marketing Flashcards
product differentiation
unique items, performance, could also be brand image
product portfolio
width and depth
range of products a business sells to meet needs of diff customers
boston matrix
star - advertise/ promote it ( high market growth and share)
cash cow - no increase but still market share (high market share low growth)
dog - remove from portfolio (low market growth and share)
problem child - has issues needs fixed (low share and growth)
ansoff matrix
decision making tool
market penetration
product development
market development
diversification
product lifecycle
> development - making product + market research
launch
growth - sales increase, growing market share
maturity - begins to steady out
saturation - peak of sales
decline - decrease sales
extension strategies
price reductions, new models, new market same product
marketing
selling right product, right place, right price using right methods of promotion which is found through market research
market research
gathering research about data about target markets and competitors
primary data
not been gathered before
questionnaires interviews etc
+ suits your bus
- time consuming
marketing budget
allocated amount of finance given to a department
marketing department
finding out customer needs and wants through market research
market research data
understand needs and wants and the best way to market the product
secondary data
information that has already been collected
census, websites etc
+ available to everyone
- not suit your bus
internal data
research produced by an employee
+ understands the bus
- no expertise
external data
another organisation will do the research
qualitative data
in depth open questions
quantitative data
closed questions. rating. numbers can be presented
market share
% of the market that the business owns
your sales/ total sales in market x 100
market dominance
over 50% of the market
market leadership
business with the largest market share
market growth
an increase in demand for a product or service
new - old/ old x100
analyse full market not just yours
Price (4ps)
how much the business sells products or services for
cost plus pricing
cost of producing a single product and adding a bit on top
+ garanteed to make a profit
- can make it very expensive
competitor pricing
based pricing on competitors, aims to have lowest price to attract customers
+ gain more market share
- prices are too low
promotional pricing
sales/ special offers. increase short term sales to get rid of stock or gain customers
+ get rid of stock
- not a high profit
loss leaders
sells product as cost price to gain market share then raise the price to make a profit
+ gain market share
- a loss at first
destroyer pricing
low prices to gain customers from competitors and eliminate other businesses
+ eliminate competitors
- may make a loss
penetration pricing
entering market at a low price then when demand goes up the price does too
+ gains customers
- demand may not increase
price skimming
entering into the market at a really high price then slowly decreasing it
+ extension strategy
- people may not pay original price
price discrimination
selling products at different prices based on peoples differences eg age
+ attracts youngers
- unfair
price elasticity of demand
how much demand will go down if price goes up
% change in demand/ % change in price
elastic = more then one
income elasticity of demand
% change in demand/ % change of income
AIDA model
attention, interest (above the line promotion)
desire, action (below the line, more specific promotion)
marketing objectives
what the business wants to achieve through its marketing
e.g. brand loyalty, increase quality
