2.2 (2) Flashcards
List the 4 components of the marketing mix:
Product, place, promotion and price
List 3 things a business needs to consider when developing a new product:
-Cost-Function-Aesthetics
What are the 4 stages of the product lifestyle?
-Introduction-Growth-Maturity-Decline
List 4 extension strategies
Change:-The marketing mix-The packaging-The usage-The name
What is mass market pricing?
Pricing products low to achieve a high volume of sales and cater to a large portion of the market
What is niche market pricing?
Catering to a smaller group of consumers and pricing high, achieving higher profit margins but lower sales volumes
List 5 different pricing strategies:
-Competitive-Psychological-Penetration-Cost plus-Price skimming
What is price skimming?
Setting initially high prices that are lowered over time
What is penetration pricing?
Setting an initially low price to capture customer attention and establish a market share before increasing prices
How may a business set prices in the maturity stage?
Relatively high, so they can maximise profits before decline
List 5 promotional strategies:
-Advertising-Sponsorships-Branding-Product trials-Special offers
Name 3 ways that technology can be used in promotion:
-Targeted advertisements-Viral advertising-E-newsletters
When may targeted advertising be used instead of TV advertising?
When the product appeals to a smaller market segment
What is the traditional method of retail distribution?
Producer -> Wholesaler -> Retailer -> Customer
List 2 advantages of physical retail distribution for the consumer:
-Can physically compare products + ascertain quality-Can obtain the goods instantly
