Chapter 18 Flashcards
What is the marketing mix? (4 P’s)
Price
Place
Promotion
Product
What are the 4 C’s tied to the marketing mix (4 P’s)?
Price
-cost to customer
The total cost of the product
Place
-convenience to customer
Convenience of purchasing locations and information
Product
-customer solution
Meeting customer needs and wants
Promotion
-communication with customer
Up to date communication for promotion and feedback
What is customer relationship management?
This is using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained
How can we develop effective long term relationships with consumers?
Target marketing
Customer service and support
Social media
What are some important features in attracting a customer based?
Quality
Durability
Performance
Appearance
How is meeting intangible expectations for a product most often done?
It is most often achieved through effective branding
Why do tangible attributes need to be met?
They need to be met as these are easily compared between other similar products and could become disadvantageous otherwise
Why do intangible attributes need to be attained too?
You need recognition too and something besides physicality that makes consumers chose you’re product ver someone else’s. and product reliability is often used to reach these
How can branding influence marketing and consumers?
- creates powerful consumer perception ( positive or negative)
Why’s re product life cycles useful?
They help you decide when to launch anew product or update a new one and keep track of released products
- assist marketing decisions
- identifying how cash might flow
- help balance portfolio
What a re the phases of a product life cycle graph?
- Intro
- Growth
- Maturation
- Decline/ extension strategies
How does the product life cycle affect cash flow?
Cash flow is strained in the introduction (heavy promo)l
It is negative in the development of the product
Positive in maturity;
Decline caused decline is cash
Why is the product life cycle useful?
- helps asses product performance
- identify any changes/actions that need to be made
What does PED mean?
The value shows the change in demand for the 1% change in price
What does a PED greater than one mean?
Elastic
