Marketing Flashcards

1
Q

Market Segmentation

A

Putting potential customers into groups based on specific criteria or characteristics.

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2
Q

Criteria to segment the market

A

Age
Gender
Income level
Lifestyle
Religion

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3
Q

What are the 4P’s of marketing

A

Product
Price
Place
Promotion

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4
Q

The first step of creating a product is?

A

research development

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5
Q

What are the 4 stages to the product life cycle?

A

-Introduction
-Growth
-Maturity
-Decline

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6
Q

What does research development include?

A

-Market research
-Idea generation
-Creating a Prototype
-Test and fine tune
- Put into production
-Plan launch

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7
Q

What happens in the introduction segment?

A

Product is Launched so
- Sales are low because customers don’t know it exists.
- Costs are high because there’s been lots of advertising.
-Profits are low or negative because there’s been little to none sales

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8
Q

What happens in the Growth segment?

A

-Sales rise quickly- lots of new customers
- Costs are high- still lots of advertising
- Profits are increasing fast- customers are trying out the product

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9
Q

What happens in the Maturity segment?

A

This stage is the ultimate aim for a business because:
-Sales are highest- established customer base
-Costs are low- little advertising
- Profits are at their peak

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10
Q

What happens in the Decline segment?

A

Business will probably withdraw product now because:
-Sales are falling fast because of increase competition or customers are moving away.
-Costs are low- little advertising
- Profits are falling sharply

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11
Q

Positives of a Strong Brand?

A

+People pay more
+loyalty increases
+easier to launch new products
+perceived high quality

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12
Q

Negatives of a Strong brand?

A

expensive to set up

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13
Q

What is price?

A

How much money the business charges their customer to buy their goods or services.

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14
Q

Factors that affect the price? (5)

A

Quality
Price charged by competitors
Life cycle of the product
Government restrictions
Cost of producing

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15
Q

What is competitive pricing?
(LONG TERM PRICING STRATEGIES)

A

Setting the price the same as competitors

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16
Q

What is low pricing?
(LONG TERM PRICING STRATEGIES)

A

Products and services that are always set at a low price. (bargains)

17
Q

What is high pricing?
(LONG TERM PRICING STRATEGIES)

A

Products/services that are always set at a high price.
(Status)

18
Q

What is price skimming?
(SHORT TERM PRICING STRATEGIES)

A

setting a very high price at the start then lowering it.
(Must have products)

19
Q

What is penetration pricing?
(SHORT TERM PRICING STRATEGIES)

A

Price set just below the market price.
(Better price than competitors)

20
Q

What is destroyer pricing?
(SHORT TERM PRICING STRATEGIES)

A

Very low price as destroys competition as consumers stop buying anything else.

21
Q

What is place?

A

Business have to decide where to locate their shop and products.

22
Q

Factors to consider when deciding where to locate (5)

A

Where the customer is
Competition
Available employees
Transport links
Government grants