Marketing Flashcards
Marketing mix
Explain marketing mix
It refers to different elements involved in the marketing of a product
List the 4ps
(i)Product
(ii)Price
(iii)Promotion
(iv)Place
Explain product
It is the good and service being sold and produced in the market
List the type of product
(i)consumer good/service
(ii)Production good/services
Explain does what make a product successful?
(i)It satisfies existing needs and wants of the customers
(ii)It is able to stimulate new wants from the consumer
(iii)It’s design-performance,reliability,quality etc
Explain the new product development
(i)Generate ideas
(ii)Select the best ideas for further research
(iii)Decide if thefirm’s will be able to sell enough units for the product to a success
(iv)Develop a prototype
(v)Test lauch
(vi)Full launch of the product
explain its advantage
(i)Can create unique selling point
(ii)Charger higher price for new products
(iii)Help spread risk
Explain its disadvantages
(i)Market research is expensive and time consuming
(ii)Investment can be very expensive
Explain why brand image important?
(i)Consumers recognise the firm’s product more easily
(ii)Can be charged higher price
(iii)Easier to lauch new product
Explain why is packing important?
(i)It protect the product
(ii)It provide information about the product
(iii)To help consumers recognise the product
Explain the extension strategies1(product life cycle)
(i)Finding new markets for the product
(ii)Finding new for the product
(iii)Redesigning the product or the packing to improve its appeal to consumer
Explain price
It is the amount of money producers are willing to sell or consumer are willing to buy the product for
List and Explain the different pricing method
- Marketing skimming:Setting high price for a new product that is unique from other product in the market
Explain the advantages of market skimming
(i)Very high profit
(ii)Help recover research and development cost
Explain the disadvantages of marketing skimming
It may backfire if your competitors produce similar product at lower price
List and Explain the different pricing method
- Penetration pricing:setting very low price to attract customer to buy new product
Explain the advantage of penetration pricing
(i)Attract customer more quickly
(ii)Can increase market share quickly
Explain the disadvantage of penetration pricing
(i)Lower revenue
(ii)Cannot recover development cost quickly
List and Explain the different pricing method
- Competitive pricing:setting price similar to competitor’s product which is already available in the market
Explain the advantage of competitive pricing
Business can compete on other matters
Explain the disadvantage of competitive pricing
Still need to find ways of completing to attract sales
List and Explain the different pricing method
- Cost plus pricing:Setting price by adding fixed amount to the cost of making the product
Explain advantage of cost plus pricing
(i)Quicker and easy to work out the price
(ii)Make sure that the price cover all cost
Explain the disadvantage of cost plus pricing
Price might be set higher than competition
List and Explain the different pricing method
- Loss leader/promotional price:Setting price of few product at below cost to attract customer into the shop in hope they will buy other products
Explain its advantage
(i)Helps to sell off unwanted stock
(ii)A good way of increasing short term sales
Explain its disadvantage
Revenue on each items is lower
Explain the factors that affect what pricing method should be used?
(i)Is it new or existing product?
(ii)Is the product unique?
(iii)Is there a lot of competition in the market?
Explain price elasticity
It refers to the responsiveness of the quantity demanded for it to change in its price
Explain its formula
% change in quantity/% change in price
Explain what affect place decision?
(i)Type of product
(ii)Technicality of product
(iii)How often the product is purchased
Explain promotion
Marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’s products
Explain the aims of promotion
(i)Inform customers about new product
(ii)Persuade customer to buy product
(iii)Create brand image
List and explain types of promotion
(i)Advertising:Paid for communication with consumer
(ii)sales promotion:it is not paid for communication but use incentives to encourage customers to buy
(iii)Personal selling:sales staff communication directly with consumer to achieve sales and form long term relationships between firms and consumer
(iv)Direct mail:also known as mailshots, printed material
(v)Sponsorship:payment by business to have its name or product associated with a particular event
Explain what affect promotional decisions?
(i)stage of product on PLC
(ii)Nature of product
(iii)Nature of target market
