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Business studies Theme 2 > Making marketing decisions > Flashcards

Making marketing decisions Flashcards

1
Q

The design mix

A
  • function
  • cost
  • appearance
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2
Q

Product lifestyle

A
  • introduction
  • growth
  • maturity
  • decline
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3
Q

Extension strategies

A

increase the life of a product this could involve slightly changing the product so it has a fresh appeal

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4
Q

Some examples of extension strategies are:

A
  • new marketing campaign
  • a modified product
  • changed packaging
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5
Q

Product differentiation

A

making a product stand out from its competitors

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6
Q

Product differentiation is important because it helps businesses:

A
  • position their products
  • target different market segments
  • gain an advantage over rivals
  • allows customers to see their needs are being met more effectively than by a competitor
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7
Q

What differentiates a product?

A
  • unique and catchy name
  • quality
  • design, formulation or function
  • packaging
  • customer service
  • differentiation across the value chain
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8
Q

Value chain

A

the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.

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9
Q

The pricing strategy adopted by a business has a direct impact on

A
  • customers perceptions on quality and value
  • businesses profitability
  • demand of products and services
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10
Q

What are some types of pricing?

A
  • premium
  • competitive
  • low
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11
Q

When might a low price be used?

A
  • generic/non branded product
  • to encourage product trail
  • first launch
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12
Q

What are the impacts of a business trying to improve its profits by increasing the price?

A
  • succeed- customers must perceive the business to be of sufficiently high value in relation to competition
  • fail- sales volume fall
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13
Q

What two pricing strategies might a business adopt?

A
  • volume strategy
  • margin strategy
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14
Q

What is a margin strategy?

A

involves setting a high price that achieves a high profit margin

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15
Q

What is a volume strategy?

A

setting a price with a low profit margin that requires high sales volumes to be profitable

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16
Q

What must a business with a high volume low margin strategy be able to do?

A
  • keep costs low
  • have the facilities to produce and distribute large quantities of
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17
Q

What must a business with a low volume high margin strategy be?

A
  • high in quality
  • good brand image
  • premium market
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18
Q

What influences pricing strategies?

A
  • competition
  • market segment
  • products life cycle
  • costs
  • branding
  • technology
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19
Q

Why do businesses use promotional techniques?

A
  • create customer awareness
  • create interest
  • create desire
  • boost sales
  • build a strong brand image
20
Q

What methods are there of promotion?

A
  • advertising
  • sponsorship
  • product trails
  • special offers
  • public relations
21
Q

What are some examples of advertisement?

A
  • radio
  • magazine
  • posters
  • websites
  • displays
  • TV ads
22
Q

What is the benefit of advertising?

A

grab customers attention if the location and medium is right for the business

23
Q

What is the drawback to advertising?

A
  • expensive
  • difficult to work out the impact on sales
24
Q

What are some examples of sponsorship?

A
  • sporting events
  • music festivals
  • educational or environmental causes
25
Q

What is the benefit to using sponsors?

A
  • provide the business with exposure
  • associates it with a good cause
26
Q

What is the drawback to sponsorship?

A

communicates little information

27
Q

What are some examples of product trials?

A
  • free miniatures
  • product testing
  • samples
28
Q

What is the benefit to using product trials ?

A

encourage customers to use a product / service they wouldn’t otherwise

29
Q

What is the drawback to product trials?

A

expensive to give away free products

30
Q

What are some examples of special offers?

A
  • buy one get one free (GOGOF)
  • free prize draws
  • discount sales
31
Q

What are the benefits to special offers?

A
  • boost short term sales
  • clear stock levels
32
Q

What is the drawback to special offers?

A

not sustainable in the long term as it will reduce profits

33
Q

What is an example of public relations?

A

using a recognisable logo

34
Q

What is the benefit of public relations?

A

encourages customers to connect with the brand, trust it and become loyal to it

35
Q

What are the drawbacks to public relations?

A
  • takes a long time to develop
  • brand images are fragile to bad publicity
36
Q

How may a business benefit from having a strong brand?

A
  • easy recognition and known representation
  • may associate positive characteristics
  • increase brand loyalty
  • first choice
  • increased trust
  • charge premium
37
Q

What are four examples of technology in promotion?

A
  • social media
  • apps
  • email
  • targeted advertising
38
Q

What are the two channels of distribution?

A
  • retailing
  • e tailing
39
Q

Retailing looks like?

A
  • manufacturer - retailer - customer
  • retailer - customer
40
Q

E-tailing looks like?

A
  • manufacturer - customer
  • manufacturer - third party - customer
41
Q

What are the benefits of retailing?

A
  • opportunity to browse and try products
  • offers point of sale promotion
  • provide customers with help and advice
  • enjoy the experience
42
Q

What are the benefits of e tailing?

A
  • don’t have to own a retail space
  • 24/7 purchases
  • global access
  • compete without needing a retail space
43
Q

What must a business consider when choosing a location?

A
  • cost
  • proximity to competitors
  • proximity to the labour market
  • proximity to resources and transport links
44
Q

What are the four elements of the marketing mix?

A
  • product
  • place
  • price
  • promotion
45
Q

What would happen to a business’s marketing strategy if aspects of the marketing mix don’t link?

A

fail

46
Q

Product- a product with unique features and a strong brand can be . . .

A

highly desirable

47
Q

Place- a highly visible and convenient location can

A

attract customers other businesses can’t

Business studies Theme 2 (4 decks)

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