Marketing Flashcards
marketing
Involves the understanding, anticipation, and fulfilling of customer needs.
market orientation
When a business bases its marketing mix on the perception of what the customer wants using market research and customer opinions.
Product orientation
When a business bases its marketing mix on its products’ strengths and capabilities, developing products based on what it is good at making or doing, rather than what a customer wants.
Asset led marketing
A marketing strategy based on a firm’s own strengths, not solely on the customers’ needs.
E.g production techniques and distribution network.
Marketing mix
The marketing mix outlines the marketing strategy and consists of product, price, promotion, and place.
Product portfolio
The collection/range of all the goods and services offered by a business.
Brand
A brand is a business or product name/logo that can give customers a perception of what the business stands for.
USP
distinguishes a product from competitor’s products. involves branding, better quality etc
What is differentiation?
Differentiation is distinguishing a product or service from others to attract more customers.
What is the product life cycle?
The product life cycle represents the stages a product goes through from it’s introduction to decline. Measures sales over time
What is an extension strategy?
An extension strategy is a way of prolonging / lengthening the life of a product.
It stops the product from reaching the decline stage.
What is the Boston Matrix?
technique which allows businesses to analyse their product portfolio using a matrix. Products are categorised according to market growth and (relative) market share.
What are the four categories in the Boston Matrix?
The four categories in the Boston Matrix are stars, cash cows, dogs, and question marks.
Penetration pricing
Charging a low price to penetrate the market, often used in competitive markets where price is elastic.
Price skimming
Charging a high price to maximize profits on each item sold for a limited period, suitable for price inelastic products in the short term.
Cost-plus pricing
Adding a profit percentage to the average cost of producing a good or service.
Competitive pricing
A pricing strategy where a business considers competitors’ prices to decide their own pricing.
Psychological pricing
Pricing products in a way that makes customers believe they are paying less than they really are, e.g., 99p.
Contribution pricing
Pricing based on variable costs plus a contribution towards overheads and profits. Contribution = selling price - variable cost per unit.
Above the line promotion
Advertising that takes place through mass media such as print media and broadcast media. Indirect advertising. E.g newspapers, magazines, television.
Below the line promotion
Strategies used to target consumers more directly, such as personal selling, packaging, and sales promotions.
Distribution channel
The path taken by a product as it goes from the manufacturer/producer to the final consumer.
May include using a wholesaler, retailer, or direct selling.
Multi channel distribution
A combination of distribution channels are used to get the product from manufacturer to consumer.
E.g having a physical and online shop
Digital media
Any information that is broadcast through a screen, including text, audio, video, and graphics transmitted over the internet.
