Unit 2 Business Flashcards
Product orientation
An approach to business which places the main focus of attention upon the production process and product its self
Market orientation
An approach to business which places the requirements of the consumers at the centre of the decision making process
Pros and cons or product orientation
Pros;
- unique products
- good quality
- saves money on market research
- could be widely unsuccessful and fill a gap in the market
Cons;
- unreliable, don’t know if its going to be successful/ make profit
Marketing objectives
Goals that the firm sets to allow it to achieve its corporate objectives (overall aims of the business)
Corporate objectives
Overall aims of the business
Marketing tactics
Short term marketing measures. The practical actions and techniques designed to meet the needs of the strategy
What are the 4 P’s
- product - gap in the market/USP
- price - strategies - skimming/penetration
- place - where to distribute
- promotion - above or below the line
Marketing strategy
A set of plans designed to achieve the marketing objectives of the business
Distribution channels
Route through which a product passes in moving from the producer to the consumer
5 stages of PRODUCT LIFE CYCLE
1 intro 2 growth 3 maturity 4 saturation 5 decline
4 quadrants of boston matrix
Star - high high
Cash cow - high share low growth
? - high growth low share
Dog- low low
Why is the boston matrix useful
Analysis of product portfolio and makes an informed desision of what marketing strategies need to be changed
Branding
A name/term/sign/symbol/design to identify the goods or services of a business and differentiate them from competitors
Branding strategies - individual
Individual products branded with individual names - can be developed for particular market segments (failure of one brand will have an adverse affect on another)
Branding strategies - corportate (Heinz)
When the business name is the brand name
Branding strategies - family (cadburys)
Brand name which includes a number of different products
Brand extensions (coke)
Existing brand name used for new products in the same market
Branding strategies - brand stretching (virgin)
Existing brand name has been taken to unrelated markets
Why analyse the product life cycle? (3 reasons)
- Identify points at which a business may need to consider launching a new product
- Identify where and when spending is required
- Identify when a product should no longer be for sale
- indicate profitability at each stage
- When extension strategies are required
Brand protection - patents
Right to ownership of an invention or process granted by government for a fixed period of time
Brand protection -copyright
Legal ownership of a material such as books, music and films which prevents these bring copied by anyone else
Brand protection - trade marks
Signs, symbols, logos etc that distinguish products and services of one business from those of competitors
Benefits of brand protection
- they can be used to generate income
- can license other business’ who will pay large sums of money to copy the idea legally
- or can sell to other business’ to use
Law of demand
Number of consumers willing and able to purchase a product
