Chapters 11-17 Marketing Flashcards
Components 1
Asset-led marketing
When marketing decisions are based on the needs of the consumer and the strengths of the business.
Market orientation
When a business bases its marketing mix on its perception of what the market wants.
Product orientation
When a business bases its marketing mix on what the business sees as its internal strengths.
Product portfolio
The mix of products that a business produces and sells.
Product breadth
The number of product lines a business produces or sells. E.g. toothpaste, razors, shampoo
Product depth
The number of product varieties within each product line. E.g. sensitive toothpaste, whitening toothpaste, children’s toothpaste.
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.
Extension strategy
A strategy that is used to extend the life cycle of a product. E.g. repositioning (Lucozade), repackaging, new features.
Star
A product with high market share & fast market growth.
Cash cow
A product with high market share & low market growth.
The Boston Matrix
A business tool used to analyse a business’s product portfolio by market share and market growth
Price taker
A business that has little or no control over price and so must accept the going market price.
Market penetration
Charging an initially low price in order to gain market share, and once customers become loyal the price is increased.
Market skimming
Charging a high price to maximise profits when a product is new and unique.
Psychological pricing
Charging a price that consumers may expect to pay based on perceived quality and value for money. Also includes pricing goods just below a round figure E.g. £9.99 as consumers may believe they are getting better value for money.
Going rate pricing
Charging a price that is in line with the price charged by competitors.
Cost-plus pricing
Adding a profit percentage, or mark-up, to the average cost of producing a good.
Above the line promotion
Advertising, using various independent media (TV, magazines, newspapers, radio, posters, internet and social media) to reach a mass audience.
Product differentiation
When a business makes its product or brand different in some way so that it stands out from the crowd. E.g. Ethical reputation, additional features the competition don’t have.
Multi-channel distribution
Using a combination of distribution channels. E.g wholesalers, retailers, direct selling online.
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.
Niche marketing
Where a business targets a smaller segment of a larger market, where customers have specific needs and wants.
Clicks and bricks
Where businesses have a web presence (clicks) as well as physical presence (bricks) on the high street or in shopping centres. E.g. Argos.
M-commerce
Mobile commerce is the buying and selling of goods and services through wireless hand-held devices such as mobile phones.
