Marketing Mix 11 Flashcards by Adam Harward

What is meant by the term ‘marketing’?

A management process of identifying, anticipating and satisfying customer’s wants profitably.

How well did you know this?

Not at all

Perfectly

What is meant by the term ‘brand’?

A named product that is seems as different.

How well did you know this?

Not at all

Perfectly

What is meant by the term ‘own brand’?

A product sold under the name of a retailer rather than the manufacturer.

How well did you know this?

Not at all

Perfectly

What is meant by the term ‘product mix’?

The number of products made by a business.

How well did you know this?

Not at all

Perfectly

What is meant by the term ‘product range’?

A group of similar products made by a business.

How well did you know this?

Not at all

Perfectly

What is meant by the term ‘product portfolio’?

Small businesses often sell one main product. As businesses expand they need to extend the range of products they sell. Therefore they are widening their product portfolio.

How well did you know this?

Not at all

Perfectly

What makes a brand iconic?

Advertising
Tradition
Recognised
Link to Britain

How well did you know this?

Not at all

Perfectly

What are the benefits of a business widening their portfolio?

Enables them to grow as a company therefore making more profit.
Less risk - spread the risk (have other products to fall back on if one fails etc).
Greater selection for customers.
Wider range to support original product.

How well did you know this?

Not at all

Perfectly

What are the drawbacks of a business widening their portfolio?

Lot more responsibility.
Quality decreases as not fully focused on one product.
Employ more staff therefore higher costs.
Poor publicity on one product can impact others.
High costs to keep developing products.
Product may fail if insufficient amount of market research done.

How well did you know this?

Not at all

Perfectly

What is meant by the term ‘product life cycle’?

A model showing the lifespan of a product’s sales from launch to being taken off the market.

How well did you know this?

Not at all

Perfectly

Describe a product life cycle graph.

The y axis is titles ‘sales’ and the x axis is labelled ‘time’. Below (0,0), there is a negative on both sales and time, which is the section for ‘Research and Development’. Then, there is a gradual incline on the line as the product enters its ‘Intro’ stage. Then, the line steepens as the product gets into its ‘Growth’ stage. When the graph/product reaches its peak number of sales, it is in its ‘Maturity and Saturation’ stage. When the number of sales begins to decline, the product enters its ‘Decline’ stage. Part of the way through the decline, the sales goes up again, as a product goes into its ‘Extension Strategy’ stage.

How well did you know this?

Not at all

Perfectly

Describe the number of sales through each of a product’s life cycle stages.

Research and Development: None.
Introduction: Low.
Growth: More, increasing.
Maturity and Saturation: Lots, high.
Decline: Less, decreasing.

How well did you know this?

Not at all

Perfectly

Describe the product through each of a product’s lifecycle stages.

Research and Development: Innovative new design.
Introduction: New, unique. 
Growth: New, unique. 
Maturity and Saturation: New, unique. 
Decline: Adapt, develop --> extension.

How well did you know this?

Not at all

Perfectly

Describe the promotion through each of a product’s lifecycle stages.

Research and Development: n/a.
Introduction: Lots, high.
Growth: Lots, high. 
Maturity and Saturation: Not as much, reduced. 
Decline: None.

How well did you know this?

Not at all

Perfectly

Describe the distribution through each of a product’s lifecycle stages.

Research and Development: n/a.
Introduction: High.
Growth: High.
Maturity and Saturation: High.
Decline: Less, decreasing.

How well did you know this?

Not at all

Perfectly

Describe the price through each of a product’s lifecycle stages.

Research and Development: n/a.
Introduction: High.
Growth: High.
Maturity and Saturation: High.
Decline: Decreasing, low.

How well did you know this?

Not at all

Perfectly

Describe the profit through each of a product’s lifecycle stages.

Research and Development: Less, negative.
Introduction: Breaking even/loss.
Growth: More, positive.
Maturity and Saturation: Lots, positive, high.
Decline: Decreasing profit.

What is meant by the term ‘price’?

The amount charged to a consumer for a good or service.

What are the factors influencing the price set?

Quality of the product. 
Target market. 
Manufacturing costs. 
Originality of the product --> USP.
Brand reputation.
Competitors. 
Location.
Innovation.
Profit you want.
Stage of product life cycle.

What is meant by the term ‘advertising’?

A method of promotion to make people more aware of your business through putting adverts in places for people to see so they know about your business.

What are the advantages of advertising?

Seen by lots of people.

Seen lots of times so message is conveyed effectively.

What are the disadvantages of advertising?

Not individually targeted, very general.

Expensive.

What is meant by the term ‘sales promotion’?

The process of persuading a potential customer to buy the product eg loyalty cars, vouchers/coupons, gifts.

What are the advantages of sales promotion?

Strongly encourages people to try product & potentially switch brand.
Increases sales quickly, get a quick boost in sales.

What are the disadvantages of sales promotion?

Can damage brand image. Only effective of the short term. Customers may effect further promotions. Lowers profits.

What is meant by the term 'public relations'?

The way in which a company manages their relationship with different parts of the public.

What are the advantages of public relations?

Gains credibility & trust in the company. Creates a good brand image. Long lasting effect.

What are the disadvantages of public relations?

Message can be twisted, particularly by the media. | No guarantee the message will reach the target market.

What is meant by the term 'personal selling'?

Where businesses use people to sell the product after meeting face-to-face with the customer.

What are the advantages of personal selling?

Personal, adaptable. High customer attention. Persuasive. Increases customer relations.

What are the disadvantages of personal selling?

Labour intensive. Only reaches a limited number of customers. Can be expensive.

What are the factors influencing promotion method chosen by a business?

Cost. Target audience. Method of communication.

what is meant by the term 'channels of distribution'?

The way the product gets to the customer from the producer.

Describe the traditional channel of distribution. Give examples of things usually taking this channel.

Producer-->wholesaler-->retailer-->customer. | Sweets, corner shops, drinks.

Describe the modern channel of distribution. Give examples of things usually taking this channel.

Producer-->retailer-->customer. | Clothing.

Describe the direct channel of distribution. Give examples of things usually taking this channel.

Producer-->customer. | Tailored clothing, bakery.

What are this advantages and disadvantages of the traditional channel of distribution?

+easier to sell the product, only have to sell to the wholesaler. -less profit margin, have to sell for cheaper (as sold in bulk).

What are the advantages of the modern channel of distribution?

+higher profit margins, as can sell for higher prices.

What are the advantages and disadvantages of the direct channel of distribution?

+very high profit margins. | -a lot more work yourself, make product & find customers.

What are the factors affecting which channel of distribution to use?

``` Convenience for customers. Distance from customers. Cost of holding stock. Likelihood of customer access online. Amount of control. Product (eg chewing gum vs A&F) ```