Marketing Flashcards
What are the factors affecting price?
- how much the customer is willing to pay.
- competitors prices
- Target market
- Government restrictions
Cost Plus
- A percentage of the cost is added to give a profit.
* what a sample of ingredients cost £1 and the markup of 50% of the selling price would be £1.50.
Competitive
- Price of products is it similar to the competition.
- long-term strategy
- avoids a price war
Skimming
- The price is so high to begin with and lowers over time.
- short-term strategy.
- electronics.
Penetration
- Price is set low to begin with and increases over time.
- short time strategy.
- Nutella b-ready bar
- Used in a highly competitive market and encourages customers to try a new product
Destroyer
- when the price is set deliberately low for a period of time to force competition out.
- it’s illegal
- Short term strategy
Price discrimination
- when different prices for products will change at different times of the day or year.
- flights
- Short-term strategy
Promotional pricing
- Prices will be Lord for a short space of time to catch customers attention
- Short Term strategy
Premium pricing
- The price is permanently set higher than the competition due to its premium image.
- Burberry scarfs
- Long-term strategy
Lost leaders
- When a business puts the price-so low it makes a loss.
- this is to entice customers into the store or to purchase more expensive add-ons in the future.
- Short-term strategy
Psychological pricing
- when an organisation so it’s the price of 99p or £9.99 to psychologically influence customers looking for value.
- Short-term strategy.
Low price
- The price is permanently set lower than competitors.
- Lidl and Primark
- this attracts customers looking for value for money.
- Long-term strategy
What is the role of marketing department
- help achieve business objectives.
- raise awareness of products.
- anticipate what customers want.
- increase the number of customers
Identify
- determine exactly what customers want.
* trends change, marketing dep need to make sure they are up to date.
Anticipate
•planning and preparing future trends before competitors
Satisfy
•businesses must meet all customers wants and needs to a high standard.
Name some market segments
- Age
- Gender
- Income
- Location
What is differentiated marketing
- One way a business targets markets.
- businesses tailor their prospects to match the needs of their target market .
- e.g. design handbags.
Benefits of target marketing.
- Products can be tailored to the requirements of the customer.
- prices are set to reflect the target market.
- Products are sold in the most appropriate place.
What is undifferentiated marketing
- One way to target markets.
- of all consumers needs identical the business can target the market as a whole.
- E.g. bread
What is market LED
- When a business is marketing efforts are market orientated.
- customers needs and wants are identified by doing market research.
- Products are produced based on what the customer wants.
- E.g. Facebook dislike button
What is product LED?
- when a business is marketing effort or product orientated.
- product is produced as the organisation think so good at providing it.
- The market necessarily have a need for it
- there is little or no market research.
- wants of the customers are not regarded as important.
- E.g. Apple
What is consumer behaviour
• help the business to say that our products are marketed and predict future trends.
If businesses can answer these they will be able to develop a successful marketing campaign.
• WHY -what are they buying? Status, Needs, wants, trends.
• WHAT -motivate/influences them to buy.
layout and promotions.
• WHERE -where did they choose to buy from online or store for convenience.
•WHO - Buts product what target does it appeal to.
What are the different types of consumer behaviour?
- impulse
- routine/habit
- informed.
What is impulsive behaviour
- buying something without thinking.
- promotion product placement.
- small items such as socks.
What is routine/habit behaviour
- buying something out of habit and without thought.
* Milk and bread
What is informed behaviour?
- buying something after careful consideration is of option brands and prices.
- Such as cars and phones
What does market research involve?
- research and analyse and recording what is happening in the market.
- it aims to find out what customers wants so they can satisfy their wants.
What does market research look at?
- buying habits/type of customers.
- feedback on products.
- future products.
- advertising campaigns.
What are the benefits of market research?
- helps businesses make informed decisions for product launches are successful.
- reduces the risk of an unsuccessful product launch or development which can be costly.
- customers feel valued as your opinions are taken into consideration.
What is desk research
- secondary information.
* information already exists.
Examples of desk research
- written, -webpages, text, emails.
- Numerical- sales figures, statistics.
- graphical -graphs and charts.
- oral - meeting, telephone, tv program.
- pictorial- pictures, websites, newspapers.
Benefits of desk research.
• can be cost-effective.
Disadvantages of desk research
- can be biased.
* may not be specific to your needs.
