marketing mix Flashcards
what are the 7P’s?
price place process promotion product people physical environment
what are industrial goods?
goods that firms sell to each other often known as business to business. they’re often not the final end user of the product
define consumer goods
goods sold directly to the end user of the product to satisfy our needs and wants
what are convenience goods?
goods that consumers buy frequently with little thought or effort and they want them to be readily available
shopping goods are…
goods that consumers think more about buying and will compare products and prices but they still want them to be easily accessible
what are speciality goods?
products that consumers will plan to buy and then find it, and are usually willing to travel to do so e.g. sports car
what is a product life cycle?
the different stages in the life of a product and the pattern of sales at each stage
what are extension strategies?
the methods used to prevent falling sales and extend the life of a product
define product portfolio analysis
this analyses the market position of all the products of a business to assess how well they are doing in the market
what is the boston box matrix?
this is a method of product portfolio analysis that analyses a products market position in terms of market share and growth
define new product development
this is when a firm creates a new or improved product of service for an existing market
what are the 5 stages of the product life cycle in order?
introduction development growth maturity decline
name 2 ways how a business might use extension strategies to prolong the maturity stage of a product?
modify the product e.g. new, added, extra ingredients
promote more heavily - more advertising
how would profits look in the growth stage?
low
what would competition be like in the maturity stage of the product life cycle?
intense
what are the 4 parts of the boston matrix?
rising star
problem child
cash cow
dog
if a business had a high market share, but a low market growth, which part of the boston matrix would it be in?
cash cow
if a business had a low market share and a low market growth, what part of the boston matrix would it be in?
dog
which characteristics does a problem child in the boston matrix have?
low market share and high market growth
name 2 ways in which a business could be influenced to develop a product
having a product which is coming to the end of its lifecycle- declining
competitors actions; it may be necessary to match them to keep up with competition
give 1 value of new product development
firms can develop a USP which can help to differentiate it from the competition
what are 2 problems of new product development?
many ideas for new products never make it into production
some firms do better by focusing on a small core of products and deliberately have narrow ranges
what are pricing strategies?
the longer term pricing policies of the business used to achieve a firms objectives
define penetration pricing strategy
setting a low price to gain market share when breaking into a new market of trying to achieve a sudden increase in market share in a market the firm already operates in
what is a price skimming strategy?
setting a high price to gain a high profit margin often done when launching a new product. the price may be lowed later as the initial impact wears off. products must have a very strong USP for this to work
define what marketing mix means
the 4P’s are a combination of price, product, promotion and place that influence consumers decision to buy a product or not. the 7P’s add people process and the physical environment
