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BM Business theme 1 > Marketing mix and strategy > Flashcards

Marketing mix and strategy Flashcards

1
Q

What is the marketing mix used for

A

The marketing mix provides a framework for business to create and implement successful marketing strategies

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2
Q

What are the 4Ps of the marketing mix

A

Price
Place
Product
Promotion

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3
Q

What is meant by promotion in the marketing mix

A

Sales promotion
Advertising
Public relations
Direct marketing

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4
Q

What is meant by place in the marketing mix

A

Channels
Market coverage
Assortment
Location
Inventory
Transport

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5
Q

What is meant by price in the marketing mix

A

Pricing
Pricing strategy
Allowances
Discounts
Payment terms

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6
Q

What is meant by product in the marketing mix

A

Features
Branding
Packaging
Services
Warranties

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7
Q

What is the design mix

A

It refers to the combination of elements that make up a products design

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8
Q

What are the 3 elements of the design mix

A

Function- the purpose of the product or service

Aesthetics- How the product looks and feels

Cost

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9
Q

What does function refer to

A

The intended purpose of the product and the specific tasks it is designed to perform

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10
Q

What does Aesthetics refer to

A

The products visual and sensory appeal e.g. its form, shape, colour and texture

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11
Q

What does Cost refer to

A

Cost of production must be considered as it directly affects the price point of the product sold

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12
Q

What is the main role of promotion

A

generating customer awareness

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13
Q

What are types of promotion

A

Digital communications
Sponsorship
Sales promotion
Personal sales
Direct marketing
Advertising
Public relations

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14
Q

How does advertising work

A

Promotion occurs through paid channels such as tv, radio and print media.

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15
Q

Advantages and disadvantages of advertising

A

ADV- It is able to reach large audiences and increase brand awareness.
Can also create a specific brand image

DISADV- Can be expensive

Can be difficult to measure how effective it will be

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16
Q

How does direct marketing work

A

Involves communicating directly with consumers

email, text, call, social media

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17
Q

Advantages and disadvantages of Direct marketing

A

ADV- Businesses can target specific audiences
Direct marketing is measurable

DISADV- Can be intrusive

Can be costly, especially if the business does not have an established customer base

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18
Q

How do sales promotions work

A

Offering temporary incentives such as buy one get one free, loyalty cards and discount coupons.

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19
Q

ADV and DISADV of sales promotions

A

ADV- .Can quickly boost sales.
.Can help clear out stock
.encourage impulse purchases

DISADV-
.Can be expensive especially if there is heavy discounting
.Can attract deal seeking customers who are not loyal
.May reduce the sales of full priced products

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20
Q

How does personal selling work

A

When a salesperson interacts with potential customers one-on-one. (can be in person or digitally)

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21
Q

ADV and DISADV of personal selling

A

ADV-
/Allows businesses to build relationships with their customers
/Enables personalised advice and guidance to customers

DISADV
/Can be expensive due to hiring and training staff
/Can be limited as it can be difficult to scale to large audiences

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22
Q

How does a sponsorship work

A

It is an agreement where a company provides support (usually financially) to an organisation in exchange for exposure.

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23
Q

ADV and DISADV of sponsorships

A

ADV-
/Can help to build brand awareness
/Create emotional connections
/Reach new customers

DISADV-
/Can be expensive, especially for high profile events or teams
/May not directly drive sales
/May be subject to bad publicity if the sponsored entity is in a scandal

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24
Q

How does digital communications work

A

It is any form of marketing that is delivered electronically for example social media.

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25
Q

ADV ad DISADV of digital communications (marketing)

A

ADV-
/Can be targeted to highly specific consumers
/Can provide real time engagement and feedback

DISADV/
Can easily be ignored
/May require significant investment in technology
/May be subject to data privacy regulations
/May not be effective for reaching older customers

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26
Q

What is branding

A

It is the process of creating a unique and identifiable feature that differentiates a product or company from its competitors

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27
Q

Why is branding important

A

/Establishes recognition and identity
/Builds trust
/Differentiates a business or product
/Creates an emotional connection
/Branding supports marketing and advertising

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28
Q

What are the three types of branding

A

Product branding
Own brand product
Manufacturer/corporate branding

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29
Q

What is manufacturer / corporate branding

A

The use of a company name or logo to promote all of the products or services offered by the company

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30
Q

What are the ADV of corporate branding

A

Creates strong brand recognition and reputation

Allows the company to leverage existing reputation

Helps build economies of scale by promoting multiple products under one brand -> reduce marketing costs

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31
Q

What are the DISADV of corporate branding

A

If a company’s reputation is damaged, it can have a negative impact on all products offered

If the company faces intense competition in one market (e.g smartphones) it may affect the sales of all other products (e.g. laptops)

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32
Q

What is product branding

A

Use of unique name, design or symbol to promote a specific product

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33
Q

ADV of product branding

A

Distinct identity for the product, helps to differentiate from competitors

Can help to build customer loyalty and trust by associating the product with a specific quality

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34
Q

DISADV of product branding

A

Cost of creating and promoting a new branf for each product can be expensive

May be difficult to build a new brand for each product

Different products within the brand may have different levels of quality

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35
Q

What is own brand product branding

A

The use of a retailers name to promote a specific product or service

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36
Q

ADV of own brand product branding

A

Helps retailers differentiate themselves from competitors

Offer products at a lower cost than branded ones

Help build customer loyalty by offering exclusive products

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37
Q

DISADV of own brand product branding

A

Own brand products may have a lower perceived quality than branded products

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38
Q

What are the benefits of strong branding

A

Added value to products or services

Ability to charge premium prices

Reduced PED

39
Q

Ways to build a brand

A

USP - features that make a product / service stand out from competitors

Advertising - compelling ads raise brand awareness and create strong emotional connection with the audience

Sponsorship - helps brands gain exposure and build their rep

Social media - Build a loyal following and create a community around the brand

40
Q

What is viral marketing

A

Where a business use online platforms to promote their products by creating content at specific times

41
Q

What is emotional branding

A

A strategy where companies build strong emotional connections with customers by appealing to their values, beliefs and emotions

42
Q

What are the 7 pricing strategies

A

Cost plus
Price skimming
Penetration
Psychological
Competitive
Predatory
loss leader

43
Q

What is the pricing strategy cost plus

A

Cost of production + a mark-up to determine the final price.

44
Q

What is price skimming

A

The business sets a high price for a new product or service when first introduced to the market

business will then gradually lower the price to ensure sales continue

45
Q

What is the pricing strategy penetration

A

Sets a low price for a new product / service

Once the business has enough customers they will start to raise the price

46
Q

What is the pricing strategy predatory

A

Sets prices so low that it drives competitors out the market

illegal in many countries as it is considered anti - competitive

47
Q

What is the pricing strategy competitive

A

The business sets prices based on competitors prices

48
Q

What is the pricing strategy psychological

A

Takes into account the customers emotions, beliefs and attitude.

9.99 instead of 10

49
Q

What is the pricing strategy loss leader

A

where a price is set deliberately below the cost of production in order to attract customers wo will buy other more profitable products

e.g. bread

50
Q

What are the factors that influence the choice of pricing strategies

A

Number of USPs - high differentiation can command higher prices

PED- lower prices if the product is price elastic. Higher prices if the product is price elastic

Level of competition - low prices to stay competitive

Strength of the brand - strong brand = premium prices

stage in product life cycle - introduction = low prices growth = rising prices maturity = lowered prices

how much a product costs and the need to make a profit

51
Q

What are the 3 different distribution channels

A

Four stage distribution

Three stage distribution

Two stage distribution

52
Q

Explain a four stage distribution channel

A

Consists of : producer, wholesaler, retailer , consumer.

Commonly used for products such as groceries, clothing and electronics

53
Q

Explain a three stage distribution channel

A

consists of : producer, retailer , consumer

Eliminates the wholesaler stage with the producer selling directly to the retailer

used for products of high demand and high profit margins

e.g. laptops

54
Q

Explain a two stage distribution channel

A

consists of : producer , consumer

Eliminates both the wholesaler and retailer.

This is commonly used for products sold online or through direct sales channels

55
Q

How has the growth of e - commerce affected distribution

A

Online distribution has became increasingly popular due to the convenience.

Many business now dropship, this allows them to sell products without holding stock

56
Q

What are the five stages of the product life cycle

A

Development

Introduction

Growth

Maturity

Decline

57
Q

What is cash flow

A

The movement of money into and out of a business over time

58
Q

What is the development stage of the product life cycle

A

focus on designing and developing a product

usually incurs high costs for r and d , and market research

59
Q

What are the implications of the development stage

A

Cash flow is usually negative

marketing strategy is focused on creating awareness and interest in the product

60
Q

What is the introduction stage of the product life cycle

A

Begins when the product is launched

Slow sales growth as the product is still new

61
Q

What are the implications of the introduction phase

A

Cash flow is usually negative as their is high costs for promotion and advertising

Marketing is focused on awareness and interest

62
Q

What is the growth stage of the product life cycle

A

When sales begin to rapidly increase

Business shifts focus to building market share and increasing production to meet demand

63
Q

What are the implications of the growth phase

A

Cash flow usually turns positive as sales rev increases and EOS is achieved

marketing strategy begins to differentiate the product from competitors

64
Q

What is the maturity stage of the product life cycle

A

Slowing sales growth as the product has reached its peak

65
Q

What are the implications of the maturity phase

A

Cash flow is usually positive as sales rev continues to come in , EOS is still achieved

Marketing strategy aims to maintain market share and increase profitability

66
Q

What is the decline stage of the product life cycle

A

When sales begin to decline as the product becomes obsolete or replaced by newer products

business shift focuses to managing the products decline and reducing costs

67
Q

What are extension strategies

A

The techniques used by businesses to extend the life of a product beyond its natural life cycle

68
Q

What are the two types of extension strategies

A

Product related

Promotion related

69
Q

What is a product related extension strategy

A

Involves changing or modifying the product in order to make it more appealing to customers.

70
Q

What are promotion related extensions

A

Changing the marketing and marketing of the product to extend its life cycle.

71
Q

What are 3 examples of promotion related strategies

A

Changes to advertising

Price Promotions

sales promotions

72
Q

What are 3 examples of product related strategies

A

Product improvements

Line extensions

Repositioning

73
Q

What is the Boston Matrix

A

A tool used by businesses to analyse their product portfolio and make strategic decisions about each product

74
Q

What does the matrix classify products into using

A

Their market share

Their market growth rate

75
Q

What are the 4 categories of the boston matrix

A

STAR - High, High

Question mark - High, low

Cash cow- low, high

Dogs- low, low

76
Q

What is a cash cow

A

Products with a high market share in a market that is no longer growing

77
Q

What is a question mark

A

Products with a low market share in a high growth market

(Have potential to become stars if invested in)

78
Q

What is a star

A

High market share in a high growth market

79
Q

What is a Dog

A

Products with a low market share in a market that is not growing

80
Q

What are the characteristics of a cash cow

A

Generate significant positive cash flow

Low potential

Business invests minimal resources

Marketing efforts focus on maintaining their market share

81
Q

What are the characteristics of a question mark

A

Negative cash flow as businesses invest to increase market share and turn them into stars

If there is no growth the product may be discontinued

Marketing efforts focus on increasing their market share

82
Q

What are the characteristics of a Star

A

Significant positive cash flow

potential for continued growth

Marketing focuses on brand recognition

businesses usually focus on maximising their potential

83
Q

What are the characteristics of a Dog

A

Little revenue for the company

No growth potential

Businesses often move away and focus on more profitable products

Marketing for dogs is minimal or zero

84
Q

What are mass markets

A

Large numbers if customers who have similar needs and wants

85
Q

What marketing strategy does a business use in a mass market

A

focus on building brand awareness and appealing to a broad audience.

Advertising campaigns aim to reach as many people as possible

86
Q

What is a niche market

A

Smaller groups of customers with specific needs and wants

subsections of mass markets

87
Q

What marketing strategy does a business use in a niche market

A

Targeting a specific segment of the population and building a relationship with them

messages often include technical information relevant to the specific needs of the target market

88
Q

What marketing strategy does a business use when doing B2B

A

Focuses on selling products to other businesses

emphasis on building relationships and demonstrating how your product can help

messages are more technical and focus on features and benefits relevant to other businesses

89
Q

What marketing strategy does a business use when doing B2C

A

Focuses on selling directly to consumers

Emphasis on building brand loyalty and creating a positive customer experience

messages are often more emotional and focus on the lifestyle benefits

90
Q

Why is customer loyalty key for a business

A

It drives repeat purchases which helps to reduce marketing costs for new products.

91
Q

What are 3 ways to increase consumer loyalty

A

Customer service

Loyalty cards

saver schemes

92
Q

How does customer service improve customer loyalty

A

Positive customer service experience means they are more likely to return and recommend the business to others

93
Q

How do loyalty cards improve customer loyalty

A

Offer rewards or discounts for repeat and frequent purchases.

encourages consumers to buy more, more often

94
Q

How do saver schemes improve brand loyalty

A

Offer discounts or special pricing for customers

BM Business theme 1 (4 decks)

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