2.2-Making marketing decisions Flashcards
1
Q
What is the design mix?
A
The features that need to be considered when making a new product
2
Q
What are the three aspects of the design mix?
A
- Function
- Aesthetics
- Cost
3
Q
What are the stages of the product lifecycle?
A
- Initial introduction
- Growth
- Maturity
- Decline
4
Q
What are the extension strategies of a product?
A
- Lowering price
- Increasing advertising
5
Q
In what ways would a business differentiate its products?
A
- Ensure a USP
- Create a distinctive brand
- Provide good customer service
- Produce a high quality product
6
Q
What are the different types of pricing strategies?
A
- High volume pricing (Penetration pricing)
- High margin pricing (Skimming)
Graph below shows the pricing strategy graph
High | \ high volume but low margin
| \
Vol | \
| \
| \ low volume but high margin
Low ——————
Margin High
7
Q
What factors influence pricing strategies?
A
- Technology
- Competition
- Market segments
- The product life cycle
8
Q
What are the promotion strategies?
A
- Advertising
- Sponsorship
- Product trial
- Special offers
- Branding
9
Q
How does technology aid promotion?
A
It allows for:
- Targeted advertising on websites (cookies)
- Viral advertising using social media
- E-newsletters
10
Q
What are the advantages and disadvantages of retailing?
A
+
- Customers can access face to face support
- Customers can see the product or service in real life
- It allows a business to add value through good customer service
—
- Renting a physical shop is expensive
- Third party retailers take a cut of from the manufacturers
11
Q
What are the advantages and disadvantages of e-tailing?
A
+
- Business does not need a store
- Business can access international market
- Small businesses can startup very easily
—
- Customers can’t see products before purchasing them
- Expensive digital marketing strategies are often required to make sales
