Marketing Flashcards
What is marketing?
Marketing is all the processes involved in getting the right product to the right consumer, at the right price, in the right place, in a profitable and efficient way.
Define “marketing mix” and state the 4 elements
The marketing mix refers to the key decisions that must be taken into consideration when marketing a product.
The 4 elements of the marketing mix are ; Product, Price, Place and Promotion.
What are the 4P’s of marketing?
Product, Price, Place and Promotion
Define each of the 4P’s of Marketing.
Product: the product includes consumer goods, these should always meet the expectations of the customer in terms of quality, performance, durability, and appearance.
Price: is the monetary value of a good or service. A price should never too high or too low but the business should be able to make a profit from the price charged.
Place (Distribution): refers to how a good or service is distributed. It is concerned with how products are passed from manufacturer then reach to the final consumer.
Promotion: refers to the methods a firm uses to inform consumers about a product or to encourage existing consumers to purchase a product.
Explain why a product should be reasonably priced.
A price should never be too high because customers will not want to pay for it, and prices should never be too low because then customers will question if it is of low quality.
What is another word that could be used when referring to “place” referring to the 4P’s.
Distribution
Give an example of a channel of distribution
producer - retailer - consumer
Name 7 types of marketing activities
Market research, pricing, packaging, branding, sales promotion, advertising, distribution
Name 2 strategies used to promote sales in a business
Sales promotion and advertising
Define “Sales Promotion”
Sales promotion refers to the way special offers/deals are directed at consumers in the effort to increase sales or repeat a purchase by a consumer.
Give 7 examples of sales promotions.
free samples, coupons, price discounts, cash discounts, competitions, trade shows, loss leaders
Recall at least 4 types of sales promotions (but try to remember all 7) then define them.
free samples- are mini replicas of a product which are given to customers in an effort to persuade them to purchase the product.
coupons- detachable tickets a part of a document, that allows one to get a service or product for free or at a lower price.
price discounts- the amount taken off the price of an item. This also refers to cash refunds and repayments given to customers on the return of damaged items.
cash discounts- are given for prompt payments, an example being if a customer pays within a specified time or “buy one get one free”
competitions- refer to the action of a firm advertising a contest and customers can enter for rewards such as large sums of money or expensive trips abroad.
trade shows- are where items are displayed for potential customers to examine the quality of the product.
loss leaders- items with huge discounts which are used to attract customers to a store.
Identify at least 2 advantages of sales promotion (try to recall all 4)
1) Customers are able to examine the quality of the product.
2) Through sampling of new products a physiological bond is created since the customer is given an opportunity to be a part of the product making process.
3) It increases customer awareness
4) It increases loyalty
Identify 2 disadvantages of sales promotion
1) It is a very expensive exercise that increases the cost of the product.
2) It may not realize the type of profit anticipated
How does sales promotion increase the cost of products
because the company would have lost a huge sum of money by decreasing costs to increase sales.
Define “Advertising”
Advertising is a method used to persuade consumers to buy a product or service.
What are the 4 types of advertising?
Informative advertising, persuasive advertising, comparative advertising, reminder advertising.
Name then define the types of advertising.
Informative- this advertising gives factual information about the product
Persuasive- this advertising tries to entice the consumer to purchase the product by using emotional and psychological appeals.
Comparative- this advertisement compares one product to another
Reminder- serves to inform customers that the product is still available after not advertising for a while.
Give an example of each type of advertisement
Highlight at least 3 functions of advertising (try to recall all 5)
To build a firm’s image around a product
To highlight the unique features of a product
To highlight special events such as sales, or features of the product
To educate customers about the product
To inform potential buyers of the availability of the product
What are some factors that influence consumer behavior?
price, quality, taste, brand loyalty, spending patterns, income level, choice, price of substitutes, traditions
how do prices influence consumer behavior?
the higher the price of a good, the less of that product a consumer will buy.
how does quality influence consumer behavior?
consumers may ignore price and pay high amount for the product if they are getting good quality
How does taste influence consumer behavior?
people’s taste differ so marketers must be aware of the various
How does brand loyalty influence consumer behavior?
marketers try to bring brand loyalty to prevent consumers from switching to other brands
How do spending patterns influence consumer behavior?
marketers need to identify patterns so they influence consumers.
