Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

A Level Business > 3.4 Marketing Mix > Flashcards

3.4 Marketing Mix Flashcards

1
Q

What is the marketing mix

A

A combination of all the marketing activities a business should consider and plan to meet the needs of their customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 7 P’s of the extended marketing mix

A

Product
Price
Place
Promotion
Physical environment
Process
People

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the difference between consumer and industrial products

A

Consumer products are bought by final consumers whereas industrial products are bought by other businesses for further processing (component)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the product development process steps

A

Idea screening and evaluation
Detailed investigation
Development
Testing
Market launch

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Internal influences on new product development

A

Availability of a budget
Talent (of staff)
Past success/failure
Need to increase sales
Age of current products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

External influences on new product development

A

Gap in the market
Customers expectations
New technology
Competitors actions
Government policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the product lifecycle

A

Monitors sales/ revenue to make decisions about a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Stages of product lifecycle

A

R+D
Introduction
Growth
Maturity
Decline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Extension strategies for the product life cycle

A

New packaging
Discounts
Increase functionality
Bring out new versions
Target new market segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Pros of product lifecycle

A

Easy to use
Suggests when to do extension strategy
Forecast sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Cons of product lifecycle

A

Never follows the exact pattern
Identifying which phase a product is in is hard
May lead to wrong decisions by misreading graph

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the Boston’s matrix

A

A model that helps businesses analyse their portfolio of businesses and brands

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the purpose in having a product portfolio

A

Different products for each segments
More opportunity
A product may fail/decline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The four elements of a Boston matrix

A

Dog
Question mark
Cash cow
Star

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a question mark (BM)

A

A product with low market share in a market with high growth
Has potential but needs investing if it is worth it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a dog (BM)

A

Product with low market share in a low growth market
Likely to need product removed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a star (BM)

A

High market share in a high growth market
Strong compared to competition
Needs heavy investment to sustain growth
Eventually becomes a cash cow when the market begins to grow slower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a cash cow (BM)

A

Product with high market share in a low growth market
Needs little investment
Mature, successful product
Generates strong cash flows
Needs to be managed for continued profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Pros of the Boston matrix

A

Suggest strategies
Shows if a business has balanced product portfolio
Brings focus
Business can make informed decisions to mitigate risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Cons of the Boston matrix

A

Some products can be borderline
Only a snapshot of current position
No predictive value
No account of PESTLE
Doesn’t account for competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Factors impacting price

A

Demand
Competitors
Target market
Cost
Consumer
Elasticity of market
USP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the 4 different kinds of pricing positions and what do they mean

A

Price takers- charge ruling market price
Price makers- staring competitive position to fix own price
Price leaders- market leaders whose price changes are followed by rivals
Price followers- follow price changing lead of the market leader

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Price skimming

A

Set price high then lower over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Pros of price skimming

A

Loyal customers will pay high prices
Break even quickly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Cons of price skimming
The prices could be set too high
26
Penetration pricing
Setting price low then raising over time
27
Benefits of penetration pricing
High initial sales volume
28
Cons of penetration pricing
Competitors may undercut Customers may not want to pay raised prices
29
Competitors pricing
Matching or slightly undercutting competitor prices Could lose or gain competitors competition
30
Loss leaders
Price set below cost as 'bait' to entice customers. Profit comes from sales of other products
31
Loss leader con
Could be risky
32
Loss leader pro
High sales volumes Attract customers
33
Predatory pricing
ILLEGAL Prices set extremely low to knock out any competition
34
Psychological pricing
Making a price feel cheaper Eg. $9.99 rather than $10
35
Price discrimination
Different prices for different social groups Eg. Child ticket
36
Dynamic pricing
instantly responding to changes in demand to change price
37
Benefits of dynamic pricing
Works on inelastic products High sales revenue Loyal customers
38
Cons of dynamic pricing
Unhappy customers Consumers may not buy products if prices are too high
39
Cost plus pricing
Adding percentage of cost onto cost and set as price
40
What are logistics
transportation and movement of goods
41
What is distribution
Where to sell product How to get it there How customers access it
42
What does a wholesaler do
Buys large quantities from producers and break into small quantities to sell to retailers
43
Direct/ short distribution method
Producer to consumer
44
Modern distribution channel
Producer to retailer to consumer
45
Traditional/ long distribution channel
Producer to wholesaler to retailer to consumer
46
Pros of short distribution channel
Full price (B2C) Often the quickest Control over the way the product is distributed
47
Cons of short distribution
Postage costs May need delivery service Need to provide Custer service to individual customers Buying in smaller quantities = higher distribution costs Higher marketing costs
48
Pros of long distribution channels
No contact with final customer =lower costs Dealing with fewer customers and in large quantities Easier financial forecasting Lower marketing costs
49
Cons of long channel distribution
Lower price No Control over the Way the product is distributed (could damage the brand image)
50
How to choose long or short distribution
P->C (make profit while producing, distribution, marketing) P->R->C (if marketing is an issue) P->R->W->C (if marketing and distributing is an issue)
51
What is multi channel distribution
Using more than one type of distribution
52
Pros of multi-channel distribution
Target more customers Sell through retailers with good reputation Increase brand awareness More demand (accessible) More convenient Easier forecasting Spreads risk
53
Cons of multi-channel distribution
Higher costs More time and labour Brand image at risk Different prices for different channels (could be pro) Lack of consistency
54
From of promotion
Advertising Sales promotion Merchandise Direct selling Personal selling Sponsorship Public relations
55
What is advertising and its pros and cons
Paid form of non-personal communication Wide coverage Can be repeated to create brand awareness Expensive Lacks targeting
56
Sales promotions and its pros and cons
Eg. BOGOF, vouchers , samples Short term incentive Encourages customers to buy/ try product Help reach sales target Increase market share Only works if price elastic Customers may be unwilling to pay full price
57
Direct selling and its pros and cons
Info sent by text, mail, social media Focused on target market Can be personalised Cheaper than advertising Can be perceived as junk mail
58
59
Personal selling and its pros and cons
1-2-1 service (B2B) or luxury product Customisation and negotiations Labour intensive = higher distribution costs Low number of customers targeted
60
Public relations and its pros and cons
Professional maintenance of a favourable public image Enhance image of products Communication isn't always controlled by the business
61
Sponsorship
Financial contributions to event
62
Value of branding
Brand loyalty and repeat sales Charge higher price Success of new product launches Easier to enter new markets Barrier to entry Limits impact of economic downturn
63
What is the consideration of people in the extended marketing mix
This staff and employees who come into contact with customers
64
What will happen if people do not meet customer expectations
Loss of reputation Bad reviews Negative word of mouth Low levels of loyalty Low level of repeat purchase Sales and market share will fall
65
What is processs in the extended marketing mix
Customers purchasing and delivery experience Instore and online purchasing How user friendly is the website? Order confirmation via email etc
66
What is physical environment in the extended marketing mix
The quality of the premises Cleanliness Decor Lighting Accessibility etc
67
What is E-commerce
The buying and selling of goods online
68
What are the three main impacts of increased e-commerce
-change marketing mix -increase reach -reduced costs and increased sales
69
Pros of e-commerce
Less expensive costs Open 24/7 Access to larger national or international market
70
Cons of e-commerce
Lacks personal touch Delays in getting the goods (delivery time) Doesn't allow experience of the product before purchase Packaging and delivery and returns costs High competition
71
What is m-commerce
Buying or selling of goods or services using a mobile device
72
Pros of m-commerce
Customer needs met Support changing lifestyles On the move business
73
Cons of m-commerce
Executed better with apps that are built for mobile phones Cost of app Price competitive markets (it is easy to compare prices online)

A Level Business (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions