Unit 2 - Marketing Flashcards
(26 cards)
What is product portfolio?
A product portfolio is the range of items sold by a business. It can be analysed using the Boston Matrix. Boston Matrix.
What is a brand?
a type of product manufactured by a particular company under a particular name.
What is an own brand?
A product manufactured specially for a retailer and bearing the retailer’s name.
Why does a larger business often widen their portfolios?
To try and reach a different group in the market so that can increase their market share.
Are there problems of widening product portfolios?
Yes because if it does not work then you have lost a lot of money when you could of spent it on improving the main areas of the business.
What is the product life cycle?
A model showing the lifespan of a product’s sales from launch to being taken off the market
Stages of the product life cycle
Research and development - iPhone 11 Introduction - iPhone x Growth - Tesla Maturity - coca cola Decline - Toys'R'Us Discontinued - Monarch
What is an extension strategy?
When a company tries to do something to stop the product from going into decline
Examples of Extension strategy?
New design Rebranding Sales offers Selecting a new target market Improving the product Reduce price Chose whether to promote or not New flavours (food)
What is product mix?
the total range of products offered by a company.
What is Product Range?
A product range is a set of variations on a specific product made to appeal to different market segments. A product mix is a blend of related products that can be marketed together to similar market segments.
E.g. Coca cola have all different flavours
What is price?
How much a product costs and how much money is required to purchase it
What factors influence the amount a business can charge for a product?
Location Quality of product Demand Brand Stage of product life cycle State of the economy
What is cost plus pricing?
When a company adds on a percentage to how much they made the product for so that they can always make money Positives: Lowers costs Always makes profit Negative: Can't make big money
What is competitive pricing?
When you look at competitors and adjust your prices to try and beat their prices
Positives:
Gains market share
Negative:
If prices start to get too low you start to lose money
What is skimming pricing?
Start at a high price and then gradually the price of the products go down e.g. iPhone Positive: Makes a product more desirable Maximise products Negative: May be too expensive
What is penetration pricing?
Firm prices start low to draw in customers and then will start to go up in price Positive: Draws in customers Negative: Could have made more money
What is loss leader pricing?
Prices set below costs so that they can get customers and also hope they buy other products in the store which have all been increased in prices. Positive: Gets customers in Negative: Lose money
What is psychological pricing?
When a company prices something at £1.99 instead of £2 this is because people think they are getting it for cheaper even though there is only a 1p difference Positives: Brings in customers Negative: Could make a little more money Everyone pretty much does it
What is destroyer pricing?
When a company sets it's prices really low so that they can eliminate any competitors. Positive: Eliminate competition Negative: Make a lose Not legal
What is promotion?
Communication between businesses and customers to make a customer aware of product
Why is promotion important?
An attempt to increase market share Increase sales Brand image/recognition Growth Competitive advantages Public relations
What is above the line promotion?
That is where companies use the media to promote their businesses e.g. Tv, Radio
What is below the line promotion?
When companies promote their businesses using flyers and posters
