Market Research - Chapter 16 Flashcards
What is the Marketing Mix? And what are the 4P’s?
The Marketing Mix is a combination of four elements that can help a business market it’s products or services to its target market.
The 4 elements of the Marketing Mix (4 P’s) are:
1. Product
2. Price
3. Place
4. Promotion
What is 1. Product?
A product is the actual item provided to meet customers’ needs.
This includes:
1. Design
2. Product Life Cycle
3. Branding
4. Unique Selling Point (USP)
What is the product lifecycle?
The product lifecycle is the different stages that a product goes through from the time it is launched until it is taken off the market.
Draw the Product Lifecycle Diagram.
What are the 5 stages of the Product Life Cycle.
The five stages of theproduct lifecycle are:
1. Introduction – the new product is launched. Sales will be slow until consumers become familiar with it.
2. Growth – sales increase rapidly as more consumers learn about the product.
3. Maturity – sales growth increases at a slower pace and may start to level off, often due to competitors entering the market.
4. Saturation – sales reach their peak because there are many competitors and most consumers in the target market have the product already.
5. Decline – sales fall due to changes in taste / fashion or the introduction of a new and improved product.
What is a USP (Unique Selling Point)?
The USP is what makes the product different from the competition and is highlighted to encourage people to buy the product.
What is 2. Price?
The price refers to the amount of money a seller charges a customer for a product or service.
The price charged depends on:
1. Cost of making the product
2. Stage of product life cycle
3. Competitor’s prices
4. Target market
What is cost-plus pricing?
Cost-Plus Pricing: takes the cost to make the product and adds a percentage of profit on to get the final cost of the item for customers.
What is loss leaders?
Loss Leaders: selling a product below the cost it takes to make it in order to attract customers.
What is premium pricing?
Premium Pricing: charging a permanently high price to give the impression of luxury.
What is penetration pricing?
Penetration Pricing: charging a low price when a product is first introduced to encourage sales but increasing the price once sales have reached a certain level.
What is 3. Place?
Place refers to where customers will buy the product and the channel of distribution used to get the product to its location.
What are channels of distribution?
Channels of Distribution refers to the way in which the product gets to from the manufacturer to the consumer.
What is a department store?
A department store is a type of retailer that sells a wide range of products in different departments under the one roof e.g. Brown Thomas
What is a chain store?
A chain store is a type of retailer that usually specialises in a type of product and has many different branches throughout the country e.g Easons
