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Business | Theme 1 > 1.3 The Marketing Mix and Stratagies > Flashcards

1.3 The Marketing Mix and Stratagies Flashcards

1
Q

What makes up the 4P’s

A

Price, Product, Place, Promotion

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2
Q

What are Parts of the Traditonal Design Mix

A

Function- the way that something works

Economic Manufacture - does the design allow the product to be made + sold profitably, production costs

Aesthetics - how the product appeals to the customer in terms of the look and feel

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3
Q

What is Sustainability

A

making a product without affecting the long term supplies of the inputs into the product

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4
Q

Whats a brand

A

is a product that is easily distinguished from other products so that it can be easily communicated and effectivly marketed

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5
Q

What are the benifts of effective branding

A

adds significant value ( from customers point of view)
able to change higher prices + demand is more price inelastic
builds customer loyalty and aspiration

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6
Q

What are the types of branding

A

Service Brand
Product Brand
Corporate
Own Label Brands
Umbrella ( “Family Brands”)

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7
Q

What is Product Brands

A

associated with specific, products, fast moving consumer goods brands

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8
Q

What is service brands

A

added value to services, either delivered face to face or online eg. Vue, Banking

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9
Q

What is Umbrella ( “Family”) Brands

A

brands that are designed to more than one product eg. Cabury owns Dairy Milk, Creme Egg

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10
Q

What is Corporate Brands

A

refers to the practice of promoting the brand name under all products eg. their name

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11
Q

What is Own Label Brands

A

when businesses have their own take on a high brand product eg. Tescos Finest, Essential Waitrose.

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12
Q

What is Global Brands

A

easily recognised around the world and can be highly popular eg, Coca Cola, McDonald’s

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13
Q

What is Brand Extention

A

when a business uses a brand name on a new product that has some of brands characteristics eg. Lucozade + Lucozade Sport

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14
Q

What is Brand Streching

A

where a brand is used for a diverse range of products, not always connected

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15
Q

What are the uses of promotion

A

Encourage customers to buy from them and not competitors
encourage brand streching
create awareness
change attitudes
create image

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16
Q

What is the main aim of promotion

A

awareness of the existance and positioning of products within the market

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17
Q

Whats in the Promotional Mix

A

Public Relations, Direct Marketing, Personal Selling, Sales Promotion, Advertising

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18
Q

What are the key factors influencing promotional mix

A

stages of product life cycle
nature of the product
competiton
marketing objectives + budgets
Target Market

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19
Q

What is Advertising

A

helps you to reach out to potential customers and encourage them to buy your products or services
is paid for communication
mass market advertising is very expencive

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20
Q

What are the Advantages of Advertising

A

wide coverage
control of the message
repition means the message will be hurd effectivly
effective for building loyalty

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21
Q

What are the Disdvantages of Advertising

A

oftern expensive
impersonal
one way communication
lacks flexability
limited ability to close a sale

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22
Q

What is Personal Selling

A

promotion on a person to person basis
two way communications
highly priced, low volume and high technical products rely heabily on personal selling

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23
Q

What are the Advanatges of Personal Selling

A

high customer attention
adaptable
apportunity to close the sale
potential for development of relationship
potential for development of relationship
Interactivity

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24
Q

What are the Disdvanatges of Personal Selling

A

high costs
labour intensive
expensive
can only reach a limited number of customers

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25
What is Sales Promotion
tactical, point of sale material or other incentives designed to stimulate purchases. Short term incentives to increase sales example are free samples, BOGOF, Coupons, Discounts, Loyalty Points
26
What are the Advantages of Sales Promotion
effective at achieveing a quick boost of sales encourages customers to trial a product or switch brands
27
What is Public Relations
create good will towards an indevidual business, cause or product having a good business relationship with public whilst impoving reputation
28
What is Public Relations aims
achieve favourable publicity communicate effectivly with customers and other stakeholders
29
What is Direct Marketing
directed through mail, email, social media or phone to indeviduals or business
30
Direct Marketing uses
allows to generate a specific response from targeted groups of customers -> allows to focus on several objectives - increasing sales to existing customers - build customer loyalty - generating new businesses.
31
Direct Marketing Advanatges
focus limited resources on targeted promotion can personalise the message easily to test different marketing messages
32
Direct Marketing Disadvanatges
responses rates vary negative image of junk email + spam databases expensive to maintain and keep accurate
33
What are the stages of Price Setting
devlop pricing objectives asses of target market's ability to purchases Determine demand for product Analyse demand cost and profit relationship Evaluate competitors prices Select Pricing Strategy + tactics Decide on price
34
Business Objectives that will influence Pricing
**Financial - **maximise profit, achieve a target level of profits, achieve a target rate of return, maximise sales revenue, imporve cash flow. **Marketing - ** maintain/ improve market share, beat/ prevent competition, increase sales, build a brand
35
Factors affecting pricing decisions
Stage of Product Life Cycle Market Share Market Objectives Market Positioning Competitor Pricing Costs Price Elastciity of Demand
36
What are Price Takers
have no option but to charge same as market
37
What are Price Makers
able to fix their own price
38
What are Price Leaders
market leaders whose price chanages are followed by leaders
39
What are Price Followers
follow the price - changing lead of the market leader.
40
What is price skimming
set a high price to maximise profit and is sold to different market segments at different times. Then top segment is skimmed of high price.
41
What is Penetration Pricing
offer at a low introducing price and aims to gain market share quickly, build customer loyalty, price can be increased once target market share has been reached
42
What is Price Wars
each business aims to increase market share by price reduction but the result is destructive spiral of reductions might be seen as good but in long term will be seen as less competitors
43
What is psychological pricing
are to do with how much customers brain work with pricing. For example things being 99p are seen as cheaper to customers
44
What is a loss leader
is a product that is priced below the normal price but make a gain as you go buy other things whilst you are there
45
what is dynamic pricing
is a strategy in which businesses set flexible prices for products or services based on current market demands
46
What is Distrubution
refers to the various methods in which goods/ services move from the manufacturer to the end customer
47
what is the four stage distribution channel
Manufacture -> Whole Sale -> Retailer -> Customer
48
what is the three stage distribution channel
Manufacture -> Retailer -> Customer
49
what is the 2 stage distribution channel
Manufacture -> Customer
50
What is the product life cycle
a theoretical model which describes the stages a product goes through over its life. Development, Introduction, Growth, Maturity, Decline / Withdrawal
51
Describe the development stage
often complex absorbs significant resources may not be successful may involve a long lead time before sales are achieved market research is done makes new product ideas do not reach the launch phase
52
Describe the introduction phase stage
new product launches into the market low level of sales high unit costs usually negative cash flow heavily promotion to make customers aware of the product low capacity utilisation
53
What are the strategies are used in the intro stage
aim encourage customer adoption high promotional spending to create awareness and inform people either skimming or penetration pricing limited, focused distribution demand initially from “early adopters”
54
Describe the growth stage
expanding market but arrival of competitors fast growing sales rise in capacity utilisation product gain market acceptance cash flow can become positive unit costs fall with economies of scale the market grows profits rise and new entry of competitors
55
what are the strategies in the growth stage
advertising to promote brand awareness intensive distribution go for the market penetration + price leadership improve the product
56
Describe the Maturity stage
slower sales growth as rivals enter the new market high level of capacity utilisation cash flow should be be strongly positive prices and profits fall weaker competitors starts to leave the market
57
strategies for mature products
manage capacity + productions promotion focuses on differentiation intensive distribution enter new segments attract new users re positioning develop new users
58
Describe the decline stage
falling sales market saturation and / or competition decline in profits + weaker cash flows more competitors leave the market decline in capacity utilisation
59
What are reasons products reach decline stage
technological advancements change in customer tastes + behaviour increased competition failure to innovate + develop products
60
how can you extend the product life cycle
lower price change promotion change product - re styling for improvement alternative distributing channels develop new market segments re positioning the products
61
what are the weaknesses of the product life cycle
the shape and duration of the cycle varies from product to product its difficult to recognise exactly where a product is on its product life cycle length cannot be reliably predicted decline is not inevitable

Business | Theme 1 (5 decks)

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