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Business > 1.3 Marketing Mix & Strategy > Flashcards

1.3 Marketing Mix & Strategy Flashcards

1
Q

What are some aims of promotion??

A
  • Generate brand awareness
  • Generate awareness of positioning
  • Create an image
  • Change attitudes
  • Increase market share
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2
Q

What are the 7 types of Promotion??

A
  • Personal selling
  • Digital Communications
  • Sponsorship
  • Public Relations
  • Advertising
  • Direct Marketing
  • Sales Promotions
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3
Q

What are 3 negatives of Advertising??

A
  • Expensive
  • Hard to measure effectiveness
  • Easy to ignore
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4
Q

What are 3 positives of Direct Marketing??

A
  • Target specific audience
  • Measurable (helps adjust strategy)
  • Personalise marketing message
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5
Q

What are 3 negatives of Direct Marketing??

A
  • Intrusive
  • Waste of money if sent to spam/junk
  • Databases expensive to maintain
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6
Q

What are Sales Promotions??

A

Special offers:
e.g free samples, BOGOF

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7
Q

What are 4 positives of Sales Promotions??

A
  • Quickly boost sales/engagement
  • Clear out stock
  • Promote new product
  • Encourage impulse purchases
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8
Q

What are the 2 positives of Personal Selling??

A
  • Build relationships with customers
  • Personalised advice/guidance
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9
Q

What are the 2 negatives of Personal Selling??

A
    • Expensive (to hire & train staff & for travel if it’s required)
  • Limited reach
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10
Q

What are 3 positives of Sponsorships??

A
  • Build awareness
  • Create emotional connections
  • Reach new customers
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11
Q

What are 2 negatives of Sponsorships??

A
  • Expensive
  • Subject to negative publicity
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12
Q

What are Public Relations??

A

Connecting with media through TV interviews, product launches, etc.
Creates Goodwill

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13
Q

What are 4 positives of Public Relations??

A
  • Raise reputation
  • Increase customer loyalty
  • Cost-effective
  • Obtain favourable reviews
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14
Q

What’s the main negative of Public Relations??

A

Difficult to control; what media reports about business and the public relations.

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15
Q

What are the 3 negatives of Digital Communications??

A
  • May be subject to data privacy regulations
  • less effective for older people
  • May be ignored
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16
Q

What are Product Brands??

A

Specific individual products that a corporate brand makes

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17
Q

What are Own Brands??

A

In-house to supermarket or retailer (e.g Asda Essentials)

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18
Q

Why do businesses have/want Strong Branding??

A
  • To add value
  • Make product less price elastic
  • Create barrier so it’s harder for newcomers to enter the market
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19
Q

What is Emotional Branding??

A

Matching branding to lifestyle values or aspirations to trigger an emotional response

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20
Q

What is Viral Marketing??

A

A low cost way of spreading brand awareness through online platforms

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21
Q

What are the factors that impact promotional strategy decisions??

A
  • Product life cycle
  • Nature of product
  • Competition
  • Budget
  • Target Market
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22
Q

What are the factors that affect Pricing Decisions??

A
  • Marketing Mix
  • Costs
  • Price sensitivity
  • Price elasticity of demand
  • Stage of product life cycle
  • Competition
  • USP (strong = high price)
    Brand strength
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23
Q

What are the 6 Pricing Strategies??

A
  • Price Skimming
  • Psychological
  • Predatory
  • Competitive
  • Penetration
  • Cost Plus
24
Q

What is Price Skimming??

A

Setting high price and gradually lowering it (usually after initial sales)

25
Q

What are 2 positives of Price Skimming??

A
  • Recover from development & marketing costs quicker
  • Increases image & appeal
26
Q

What are the 3 positives of using Penetration Pricing??

A
  • Quickly capture market share
  • Attract price-sensitive customers
  • Can be used as an extension strategy
27
Q

What are the negatives of Penetration Pricing??

A
  • Lose customers when raising
  • Damage brand image
28
Q

What is Cost Plus Pricing??

A

Calculating cost of production & then adding a markup to determine price

29
Q

What is the equation for cost plus pricing??

A

Unit cost + ((unit cost/100) x mark-up)

30
Q

What are the 2 drawbacks and 1 benefit of predatory pricing??

A
  • Anti-competitive
  • Harms customers by lowering choice
    + Lowers competition
31
Q

What is the benefit and the drawback of competitive pricing??

A

+ Helps maintain market share
- Constantly have to monitor & adjust prices

32
Q

What is psychological pricing??

A

Taking into account customers’ emotions, beliefs & attitudes towards the product/business

33
Q

Give an example of psychological pricing!

A
  • Putting prices high to convince customers of good quality
  • Setting price to £9.99 instead of £10 because it looks cheaper
34
Q

How do online sales impact pricing??

A
  • Dynamic pricing (adjust prices in real time)
  • Different prices online to convince customers to shop online
  • More price competitive
35
Q

What’s the design mix??

A

Aesthetics, function & cost

36
Q

What are the 2 main social trends that influence the design mix the most??

A

Resource depletion and Ethical Sourcing

37
Q

How does resource depletion impact the design mix??

A

Customers increasingly more aware of the need to conserve natural resources & reduce waste

38
Q

How does ethical sourcing impact the design mix??

A

Products should be produced without exploitation of workers or environmental damage.
Companies may change to more sustainable materials & production processes.
need t decide if increasing prices is worth cost/ethics

39
Q

What are distribution channels??

A

The various intermediaries through which goods/services move from the producer to the end consumer

40
Q

What are the benefits of traditional distribution (4 stage)??

A
  • Customers can try on products
  • Displays to attract customers
  • Help & advice on the spot
  • Enjoy shopping experience
41
Q

What are the 2 changes to distribution to reflect social trends??

A

Online distribution and drop-shipping

42
Q

What does shifting from product-based to service-based business usually mean??

A

Online distribution, which:
- More ethical
- Cost savings
- Less pollution
- Easier
- Requires further training

43
Q

What are the advantages of retail distribution??

A
  • Convenient for customers
  • Often UK-wide reach to customers
  • Retailer chooses final price
  • Retailer handles financial transaction
  • Retailer holds stock
  • After-sales support
44
Q

What are the 3 benefits of online distribution??

A
  • Lower cost
  • Open 24/7
  • Customers from around the world
45
Q

What are the 4 factors influencing distribution??

A
  • Type of product (services directly to customers)
  • Speed (perishables need to be delivered fast)
  • Cost
  • Distance
46
Q

What are the 5 stages of the product life cycle??

A
  • Development
  • Introduction
  • Growth
  • Maturity
  • Decline
47
Q

What are the 3 factors of the development stage of the product life cycle??

A
  • Focus on design and research
  • High failure rate
  • Time-consuming
48
Q

What are the 3 factors of the introduction stage of the product life cycle??

A
  • Negative cash flow
  • Heavy promotion
  • Either skimming or penetration pricing
49
Q

What are the 3 factors of the growth stage of the product life cycle??

A
  • Positive cash flow usually
  • Competitors may be attracted to market
  • Promote to differentiate from competiton
50
Q

What are the 3 factors of the maturity stage of the product life cycle??

A
  • Increased profitability
  • Intense competition
  • High level of capacity utilisation
51
Q

What are the 3 factors of the decline stage of the product life cycle??

A
  • Product becomes obsolete or replaced by newer products
  • Rapid fall of sales
  • Decline in capacity utilisation
52
Q

What are 5 of the extension strategies??

A
  • Product improvements
  • Line extensions
  • Repositioning
  • Changes to promotion
  • Sales promotion
53
Q

What are the 4 parts of the Boston Matrix??

A
  • Cash Cow
  • Question Mark
  • Star
  • Dog
54
Q

What are the 3 factors of cash cows??

A
  • High market share in mature market
  • Positive cash flow
  • Use profit to invest in other products
55
Q

What are the 3 factors of question marks??

A
  • Low market share in high growth market
  • Invest to increase market share & brand recognition
  • Negative cash flow
56
Q

What are the 3 factors of stars??

A
  • High market share in high growth market
  • Positive cash flow
  • Invest significant amount in promotion
57
Q

What are the 3 factors of dogs??

A
  • Low market share in low growth market
  • Phase out or sell off (divest)
  • Could harvest any profit possible in short term

Business (6 decks)

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