2.2 Making Marketing Decisions Flashcards
The design mix
Function, aesthetics, cost
Function is
What teh product should od and how well it does it
Cost in the design mix is
How cost-effective the product is to manufacture and sell
Aesthetics are
How the prducts appeal to customers
4 phases of the product life-cycle
Introduction
Growth
Maturity
Decline
Introdcution in life-cycle
The products is launched, low sales
Growth in life-cycle
As more customer become aware, sales increase rapidly
Maturity life-cycle
Sales peak, established product
Decline in life-cycle
Sales fall as product loses popularity. Unprofitable
Extension strategies are
When the business introduces a way to keep people interested during the decline
Extension strategy examples
Product differentiation
Reducing product price
Rebranding product
Increasing marketing
Factros affecting price
Cost of product
Quality of product
Brand image of product
Supply and demand
Pricing strategies
Pricing low to achieve high sales but a low profit margin
Pricing high with low volume of sales, high profit margin
Factors that affect pricing strategies
Technology
Competitors
Market segments
Life-cycle stage
Promotion is used to
Inform customers
Persuade customers
Remind customers
Promotional methods
Advertising
Sponsorship
Product Trials
Special Offers
Branding
A promotional strategy is
A combination of some or all of the methods to reach a target audience
Ways of using technology in promotion
Targeted advertising
Viral social media advertising
E-newsletters
Distribution channels are
The different ways of moving goods from producers to customers
3 channels of distribution
Producers
Retailers
E-tailers
Direct distribution channels are
Involve only the producer and the customer
Indirect channels of distribution are
When an intermediary are introduced into the process
Retailers are
Businesses that sell to the public in a physical shop
E-tailers are
Retailers that sell products or services to customers using an online store
