Marketing Flashcards
Place
How product is distributed
Channel of distribution
Link between production and consumption
Online distribution
Purchased online then delivered to customer
Digital distribution
Electronic methods used to deliver goods to customer
Boston matrix parts
Stars - low market share products, high investment
Dog - worst product, low market share, discontuining products
Cash - products that generate profit, if market declines then profit may suffer, little or no investment
Promotion
techniques to inform + persuade consumers to buy a product or service
Above the line
promotion with no direct contact
Below the line
promotion with direct contact to potential customer
Ansoff matrix
Market penetration
Product development
Market development
Diversification
Above the line strategies
Radio
Magazines
Cinema
TV
Sponsor
Newspaper
Price
amount of money customer needs to give up to obtain product or service
Competition based pricing
Price set based on prices charged by competitors for similar/identical products
Price skimming
involves setting high price to maximise profits at the initial stage
Penetration pricing
when business is new to a market, price is set lower than competitor business
Marginal pricing
setting price higher than variable cost of production
Contribution pricing
setting price based on variable cost of producing or buying a product
Price elasticity equation
% change in quantity demanded/ % change in price
Cross price elasticity
how sensitive demand of product is over shift of corresponding product price
Cross price elasticity equation
% change in demand for good X/ % change in demand for good Y
Drip marketing
automated process that send messages for customers to move them through sales cycle
Service marketing
how businesses meet customers wants and needs of activity that business does for you
Additional 3 p’s
people
process
physical
