3.3.4 Marketing mix Flashcards

1
Q

Tradition Four P’s

A

-Product
-Price
-Place (distribution channel)
-Promotion

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2
Q

Extra 3

A

-People
-Process
-Physical environment

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3
Q

Marketing mix

A

The combination of elements used by a business to enable it to meet the needs and expectations of customers

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4
Q

Product

A

-Consumer products
-Convenience products
-Shopping products
-Speciality products

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5
Q

Boston Matrix

A

-A model which helps businesses analyse their portfolio of businesses and brands. The Boston Matrix is a popular tool used in marketing and business strategy

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6
Q

Price

A

What a customer has to give up in order to acquire a product or service

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7
Q

Pricing methods

A

The method used to calculate the actual price set

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8
Q

Pricing strategy

A

Adopted over the medium to long term to achieve marketing objectives

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9
Q

Pricing tactics

A

Adopted in the short term to suit particular situations

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10
Q

Financial objectives that affect pricing

A

-Increase cash flow
-Increase profit

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11
Q

Marketing objectives that affect pricing

A

-Increase advertisement
-Increase brand awareness
-Sales volume+value

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12
Q

Cost based pricing

A

Setting a price based on how much it cost to make

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13
Q

Cost based pricing benefits

A

-Covers all costs
-Easy to calculate
-Price increase can be justified when costs rise

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14
Q

Cost based pricing drawbacks

A

-Keep costs low=price low
-Costs too high=price high
(BOTH DEPEND ON P.E.D!!!)

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15
Q

Price skimming

A

-A firm charges a high initial price and then gradually lowers the price
-Works well for products that create excitement amongst ‘early adopted’
-Best used in introduction or early growth stage of product life cycle
-Electronic items provide many great examples

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16
Q

Price skimming will only work if…

A

…product is in demand
…luxury
…innovation
…high price = high quality
…strong brand image

17
Q

Penetration pricing

A

-Offer a product at a low introductory price
-Aim is to encourage and persuade customers to pay for the product
-Become willing to pay for it
-Prices can be increased once target market share is reached

18
Q

Dynamic pricing

A

-Pricing strategy in which businesses set flexible prices for products or services based on current marketing demands

19
Q

Promotion

A

-Advertising
-Ways to bring customers in
-Publicity
-Informing, influencing and persuading
-Communicating about a product or service

20
Q

Why use promotion?

A

-Brand image
-Increase awareness
-Customer loyalty

21
Q

Different ways of promotion

A

Advertising- paid for communication
Sales promotion- short term incentive to increase sales
Personal selling- promotion on a person to person basis
Public relations- help to achieve favourable pricing
Direct marketing- promotional material through text, mail, email or phone calls

22
Q

Value of brands

A

-Brand image
-Recognise the product from another
-Logo/slogan (if effectively marketed)

23
Q

Benefits of brands

A

-Increase customer loyalty
-Stand out
-Charge higher prices

24
Q

Place

A

To make products available in the right place at the right time in the right quantities

25
Distribution channel
Moves a product through the stages from production to final consumption
26
Retailers
-Focused on customer markets -Final step in the chain -Deals directly with the customer
27
Advantages of retailers
-Quick service -Offer choice -Buy specific amount (not bulk buying) -Easy to access -Hold stock
28
Wholesalers
-Buy in large quantities -Break into smaller quantities to sell to retailers -Make money by buying at a low price from producer and adding a profit margin
29
Advantages of wholesales
-Retailers can order in small amounts -Reduce the producers transport costs
30
Economics of sale
-Output increases, cost per unit decreases
31
Distributor
-Specialises in one particular industry (building supplies, electrical components, industrial clothing)
32
Agent
-Specialist type of distributor -Does not hold stock -Tend to operate in tertiary sector (service) -Earn commission based on sales achieved