Whole Theme Flashcards
(21 cards)
What is segmentation
When potential customers are divided into different groups
Name 4 ways you can segment your market
-Gender
-Income
-Location
-Lifestyle
Pros of market segmentation
Meer customer needs better
-Brand loyalty
-Less price sensitive
Cons of market segmentation
-Higher costs- R&D
-Higher product range-less economies of scale
What is market mapping
A tool to analyse competition in a specific market
To find gaps in the market
What is product differentiation
When the marketing department distinguish a product from its rivals
Pros of product differentiation
-Increase sales
-Avoid competitive pricing
Cons of product differentiation
-Marketing costs increase
What is adding value
The extra value a business creates through its production, distribution or marketing process
Pros of adding value
-Stands out from rivals
-Charge higher prices
-Larger profit per unit
-Increase market share
What is the point of the marketing mix and what are the 4 Ps
To increase sales
Product
Price
Place
Promotion
Promotional methods: Advertising
Persuade + inform potential customers to purchase your product
-Newspapers
-Magazines
-Tv
-Billboards
Promotional methods: Sponsorships
Paying an event to display your business name
Promotional methods: Product trials
Temporary offering of the product
Promotional methods: Branding
Logo/slogan so the customer can identify
Promotional methods: Special offers
Point of sales display
What is brand image
The impression that potential and existing customers have of the business
What is price penetration
Setting a low initial price to help enter a market and then gradually increase prices over time
What is competitive pricing
Setting prices in line with or below rivals
What are the 5 stages of the product life cycle
1.R&D
2.Intro
3.Growth
4.maturity
5.Decline
