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Business > Marketing Mix > Flashcards

Marketing Mix Flashcards

1
Q

Marketing Mix

A

The combination of four areas of marketing activities (price, product, promotion and place) to make sure that customers’ needs and wants are met while generating optimum revenue.

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2
Q

Price

A

Money charged for a product/service

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3
Q

Product

A

A good or service produced by a business or organisation and made available to customers for consumption

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4
Q

Promotion

A

Communication between the business and customer.

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5
Q

Place

A

The way in which a product is distributed – how it gets from the producer to the consumer

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6
Q

FOMO

A

Fear Of Missing Out

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7
Q

Target Market

A

The particular group of customers to which a business aims to sell its product; a particular market segment.

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8
Q

Brand

A

Name, term, design, symbol, or any other feature that distinguishes an organisation or product from its rivals in the eyes of the customers

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9
Q

USP

A

The key benefit of a good/service; it differentiates the product from others and will be the focus of advertising and promotion.

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10
Q

Differentiation

A

Developing the features that set a product apart from others in the market (such as benefits, style, price) and using that as part of advertising and promotion.

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11
Q

Product Portfolio

A

The range of products offered by one producer.

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12
Q

BOSTON MATRIX

A

A tool for analysing the contribution made by each product in a business’ product portfolio. It plots each product’s position according to its market share and the rate of growth of the market.

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13
Q

Market Share

A

The proportion of the whole market for a product that is held by the business.

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14
Q

Product Life Cycle

A

The stages through which a product travels during its journey from being an idea to being old and dated: research and development, introduction, growth, maturity, decline.

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15
Q

Extension Strategies

A

Methods that can be used to prolong the life of a product; could include price reductions, modifications to the product or relaunch.

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16
Q

Price Skimming

A

Setting a very high price when a product (often technology item) is first introduced to the market in relatively small numbers; only those who can afford to pay high prices to own the latest models will be able to purchase the product. The price is later reduced so that others can afford to buy.

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17
Q

Penetration Pricing

A

Fixing a low price when a new product is first introduced (into an established market) so that the product gains market share quickly. Once the product is established, the price is then raised so that profit is increased.

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18
Q

Competitive pricing

A

Setting the price of a product so that it is in line with competitors’ prices.

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19
Q

Loss Leader

A

A good or service sold at below cost price to bring customers into the shop with the intention that, once there, they may purchase full-priced items too.

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20
Q

Cost-plus pricing

A

Setting the price of a good or service at an amount higher than the cost of producing it so that a profit is made.

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21
Q

Advertising

A

Communicating to customers

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22
Q

Sales Promotion

A

Short term activities to attract consumer attention to a product or service in order to increase sales

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23
Q

Public relations

A

A business organises an event that will undoubtedly get free media coverage for its product or service

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24
Q

Personal Selling

A

Having a sales force to promoted their products and services

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25
Q

Distribution Channel

A

The route the ownership of the product transfers from the seller to the buyer; it may be a single transaction or pass through others such as wholesalers, distributors, agents and retailers.

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26
Q

The combination of four areas of marketing activities (price, product, promotion and place) to make sure that customers’ needs and wants are met while generating optimum revenue.

A

Marketing Mix

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27
Q

Money charged for a product/service

A

Price

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28
Q

A good or service produced by a business or organisation and made available to customers for consumption

A

Product

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29
Q

Communication between the business and customer.

A

Promotion

30
Q

The way in which a product is distributed – how it gets from the producer to the consumer

A

Place

31
Q

Fear Of Missing Out

A

FOMO

32
Q

The particular group of customers to which a business aims to sell its product; a particular market segment.

A

Target Market

33
Q

Name, term, design, symbol, or any other feature that distinguishes an organisation or product from its rivals in the eyes of the customers

A

Brand

34
Q

The key benefit of a good/service; it differentiates the product from others and will be the focus of advertising and promotion.

A

USP

35
Q

Developing the features that set a product apart from others in the market (such as benefits, style, price) and using that as part of advertising and promotion.

A

Differentiation

36
Q

The range of products offered by one producer.

A

Product Portfolio

37
Q

A tool for analysing the contribution made by each product in a business’ product portfolio. It plots each product’s position according to its market share and the rate of growth of the market.

A

BOSTON MATRIX

38
Q

The proportion of the whole market for a product that is held by the business.

A

Market Share

39
Q

The stages through which a product travels during its journey from being an idea to being old and dated: research and development, introduction, growth, maturity, decline.

A

Product Life Cycle

40
Q

Methods that can be used to prolong the life of a product; could include price reductions, modifications to the product or relaunch.

A

Extension Strategies

41
Q

Setting a very high price when a product (often technology item) is first introduced to the market in relatively small numbers; only those who can afford to pay high prices to own the latest models will be able to purchase the product. The price is later reduced so that others can afford to buy.

A

Price Skimming

42
Q

Fixing a low price when a new product is first introduced (into an established market) so that the product gains market share quickly. Once the product is established, the price is then raised so that profit is increased.

A

Penetration Pricing

43
Q

Setting the price of a product so that it is in line with competitors’ prices.

A

Competitive pricing

44
Q

A good or service sold at below cost price to bring customers into the shop with the intention that, once there, they may purchase full-priced items too.

A

Loss Leader

45
Q

Setting the price of a good or service at an amount higher than the cost of producing it so that a profit is made.

A

Cost-plus pricing

46
Q

Communicating to customers

A

Advertising

47
Q

Short term activities to attract consumer attention to a product or service in order to increase sales

A

Sales Promotion

48
Q

A business organises an event that will undoubtedly get free media coverage for its product or service

A

Public relations

49
Q

Having a salesperson promote their products and services by talking 1-1 with the customer

A

Personal Selling

50
Q

The route the ownership of the product transfers from the seller to the buyer; it may be a single transaction or pass through others such as wholesalers, distributors, agents and retailers.

A

Distribution Channel

51
Q

Factors affecting price (4)

A
  • Cost (Does the product make a profit?)
  • Location on PLC (Increase or decrease price)
  • Nature of product (luxury or simple)
  • Degree of Competition (similar price)
52
Q

Price Skimming (2+, 1-)

A

+ Maximises revenue - Attracts customers who buy early on and are willing to pay a higher price but the business can still attract other customers who can pay a lower price later on in the product’s lifecycle.

+ Cover Research and Development Costs

  • Slows down growth of a product – Competitors may catch up
53
Q

Price Penetration (1+, 1-)

A

+ Increase market share – Attracts customers from established competitors
- Lower short-term profits

54
Q

Loss-Leaders (2+, 1-)

A

+ Can offer extra products
+ Makes customers feel more willing to purchase their product
- Very low profit will be earned

55
Q

Competitive pricing (1+, 1-)

A
  • Only effective when products are similar
    + Price will not be a competitive disadvantage.
56
Q

Cost-plus pricing (1+)

A

+ Easy to make a profit

57
Q

Significance of USP

A
  • Very effective in a competitive market
  • Attracts many customers
58
Q

Significance of a Market-driven approach for developing a product

A
  • Attracts new customers – Satisfies customer needs and wants
59
Q

Factors influencing product production (3)

A
  • Cost to make
  • Aesthetics
  • Function (Multi-use)
60
Q

Extension Strategies for a Decline stage product (5)

A
  • Advertising
  • Update packaging or rebranding
  • Changing the target market
  • Adding more features
  • Reducing price
61
Q

Why have multiple products in different sections of the Boston Matrix? (2)

A
  • Reduces risk – not all of their eggs are in the same basket
  • Helps allocate investment
62
Q

Benefits of developing new products (3)

A
  • Diversification – less risk
  • Increased brand value
  • More sales
63
Q

Risks of developing new products (2)

A
  • Damage brand – if bad quality
  • Loss of investment – if product fails
64
Q

Promotional Methods (6)

A
  • Sales promotion
  • Sponsorship
  • Advertising
  • Public Relations
  • Product placements
  • Social Media
65
Q

Advertising methods (5)

A
  • Newspapers
  • Magazines
  • TV
  • Internet
  • Billboards
66
Q

Sales promotion examples (6)

A
  • Discount coupons
  • Point of sales displays
  • Competition
  • Samples
  • Value for money offers
  • Free gifts
67
Q

Factors influencing promotional mix (5)

A
  • Finance available
  • Competitor actions
  • Target Market
  • Nature of product or service (Needs information or nah)
  • Nature of market (fast or slow)
68
Q

Reasons for promotion (4)

A
  • Change image of the product/service
  • Persuasion to buy the product
  • Inform customers about the product
  • To create or increase sales
69
Q

Distribution channels (3)

A
  • Manufacturer –> Wholesalers –> Retailers –> Customers
  • Manufacturer –> Retailers –> Customers
  • Manufacturer –> Customer
70
Q

Manufacturer –> Wholesalers –> Retailers –> Customers (1+, 2-)

A

+ Large network of buyers
- Less interaction with customers
- Profit is shared (Customers pay more)

71
Q

Manufacturer –> Retailers –> Customers (2+, 2-)

A

+ Higher margins or lower prices
- Hard to contact retailers
+ Have control over shops
- Higher delivery costs

72
Q

Manufacturer –> Customer (2+)

A

+ Nobody else takes a cut
- Hard to reach customers
+ E-commerce (no need for physical stores)

Business (4 decks)

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