2.2 making marketing decisions Flashcards
what is differentiation
making your products disinctive in the market
Name the tree elemnts of the design mix
Function
Cost
Aesthetics
what is the purpose of function
fit for purpose, unique features
what is the purpose of the cost
low manufacturing costs
what is the purpose of aesthetics
appearance, attractive and distinctive
What is research and development
first stage, develop an idea
what is the introduction
product is lunched and put on sale
advertising and sales promotion
what is growth
demand increases until product is astablished
what is maturity
demand reaches peak
less promotion but the same advertising
widely avaliable
market becomes saturated
what is decline
demand starts to fall
what is an extention stratige
extend product life
how does tech influence price
if expensive machinary need to increase price
in the long term will save money
how does methods of production influence price
flow has the advantage of econimies of sale so product is cheaper
how does product life cycles influennce price
intro stage charge high or low to attract
maturity stage price in line with competitors
decline reduce price
how does competition influence price
competitive needs to look at competitors
if price too high customer choose competitor
too low customer query quality
how does market segments affect price
product amied at high income can have higher price
how do cost of raw materials influence price
high quality are expensive
what is pricing penetration
firm cahrges low price
what is loss leader pricing
product is set below cost
what is price skimming
charge a high price
works for astablished
cove RandD
what is competitive pricing
charge simialr to competitors
what is cost plus pricing
total cost of making product then adding on how much profit you want
what is branding
the immpression that customers have of the firm on products sold by a firm
what is advertising
any message that a firm pays for which promotes the firm
