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Business > Marketing Mix > Flashcards

Marketing Mix Flashcards

1
Q

What are the 4 Marketing Mix?

A

Price
Promotion
Place
Product

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2
Q

Define Cost-Plus Pricing…

A

Business makes a profit by marking up the cost of a product

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3
Q

Define Competitor Pricing…

A

Matching/basing costs off of competitor’s pricing

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4
Q

Define Penetration Pricing…

A

Price initially lowered and gradually gets higher

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5
Q

Define Price Skimming…

A

Price is initially high and gradually gets lowered

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6
Q

Define Promotional Pricing…

A

Prices reduced for a short period of time

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7
Q

Advantages/Disadvantages of Cost-Plus Pricing…

A

+ Easy to calculate
+ Ensures profit is made
- Ignores competitor’s pricing
- Ignores what customers are willing to pay

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8
Q

Advantages/Disadvantages of Competitor Pricing

A

+ Important when customers are price sensitive
+ Useful in competitive markets
+ Grow Market Share
- Quality/Service may be reduced as it is too focused on cost savings
- Ignores markup (%) of business

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9
Q

Advantages/Disadvantages of Promotional Pricing

A

+ Short-term sales
+ Breaks brand loyalties with other brands
- May reduce the perception of quality
- Customers may not be willing to pay full price anymore

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10
Q

Advantages/Disadvantages of Price Skimming

A

+ Builds reputation for high-quality products
+ Potential for high sale rates
- May lead to low sales revenue
- Competitors may enter the market and apply pricing pressure

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11
Q

Advantages/Disadvantages for Penetration Pricing

A

+ Can help to break customer loyalties with other brands
+ Can be a promotional tool when a business/product first launches
- Creates expectation from customers
- Likely to result in retaliation from established competitors

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12
Q

Define Promotion…

A

How a business informs its customers about a product/service; persuades them to buy.

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13
Q

4 Examples of Advertising Media…

A

Social Media,
Bilboards,
Radio,
Television

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14
Q

4 Examples of Sale Promotions…

A

Price Reduction,
Loss Leaders,
Competitors
Free Samples

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15
Q

Advantages/Disadvantages of Social Media as a form of advertisement…

A

+ Algorithmn to Target Audience
+ Global
- Can’t control Brand Exposure
- Time Consuming

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16
Q

Advantages/Disadvantages of Bilboards as a form of advertisement…

A

+ Usually in busy locations
+ Can be cheaper than other forms of advertising
- May be ignored by passers-by
- Only reaches a specific geographical area

17
Q

Advantages/Disadvantages of Radio as a form of advertisement…

A

+ Can reach a wide geographical audience
+ Cheaper than TV
- Only audio
- Listeners can ‘Tune out’

18
Q

Advantages/Disadvantages of TV as a form of advertisement…

A

+ Demonstrations can be shown
+ Can reach wide geographical audience
- Very expensive
- Viewers may not watch when adverts come on

19
Q

Features of a ‘Good Quality’ Product…

A
  • Good design
  • Good value for money
  • Reliable
  • Consistent
  • Durable
20
Q

Features of good branding…

A
  • Brand Logo
  • Slogans
  • Jingles
    ^ Stand out + easy to identify
21
Q

Invention VS Innovation

A

Invention: Introduction to a totally new idea
Innovation: Improvement of an original idea

22
Q

Unique products should have either…

A
  • An Unique Selling Point (USP)
  • Differentiate against other of the same products
23
Q

Define the ‘Product Life Cycle’

A
  • Describes the stages a product goes through from when it was initially added VS when it is removed from the market
24
Q

4 Stages of the Product Life Cycle

A
  • Introduction
  • Growth
  • Maturity
    ( - Saturisation)
  • Decline
25
Q

Define a ‘Distribution Channel’

A

Involves the routes which goods follow between the manufacturer and the consumer

26
Q

Advantages/Disadvantages of Distribution Channel TYPE ONE (For BUSINESSES)

A

+ Higher profit margins
- More difficult to reach Target Market

27
Q

Advantages/Disadvantages of Distribution Channel TYPE ONE (For CUSTOMERS)

A

+ Might be cheaper
- Might not be aware of producer

28
Q

Example of TYPE ONE of a Distribution Channel

A

Producer > Customer
HIGHER PROFIT MARGIN

29
Q

Example of TYPE TWO of a Distribution Channel

A

Producer > Retailer
(How John Lewis sells Sony products to customers)

30
Q

Example of TYPE THREE of a Distribution Channel

A

Producer > Wholesaler
Regional Distribution Center > Retailer > Customer

31
Q
A

Business (6 decks)

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