Management of Marketing Flashcards
Product Orientation?
Releasing a product into the market without research
No real Competition
Often new inventions
ADV/DISAD of product orientation
+ focus on quality of product
- needs of market are ignored
- changes in taste and fashion will not be accounted for
customer orientation?
product released into market after research
competition in market
ADV/ DISAD of customer orientation?
+ensures product will actually be sold
+ more asap tree d to customers wants
- customer search is expensive
mass marketing?
sold to entire market
no personalisation
same product appeals to everyone
Lots of competition
eg. milk, petrol
Niche marketing
Gap in the market is found and product is made to appeal to that market
Little to no competition
eg. handmade products
Desk research?
research that has already been gathered for a different purpose
eg. books, articles, figures etc
ADV/ DISAD of desk research
+ doesn’t cost a lot of money
+ quick and easy to access
- available to competitors
- could contain bias
- may be out of date
Field Research?
Not previously gathered, new research
ADV/ DISAD of field research?
+ not available to competitors
+ reliable as source is known
- Time consuming to collect
- Expensive
Sampling techniques?
Random: everyone has equal chance of being chosen
Quota: population grouped and then proportionally sampled
Stratified:
Product line portfolio?
spin off product is made from successful product eg. Frozen
ADV/ DISAD of product line portfolio
+ risk of failure is spread across several products
+ customer base increases as wider variety of products will cater to different groups of customers
- product with one product can effect reputation of other products
- business may have to invest heavily in machinery that can produce wide variety of products
Diverse product portfolio?
allows businesses to “test the waters” in different markets separate from original business
ADV/DISAD of diverse product portfolio?
+ selling variety of products can increase customers
+ Spreads risk of failure across products
- Advertising costs high to advertise all products
Product Life Cycle Stages?
Introduction
Growth
Maturity
Saturation
Decline
Introduction stage?
High advertising costs
Low profit
Making a loss
Growth stage?
Advertising maintained
Consumers become aware of product
Sales become rapid
Maturity Stage?
sales more slow and peak
reduced advertising costs
most profitable
Saturation stage?
Potential new markets exploited
Advertising costs high
Competition fierce
Decline Stage?
Sales fall
New competitors products enter market
Profits fall
Extension strategies?
Providing variants eg. mars: yoghurt, fun sized, ice cream
Changing packaging
Changing the product: size, taste
Long term pricing strategies?
Low price
Competitive Pricing
High Price
Physiological Pricing
Low price?
Low price is set to undercut competitors
Competitive Pricing?
Price is set at similar to competitors, business competes in other ways such as providing a better service
High Price?
Product is set at a high price as customers link high priced with better quality products
Psychological Pricing?
Price is set to trick customers into thinking it’s cheaper than it actually is eg. 99p instead of £1
Medium Term Pricing Strategies?
Price Discrimination
Cost plus
Price discrimination?
Product is charged at different prices depending on where it is being sold
Cost Plus
Price is set with an additional charge to ensure a profit is made
Short Term Pricing Strategies?
Price Skimming
Penetration Pricing
Destroyer Pricing
Promotional Pricing
Loss Leader
Demand Orientated Pricing
Price Skimming?
Price is set at a high price when released into market as little to no competition, then reduced when competitors enter the market
Price Penetration?
Price is set quite low when entering the market until the product becomes known then the price is increased
Destroyer Pricing
Price is set which make it impossible for competitors to compete with lower pricing
Promotional Pricing?
Product is reduced for a short period of time to encourage sales of less popular products eg. black friday
Loss Leader?
Price of Product is set low in the hope customers will buy expensive add ons
Demand Orientated Pricing?
Pricing differs dependent on the demand of the product.
higher demand = price increase
Above the Line promotion?
Persuasive
Corporate
Informative
Generic
Below the Line - Into the Pipeline
Loaders Bulk discounts
Extended Credit
Below the Line - Out of the Pipeline
Free samples
Discounts
Percentage Extra - 50% free
In store tasters
ADV of celebrity endorsement
Higher price can be charged due to link with celebrity
Images of celebrity with product can create a visual connection encouraging sales
DISAD of celebrity endorsement
Very expensive to maintain celebrity
If celebrity gets bad reputation product image can be tarnished
