ls 2 Flashcards
What is marketing mix
combination of 4 P’s which constitute the core of a company’s marketing system
4 P’s of marketing
Product, Price, Place, Promotion
what is the basic purpose of marketing mix
to satisfy needs of customers in the most effective manner
marketing mix is a _____ concept.
dynamic
marketing mix represents an _______ approach to marketing
integrated
marketing mix helps in pursuing ____ oriented marketing
customer
why is each P called a mix
it consists of several sub-factors
combination of various features of a product/service to be offered for sale
product mix
consumers consider a product as
a bundle of satisfaction
product related activities are directed at
target market
decisions regarding basic price, discount, terms of payment
price mix
transferring ownership and physical possession of the product to consumers
place mix
purpose of place mix
make the product available to customers at the right time and place
distribution mix consists of
channel of distribution
physical distribution
physical distribution
activities involved in moving product from producer to consumer .
transportation, storage
channel of distribution
route via which products move from producer to consumer
what is the aim of promotion mix
persuade customers to buy the product
elements of promotion mix
advertising sales promotion personal selling publicity public relations
external factors affecting marketing mix
- customer
- competitor
- dealers
- government
internal factors affecting marketing mix
nature and size of the firm
objectives of the firm
policy of its management
steps in determining marketing mix
- identification - target market
- analysis - needs of target market
- design
- testing
- adoption
what is analysed in analysis stage
number , location, buying powers and motives of customers
nature of comp, dealers behaviour and government regulations
at what stage is marketing mix made?
design
at what stage is marketing mix put into use ?
Adoption
test run of marketing mix designed in a small group of customers
testing
main components of product mix
- range of products to be offered for sale
- Brand name of the product
- Package of the product
- Label
no. of product lines to be offered for sale
width of a firm
no. of products in each product line
depth of a firm
what is packaging
wrapping, crating, filling or compressing of goods to protect them from spoilage, pilferage, breakage, leakage, etc
packaging is not only a protective tool .. it is also a _____ tool
selling
____ acts a silent but forceful salesman at the point of purchase and stimulates impulsive buying
Packaging
what is labelling
putting identification marks called labels on the package
features of good packaging
- convenient to handle and use
- should attract immediate attention
- safe of protecting product
- should tell true story
- should be unique
- should have repack or resale value
product life cycle is not a _______ but an ______ type against which the life of a product may be predicted
universal law, ideal type
very risky stage of PLC with reason
Introduction stage - high % of new products fail in this stage
product is born in this stage
Introduction stage
growth in sales volume is at _____ rate during introduction stage due to ______ and ______
- low
- lack of knowledge on the part of customers
- limited distribution
Competition is _______ at introduction stage
absent
prices are ____ in introduction stage because of ____ and ____
high
small scale of production
heavy promotional expenditure
Proper advertisement and publicity of the product
introduction stage
selective distribution and attractive discounts to dealers
introduction stage
removing technical and other deficiencies in the product
introduction stage
attractive gifts to customers as an ‘Introductory offer’
introduction stage
Skimming the cream pricing policy
introduction stage
demand and sales _________ , distribution is ____________, competition _______ and prices _______ during the growth stage
- grow rapidly
- widened
- increases
- prices fall
aim of introduction stage
product awareness
aim of growth stage
maximise market share
promotional focus shifts from _____ to _____ in growth stage
buy my product to buy my brand
profits are ______ in growth stage
rising
profits are _____ in introduction stage
negative
Heavy advertising to create brand image and simulate sales
growth stage
Expanding distribution channel to make the product available wherever demanded
growth stage
introducing new versions of the product to cater to different needs
growth stage
keeping price at competitive level
growth stage
greater emphasis on customer service
growth stage
during this stage, sales continue to grow but at decreasing rate
Maturity stage
competition _____ further and market gets ______ in maturity stage
increases, stabilised
aim of maturity stage
retain market share
prices _____, promotional expenditure is _____ so profits ____ during maturity stage
- reduced
- high
- decline
supply exceeds demand for the first time in ____ stage
Maturity stage
characteristics of maturity stage
product differentiation
product improvement
identifying new market segments ( low income market)
differentiating product from competitive products
Maturity stage
focussing on brand image
maturity stage
extending warranty
maturity stage
introducing reusable packaging
Maturity stage
developing new markets
Maturity stage
finding new uses of products
Maturity stage
aim of decline stage
minimise costs
profits and sales are the highest in _____ stage
maturity stage
new features may be added to the product
decline stage
new packaging
decline stage
selective promotion to reduce distribution costs
decline stage
In maturity stage what kind of advertising is used?
Persuasive
in introductory stage what kind of advertising is used?
informative
_____ is a tool for business forecasting
PLC
economy models of packs
decline stage
without ______, there can be no marketing
pricing
good label must provide info such as:
- name and address of producer/dealer
- weight and measurement of the product
- directions for proper use of the product
- date of packing
- mrp
three types of labels
brand label
descriptive label
grade label
sellers are interested in ___ label
descriptive label
consumers favour ____ label
grade label
pricing involves determining base price only . true/false justify
false
also terms and conditions of sale
________- pricing decisions require up to date knowledge of trends in sales and demand
Pragmatic
price determines _____ and ___
sales volume and profit margins
price determines volume of economic activity in what economy
free enterprise economy
internal factors affecting price determination
cost of product
quality and service
promotional and distribution strategy
external factors affecting price determination
demand competition buying motives risks government control
4 types of pricing strategy
- skimming pricing
- penetrating pricing
- cost-plus pricing
- parity pricing
what is skimming pricing?
- setting initial high price to skim the cream of demand and to realise the investments made quickly
later on price is reduced to tap other segments
aim of skimming pricing is to
sell to classes
what pricing strategy is suitable for a highly distinctive product
skimming pricing
what pricing strategy can be used to feel out the market
skimming pricing
what pricing strategy can be used to restrict demand
skimming pricing
what is penetrating pricing?
- low price in initial stage to make brand popular and maximise market share
- afterwards.. price can be raised
aim of penetrating pricing
sell to masses
aggressive pricing strategy used to restrict entry of new firms
penetrating pricing
when product sold is highly sensitive to price.. what pricing strategy is to be used?
penetrating pricing
when there is a strong potential competition what pricing strategy to use?
penetrating pricing
what is parity pricing otherwise called?
competition-based pricing/ going -rate pricing
what is parity pricing?
charging according to what competitors are charging
in oligopolistic market, what pricing strategy is suitable
parity pricing
easy method of pricing
parity pricing
cost -plus pricing is also known as ________
mark-up pricing
basic idea of cost plus pricing
S.P must cover its full cost and yield a margin of profit called mark-up
most widely used technique of pricing
cost plus pricing
which method of pricing discourages cut throat comp in the market
cost plus pricing
three types of flows represented by channels of distribution
product flow downwards
cash flow upwards
information flow both sides
shortest and simplest channel
Manufacturer-consumer
perishable commodities are sold via what channel?
manufacturer - consumer
products of heavy nature are sold via what channel?
Manufacturer-Consumer
a fast and economical channel
Manufacturer-Consumer
In recent years, direct selling has become popular due to?
- increasing comp
- desire to eliminate middlemen
- wide product lines
- need for distribution control
- technical nature of products
- availability of public warehouses
V.P.P
Value Payable Post
example of company selling door to door
Eureka Forbes
example of company using retail outlets
Bata, Raymonds, Peter England, Max, etc etc etc
example of catalogue selling
Avon
another name for catalogue selling
direct mail selling
example of telemarketing
Asian Sky shop
what channel is popular when retailers are big and buy in large quantities ?
Manufacturer-Retailer-consumer
this channel relieves manufacturer from burden of selling but still provides him control over distribution
Manufacturer-retailer-consumer
traditional channel of distribution
Manufacturer-wholesaler - retailer -Consumer
when producer has limited finance and narrow product line but wholesaler is specialised .. what channel must be used?
Manufacturer-wholesaler - retailer-Consumer
when retailers are either few or geographically concentrated.. what channel may be more economical
Manufacturer-agent - retailer -Consumer
textiles and agricultural products, machinery are sold through which channel
Manufacturer-agent-retailer-Consumer
longest channel of distribution
Manufacturer-wholesaler- agent-retailer-Consumer
when manufacturer wants to be fully relieved of distribution what channel must be used ?
Manufacturer-wholesaler- agent-retailer-Consumer
the longest channel is widely used in ____
cloth
bulk and weight –>
distributed directly
non standardised products
short channel
more technical products requiring demonstrations and after sale service
middlemen needed
to ultimate consumers–>
middlemen needed
large and wide market
use of middlemen is necessary
infrequent large orders
direct selling is preferred
products of low unit value
via middlemen
pricing strategy appropriate for late entrants to the market
penetration pricing
