chapter 7-11 marketing Flashcards
asset led marketing
marketing decisions based on the needs of the customer and the strengths of the business
market orientation
when a business bases its marketing mix on what the market wants
product orientation
marketing mix bases on its internal strengths
product portfolio
the mix of products that business sells
product breath
the number of products lines a business sells
product depth
the number of products varieties in each product lines
star
high market share
high market growth
cash cow
high market share
low market growth
question mark
low market share
high market growth
dog
low market share
low market growth
price taker
a business that has little to no control over the price of their products
market penetration
initially changing low prices to gain market share then slowly increasing over time
market skimming
initially charging high prices then reducing the price over time
psychological pricing
charging a price the consumer may expect due to perceived quality and value for money
going rate pricing
charging a price in line with their competitors
cost plus pricing
adding a profit percentage to the average cost of production
above the line promotion
using independent media
-tv
-magazine
-newspaper
-radio
-social media
multi channel distribution
using a combination of distribution channels
-wholesaler
-retailer
-online
clicks and bricks
when a business has a web and physical presence
Extension strategy
A strategy that is used to extend the life cycle of a product. E.g. repositioning (Lucozade), repackaging, new features.
Unique selling point
The product or service has a feature or features than can be used to differentiate it from the competition to give it a competitive advantage.
The Boston Matrix
A business tool used to analyse a business’s product portfolio by market share and market growth
Direct-selling
Where the producer sells goods directly to the consumer without any intermediaries such as wholesalers or retailer. Can be done online or through mail order catalogues and junk mail.
Mass marketing
When a business targets it advertising and promotion at the whole market, so all consumers are advertised to in the same way.
