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AQA A LEVEL BUSINESS STUDIES > 3 Marketing Mix > Flashcards

3 Marketing Mix Flashcards

1
Q

Influences on the marketing mix

A

type of product
external influences
positioning
internal influences

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2
Q

External Influences on the Marketing Mix

A

Political/Legal - meeting emission goals, adhering to laws
Economic - charging higher prices in a period where incomes are high
Social - environmental concerns changing raw materials
Technological - online promotion, after sales service
Competition - may need to enhance goods to compete (USP)

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3
Q

Internal Influences on the Marketing Mix

A

Corporate Objectives
Finance - profitability, cash flow, liquidity
HR - quality of workforce, skills, customer service
Operational Issues - compete pn cost and quality
Business culture - production oreintated culture result in management setting unrealistic targets

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4
Q

Marketing Mix Elements

A

PRODUCT
PRICE
PROMOTION
PHYSICAL ENVIRONMENT
PLACE
PROCESS
PEOPLE

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5
Q

Purpose of the Product Life Cycle

A

shows the sales of a product over its life

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6
Q

Stages of the Product Life Cycle

A

Research & Development
Introduction
Growth
Maturity
Saturation
Decline

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7
Q

Research & Development Phase

A

market research carried out
prototypes are produced
product idea developed
negative cash flow - 0 sales
considers all elements of the mix

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8
Q

Introduction / Launch Phase

A

sales begin and start slowly as customers getting to know
high promotion expenditure to gain publicity
need to convince distributors to stock the new product
marketing campaigns

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9
Q

Growth Phase

A

sales accelerating if it is well advertised
more outlets for products need to be found
firm starts to break even on costs
begin to make profit

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10
Q

Maturity Phase

A

sales rate begins to slow down - at its peak
competitor may have launched a new product that impacts sales
customers desire new products
considers extension strategies
highest cash flow

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11
Q

Decline Phase

A

sales fall as popularity falls
profits still high but starting to fall
can introduce new product as extension strategy
considers if the product should be withdrawn

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12
Q

Extension Strategies

A

add new fature USP
change packaging
increase advertising budget
reposition brand into niche market
enter new markets
market segmentation
lower the price
redesign product

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13
Q

Boston Matrix

A

model which aides businesses in analysis a balanced portfolio of products - decision how to allocate investment (product development, promotion)

based on market share and market growth

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14
Q

Key Assumptions made in Boston Matrix

A

market share gained by investment in marketing
market share gains will always generate cash surpluses
cash surpluses generated when the product is in the maturity phase
best opportunity to build dominant market position during grwoth phase

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15
Q

STARS

A

high market share in a high growth market

cash neutral HOLD

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16
Q

Cash Cows

A

high market share, low market growth
mature and successful little need for investment
generates strong cash flows HARVEST

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17
Q

Question Marks

A

low market share in high growth markets
needs substantial investment to grow market share
cash absorbing BUILD

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18
Q

Dogs

A

low market share in low growth markets
may only generate cash to break even
cash neutral DIVEST

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19
Q

Benefits of Boston Matrix

A

useful for analysing portfolio decisions
only a snapshot of current position
no predictive value
does not consider external factors
flaws from assumptions

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20
Q

Drawbacks of Boston Matrix

A

market growth is inadequate measure of market’s attractiveness
market share is adequate measure of product’s ability to generate cash
focus on market share/growth ignores issues
product life cycle varies

21
Q

What may happen to a Boston Matrix?

A

stars become cash cows
cash cows finance question marks
question marks develop into stars
remove dogs
revive dogs through extension strategies

22
Q

Penetration Pricing

A

low prices charged to attract customers and gain a foothold within a market
used to establish market share
low introductory price increases over time
presumes a price elastic demand

23
Q

Price Skimming

A

high price charged initially to gain a high profit margin from early adopters
used in established businesses
strong brand image
loyal customer base
USP - often patent protected
first mover advantage gaining competitive advantage

24
Q

Dynamic Pricing

A

when pricing changes paidly in response to changing market conditions
(airlines and hotel rooms)
ideally suited to online sales where demand can be tracked in real time
maximise profits

25
Q

Influences on Pricing Decisions

A

costs
stage of product’s life cycle
PED
positioning
other elements of marketing mix
competitiveness of environment

26
Q

Influences on Promotional Mix

A

promotional budget
target market
the message
positioning
competitive advantage

27
Q

Promotional Mix

A

Advertising
PR
Sales promotions
sponsorship
branding

28
Q

Merchandising

A

the presentation and promotion of goods that are available to purchase

29
Q

Branding

A

creating a distinct identity for a business in the minds of your target audience and the general population

30
Q

Promotion

A

the process of communicating with customers to increase sales

31
Q

Methods of Promotion

A

sponsorship
sales
celebrity endorsements
word of mouth
websites / radio / newspapers
direct mail
banners

32
Q

Social Media

A

the social interaction among people when they exchange / create information and ideas in virtual platforms

33
Q

Viral Marketing

A

marketing technique that uses social media netwroks to raise brand awareness and boost sales by getting users to recommend the promotional campaign

34
Q

Brand

A

a promise to deliver certain beneifts and services

can be identified via a recognisable name, symbol, slogan, logo that os used to distinguish from competitors in the market

35
Q

Persuasive Tactics

A

language and imagery used to revoke an emotional reaction and convinces buyers that a company is reliable

36
Q

Informative Tactics

A

providing as many details as possible through advertisements

37
Q

Place Function of the Marketing Mix

A

the route to market and the process of distribution to consumers
placement of products within stores
product manufacturers will employ merchandisers to liase with retailers

38
Q

Multichannel Distribution

A

customers can buy the product in several ways (in store, online, click and collect)

39
Q

Producer

A

supplies the goods
selling directly to customers will help to maximise profit margins as profit is not lost in intermediary’s mark ups

40
Q

Wholesaler

A

firms that break the bulk and supply them in smaller quantities to retailers
producers want to sell to bigger wholesalers as it reduces distribution costs and time taken to negotiate

41
Q

Retailers

A

shops that sell goods to final customers

42
Q

Agent

A

a firm that never actually owns the good but will facilitate buyers and sellers coming together to make a deal happen

43
Q

Factors Influencing Location

A

competitors
target market
type of product
proximity to suppliers
proximity to customers

44
Q

Analysing Distribution Decisions

A

degree of coverage
costs of different strategies
nature of the product
degree of control a business wants over promotion and pricing
how customers expect to access the product

45
Q

People Element of the Marketing Mix

A

how employees interact with customers
major impact on the firms quality of customer service and their brand image / customer loyalty (repeat sales, after sales service)
impacted by HR policies such as recruitment, training and motivation

46
Q

Process Element of the Marketing Mix

A

how the company deals with its customers and delivers the product or service
covers areas such as communication and after sales service

47
Q

Physical Environment

A

tangible feature that can enhance customers’ experience

buildings that the company operates in
store layouts/displays
equipment used
websites, catalogues, brochures, advertising literature, emails, letters
staff appearance and uniforms
packaging

48
Q

Main Influences on Marketing Mix

A

position in the product life cycle and the boston matrix
type of product
marketing objectives
target market
competition and positioning

AQA A LEVEL BUSINESS STUDIES (6 decks)

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