3.3.3 Flashcards
What is the STP process?
-Segment (divide the market into groups/characteristics)
-target (decide who to focus on)
-position the product in the target customers minds
4bases for segmenting the market?
-Demographic
-geographic
-income
-behaviour
The 7ps?
People
Physical environment
Process
Product
Price
Place promotion
Four influences on the marketing mix
-Competitors: rivals behavior can make a business spend more on promotion and customer service
-type of products
-product life cycle
-target market segment
What is the Boston matrix?
Compares market growth with market share. Each circular in the matrix represents one product. The size of each circle represents the sales revenue of that product.
How does Boston matrix help a business?
Valuable way of showing where a businesses products are positioned in the market.
What are the 4 types in the Boston matrix
-Cash cows (low market growth and high market share)
-question marks are what all new products are
-stars have high market growth and high market share
-dogs have low market share and low market growth.
What is price skimming?
New products are sold at high prices when they first reach the market.
What is penetration pricing?
Launching a product at a low price
What does dynamic pricing aim to do?
Aims to increase revenue by changing prices depending on competitors prices and demand.
What is the role of a wholesaler?
Buy products cheaply in bulk and sell them on to retailers.
2 different types of distribution channels?
Indirect selling:
manufacturer-> consumer
Direct selling through an agent:
Manufacturer->agent-> consumer
What is multichannel distribution?
When a business sell to through more than one method Eg online and in store.
Advantages and Disadvantages of using multi channel distribution?
-May lead to added costs but allows a business to target a wider market.
