4b- The market Flashcards
Q: What is the marketing mix?
A: The marketing mix is a combination of factors that businesses use to influence consumers and sell products. It consists of the 4Ps: Product, Price, Place, and Promotion.
Q: Why is the marketing mix important?
A:
Helps businesses attract and retain customers.
Ensures the right product is sold at the right price and place.
Creates competitive advantage in the market.
Improves business profitability by targeting the right audience.
Q: What factors influence product decisions?
A:
Product design and features – Must meet customer needs.
Branding – Helps differentiate the product.
Packaging – Attracts customers and provides product protection.
Product life cycle – The stages a product goes through (Introduction, Growth, Maturity, Decline).
Q: What is the product life cycle?
A:
Introduction Stage – High marketing costs, low sales.
Growth Stage – Rapid sales increase, brand recognition.
Maturity Stage – Peak sales, strong competition.
Decline Stage – Falling demand, potential discontinuation.
Q: How can businesses extend the product life cycle?
A:
Introducing new variations (e.g., new flavors, designs).
Rebranding or updating packaging.
Targeting new markets (e.g., international expansion).
Promotional campaigns to boost demand.
Q: What are the key pricing strategies?
Cost plus
Cost-Plus Pricing: Adding a fixed percentage to production costs.
Advantage: Ensures a profit margin.
Disadvantage: Ignores competitor pricing.
Q: What are the key pricing strategies?
Competitive pricing
Competitive Pricing: Setting prices based on competitors.
Advantage: Avoids price wars.
Disadvantage: May not maximize profit.
Q: What are the key pricing strategies?
Penetration pricing
Penetration Pricing: Low prices to attract customers, then increasing prices.
Advantage: Gains market share quickly.
Disadvantage: Lower initial profits.
Q: What are the key pricing strategies?
Price skimming
Price Skimming: High initial prices for new products, then gradually reducing prices.
Advantage: Maximizes profit on early adopters.
Disadvantage: Attracts competitors.
Q: What are the key pricing strategies?
Psychological prising
Psychological Pricing: Pricing items just below a whole number (e.g., $9.99 instead of $10).
Advantage: Appeals to consumer psychology.
Disadvantage: May not work for all markets.
Q: What are the main distribution channels?
Direct selling
Direct Selling: Manufacturer sells directly to consumers (e.g., online stores).
Advantage: Higher profit margins.
Disadvantage: Requires strong marketing.
Q: What are the main distribution channels?
Retailers
Retailers: Selling through physical stores (e.g., supermarkets, clothing stores).
Advantage: Convenient for consumers.
Disadvantage: Retailers take a percentage of sales.
Q: What are the main distribution channels?
Wholesaler
Wholesalers: Buying in bulk from manufacturers and selling to retailers.
Advantage: Helps manufacturers distribute widely.
Disadvantage: Reduces manufacturer profit margins.
Q: How has e-commerce changed place decisions?
Increased online shopping and home delivery.
Reduced need for physical retail stores.
Allows businesses to reach global markets.
Encourages direct selling from manufacturers.
Q: What are the main promotional methods?
Advertising
Advertising: Paid promotion through TV, online, social media.
Advantage: Reaches a large audience.
Disadvantage: Expensive.
Q: What are the main promotional methods?
Sales promotions
Sales Promotions: Discounts, coupons, special offers.
Advantage: Encourages quick sales.
Disadvantage: May reduce brand value.
Q: What are the main promotional methods?
Sponsoshios
Sponsorships: Brands funding events or influencers.
Advantage: Builds brand image.
Disadvantage: High cost.
Q: What are the main promotional methods?
Public relations
Public Relations (PR): Managing media relations and reputation.
Advantage: Improves brand credibility.
Disadvantage: Hard to control public perception.
Q: What are the main promotional methods?
Personal selling
Personal Selling: Direct communication between salesperson and customer.
Advantage: Persuasive and tailored to individual needs.
Disadvantage: Time-consuming and expensive.
Q: How do the 4Ps work together?
A successful business must balance all 4Ps.
Example: A high-quality product (Product) must be priced appropriately (Price), available in the right locations (Place), and promoted effectively (Promotion).
The marketing mix must be adapted for different target markets
