1.4 Marketing strategies Flashcards
What is market segmentation?
Process of break down the total market to small market base on customer and factors
What are 4 method of market segmentation?
Geographic,demographic, psycho graphic, behavioural
What is geographic segmentation?
Break down market to smaller geographic location like country, state. (E.g : MC Donalds not use beef products in India)
What is demographic segmentation?
Dividing market into smaller market based on customer’s factors such as age,gender, income, education level,etc. ( E.g :Magazine separate male and female to different magazine fit to different gender.)
What is psychological segmentation?
Dividing market into smaller market base on customer lifestyle, interest, personalities , interests and value to a product (E.g : cloth store divide into different section, home cloth, work cloth, gym cloth)
What is behaviour segmentation?
Dividing market into smaller market based on customer’s knowledge, attitude toward a product (Flower shop have different flower decoration style for different events that attract customer like father’s day, mother ‘s day)
How can business differentiate their product from competitor?
- Lower price, better packaging, faster delivery, more application.
What are some strategies for product in the marketing mix?
Positioning, branding, packaging
What are price strategies that generate fast sell?
- Penetrating pricing : Set price of product as loweest as possible compare to competitor to gain immediate customer (Kmart)
- Loss leaders : Set price of a product below profit price, hope customer buy the product also buy other product that bring profit to business (Coles)
- Product - deletion pricing : Gather products and mark with low price to quickly remove old stocks.(Kmart)
What are price strategies that achieve the greatest financial return?
- Market skimming: Increase price of final product to cover the cost in design and production. (Apple)
- Demand based pricing : Increase price of product or service during a season or at high - demand point (Qantas, airlines, ski, hotel)
- Prestige pricing : Apply for prestige product with high quality come with high price .(Ferrari)
What are 4 pricing method?
- Cost - plus pricing : additional cost for service add to original cost (Vodafone)
- Competition - based pricing : Said to customer business will beat price of company that sell same product that cheaper than them (Dan Murphy 10% off competitor wines )
- Price point : Different price for similar product with different features (Vodafone)
- Psychological pricing: Make price look cheaper (Instead of $400 , write $399 make it cheaper)
What is interaction between price and quality?
- Price must match with quality of product, low price - low quality, high price - high quality
What are strategies of promotion mix?
- Personal selling: personal staff sell product directly to customer through communication
- Relationship marketing: Customer that loyal with brand will receive discounts, benefits
- Advertising : Use media to promote products
- Sales promotion : Discount prices, buy 1 get 1
- Publicity an public relations : Create events for business to generate awareness of the product
What are 2 communication strategies used by business?
- Opinion leader: Use celebrity to promote the product.
- Word of mouth: Invite regular people to review product
What are 3 common channels of the product?
- Producer to consumer: products and services produce by company go straight to customer (Hotels, dentist)
- Producer to retailer to consumer: Product send to retailer to easy spread to customer (Beat send products to electronic retailers like JB hi - fi to quickly access to customers)
- Producer to wholesaler to retailer to customer
