1.3 marketing mix and strategy Flashcards
In the Boston matrix what is Dog ?
Low market share/low growth market
In the Boston matrix what is a question mark ?
Low market share/high growth market
In the Boston matrix what is Star?
High market share/high growth market
In the Boston matrix what is Cash cow?
High market share/low growth market
Name the 6 main promotional methods
-Social media
-Product placement
-Sponsorship
-Public relations
-Sales promotion
-Advertising
Why is choice of advertising platform important ? (2 points)
-To make sure adverts have the maximum impact
-To make sure the business reaches the right target market
What are the 3 main elements of the design mix ?
-Function
-Aesthetic
-Cost
What is PR ?
-(Public Relations) involves the managing of spreading information about a business
-e.g the use of newspaper editorials
Give examples of sales promotions (6)
-Point of sales displays
-Value for money offers (Buy 1 get one free)
-Samples
-Discount coupons
-Free gifts
-Competitions
What is the promotional mix ?
The promotional mix is the combination of differently promotional methods that a business uses.
-e.g a business may advertise largly through a T.V, but also do some social media advertising
What are the 5 main factors influencing the promotional mix ?
-Competitor actions
-The nature of the product or service
- Target market
-Nature of the market
-Finance available
What are the 4 key factors that influence a businesses pricing decisions ?
-Costs
-Product life cycle
-Nature of product
-Degree of competition
Price skimming definition
Why is it used ?
-Price skimming is a method where a business sets a high initial price then gradually lowers it over time.
-It is used to try a and maximise revenue
+ and - of Price skimming
+ can help recover the costs of research and development stage of the product
- Can slow down the growth of the product which can give competitors more time to launch their product/service
Price penetration definition
Price penetration is where a business tries to increase market share by offering a low initial price.
Loss leader definition
Loss leaders are products/services that are sold by a business at a price where the business makes a loss.
average revenue<average price
Cost plus pricing definition
Where a business charges the customer service based what it costs to produce the product or service.
Competitive pricing definition
when a business sets its prices for products/services based on what other businesses in the market are charging
disadvantages of behaving ethically
-cost increase
-may lead to selling price increase
-reducing competitiveness
advantages of behaving ethically
-increase in brand reputation
-could create USP
what is a distribution channel ?
a way in which a business can distribute their product
name 3 distribution channels
- manufacturer-wholesaler-retailer-costumer
-manufacturer-retailer-costumer
-direct-consumer
wholesaler drawback
-businesses have less interaction with customers - can lead to worse customer service
-they take a cut of business profits
what do wholesalers do ?
wholesalers sell products in bulk to a network and then retailers sell the products to customers
wholesaler advantages
-large network of buyers
-businesses can reach a lot of customers quickly
retailer definition
a shop that sells directly to the customer in small quantities
features of direct to customer distribution channels + -
+technological advances have made it easier
-not as easy to reach consumers as when using a wholesaler
what are the 6 stages of the product life cycle
-research and development
-introduction
-growth
-maturity
-saturation
-decline
4 main extension strategies
-advertising
-changing the market
-adding more features
-update packaging or rebranding
factors influencing decision on the marketing mix (4)
-business marketing objectives
-target market
-the presence and size of competitors
-the type of product
methods that will help build customer loyalty (3)
-good customer service
-loyalty schemes
-a strong brand
name the 4 p’s
-product
-price
-place
-promotion
