1.3 Flashcards
what is the design mix
function, cost and aesthetics are mixed together to appeal to different targets
.
what is promotion
use of a positive image to display and communicate with media to display in newspaper, television and radio.
what is product branding (pumpco)
products are given new brand names to create separate identify that’s unique
what is multiple branding (pumpco)
marketing of two or more similar and competing products by the same firm under different brand names
what is umbrella branding (pumpco)
same brand name is used for related products i.e. virgin media, virgin mobile
what are the benefits of branding
added value, consumers pay for brand name, premium prices, substitutes seem less acceptable, usp
what are different methods of branding
viral marketing- encourage people to pass on brand name
social media- post online posts, creates community, can provide special offers
emotional branding- connects to customers emotionally rather than logically e.g. john lewis
what are the reasons to build a brand
provides usp/differentiation, to keep current consumers and make new ones, distinguishes from competitors
own label branding (pumpco)
common in supermarkets e.g. Tesco’s finest
personal branding (pumpco)
individual becomes a brand e.g. calvin klein, david beckham
what are the risks of branding
can be expensive and does not guarantee success
what is cost plus pricing
a percentage mark up added to the cost of producing to calculate a products sell price.
what is competitive pricing
prices are based on competitors to try and compete on other aspects such as quality.
what is psychological pricing
prices are set to make customers feel as if they get a deal e.g. £1.99
what is predatory pricing
when prices are set low for a short period of time to force competitors out of the market (illegal)
used by big business to squeeze small businesses out of the market.
what is penetration pricing
setting a low initial price for a new product to get a foothold in the market and gain market share
what is skimming pricing
initially setting a higher price for a new product to recoup costs, targets ‘early adopters’ e.g. new PlayStation
what is premium pricing
if a product is a luxury or has many usp’s or seen as a desirable good a firm may naturally set a high price to reflect high quality.
what is sale promotion
short term offers used to increase sales
what are the benefits of sales promotion
+
-creates repeat purchases from previous reluctant customers
what are then drawbacks of sales promotion
-
-expensive if it doesn’t work and will cause the company a loss
what is digital communications
when a business reaches customers online, through online advertising product focused apps, mobile adverts and social media sponsorships
what are the benefits of digital communication
can be targeted to a specific segment of the market and can be much cheaper than other promotion methods
what are the drawbacks of digital communication
online ad clutter which people may ignore
what is personal selling
a business sends a representative to meet with customers in person
what are the benefits of personal selling
good way to build strong personal relationships with customers
what are the drawbacks of personal selling
is expensive to train and is hard to monitor the success
what is direct marketing
communication with a selective audience to create relations with the customer
what are the benefits of direct marketing
tracks success and uses a test for larger campaigns
what are the drawbacks of direct marketing
lots of customers don’t like being directly contacted (spam)
what is sponsorship
providing support or giving money to another business or individual for exposure
what are the benefits of sponsorship
can create a positive image for business and looks more credible.
what are the drawbacks of sponsorship
can be advertising clutter and limited brand exposure while being expensive at mainstream events.
