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business cambridge as > chapter 18, 19- marketing mix > Flashcards

chapter 18, 19- marketing mix Flashcards

1
Q

define marketing mix

A

the four key decisions that must be taken in the effective marketing of a product

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2
Q

define customer relationship management

A

using marketing activities to establish successful consumer relationships so that existing consumer loyalty can be maintained

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3
Q

define brand

A

an identifying symbol, name, image or trademark that distinguishes a product from its competitors

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4
Q

define intangible attributes of a product

A

subjective opinion of customers about a product that cannot be measured or compared easily

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5
Q

define tangible attributes of a product

A

measurable features of a product that can be easily compared with other products

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6
Q

define product

A

the end result of the production process sold on the market to satisfy a consumer need

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7
Q

define price elasticity of demand

A

measures the responsiveness of demand following a change in price

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8
Q

define dynamic pricing

A

offering goods at a price that changes according to the level of demand and the customers ability to pay

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9
Q

define penetration pricing

A

setting a relatively low price often supported by a strong promotion in order to achieve a high volume of sales

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10
Q

define market skimming

A

setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand

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11
Q

define promotion

A

the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy

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12
Q

define promotion mix

A

the combination of promotional techniques that a firm uses to sell a product

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13
Q

define above the line promotion

A

a form of promotion that is undertaken by a business by paying for communication with consumers

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14
Q

define advertising and give an example

A

paid for communication with consumers to inform and persuade eg TV and cinema advertising

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15
Q

define below the line promotion

A

promotion that is not a directly paid for means of communication but based on the short term incentives to purchase

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16
Q

define sales promotion

A

incentives such as special offers or special deals directed at consumers or retailers to achieve short term sales increases and repeat purchases by consumers

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17
Q

define personal selling

A

a member of the sales staff communicates with one consumer with the aim of selling the product and establishing a long term relationship between company and the consumer

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18
Q

define sponsorship

A

payment by a company to the organizers if an event or team or individuals so that the company name becomes associated with the event or team or individual

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19
Q

define public relations

A

the deliberate use of free publicity provided by newspapers, TV and other media to communicate with and achieve understanding by the public

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20
Q

define branding

A

the strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product

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21
Q

define marketing/ promotion budget

A

the financial amount made available by a business for spending on marketing or promotion during a certain period of time

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22
Q

define channel of distribution

A

this refers to the chain of intermediaries a product passes through from producer to final consumer

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23
Q

define internet (online) marketing

A

refers to advertising and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce

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24
Q

define e-commerce

A

the buying and selling of goods and services by a business and consumers through an electronic medium

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25
Q

define viral marketing

A

the use of social media sites or text messages to increase brand awareness or sell products

26
Q

define integrated marketing mix

A

the key marketing decisions complement each other and work together to give customers a consistent message about the product

27
Q

what are the 4 p’s

A

price, product, place, promotion

28
Q

what are the 4 c’s

A

customer solution, cost to customer, communication with customer, convenience to customer

29
Q

what 4 things should a product have/be within the marketing mix

A

quality, durability, performance, appearance

30
Q

give 2 benefits of a business having an effective USP

A

differentiation, charge higher prices, higher sales, brand identification

31
Q

define product positioning

A

the consumer perception of a product or service as compared to its competitors

32
Q

define product portfolio analysis

A

analyzing the range of existing products of a business to help allocate resources effectively between them

33
Q

define product life cycle

A

the pattern of sales recorded by a product from launch to withdrawal from the market and one if the main forms of product portfolio analysis

34
Q

what are the stages of a product life cycle

A

introduction, growth, maturity or saturation, decline

35
Q

define consumer durable and give and example

A

manufactured product that can be reused and is expected to have a responsibly long life such as a car or washing machine

36
Q

define extension strategies

A

these are marketing plans to extend the maturing stage of the product before a brand new one is needed

37
Q

give 2 uses of a product life cycle

A

assist planning marketing mix decisions such as new product launches, identifying how cash flow might depend on the cycle, recognizing the need for a balance product portfolio

38
Q

how do you calculate price elasticity

A

percentage change in quantity demanded/ percentage change in price

39
Q

name 2 factors that determine price elasticity

A

how necessary the product is, how many similar competing products or brands there are, the level of consumer loyalty, price of the product as a promotion to consumer incomes

40
Q

name 2 uses of price elasticity

A

making more accurate sales forecasts, assisting in pricing decisions

41
Q

name 3 ways managers can determine an appropriate price

A

cost of proaction, competitive conditions in the market, competitors prices, business and marketing objectives, price elasticity of demand, new or existing product

42
Q

define mark up pricing

A

adding a fixed mark up for profit to the unit price of a product

43
Q

define target pricing

A

setting a price that will give a required rate of return at a certain level of output/ sales

44
Q

define full cost pricing

A

setting a price by calculating a unit cost for the product and then adding a fixed profit margin

45
Q

define contribution cost pricing

A

setting prices based on the variable costs of making a product I order to make a contribution towards fixed costs and profit

46
Q

define competition based pricing

A

a firm will base its price upon the price set by its competitors

47
Q

give an advantage and disadvantage to full cost pricing

A

advantage- price set will cover all costs of production, easy to calculate for single product firms where there is no doubt about fixed cost allocation,
disadvantage- inaccurate for businesses with several products where there is doubt over the allocation of fixed costs, doesn’t take market/ completive actions into account, inflexible, if sales fall then average costs rise so price could be raised

48
Q

give an advantage and disadvantage of contribution pricing

A

advantage- all variable costs will be covered, suitable for firms producing several products, flexible as price can be adapted to suit market conditions
disadvantage- fixed costs may not be covered, if prices vary too much then consumers can be annoyed

49
Q

give an advantage and disadvantage to competitor pricing

A

advantage- almost essential for firms with little market power, flexible to market and competitive conditions
disadvantage- price set may not cover all the costs of production, nay have to vary price frequently due to changing conditions

50
Q

give an advantage and disadvantage of price discrimination

A

advantage- uses price elasticity knowledge to charge different prices in order to increase total revenue
disadvantage- administrative costs of having different pricing levels, customers may switch to lower priced market, consumer paying higher prices may object and look for alternatives

51
Q

what are the two types of advertisements

A

informative advertising, persuasive advertising

52
Q

give 3 factors business would consider when deciding a form of media to use

A
  1. cost (TV, radio and cinema advertising are very expensive)
  2. size of audience
  3. profile of the target audience in terms of age, income
  4. message to be communicated (detailed info would be written in an email or letter)
  5. other aspects of the marketing mix
  6. legal and other constraints
53
Q

give 3 examples of how a business could use sales promotion

A

price deals (10% reduction on all items), loyalty reward programs, money off coupons, point of sale displays in shops, buy one get one free, games and competition

54
Q

give 2 aims branding products would have

A

aiding consumer recognition, making the product distinctive from competitors, giving the product an identity or personality that consumers can relate to

55
Q

give 2 functions of packaging

A

protect and contain the product, give information depending on the product, support the image of the precut, aid the products recognition

56
Q

give 2 example of what businesses should consider when deciding on an appropriate channel strategy

A

if the product will be sold directly to the consumer or through retailers, how many intermediaries, where should the product be available, should the internet be the main channel

57
Q

give an example of a product or service that uses direct selling (no intermediaries)

A

airline tickets, hotel accommodation, farmers markets, mail orders

58
Q

give an example of a product or service that uses a one intermediaries channel (consumer goods)

A

holiday companies via travel agents, large supermarkets that hold their own stocks rather than wholesalers

59
Q

give an example of a product or service that uses two intermediaries channel

A

a large country with great distances to each retailer

60
Q

give 2 factors influencing choice of distribution channels

A

industrial products tend to be sold more directly, geographical dispersion of the target market, level of service expected by consumers, technical complexity of product, unit value of the product, number of potential consumers

61
Q

give 3 benefits of a business using e-commerce and internet marketing

A

relatively inexpensive, companies can reach a worldwide audience, consumers interact with websites and leave important data about themselves, internet is convenient for consumers, accurate records can be kept about consumer interest and success of certain prompts, computer ownership is increasing so most people can access selling products gives lower fixed costs, dynamic pricing

62
Q

give 3 limitations to e-commerce/ internet marketing

A

some countries have Lowe speed internet connections and in poorer countries computer ownership is lower, consumers cannot touch or try on the products so can limit the willingness to purchase, product returns can increase, cost and unreliability of postal services, website needs to keep up to date, worries about internet security

business cambridge as (20 decks)

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