Marketing Flashcards
Market Segmentation
Putting potential customers into groups based on specific criteria or characteristics.
Criteria to segment the market
Age
Gender
Income level
Lifestyle
Religion
What are the 4P’s of marketing
Product
Price
Place
Promotion
The first step of creating a product is?
research development
What are the 4 stages to the product life cycle?
-Introduction
-Growth
-Maturity
-Decline
What does research development include?
-Market research
-Idea generation
-Creating a Prototype
-Test and fine tune
- Put into production
-Plan launch
What happens in the introduction segment?
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
What happens in the Growth segment?
-Sales rise quickly- lots of new customers
- Costs are high- still lots of advertising
- Profits are increasing fast- customers are trying out the product
What happens in the Maturity segment?
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
What happens in the Decline segment?
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
Positives of a Strong Brand?
+People pay more
+loyalty increases
+easier to launch new products
+perceived high quality
Negatives of a Strong brand?
expensive to set up
What is price?
How much money the business charges their customer to buy their goods or services.
Factors that affect the price? (5)
Quality
Price charged by competitors
Life cycle of the product
Government restrictions
Cost of producing
What is competitive pricing?
(LONG TERM PRICING STRATEGIES)
Setting the price the same as competitors
What is low pricing?
(LONG TERM PRICING STRATEGIES)
Products and services that are always set at a low price. (bargains)
What is high pricing?
(LONG TERM PRICING STRATEGIES)
Products/services that are always set at a high price.
(Status)
What is price skimming?
(SHORT TERM PRICING STRATEGIES)
setting a very high price at the start then lowering it.
(Must have products)
What is penetration pricing?
(SHORT TERM PRICING STRATEGIES)
Price set just below the market price.
(Better price than competitors)
What is destroyer pricing?
(SHORT TERM PRICING STRATEGIES)
Very low price as destroys competition as consumers stop buying anything else.
What is place?
Business have to decide where to locate their shop and products.
Factors to consider when deciding where to locate (5)
Where the customer is
Competition
Available employees
Transport links
Government grants
