Marketing Flashcards
Explain the term ‘Unique Selling point
A business will try to create a unique selling point (USP) for its product or service. This is what makes the product different from its competitors. For example, Volvo’s USP is safety, while Toyota’s is reliability.
Explain the term a target market
A target market is the group of people to whom a business aims to sell its products or services. E.g legos target market is kids and their parents
Name three pricing strategies
Cost-plus pricing
Competitive pricing
Premium pricing
Explain the term a niche market.
A niche market is a small, specialised segment of a larger market for a particular product or service. For example, folding bicycles are a niche market:
Draft the Product Life Cycle.
InterductionThe new product is launched. Sales will be slow until consumers become familiar withit
Growth Sales increase rapidly as more consumers learn about the product.
Maturity Sales growth increases at a slower pace and may start to level off, often due to competitors entering the market.
Saturation Sales reach their peak because there are many competitors in the market and because most consumers in the target market already have the product. This makes it difficult to increase sales, as there are fewer new customers available.
Decline Sales fall due to changes in taste/fashion or the introduction of a new or better product. Eventually the product will be withdrawn from the market.
What is promotion
Promotion means making customers aware of the product or brand in order to increase sales and create brand loyalty.
What is advertising
Advertising involves communicating with the public to let them know about a product and get them interested in buying it.
A - attract attention.
I - capture the interest of the consumer.
D - stimulate desire for the product.
A - lead to action (purchasing the product).
E.g Newspaper and magazine ads
What is sales promotion
Sales promotions are incentives offered to customers to get them to buy products.
These incentives often include short-term tactics to improve sales, such as:
>Free samples
> Buy one, get one free (BOGOF)
> Gifts with purchase
Celebrity endorsement/influencers
Many companies provide free products to influencers who will tell their followers about the products on Instagram, Snapchat or Facebook. If a celebrity is seen with a product, it can quickly and effectively increase the appeal of that product.
E.g Travis Scott & McDonald’s
