Marketing Mix Flashcards
What is market orientation?
Business responds to customer needs and wants - designs products accordingly
What is product orientation?
Business develops products based on what it is good at doing
What is sampling in market research?
Sampling involves the gathering of data from a sample of respondents, the results of which should be representative of the population (e.g. target market) as a whole
What is the main objective of distribution?
To make products available in the right place at the right time in the right quantities
What is a distribution channel?
A distribution channel moves a product through the stages from production to final consumption
What is a retailer?
Retailer is the final step in the chain – deals directly with the customer
What is a wholesaler?
Wholesalers “break bulk”
Buy in large quantities from producers
Break into smaller quantities to sell to retailers
Wholesaler makes money by buying at a lower price from the producer and adding a profit margin onto the price paid by the retailer
What is a distributor?
Distribute (sell on) products and serve as a local sales point
Usually specialise in a particular industry
Examples – building supplies, electrical components, industrial clothing
Offer products from many producers = greater choice
Different from agents in that a distributor holds stock
What are agents?
Specialist type of distributor
Does not hold stock
Tend to operate in tertiary sector (services)
Travel
Insurance
Publishing
Earn commission based on sales achieved
What are the differences between direct and indirect distribution channels
Direct Distribution
Channel where a producer and consumer deal directly with each other without the involvement of an intermediary
Indirect Distribution
Involves the use of intermediaries between the producer and consumer
What is a multi-channel distribution?
Multi-channel distribution involves a business using more than one type of distribution channel
What is brand extension?
When a business uses a brand name on a new product that has some of brand’s characteristics
What is brand stretching?
Where brand is used for a diverse range of products, not necessarily connected.
What are public relations?
Public relations activities are those that create goodwill toward an individual, business, cause or product
What is direct marketing?
Promotional material directed through mail, email, social media or phone to individuals or businesses
What is viral marketing?
Viral marketing uses social media and online platforms to try to produce increases in brand awareness or to achieve other marketing objectives
