Business - Marketing Flashcards
The definition of marketing mix
The marketing mix is a recipe for effective marketing using the marketing mix when planning the marketing for product allows for consistent approach
what are the 4’Ps?
Product
Place
Price
Promotion
Definition of USP
Unique selling point
What is a product?
anything that is capable of satisfying customer needs
definition of branding
The process by which companies distinguish their product offerings from the competitive is called branding
Four things to consider about creating a product
design
Product life cycle
Branding
USP
stage one of the product life cycle
Introduction
The new product is launched. Sales will be slow and consumers become familiar with it.
stage two of the product life cycle
Growth
Sales increase rapidly as more consumers learn about the product
stage three of the product life cycle
Maturity
Sales growth increases at a slower pace and may start to level off, often due to competitors entering the market
Stage four of the product life cycle
saturation
Sales reach their peak because there are many competitors in the market and because most consumers already have the product
Stage five of the life-cycle
Sales followed due to changes in taste fashion or the introduction of a new or better product the product may be withdrawn from the market
Own branding definition
some large shops have their own brand products. Only label brands are generally developed by a retailer rather than buy a producer.
The main objectives of promotion are
to inform prospective customers of the product and the business
to show the benefits of the product
To persuade potential customers to buy the product
To present a good image
reasons for increased pricing
Increase profit
Increased cost
Brand recognition
No competition
Definition of cost plus pricing
The business calculates how much it costs to produce a product, and adds a percentage mark-up to make a profit
