Marketing Flashcards
Advantage of a niche market
Disadvantage of a niche market
less competition/small scale production/higher market share
less profits/changes in demand
Advantage of a mass market
Disadvantage of a mass market
higher revenue/more brand awareness
more competition/smaller market share
What is product differentiation?
the way a business makes its brand different from its competitors; usually with a USP.
Name the stages in a new product deveopment
1) Generation of idea
2) Analysis of ideas
3) Product development
4) Test marketing
5) Launch of new product
What is the marketing mix?
the 4 P's product price promotion place
Name the stages of the Boston matrix and what market share and market growth it has
Stars; High growth & High market share
Cash Cow; Low growth & High market share
Problem Child; High growth & Low market share
Dogs; Low growth & Low market share
Name the stages of a product life cycle
1) Development
2) introduction
3) Growth
4) Maturity (extension - to extend a products life)
5) Decline
Name 3 methods of advertising
television/radio/cinema/national or regional newspapers/magazines/internet/posters
List pricing strategies
price skimming/penetration pricing/price leader/predator or destroyer pricing
Which pricing strategy is this;
large company sets a low price that smaller firms follow
price leader
Which pricing strategy is this;
company sets a high price to gain high profits
price skimming
Which pricing strategy is this;
a company sets low prices to break into the market
penetration pricing
Which pricing strategy is this;
a company sets a really low price to get rid of rivals within the market
predator or destroyer pricing
Name 3 pricing strategies
loss leader/psychology pricing/price discrimination
Expand on either on of the pricing strategies
loss leader;
set a products price particulary low to encourage customers to buy dearer, complimentary products
psychology pricing;
giving a product the price of £9.99 instead of £10 to give the impression of value
price discrimination;
charging a higher price to some customers for the same product or service
List the aims of production
attention/interest/desire/action
List 3 promotional methods
PR/branding/merchandise/sales promotion/direct selling/advertising
What is EPOS?
when an item is scanned and stock levels are automatically adjusted and when stock reaches a certain level a message is then sent to the supplier
What is a core product?
when a company concentrates on producing 1 or 2 products and mass producing and selling them
What is product proliferation?
when a company has a verity of different products available
Name the different market structures
monopoly/oligopoly/monopolistic/perfect competition
Which market structure is this;
3 - 4 medium sized businesses with 75% market share between them
oligopoly
Which market structure is this;
lots of small businesses with control over their product prices
perfect competition
Which market structure is this;
1 single producer with 25% market share
monoploy
Which market structure is this;
lots of small businesses with control no over their product prices
monopolistic
How would you improve your business to become more competitive?
1) improve quality
2) reduce waste
3) improve efficiency
List 3 reasons why location of a business is important
1) convenience
2) cost of access
3) accessibiliy
What is the formula for a change in price elasticity of demand?
% change in quantity demanded
——————————————————–
% change in price
What is cartel?
a group of firms that agree to a price and output levels in an industry
What are porters 5 forces?
intensity of competitive rivalry >power of suppliers >power of buyers >threat of entry by new competitors >threat from substitute products or services
