3.4 Decision making to improve marketing performance Flashcards
internal influences on new product development 5
- availability of a budget for r&d
- talent
- past success/failure
- need to increase sales
- how old current products are
external influences on new product development 5
- new gap in the market
- customers expectations
- new technology
- competitors actions
- government policies
pros of multichannel distribution 4
- open 24/7
- different prices for different channels
- increased brand awareness
- access to customer feedback
cons of multichannel distribution 2
- costs may be increased (shop+website)
- lack of consistency of customer service
pros of e-commerce 4
- less expensive costs
- open 24/7 / 365 days
- access to larger inter/national market
- revenue up & costs down = profit up
cons of ecommerce 8
- lacks personal touch
- delays
- doesnt allow experience
- packaging and delivery costs
- subcontracting delivery
- returns
- security issues
- high competition
cons of ecommerce 8
- lacks personal touch
- delays
- doesnt allow experience
- packaging and delivery costs
- subcontracting delivery
- returns
- security issues
- high competition
what is digital marketing
any online methods of marketing e.g. email, social media, blogging etc
pros of digital marketing
- allows global reach
- cheaper
- allows personalisation
- can suggest similar products
pros of digital marketing
- misses out customers not online
- can annoy customers
- customers can opt out of receiving it
6 factors affecting the choice of promotional mix
- target market/audience
- type of product
- stage in product life cycle
- budget
- competitors choice
- technology available
what are consumer products
bought by final customers for personal comsumption
what are industrial products
bought by other businesses not consumers for further processing or for use
key product life extension strategies 6
- product redesign / new features
- price reduction
- new packaging
- increase promotions
- find new segments
- find new markets e.g. abroad
what is penetration pricing
starting the price low for a new product
what is price skimming
starting the price high for a new product
what is branding
methods to increase customers’ recognition of brand e.g. name, logo, design, sign, colour or slogan
value of branding 6
- brand loyalty & repeat sales
- can charge a higher price
- new product launches are likely to be more succesful
- easier to enter new markets
- act at barrier to entry
- limits impact of economic down turn
what is physical environment
layout and design of premises; ambience, ease of movement
what is process
transaction process; website design; operational support
what is people
customer service; skills and experience of staff
