Unit 3 Flashcards
(82 cards)
Why is marketing important to a business?
- reduce risk of product failure - understand their customers - communicate and advertise their product - keep up with market trends (customer needs)
What is the marketing process ?
- to identify and understand customer needs - developing and testing products and services - communicating products to customers
What is market segmentation?
A market segment is group of customers in a market that have similar characteristics and needs
What are the benefits of market segmentation?
-Carry out market research - tailor products to customer needs - target promotions as specific groups
What is market research?
Market research is about gathering information about customers, competitors and market trends by collecting qualitative and quantitative data
What are the threestages of market research
- planning and designing the research - doing the research - analysing the information
What is product trial?
The product trial is when consumers buy a product for the first time to decide if they want to buy it again. If this is succcessful it could lead to repeat purchase and customer loyalty
Methods for product trial
-Advertising - public relations - free samples - viral marketing - low trial prices
Methods of repeat purchase
- special promotions - reminders adverts - product innovations - customer loyalty schemes
What are the four steps in the product life cycle?
- introduction- when the product is launched - growth- first profit made if product launch successful - maturity - sales growth slows down but repeat purchase and customer loyalty continues - no new customers - goes to - decline - product sales decline - product goes out of date
What is a product portfolio used for?
- what products to launch and when - when to withdraw a product - what products are doing well/ badly now or in the future - how to increase sales
How is cash flow affected by each stage of the product lifecycle?
Introduction phase : cash flow is negative Growth phase : net cash flow is positive but gradual Maturity : cash flow is positive decline: the business will start to experience cash flow issues
What is the Boston matrix
A product portfolio analysis tool used to plan the development of products
What is the star in the Boston matrix
A successful product Growth has to be funded to keep up with demand Cash flow may be an issue
What is the Cash cow in the boston matrix
Little growth An established but profitable product
What is the ?/ problem child in the boston matrix
Presents a problem , should the business invest to increase sales?
What is the dog in the boston matrix
Few prospects But should the business continue to sell if it supports other products
BRANDING AND DIFFERENTIATION
Yeah do this
What are the 4 P’s?
- promotion - price - product - place
Why is product important?
The product must meet the needs of the customer
Why is price important
The price gives the customers an indication of quality. in a competitive market changes in price can have a significant impact on demand
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Branded product generally have a higher price because they are more expensive to produce and promote
Why should you promote a product ?
-To create awareness Communicates product benefits and features to customers - builds a strong branding image
What is place?
Having a product available to customers when and where they want it