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Higher Business > 2. Extended Marketing Mix > Flashcards

2. Extended Marketing Mix Flashcards

1
Q

what is the marketing mix?

A

the tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives

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2
Q

what are the 7 p’s of the the marketing mix?

A

price
product
promotion
place
people
process
physical environment

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3
Q

what must a product be?

A

-must meet the needs of the customers
-must provide benefit to the customer
-may be a good or service
-may vary in quality, style, price, packaging from competitors

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4
Q

what are brands?

A

distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products from those offered by competitors

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5
Q

what is the value of brands to retailers?

A

-attract customers
-build loyalty
-higher prices leading to higher profit
-reduced promotional expenses
-facilitates entry into new markets

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6
Q

what is the value of brands to customers?

A

-promises consistent quality
-simplifies the buying process
-reduces time and effort searching for information about merchandise/retailer

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7
Q

what are the advantages of brand?

A

-ensures products are easily identified by consumers
-create brand loyalty and customers will repeatedly purchase the product
-purchase their product and not a rivals
-launch new products more easily
higher prices can be charged

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8
Q

what are the disadvantages of brand?

A

-customers can be put off by the higher price
-competitors can mimic your product to increase their own sales
-can be costly process to create the brand/logo/slogans
-can mean very high marketing costs in the early stages of the product/brand life cycle
-high and low quality brands can be sold by an individual retailer to give customers a choice

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9
Q

what are the disadvantages of brand?

A

-customers can be put off by the higher price
-competitors can mimic your product to increase their own sales
-can be costly process to create the brand/logo/slogans
-can mean very high marketing costs in the early stages of the product/brand life cycle
-high and low quality brands can be sold by an individual retailer to give customers a choice

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10
Q

what are the stages of the product life cycle?

A

-development
-introduction
-growth
-maturity
-saturation
-decline

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11
Q

what are some product life extension strategies?

A

-improve product
-changing the packaging
-change the channel of distribution
-change the product price
-change the promotional activities
-change the use customers have for the product
-rebrand the name
-variations on the original

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12
Q

what are the advantages of a product portfolio?

A

-a wide range of products can allow the business to meet the needs of a variety of customers
-increased profits and profits levels remain steady
-makes business easier to manage
-profitable products can support the development and launch of new products
-raises the profile of the business
-can lead to the company becoming market leaders
-risk is spread amongst products

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13
Q

what are the disadvantages of product portfolio?

A

-products can be spread too wide
-business can lose focus on its key objectives

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14
Q

what is price dependent on?

A

-companies objectives
-competitors prices
-position in its life cycle
-cost of manufacturing
-time of year
-level of advertising /promotions
-suppliers prices

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15
Q

what is penetration pricing?

A

price initially set lower to enter an existing market then raise price once popular

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16
Q

what is destroyer pricing?

A

priced lowered then raised once the competition has left the market

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17
Q

what is promotional pricing?

A

prices reduced for a short period of time

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18
Q

what is premium pricing?

A

high price charged and maintained to create an exclusive image for the product

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19
Q

what is price discrimination?

A

changing different prices for the same product at different times of day, year or amount of usage

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20
Q

what does the channel of distribution depend on?

A

-the product being sold
-finance available to the organisation
-reliability of companies the chain
-desired image of the product
-government restrictions
-the products life cycle
-manufacturer’s distribution capability

21
Q

what are the types of direct selling?

A

mail order
interent
direct mail
newspapers/ magazines
personal selling (door-to-door, telesales)

22
Q

why do manufacturers sell to retailers?

A

-they are often located close to customers
-they may offer credit facilities, delivery, after-sales service and guarantees to customers
-they already have an established customer base
-they will incur the costs of storage of stock, retail premises and sales staff

23
Q

what are the different types of retailers?

A

independent store
supermarket
chain store
department store
discount store

24
Q

what are the advantages of retailers?

A

-provide a source of market research
-often locate close to the customer
-provide after sales service
-may offer credit facilities
-may have an established customer base
incurs the cost of storage, sales staff and retail premises
-bulk buying discount

25
Q

what are the disadvantages of retailers?

A

-may not have specialist product knowledge
-lack of control on how the product/service is sold or displayed
-product is more expensive to but for the consumer due to the ‘middle man’

26
Q

what is a wholesaler?

A

a wholesaler buys goods in bulk direct from the manufacturer and then sells in smaller quantities to retailers and other businesses.

27
Q

what are the advantages of wholesalers?

A

-it provides a source of market research
-it saves the manufacturer from making many small deliveries to individual retailers, therefore3 saving on transport, admin, sales rep costs
-it saves the manufacturer from high stick holdings/storage costs

28
Q

what are the disadvantages to wholesalers?

A

-not all manufacturers decide to use wholesalers some decided to keep control over the way their product is presented to retailers and customers
-wholesalers have limited specialist knowledge

29
Q

what factors influence the location of business premises?

A

-how far the location is from the customer
-how far the location is from infrastructure
-the price of land or premises in the area
-whether or not there are car parking facilities for employees and customers
-cost of labour in the area

30
Q

what are the two types of promotion?

A

below the line
above the line

31
Q

what is below the line promotion?

A

directly controlled by the business eg internet selling, direct mail

32
Q

what is above the line promotion?

A

makes use of mass media to allow the organisation to reach a larger audience eg TV , radio

33
Q

what are the advantages of TV?

A

-adverts can be targeted to national audience reaching all market segments
-product made appealing by the colour, sound and movement of the advert
-product can be demonstrated
-regular adverts can maintain a high profile

34
Q

what are the disadvantages of TV?

A

-expensive
-product may not need to reach all market segments
-message can be short-lived
-many viewers channel surf during adverts

35
Q

what are the advantages of magazines?

A

-big colour adverts, more impact
-can target market segments
-magazines often kept for future reference

36
Q

what are the disadvantages of magazines?

A

can be expensive

37
Q

what are the advantages of independent radio?

A

-cheaper than TV
-can have a captive audience as no surfing during adverts
-target particular market segments

38
Q

what are the disadvantages of independent radio?

A

-listeners may not pay attention to adverts
-limited to sound only
-reliant on listeners imagination to be successful

39
Q

what are the advantages of internet?

A

-can be relatively cheap
-adverts can target particular market segments if placed on the website
-adverts can be changed easily

40
Q

what are the disadvantages of internet?

A

-web surfers may ignore adverts
-software available to stop pop-ups if this style is used

41
Q

what are the disadvantages of internet?

A

-web surfers may ignore adverts
-software available to stop pop-ups if this style is used

42
Q

what are the advantages of apps?

A

-can use it on the move
-can often use free wifi to access the internet

43
Q

what are the disadvantages of apps?

A

-customers need to buy a smart phone or tablet computer to use which is expensive
-training is needed so the app can be designed for customer easier to use
-internet connection depends on the location and devise being used

44
Q

what are the advantages of celebrity endorsement?

A

-consumers buy the product in an attempt to be the same as the celebrity
-photographs of the celebrities are used to create visual connections to the product
-higher prices can be charged due to endorsement
-brand loyalty may be created due to the endorsement
-statements can be used in promotions to further enhance the the product

45
Q

what are the disadvantages of celebrity endorsements?

A

-can cost vast amounts of money to retain the celebrity
-if the celebrity gains bad publicity the product is also tarnished
-product endorsement does not guarantee a quality product

46
Q

what are people to an organisation?

A

people are an essential part of a business whether it be the customers or the employees

46
Q

what are people to an organisation?

A

people are an essential part of a business whether it be the customers or the employees

47
Q

what is the physical element of a business?

A

clean facilities
point of sales displays
logo
payment systems
uniform
seating areas
free wireless
a relaxing ambiance
access to an organisation website

48
Q

what is the process of a business?

A

looks at how a service is provided, from the minute an order is taken to being delivered

Higher Business (25 decks)

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