Component 1 - Marketing Flashcards
Explain : What is Marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods, and services to create exchanges that satisfy customer and organisational objectives.
Explain : What is meant by a Market Orientated approach ?
1) Market Orientation - An approach that focuses on identifying and meeting the needs and wants of customers.
Explain : What is meant by a Product Orientated approach ?
Product orientation - An approach that focuses on the qualities and features of a product or service.
Explain : What is meant by Asset led Marketing
Asset led marketing : Asset-led marketing is a business approach that focuses on leveraging a company’s assets (such as its brand)
Explain : The Marketing mix - Product, Price, Place, Promotion
1) Product - The goods or services that a company offers to its customers.
2) Price - The amount of money that a customer must pay in order to purchase a product or service.
3) Place (distribution) - The channels through which a product or service is made available to customers. (e.g is it sold online or in a physical store )
4) Promotion - The methods that a firm uses to create awareness and persuade its target market to purchase its product/service
Explain : What is meant by Product
Product - The goods or services that a company offers to its customers.
Explain : What is meant by Product Portfolio
Product Portfolio - The complete collection of products that a company offers to its customers.
Product portfolio may include a large range of different types of products in different categories.
Explain : What is meant by the term Brand
The brand is a feature that that distinguishes one seller’s product from those of others. such as a name or logo
A brand can be thought of as a “promise” to customers about the quality and value of a product/service.
Explain : What is meant by Differentiation
Differentiation is the process of distinguishing a product/service from those of competitors in order to gain an edge.
Explain : Product lifecycle and its Stages + Their relation to cashflow
Stage of the product lifecycle :
- R and D : Negative
- Introduction: Negative or break even
- Growth : Positive
- Maturity : Positive
- Decline : negative
Explain : what is an extension strategy
An extension strategy is a promotion strategy that aims to extend the product life cycle of a good/service
Explain : The Boston Matrix
Stars: They are considered to be the most successful and require heavy investment to maintain their position.
Cash Cows: They are considered to be stable and generate a lot of cash, which can be used to invest in other areas of the business.
Dogs: They are considered to be weak and may require significant investment or divestment.
Question Marks: T They are considered to be uncertain and may require significant investment to turn them into stars or cash cows.
Explain : Pricing strategies + How different types of businesses use them
-Cost plus
-Value based
-Penetration pricing
-Price skimming
-Loss Leader
Cost-plus pricing: Adding a mark up to the cost of a product or service - Manufacturing Businesses
Value-based pricing: Setting a price based on the perceived value of a product or service to the customer - Luxury Brands
Penetration pricing: Setting a low price for a product or service in order to gain market share - New Businesses
Skimming pricing: Sets price of a new product high and subsequently lowers them as competitors enter the market - by businesses with a new product with a high level of demand.
Loss leader pricing: Setting a low price for a product/service in order to attract customers to the business. The business then hopes to make a profit from sales of other products or services. - Retailers.
Explain: Define Advertising
Advertising is the paid promotion of a good/service to communicate with customers
Explain: what is meant by PR
Public relations: Creating media coverage to maintain a positive reputation for the company.
