
Q

Key benefits of effective branding

A

Adds significant value (from customer point of view)
Able to charge higher prices + demand is more price inelastic
Builds customer loyalty & aspiration

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13
Q

Types of branding

A

Manufacturer or Product brand Service brand
Umbrella (“Family”) brand
Own-Label brands
Generic brand

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14
Q

Example of product brand

A

Pot noodles
Marmite
Vaseline
(Any brand with specific products)

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15
Q

Examples of service brands

A

Uber

Vue

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16
Q

Example of Umbrella (family) brands

A

Cadbury
P&G
Unilever
Coca cola

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17
Q

Example of own-label brands

A

Tesco beans

Tu - Sainsburys

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18
Q

Example of Global brands

A

Coca cola
Ikea
Mc donald’s

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19
Q

Example of Generic brands

A

Tin foil
Carrots
Aspirin
(Products that are named after the product not company)

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20
Q

Benefits of branding

A

Added value
Premium pricing
Reduced PED

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21
Q

What are the 3 ways advertising can be categorised

A

Informative
Persuasive
Reassuring

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22
Q

What’s below the line promotion

A

refers to any form of promotion that does not involve advertising

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23
Q

Examples of below the line promotion

A
  • Sales promotions
  • Public relations
  • Merchandising and packaging
  • Direct mailing
  • Direct selling or personal selling
  • Exhibitions and trade fairs
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24
Q

What is public relations (PR)

A

Public relations activities are those that create goodwill toward an individual, business, cause or product

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25
What is a sponsorship
when a payment for an event, person, organisation is given in return some consideration of benefit
26
Activities of a PR
* Promoting new products * Enhancing public awareness * Projecting a business image * Promote social responsibility * Projecting business as a good employer * Obtain favourable product reviews / recommendations
27
What is direct marketing
Promotional material directed through mail, email, social media or phone to individuals or businesses
28
What is viral marketing
Viral marketing uses social media and online platforms to try to produce increases in brand awareness or to achieve other marketing objectives
29
Benefits and Drawbacks of Personal Selling
``` Advantages High customer attention Message is customised Interactivity Persuasive impact Potential for development of relationship Adaptable Opportunity to close the sale ``` ``` Disadvantages High cost Labour intensive Expensive Can only reach a limited number of customers ```
30
Benefits and Drawbacks of Advertising
Advantages Wide coverage Control of message Repetition means that the message can be communicated effectively Effective for building brand awareness and loyalty Disadvantages Often expensive Impersonal One way communication Lacks flexibility Limited ability to close a sale
31
Benefits and Drawbacks of Sales Promotion
Advantages Effective at achieving a quick boost to sales Encourages customers to trial a product or switch brands Disadvantages Sales effect may only be short-term Customers may come to expect or anticipate further promotions May damage brand image
32
Benefits and Drawbacks of Direct Marketing
Advantages Focus limited resources on targeted promotion Can personalise the marketing message Relatively easy to measure response & success Easy to test different marketing messages Cost-effective if customer database is well managed Disadvantages Response rates vary enormously Negative image of junk mail and email spam Databases expensive to maintain and keep accurate
33
Benefits and Drawbacks of Viral marketing
Advantages Cheaper than other forms of marketing Can personalise the marketing message and target through cookie analysis Relatively easy to measure response & success - through clicks Easy to test different marketing messages Disadvantages Response rates vary enormously Negative image of viral marketing - can be annoying Can be ignored / disposed of by the reader easily Can reach the wrong audience
34
What are some main factors that influence pricing
``` Costs PED Market share Stage of pricy life cycle Marketing objectives Market positioning Competitor pricing ```
35
What is price skimming
Set a high price to maximise profit
36
What is penetration pricing
Offer a product at a low | introductory price
37
Examples of price skimming
iphones | Electronics
38
Examples of price penetration
Sainsburys value product
39
What is competitive pricing
Setting the price according to what the rivals are charging
40
What is dynamic pricing
Dynamic pricing is a pricing strategy in which businesses set flexible prices for products or services based on current market demands
41
Examples of dynamic pricing
Amazon | Uber (How far your travelling and location)
42
What is predatory (destroyer) pricing
Setting a low price forcing rivals out of business
43
What is psychological pricing
Setting the price slightly below a round figure
44
What is Loss leader pricing
Products are sold below cost to lure buyers into the store.
45
Main objective of distribution
To make products available in the right place at the right time in the right quantities
46
What is a distribution channel
A distribution channel moves a product through the stages from production to final consumption
47
Key advantages of retail distribution
* Convenience for customers * Often UK-wide reach to customers * Retailer chooses the final price * Retailer handles the financial transaction * Retailer holds the stock * After-sales support (e.g. returns)
48
What is an agent
advertise and promote the products and services of a business to increase sales
49
What is multi-channel distribution
Multi-channel distribution involves a business using more than one type of distribution channel
50
Example of multi-channel distribution
Apple - 450+ retail stores in 15 countries, Online stores, Multiple retail partners (E.g EE)
51
What is a product life cycle
A theoretical model which describes the stages a product goes through over its life
52
Key uses of product life cycle
Forecast future sales trends Help with market targeting and positioning Help analyse & manage the product portfolio
53
What can cause products to be scrapped before launch
* Inadequate demand * Action of competitors * Change in the external environment * Production problem * High costs * Does not fit in the firm’s product range * Life cycle expected to be too short
54
What are the stages i’m in the product life cycle
* Development * Introduction * Growth * Maturity * Decline / End
55
What happens at the introduction stage
New product launched, low level of sales, high unit costs
56
What happens at the growth stage
Market expands, sales grow faster, unit costs fall with economies of scale
57
What happens at the maturity stage
Slower sales growth as rivals enter the market = intense competition + fight for market share, high profits for those with high market share
58
What is the decline stage
* Falling sales * Market saturation and/or competition * Decline in profits & weaker cash flows * More competitors leave the market * Decline in capacity utilisation
59
How can you extend the product life cycle
Lower price Change promotion Change product (re style or improve) Alternative distribution channel
60
What is the boston matrix
A chart with an axis on market share and market growth
61
What are the 4 areas on the boston matrix
Question marks - Top left Stars - Top right Dogs - Bottom left Cash cows - Bottom right
62
What do the 4 areas on the boston matrix show
Top left - High market growth, low market share Top right - High market growth, high market share Bottom left - Low market growth, Low market share Bottom right - Low Market growth, High market share

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