3.3 Decision Making On Marketing Performance Flashcards
What are internal and external influences on marketing objectives?
Internal
- make sure objectives align with cooperate objectives
- finance department allocates budget for marketing objective
External
- ethical and environmental conscience
- technology growth
- state of the economy (boom, recession)
What are normal and luxury goods?
Demand increase for both as income rises but at a higher proportion of demand for luxury goods.
What is an inferior good?
As income increases, demand decreases giving it a negative YED. Cheaper value products
Characteristics of niche and mass markets
Niche
- small specialised markets with customers who have specific needs & wants
- less competition
- higher prices
- higher product differentiation
Mass
- large general market appealing to a broad amount of customers
- high market size
- low prices
- low product differentiation
What is the Boston matrix?
The Boston matrix is a method of analysing a businesses product portfolio in terms of their market share and growth.
Dog : don’t generate cash
Cow : generates a lot of cash for the business
Question Mark : potential investment can lead to it being a star
Star : requires a lot of investment to maintain growth likely to become a cash cow
What are the three pricing strategies?
Price Skimming : the strategy of releasing a product with a high price but eventually reducing the price
Penetration pricing : the opposite of price skimming where products released into the market are at a low price in order to gain market share
Dynamic Pricing : basing the price of competitors and demand
What is a channel of distribution and multi channel distribution?
A channel of distribution is the route a product takes from the producer to the consumer.
A multi channel distribution is when businesses sell through more than one method of distribution e.g supermarkets and e-commerce
