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BUSINESS theme 1 > 1.3 test - jarvis > Flashcards

1.3 test - jarvis Flashcards

1
Q

what are the 4 things the marketing mix is made up of

A
  1. design
  2. promotion
  3. pricing
  4. place its sold
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2
Q

what are the 3 things the design mix includes

A
  1. function - fit for purpose, meet consumer needs
  2. aesthetics - look appealing, simple design
  3. costs - competitively priced
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3
Q

what are social trends that can alter the design mix

A
  1. sustainability - reuse, recycle, minimise waste, biodegradable etc
  2. ethical - labour, ethically sourced
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4
Q

why is promotion essential in the marketing mix

A
  • informs consumers about a product
  • this persuades them to buy it
  • promotion includes sales
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5
Q

examples of digital communications

A
  • online adverts target customers whose shown interest in a product for browsing it
  • banners on apps - advert only shows when its clicked on so no money wasted
  • viral marketing - adverts have to be interesting enough to be shared to emailed around eg a hilarious video or something that offers something for free
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6
Q

pros digital communications

A
  • Targeting: Reach specific demographics (age, location, interests) for higher conversion rates.
  • Measurable ROI: Track clicks, views, and sales to prove marketing effectiveness.
  • Global Reach: Expand beyond local markets to a worldwide audience.
  • Cost-Effective: Often cheaper than traditional advertising, especially for small businesses.
  • Engagement: Two-way communication builds customer relationships.
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7
Q

cons of digital communications

A
  • Constant Change: Requires ongoing learning to keep up with new platforms and trends.
  • Data Security: Risk of breaches and misuse of customer information.
  • Competition: Difficult to stand out in a crowded online space.
  • Negative Feedback: Online reviews can quickly damage reputation.
  • Technical Issues: Reliance on technology means outages can disrupt campaigns.
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7
Q

types of promotion which don’t involve advertising

A
  • sales , BOGOF, discounts - increase sales but lose profit
  • mail - unwanted, junk mail, waste of money
  • personal/direct selling - sales person. engaging but have to pay salary, travel costs
  • event sponsorship - raises awareness but expensive
  • public relations - tv conferences, interviews. may be negatively interpreted and effect their public image
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7
Q

3 types of branding

A
  1. manufacturer or corporate branding
  2. product branding
  3. own branding
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8
Q

manufacturer or corporate branding

A
  • this is how a business presents itself
  • within the corporate brand there are separate product brands targeted at different consumers
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9
Q

product branding

A
  • this relates to the individual products that a corporate brand makes
  • the individual product will have its own logo and slogan but the corporate brand may also be included in this packaging so that consumers trust the product
  • for example Rise Crispies and Frosties are both associated with Kelloggs and have their logo on their packaging
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10
Q

own branding

A
  • refers to brands that are in-house to a super market or retailor
  • for example Waitrose own brand baked beans
  • not much ££ spent on it so no distinctive slogan or logo
  • they are normally cheaper than product branding and considered to be lower quality
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10
Q

what’s rebranding

A
  • this is a marketing strategy used when there needs to be a change to the logo, design or pricing of an existing brand/product
  • businesses may do this because they may want to reposition their product and aim it at a different target market to overcome competition
  • it can also create a new identity
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11
Q

what are the benefits of strong branding

A
  • add value to its products
  • strong branding makes the price elasticity of demand for a product LESS PRICE ELASTIC
  • it will look higher quality and therefore more desirable
  • creates brand loyalty –> repurchases
  • creates a strong brand barrier so its harder for newcomers to enter the market
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12
Q

4 ways to build a brand

A
  1. USP - this leads to product differentiation
  2. image associated with the brand - could make a brand be perceived as luxury or superior
  3. advertising - promotes and maintains consumer awareness
  4. sponsorship - events or sports games etc
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13
Q

social media

A
  • brands can go viral on tiktok, Instagram, twitter, youtube, snanchat etc.
  • rapid speed, massive audience, younger demographic
  • pros - low cost compared to traditional advertising methods
  • loss of control of negative image, risk of bad repuation,
14
Q

emotional branding

A
  • for example MALTERSERS focus their branding on spending time with friends and not taking life too seriously which triggers and emotional response and therefore more sales
15
Q

factors that affect pricing decisions

A
  1. the marketing mix - during high promotion of a product its price may decrease
  2. price needs to cover the costs - in order to make profit
  3. price must be acceptable to customers - which depends how price sensitive the target market is
  4. the price elasticity of demand - depends on availability of substitutes, type of product and strength of brand
  5. stage in the product lifestyle its in
  6. price needs to be in line with the businesses objectives
  7. level of competition will affect the price
  8. strong USP - higher price because its highly differentiated
16
Q

price skimming

A
  • when new innovative products are sold at HIGH prices
  • consumers will pay more because the product has SCARCIRTY VALUE and the high price will BOOST ITS IMAGE for example computers and tech products
  • prices then get dropped after a year or so
17
Q

penetration pricing

A
  • when new products enter the market at a LOW price to attract customers and gain market share
  • its effective in markets that are price sensitive eg new food/washing powder
  • works best for businesses that benefit from lower costs when manufacturing large quantities
  • cons - customers like the low price so when the price gets risen lots of customers are lost. this can also damage brand image
  • ## it can also be used as a pricing strategy to prolong a products lifecycle
18
Q

cost plus pricing

A
  • Calculating the total cost of producing a product and adding a fixed percentage (markup) to determine the selling price.
  • eg A bakery calculates the cost of ingredients and labor for a cake is £5. They add a 50% markup (£2.50) and sell the cake for £7.50.
  • simple easy, all costs are covered, doesnt consider demand or competitor pricing
19
Q

predatory pricing

A
  • Setting prices below cost to drive competitors out of the market, then raising prices once the competition is eliminated. It’s illegal in many countries.
  • eg A large supermarket chain drastically lowers the price of milk below cost in a specific region to force smaller local shops out of business. Once they’re gone, the supermarket raises milk prices again.
20
Q

competitive pricing

A
  • Setting prices based on what competitors are charging for similar products or services.
  • wo coffee shops located near each other both sell a regular latte for £3.
  • focuses on market share and requires monitoring of competitive prices
21
Q

psychological pricing

A
  • Setting prices to influence customer perception and make products seem more appealing.
  • A clothing store prices a shirt at £29.99 instead of £30, making it seem significantly cheaper.
  • creates the illusion of a bargain.
22
Q

price comparison sites

A
  • the use of these is increasing
  • these sits make it easier for customers to compare the prices of a product between different retailors and suppliers
    for example comparing car insurance, flight prices and popular goods.
    they save consumers time and effort
    -
23
Q

retailors

A
  • these are shops who sell to consumers
  • the final stage of the distribution channel eg Tesco’s, Argos and amazon
  • they can be physical or online (e-tailers)
24
Q

wholesalers

A
  • they buy goods from manufacturers in BULK and sell them in smaller quantities to retailers this is called ‘breaking bulk’. this means manufacturers don’t have to wait for customers to buy goods before they get the cash
  • they make distribution simpler so that the manufacturer only makes one journey
  • they can also store more goods than the retailors can
25
Q

agents

A
  • they sell to customers on behalf of the business
  • for example travel agents
  • they get paid commission for the products they sell.
26
Q

direct selling - channel of distribution

A
  • 2 stage channel
  • manufacturer –> consumer
  • the internet makes this easier
  • buy and selling on the internet = e-commerce
27
Q

indirect selling (3 stage channel) - channel of distribution

A
  • manufacturing –> retailer –> consumer
  • common for recreational items like clothes, shoes and homeware
  • retailors are usually in convenient places like on the high street
28
Q

indirect selling (4 stage channel) - channel of distribution

A
  • manufacturer –> wholesaler –> retailer –> consumer
  • this is the traditional channel used for groceries
  • btu every stage of the channel wants to make profit so this is likely to make the cost higher to the consumer
29
Q

multi-distribution channels

A
  • when businesses sell through more than one method eg online and in store
  • this gives FLEXIBILITY for customers
  • this gives WIDE MARKET SPREAD for manufacturers
30
Q

online distribution and services - advantages

A
  • streaming or downloading media content like films and books
  • this is purchasing a service instead of a good
  • delivery is direct and immediate
  • cost saving bc no money spent on packaging etc
  • more environmentally friendly - no packaging or pollution from transporting
  • run from anywhere with internet
  • set up costs are low
  • businesses can respond to changing consumer preferences fast as no packaging required
  • businesses has more working capital as not tied up in stock which can then be invested elsewhere into the business
31
Q

online distribution and services - disadvantages

A
  • different skill set needed compared to product skills for employees
  • training in IT skills etc
32
Q

why is online distribution becoming more popular

A
  • ## cheaper and easier

BUSINESS theme 1 (4 decks)

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