2.2 - making marketing decisions Flashcards
1
Q
design mix
A
- function
- aesthetics
- cost
2
Q
full product lifecycle
A
development, introduction, growth, maturity, decline, (extension)
3
Q
examples of extension strategies
A
new marketing campaign, change of packaging
- modified product, suits more customer wants/needs, larger target audience and market
4
Q
why is product differentiation important?
A
- position products and target different market segments
- gain advantage over rivals
- create USP, meet needs of specific market segment, willing to pay premium price
5
Q
how to differentiate products?
A
- unique product name
- quality
- design/function
- customer service
6
Q
pricing strategies
A
- volume strategy: price with low profit margin so high sales volumes are needed for it to be profitable
- margin strategy: setting a price with high profit margin
7
Q
factors influencing pricing strategy
A
- competition
- market segment
- product life cycle stage
- costs
- technology
- branding
8
Q
methods of promotion
A
- advertising grabs customer attention at the right place using right medium BUT expensive and impact is unclear
- sponsorship provides exposure to new audience BUT limited communication about benefits of product
- product trials encourage customers to use product they might not think of BUT expensive to give for free
- special offers can boost short term sales and clear stock but unsustainable for long term
- public relations encourage customers to connect with brand BUT takes time to build image and damaged easily by bad press
9
Q
why is strong brand good
A
- customers recognise brand and what it represents
- customers associate with positive characteristic
- brand loyalty/trust
- charge premium
10
Q
technology in promotion
A
-social media
- apps
- email
- targeted advertising
11
Q
retailing benefits
A
- can browse and try products
- provide customers with help and advice
- enjoyable experience of shopping
12
Q
e-tailing benefits
A
- no cost for rent/retail space
- access customers around the world
- customers can shop any time
- small business can compete with larger ones without needing retail space
