Marketing Flashcards
Product life cycle
A model showing the lifespan of a products sales from launch to being taken off the market
Development
How much a product/business has been developed, changed or advanced
Launch/introduction
The start of a product on the product lifestyle
Growth
The starting of a product to grow/ growing and making itself up the product life cycle
Maturity
Where a product has reached its highest increase on the product life cycle
Saturation
At a point of saturation, they cannot grow anymore without developing or making changes to their business
Decline
When a product starts to head for going off market (discontinued) and unless they develop the product they cannot move back up the life cycle
Extension strategy
An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline
Brand
A brand is a name, term, design, symbol, or other feature that distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising
Product portfolio
Shows the range of products a company offers
Pricing strategy
Competition Location Quality Cost Brand Demand State of economy Supply Target audience Stage of product life cycle
Psychological pricing
Used to make products appear cheaper by using fa: ‘£1.99’ instead of ‘£2.00’ to make the product seem cheaper to the consumer
Price discrimination
First-degree price discrimination, alternatively known as perfect price discrimination, occurs when a firm charges a different price for every unit consumed. The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.
Cost plus pricing
Cost plus pricing is a cost-based method for setting the prices of goods and services. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage (to create a profit margin) in order to derive the price of the product.
Price skimming
Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.
Penetration pricing
Penetration pricing refers to a marketing strategy used by businesses to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to lure customers away from competitors.
Completion based pricing
Pricing of a product/products depending on where competition have priced their products
Promotional mix
The 4 p’s
Informative advertising
Advertising that includes a lot of information about the business or product/ products that are sold to help build the business up and help it to grow
Persuasive advertising
Advertising used to persuade customers into the business
Above the line
Above The Line (ATL) advertising is where mass media is used to promote brands and reach out to the target consumers. These include conventional media as we know it, television and radio advertising, print as well as internet
Below the line
Below-the-line advertising is an advertising strategy in which a product is promoted in mediums other than radio, television, billboards, print and film. Types of below-the-line advertising commonly include direct mail campaigns, trade shows and catalogs, and targeted search engine marketing.
Sales promotions
The process of persuading a potential customer into the business
Direct marketing
Where customers are communicating with the business through a variety of media
Public relations
Help manage reputation of a business
Channel of distribution
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
Retailers
Sells goods directly to customers consumers through many methods to grow product
Wholesaler
Buys large amounts of products and sells in a warehouse. Aka Costco
Telesales
Sales done over the phone
Mail order
Orders made online or in store but delivered by mail
Internet selling
Selling products over the Internet
