5.3 - Market Research Flashcards
What are the 4 P’s that make up the marketing mix?
Product
Price
Place
Promotion
What is the ‘Product’ in the marketing mix?
The products or services the business sells
What is product differentiation?
Where a business trys to stand out within competitors
What are two ways a business can follow product differentiation?
Building brand image - adverts, logos
Having a Unique Selling Point
What is a business’ product portfolio?
The range of different products a business sells
What is the Boston Matrix?
A diagram that allows a business to analyse its product portfolio
What does the STAR mean in the Boston Matrix diargram?
The product has a high market share in a fast growth market
What does the Cash Cows mean in the Boston Matrix diargram?
Theres products have HIGH market share in a low growth market
What does QUESTION MARKS mean in the Boston Matrix diargram?
these peoducts have LOW market share in a fast growth market
What does the DOGS mean in the Boston Matrix diargram?
These products have a low market share in a low growrh market
What is the order of the product life cycle?
Development
Introduction
Growth
Maturity
(Extension)
Decline
Explain the development stage of the product life cycle?
Product is being designed and tested
Costs are high as there is no sales
Explain the development stage of the product life cycle?
The product is launched
Business spends money ro promote the product and starts to recieve sales
Explain the Growth stage of the product life cycle
The product becomes more successful and sales increase rapidly
Explain the Maturity stage of the product life cycle
Sales of product begin to mature and slow down
Explain the decline stage of the product life cycle?
Product is no longer successful
Sales will fall
Can either be extended or discontinued
Explain the EXTENSTION stage of the product life cycle?
Preventing a product from decline by variating it
What are some extension strategies that a business can use to prevent a decline?
Reduce the price of product
Advertising
New packaging
New/ upgraded features
What does price mean in the marketing mix?
The amount a business charges its customers for its product/services
What are the five main pricing stategies that business’ can use
Price skimming
Price penetration
Competitive pricing
Loss leader
Cost-plus
What is price skimming?
Starting products with a high price and then reducing over time
What is price penetration?
Product starts with a low price and increases over time
What is competitive pricing?
Setting a similar price to your competitors
What does ‘loss leader’ mean when using pricing stategies?
Selling one product at a loss if ancustomer buys another prodyct that will still generate profit
What does ‘cost-plus’ mean when using pricing stategies?
Adding a percentage onto the cost of making a product
What are some factors that influences price?
Cost to make
Demand of product
Competition
Product life cycle
What does place refer to in the marketing mix?
The channels of distribution used to get the products from the producer to the customer
What is a whole saler?
Businesses that buy products and sell them to retailers (sainsbury’s)
What are retailers?
Shops that sell goods and services fo the final customer
Give three ways distribution channels can be set up.
Producer —» customer
Producer —» wholesaler —» customer
Producer —» wholesaler —> retailer —» customer
What are other distribution channels to get products from a producer to a customer?
Telesales (sales over the phone)
E-commerce
What does Promotion refer to in the Marketing Mix?
Methods to advertise products/services to customers and potential customers
What are three ways a business can promote their product through advertising?
TV
Newspapers
Radio
How can a business use sponsorship to promote and advertise its product/service?
Sponsoring sports events, sports teams or TV programs
What are some ways a business uses promotion to promote its products to its customers?
Advertisements
Sponsorships
Social media
What does the term competitive environment refer to for a business?
The pressure placed on a business by its competitors
How can a business attract customers in a mass market?
Offering a product that fills a gap in the market
Better prices
Unqiue selling point
Having good relations with customers
