Topic 5 Flashcards
(26 cards)
What are the four ps of the marketing mix
Product, price, place and promotion
What is market share
The proportion of total sales within a market controlled by the business.
Segmentation
When people within a market are divided into different groups
What ways can a market be segmented
. Age
. Income
. Location
. Gender
Why is market research imprtant
It helps a business understand its customers and competitors.
What is a “market opportunity”
A need that is not being met to customers within a certain market. Therefore a business may see this as an opportunity to give them this unfulfilled need.
What are the two types of market research and the difference
Primary - a type of research that is carried out first hand by the business, such as questionnaires, reviews and focus groups
Secondary - a type of research that gives a business a wide range of already existing data often found on the internet, such as market research reports, government publications and the internet.
What is a focus group
A small group of people that discuss their opinions of a product
What are the two Q’s that market data should be
Qualitative and quantitive
What are the five stages of a product life cycle
1) research and development (developing an idea into a marketable product
2) introduction (product is launched for the first time)
3) growth (through increased promotion the product becomes more established)
4) maturity (reaches its peak, promotion is less important as popularity grows)
5) decline (demand starts to fall and rival products may take over)
What are some extension strategies
. Changing packaging
. Adding new features to a product
. New advertising
. Targeting new markets
. Lowering price
What are extension strategies
Tweaks to the marketing mix of a product to increase sales
Product portfolio
The range of different products that a business sells.
What are the four parts of the Boston matrix and what do they represent
Question marks - low market share, high market growth
Dogs - low market share, low market growth
Cash cows - high market share, low market growth
Stars - high market share, high market growth
Product differentiation
Making your products distinctive and unique in the market
What factors can affect a company’s pricing decisions
. A business’ costs of manufacturing
. Where a product is in its lifestyle
. The business aims
. The economy and market
Price penetration
Usually used when a business is first set up, and the firm charges a very low price at first before the product is established
Loss leader pricing
When the price of a product is set below the cost. This is with the idea that customers will buy other products as well. This is like a game console sold lower than the cost, and games and controllers sold too in order to make profit.
Price skimming
Initially setting a high and lowering the price as it becomes established.
Competitive pricing
Where the firm charges similar prices to its competitors
Cost-plus pricing
When a business works out the total cost of making a product, then after using this they add on a certain amount of profit they want to make.
How can a business promote its products and brand
. Sponsoring events
. Advertising
. PR and media
. Social media
What are the three ways business can sell its products
. Sell to wholesalers
. Sell directly to retailers
. Sell directly to consumers
