Chapter 15: Marketing Flashcards
Define Marketing
Identifying the needs of consumers and producing and selling products to satisfy those needs profitably
Explain marketing concept
Identifying the market needs and then developing and brigning to the market products and services that will profitably meet these needs.
What are the two ways of segmenting markets
Demographic and Psychological
Explain Target Market
a precise description of the customers to whom a product will be aimed
Explain Niche Market
A specific gap in the market for a new product or service
4 elements to the marketing mix
product
price
place
promotion
What does Product concern itself with
core product unique selling point name of product design of product pacaging
What are the factors affecting the price of a product
cost
target market
competition
What is mark up pricing
When you add profit percentage to production eg in a cinema
What is Psychological pricing
setting the price on the expectations of the customers eg a bottle of luxury perfume
Premium pricing is
Charging a high price for a luxerious good eg gucci
Price Skimming is
when you charge a high price at the begining to recover cost eg apple
Discriminatory pricing
when you charge a different price for either times of the year or cutomers eg hotels
Channel of Distribution means
the various paths that goods may follow from producer to consumer
what are the 4 options available in channel of distribution
channel a,b,c and d.
what are 4 ways of promoting
advertising
sales promotion
direct selling
public relations
what is advertising
messages designed to inform, persuade or remind people to buy a product or service
what is sales promotion
specific incentives offered to customers to attract their attention, increase sales and encourage customer loyalty.
what are the three branches within direct selling
personal, telemarketing and direct mail
explain public relations
the aim of public relations is to maintain a good public image
explain sponsership
where a company pays money towards something whihc is ususally charitable.
what are the 5 stages in the product life cycle
- introduction
- growth
- maturity
- saturation
- decline
explain each aspect of the product life cycle
introduction is when the product is launched sales are low until methods of promotion have kicked off
growth is when the prodcut is being recognises sales are increasing rapidly
maturity is when sales start to level off as new products enter the market
saturation new products have entered the market and now sakes are beggining to decrease
decline production has outlived demand
