2.2 - Making Marketing Decisions Flashcards
1
Q
What is the marketing mix? (4)
A
- Price
- Product
- Place
- Promotion
2
Q
What is the product life cycle and what are the 5 stages?
A
The cycle every product goes through
- Development
- Introduction
- Growth
- Maturity
- Decline
3
Q
How do businesses try to extend a products life? (5)
A
- Adding features
- New packaging
- Target new markets
- Changing advertisement
- Lowering price
4
Q
What are the influence on a business when making financial decisions?
A
- Method of production
- Competition
- Product life cycle
- Cost of materials
5
Q
What is price penetration?
A
Start at a low price and increase price over time
6
Q
What is loss leader pricing?
A
Set price below costs so customer will look at other products
7
Q
What is price skimming?
A
Start a high price and lower the price over time
8
Q
What is competitive pricing?
A
Setting prices similar to other businesses
9
Q
What is cost plus pricing?
A
Adding an amount on to the variable cost of a product (normally a percentage)
10
Q
How can a business advertise? (6)
A
- Newspaper
- Magazines
- Posters
- Leaflets
- Television
- Internet
11
Q
What is sales promotion?
A
- Special offers (2 for 1)
- Product trials (free samples)
