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Business 10-1 IB > Marketing > Flashcards

Marketing Flashcards

1
Q

What are the 4 P’s in marketing mix? In ranking order

A

Products
Price
Place
Promotion

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2
Q

Why do you buy a product?

A

To obtain the benefits it would provide.

E.x. Lipstick to make you look better.

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3
Q

Define Product

A

A bundle of benefits is anything that can be offered to a market to satisfy a want.

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4
Q

Define Price

A

The amount charged for a good or service

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5
Q

What are the factors you must consider when looking at the price?

(there are 5 of them)

A

Demand for a product, the cost involved, consumer’s ability to pay, prices charged by competitors for similar products, and government regulations.

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6
Q

The second most important P in marketing mix?

A

Price

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7
Q

What is place?

A

Where your goods can be bought.

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8
Q

What is Promotion?

A

Informing, persuading, and influencing a consumer to buy the product.

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9
Q

What are the different means of promotion?

A

Personal selling, advertising, publicity and sales promotion.

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10
Q

Why do you advertise?

A

To provide consumers about the avalibility, characteristics and uses of a product.

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11
Q

What are the three classifications of products?

A

Use
Durability
Tangibility

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12
Q

Product and goods can be used…

A

Interchangeably

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13
Q

what are the two classifications of products biased on use:

A

Consumer goods

Industrial goods

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14
Q

What are consumer goods?

A

Goods meant for personal consumption by the households or ultimate consumers

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15
Q

What are the three different types of consumer goods?

A

Convenience goods

Shopping goods

Speciality goods

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16
Q

What are convenience Goods?

A

Goods are bought frequently without much planning or shopping effort. They are also consumed quickly.

E.x. Butter

Usually sold at convenient retail outlets.

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17
Q

What are Shopping Goods?

A

Goods that consumers spend a considerable amount of time and effort to finalize their purchase decision as they lack complete information before their shopping trip.

Ex. Clothes

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18
Q

What is specaltiy goods? `

A

Special characteristics of certain categories of goods people generally put special efforts to buy them. They are ready to buy these goods at the prices at which they are offered and also put in extra time to locate the seller to locate the seller to make the purchase.

19
Q

What are Industrial Goods?

A

goods meant for not-personal and commercial use and include raw materials, machinery, components, and operating supplies (lubricants and stationary).

Marketing follows different pricing, distribution, and promotional strategies for their sale.

20
Q

can goods be both conumer and industrial based on use?

A

Yes

21
Q

What are durable goods?

A

Products that can be used for long periods of time

22
Q

What are Non-Durable Goods?

A

Products that degrade overuse. They are usually used quickly and profit margins are usually low wit Heavy advertising.

23
Q

What are Tangible Goods?

A

They are most goods that have a physical form and can be touched.

24
Q

What are Intangible Goods?

A

Services are provided to individual consumers or organizational buyers. These services usually fill the want of satisfaction.

25
Q

What are the factors of price?

A 
Cost
Demand 
Competition 
Marketing Objectives
Government Regulation.
26
Q

What are marketing objectives?

A

Different types of objectives influence the price.

These can be Maximisation of profit, maximization of sales, bigger market share, and survival in the market.

27
Q

What is the importance of government regulation when pricing a product?

A

Some governments regulate the price of products and therefore your marketing objectives change accordingly.

28
Q

What are the four methods of price fixation?

A

Cost-based pricing
Competition based pricing
Demand-based pricing
Objective-based pricing

29
Q

What is cost-based pricing?What is competition Based Pricing

A

The price of the product is fixed by adding the amount of desired profit margin to the cost of the product.

30
Q

What is competition Based Pricing?

A

Used in highly competitive markets with very little difference between the products.

You relate your price and fix it close to the price of competing brands.

This avoids price competition that can damage all companies involved

However, now that you’re selling the same product at the same price you must find different ways to attract customers.

31
Q

Demand-based pricing?

A

At times prices are determined by the demand for the product.

This method does not pay attention to cost or competitor prices.

E.x cinemas

32
Q

What is Objective Based Pricing?

A

This method applies to the introduction of new (innovative) products. If at the introductory stage of the products, the organization wishes to penetrate the market i.e. to capture large parts of the market and discourage the prospective competitors to enter the fray, it fixes a low price. Alternatively, the organization may decide to skim the market i.e, to earn a high profit by taking advantage of a group of customers who give more importance to their status or distinction and are willing to pay even a higher price for it.

33
Q

What is a Distribution channel?

A

The vital links connecting the manufacturers and producers and the ultimate consumer/users.

34
Q

What does a channel of distribution do?

A

Established regular contact with the customers and provides them with the necessary information relating to the goods.

Provides the facility for inspection of goods by the consumers at convenient points to make their choice.

Facilitates the transfer of ownership and goods.

Helps financing by giving credit facility.

It assists the provision of after-sales services, if necessary.

It assumes all risks connected with carrying out the distribution function.

35
Q

What are the types of Distribution?

A

Zero stage channel of distribution.

One stage channel of distribution

Two stage channel of distribution

Three stage channel of distribution

36
Q

What is Zero stage channel of distribution?

A

The direct sale of goods by the producer to the consumer

E.x. door-to-door sale or personal retail outlets.

37
Q

What is one stage channel of distribution?

A

Adds a retailer to the distribution chain.

They sell goods to consumers.

E.x. refrigerators in Sears

38
Q

What are the types of industrial goods?

A

Raw materials, machinery, components, and operating supplies.

39
Q

what is two-stage channel of distribution?

A

This is when the wholesaler sells to the retailer.

This is mostly used for consumer goods or products that are bought frequently.

40
Q

What is three-stage channel of distribution?

A

when the number of wholesalers used is large and they are scattered through the country.

This adds the agents to the mix

They are known as distributers and they are the middle man for wholesalers around the country.

41
Q

what are the four factors that influence the choice of distribution channel?

A

The nature of the market: is the number of buyers limited? or is the number of buyers large?

The nature of the Product: Do your goods need to be stored in convenient locations? Does your product have a large value?

The nature of the Company: Does your company have the resources to create a retail outlet? does it want to spend resources doing so?

Middle man consideration: Is there enough middlemen with the right expertise to be worth the extra cost

42
Q

What are the three main objectives or customers?

A

arouse their interest in the product

Inform them about its availability

Inform them as to how it is different from others.

43
Q

What are the four elements of a promotion mix?

A

Advertising: Informing potential customers about the quality, features and availability of the product. (paid)

Publicity: Generating a favourable attitude to your company through getting the media to talk about its products and policies. (not paid)

Personal selling: direct door-to-door presentation of your product (very effective through industrial goods) (not paid)

Sales Promotion: temporary incentives for the product

Business 10-1 IB (7 decks)

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