3.3 Marketing Management Flashcards
What are the 7p’s in marketing?
-Product
-Price
-Place
-People
-Promotion
-Process
-Physical environment
What does place refer to in the 7p’s?
Using the right channels to get the product to the customer
What does people refer to?
Adding to the product by using the right people in the transaction.
What is the marketing mix?
A collection of factors that a business must consider when marketing its products in order to meet the needs of its customers.
Why is it important for the elements of the marketing mix to complement each other?
So that the business can successfully achieve its marketing objectives.
How can the marketing mix for a consumer product differ from the marketing mix for an industrial product?
An industrial product (e.g CCTV system sold to the local council) is likely to be sold differently to reach its target market in comparison to a consumer product like a watch which would be sold in a retail outlet. Also people tend to be more important when it comes to selling industrial products as relations have to be built over time, whereas consumer products can be bought on impulse.
What is a product portfolio analysis?
A method of Analysing and tracking the development of multiple products over time taking into account a number of factors such as growth sales and market conditions.
What are the stages of the product life cycle in order?
- introduction
- growth
- maturity
- saturation
- decline
Pro’s and Con’s of product life cycle analysis.
Pro’s
- useful to analyse a wide product range
- helps decide where to allocate funds
- can help predict future sales to plan production/distribution
What is The Boston Matrix?
A way of categorising products based on market share and market growth rate.
What are the 4 different categories?
- rising stars - leading brand in the mark, needs effective distribution to ensure product availability
- cash cows - successful product in a mature market. Generates high revenue and little promotion needed
- question marks - fast growing market but not an established product. Needs heavy investment. High competition.
- dogs
What are the different pricing strategies?
Dynamic pricing - applies to products where prices may fluctuate with demand, e.g hotel rooms
Penetration pricing - applied to new products. Intial price is low to penetrate the market but as demand ^ over time so may the price.
Price skimming - high intial price, so the profit in the market can be skimmed. Suitable for established brands, where anticipation for new products may be high
What influences a business’ pricing decisions?
- costs
- elements of the marketing mix
- branding - customer perception/ value place on the product
- competition - lvl of competition and the price set by the market.
- Product Iife-cycle - what stage the product is in
Define promotion.
The key method used by businesses to communicate with its customers and poetical customers, to create awareness,understanding and a desire for the product
What are the influence on promotion?
- target audience
- promotion budget
- competition
- technology (e.g subscription services allow businesses to target customers)
Give examples of the methods of promotion.
- advertising
- social media
- sponsorship
- direct marketing
- public relations - media attention through a third party e.g review from a blogger
- sales promotions
Why is branding important?
- build trust
- makes a product recognisable
- brands can be traded
- helps a business position itself in a market
- product make become the natural choice for the novice customer (e.g most people turn to apple for a phone)
- adds value to the product
What does the term distribution refer to?
How a product gets to a customer.
What are the influences on distribution?
- nature of the product
- scope/scale - if it is going to be sold internationally
- control over promotion and pricing - if a business wants to keep control of these factor the bey use their own website or retail chain
- customer expectations
