Marketing Flashcards
What is marketing?
Marketing is the process of promoting, selling, and distributing a product or service to its target customers.
What is marketing mix?
Marketing mix is the 4 P’s that a business uses to effectively market its products or services.
- Product: The goods or services offered, including their features, quality, and branding.
- Price: The cost to the consumers, which can influence demand and profitability.
- Place: The distribution channels and locations where the product is available to consumers.
- Promotion: The marketing communications and strategies used to inform and persuade customers, including advertising, public relations, and sales promotion.
What is branding and what does it represent?
A brand is a unique name, symbol, design etc that distinguishes a product or service from other similar options in the market. It represents the values, qualities, and characteristics associated with a company or product, creating a perception in the minds of consumers.
What is packaging and it’s purpose?
Packaging is the design and production of containers or wrappers for a product, serving to protect it, provide information, attract customers, and enhance usability.
What is price penetration and what is one advantage and disadvantage?
Price penetration is a pricing strategy where a company sets a low initial price for a new product to attract customers and gain market share quickly, with the intention of raising the price later once a solid customer base is established.
Pro: Price penetration can quickly attract a lage customer base and establish market presence.
Con: It may lead to lower profit margins initially and can make it difficult to raise prices later without losing customers.
What is price skimming and what is one advantage and disadvantage?
Price skimming is a pricing strategy where a company sets a high initial price for a new or innovative product to maximize profits from early adopters, then gradually lowers the price over time to attract a broader customer base.
Pro: Price skimming allows a companies to maximize profits from early adopters willing to pay a higher price before lowering it to attract more price-sensitive customers.
Con: It may limit the initial customer base and can encourage competitors to enter the market with lower-priced alternatives.
What is cost plus pricing and what is one advantage and disadvantage?
Cost-plus pricing is a pricing strategy where a business determines the selling price of a product by adding a fixed percentage or a specific dollar amount (markup) to the total production cost, which includes materials, labor, and overhead expenses.
Pro: Cost-plus pricing ensures that all costs are covered and provides a straightforward method for setting prices, making it easy to calculate.
Con: It may lead to overpricing or underpricing if the markup does not reflect market demand or competition, potentially resulting in lost sales or lower profits.
What is competitive pricing and what is one advantage and disadvantage?
Competitive pricing is a pricing strategy where a business sets the price of its products or services based on the prices charged by competitors for similar offerings.
Pro: Competitive pricing helps attract customers by ensuring prices are aligned with or lower than those of competitors, which can increase market share.
Con: It can lead to price wars, where businesses continuously lower prices to outdo each other, potentially eroding profit margins and harming overall business sustainability.
What is promotional pricing and what is one advantage and disadvantage?
Promotional pricing is a marketing strategy where a business temporarily reduces the price of a product or service to stimulate sales, attract customers, or clear inventory. This approach is often used during sales events, holidays, or product launches to create urgency and encourage purchases.
Pro: Promotional pricing can quickly boost sales and attract new customers, creating excitement around a product or brand.
Con: If used too frequently, it may devalue the brand and lead customers to expect discounts, making it difficult to maintain regular pricing.
What is psychological pricing and what is one advantage and disadvantage?
Psychological pricing is a pricing strategy that leverages consumers’ emotional responses to influence their perception of the product’s value. This often involves setting prices just below a round number (e.g., $9.99 instead of $10.00) to make the price seem lower, or using high prices to create an impression of luxury or quality.
Pro: Psychological pricing can effectively influence consumer behavior and increase sales by making prices appear more attractive or affordable.
Con: It may lead to consumer skepticism if customers become aware of the pricing tactics, potentially damaging trust and brand perception.
What is advertising?
Advertising is a marketing communication strategy that involves creating and delivering messages to promote a product, service, or brand to a target audience. It utilizes various media channels, such as television, radio, print, online platforms, and social media, to reach potential customers and persuade them to take action, such as making a purchase or engaging with the brand.
What is sales promotion and what is one advantage and disadvantage?
Sales promotion is a marketing tactic that provides short-term incentives to encourage the purchase of a product or service. This can include discounts, coupons, buy-one-get-one-free offers, contests, samples, and limited-time offers, aimed at boosting sales, increasing customer engagement, and attracting new customers.
Pro: Sales promotions can quickly increase sales volume and attract new customers by creating a sense of urgency and excitement.
Con: If overused, sales promotions can devalue the brand and lead customers to wait for discounts rather than purchasing at regular prices.
What is sponsorship?
Sponsorship is a marketing strategy where a business or organization provides financial or in-kind support to an event, activity, or individual in exchange for brand visibility and recognition. This can include sponsoring sports teams, events, festivals, or charitable initiatives, with the goal of enhancing brand image, reaching target audiences, and building positive associations.
What is direct or personal selling?
Direct or personal selling is a sales strategy where a salesperson engages directly with potential customers, either face-to-face or through various forms of communication, to persuade them to purchase a product or service. This approach often involves building personal relationships, understanding customer needs, and providing tailored solutions to meet those needs.
What is public relations?
Public relations (PR) is the strategic communication process that builds mutually beneficial relationships between organizations and their publics. It involves managing and disseminating information to shape the perception of the organization, enhance its reputation, and foster positive relationships with various stakeholders, including customers, employees, investors, and the media. PR activities can include press releases, media relations, community engagement, events, and crisis management.
