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Business A-level > Marketing Mix and stratergy > Flashcards

Marketing Mix and stratergy Flashcards

1
Q

What is function?

A
  • the way the product works
  • does it do what it needs to do
  • is the product reliable
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2
Q

What are the three elements of the deign mix?

A

function, economic manufacture, aesthetics

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3
Q

What is economic manufacture?

A
  • does the design allow the product to be made and sold profitable>
  • how much value is added during the production process
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4
Q

What are aesthetics?

A
  • how the product appeals to the customer in terms of how it looks, feels?
  • based on the subjective judgement of customer
  • a popular way to differentiate a product
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5
Q

examples of features that succesfully emphasise function in the design mix?

A
  • more predictable and stable demand
  • longer product life cycles
  • lower promotional costs
  • build reputation for quality based on reliability
  • economic manufacture through economies of scale
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6
Q

examples of features that succesfully emphasise aesthetics in the design mix?

A
  • high added value
  • demand fueled by customer aspiration
  • potentially shorter product life cycle
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7
Q

What ways does design mix refelct society?

A
  • sustainability
  • ethical supply chains
  • waste minimisation
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8
Q

What is a brand?

A

product that is easily distinguisghed from other products so that they can be easily communicated and effectively marketed

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9
Q

3 key benefits to effective branding?

A
  • adds significant value
  • business is able to charge higher prices + demand is more price inelastic
  • branding builds customer loyalty and aspiration
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10
Q

What are the 6 types of brand?

A
  • product brand (specific products )
  • service brand (adds percieved value to produtcts)
  • umbrella brand (assigned to more then one product)
  • corporate or own label (promoting brand name )
  • global brand (operating worldwide
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11
Q

What are the two tasks of promotion?

A

to inform and persuade

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12
Q

What is the main aim of promotion?

A

ensure customers are aware of the existence and positioning of products

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13
Q

What does the promotional mix do?

A

describes the promotional methods that a business uses to pursue its marketing objectives

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14
Q

What are the elements of the promotional mix?

A
  • advertising
  • sales promotion and merchandising
  • personal selling
  • public relations/ publicity / sponsorship
  • direct marketing
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15
Q

What are the key influences on which positioning elements are chosen?

A
  • stage in product life cycle
  • nature of product
  • marketing objectives and budget
  • target market
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16
Q

Benefits of advertising?

A
  • wide coverage
  • control of message
  • effective for brand awareness
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17
Q

Drawbacks of advertising?

A
  • can be expensive
  • impersonal
  • one way communication
  • lacks flexibility
  • limited ability to close sale
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18
Q

benefits of personal selling ?

A
  • high customer attention
  • message is customised
  • interactivity
  • persuasive impact
  • adaptable
  • opportunity to close sale
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19
Q

drawbacks of personal selling?

A
  • high cost
  • labour intensive
  • expensive
  • can only reach limited amount of people
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20
Q

What are the benefits of sales promotion?

A
  • effective at achieving a quick boost to sales

- encourages customers to try a product

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21
Q

drawbacks of sales promotion?

A
  • sales effect may only be short term
  • cutomers may expect further promotions
  • may damage brand image
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22
Q

what are public relation activities?

A

thoose that create goodwill toward an individual, business, cause of a product

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23
Q

What are the main aims of PR?

A
  • achieve favourable publicity about a business
  • build the image and reputation
  • communicate effectively with customers
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24
Q

Give examples of some PR activities?

A
  • promoting new products
  • enhancing public awareness
  • projecting a business image
  • promote corporate social responsibility
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25
Q

What is direct marketing?

A

sending of promotional material directed through mail, email, social mediaor phone to individuals or businesses

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26
Q

What does direct marketing do?

A

allows a business to generate specific response from targeted groups of customers

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27
Q

What is price?

A

money charged for a product or service

28
Q

What are financial objectives?

A
  • maximise profits
  • achieve a target level of profits
  • acheive a target rate of return
  • maximise sales revenue
  • improve cash flow
29
Q

What are some marketing objectives?

A
  • maintain/ imporve market share
  • beat / prevent competition
  • increase sales
  • build a brand
30
Q

What are the three main levels of pricing?

A
  • pricing methods
  • pricing tactics
  • pricing strategies
31
Q

What are pricing methods?

A
  • methods used to calculate actual set price
32
Q

what are pricing tactics?

A
  • adoped in short run to suit particular situations

- limited impact beyond the product itself

33
Q

What are pricing stratergies?

A
  • adopted over the medium to long term to achive marketing objectives
34
Q

What influenxes the price of a product?

A
  • cost
  • elasticity
  • product life cycle
  • market share
  • marketing objectives
  • postioning
  • competitors
35
Q

What does price taker mean?

A

busines has no option but to charge the ruling market price

36
Q

What is a price maker?

A

business is able to set its own price without worrying about rivals

37
Q

What is a price leader?

A

market leader whose price changes are followed by rivals

38
Q

What is a price follower?

A

follow the price changing lead of the market leader

39
Q

What are the main benefits of basing price on cost?

A
  • easy to calculate
  • price increases can be justified when costs rise
  • managers can be confident each product is being sold at a profit
40
Q

Drawbacks of basing price off cost?

A
  • ignors PED
  • may not take into account competition
  • sales are lost if price is set lower then consumer is willing to pay
  • less incentive to control costs
41
Q

What is price skimming?

A

charging a premium price when a product is first launched in order to maximise revenue per unit

42
Q

What is penetration pricing?

A

offering a significantly lower price than normal in an attempt to maximise volume sold and to build an installed base of product users

  • price is often increased once market share is reached
43
Q

What does penetration pricing aim to do?

A
  • gain market share quickly

- build customer usage and loyalty

44
Q

What are price wars?

A
  • competitive price reductions by firms as part of day-to-day competitive rivalry in the market
  • used to increase market share
  • continues till weaker businesses go out of business
45
Q

What is psychological pricing?

A
  • using phycology to base prices (99p)
46
Q

What is loss leading ?

A
  • a loss leader is a product displayed and advertised at a price below normal
  • encourages customers to buy full priced items
47
Q

What is dynamic pricing?

A

setting flexible prices for products or services based on current market demands

48
Q

What is cost plus pricing?

A

price is set by applying a percentage margin based on the unit costs of production or supply

49
Q

Name some pricing methods?

A
  • penetration pricing
  • price skimming
  • psychological pricing
50
Q

What are the 6 parts of the marketing mix?

A
  • product
  • price
  • promotion
  • place
  • people
  • process
51
Q

What is the product life cycle?

A

model that describes the stages a product foes through over its life

52
Q

WHat can a product life cycle be used to do?

A
  • forecast future sales
  • help with market targeting and postioning
  • help analyse and manage a product portfolio
53
Q

What are the five stages of the product life cycle?

A
  • development
  • introduction growth maturity
  • decline / end
54
Q

Explain the devlopment stage of product life cycle?

A
  • complex and time consuming
  • needs significant resources
  • high cost
  • may not be succesful
  • can be long time before sales are achieved
55
Q

Explain introduction part of product life cycle?

A
  • new product launched in market
  • low level of sales
  • low capacity
  • negative cash flow
56
Q

Explain growth stage of product life cycle?

A
  • fast growing sales
  • product gains market acceptance
  • cash flow may become positive
57
Q

Explain maturity stage of product life cycle?

A
  • slower sales growth
  • high level of capacity utilisation
  • high profits for those with high market share
  • cash flow coudl be extreamly positive
  • prices and profits fall
58
Q

Explain decline stage of product life cycle?

A
  • falling sales
  • market saturation and/ or competition
  • decline in profits and weaker cash flows
  • more competitors leave the market
59
Q

What are some extension stratergies to prolong product life cycle?

A
  • lowering price
  • changing promotion
  • changing product
  • looking for alternative distribution channels
  • developing new market segment
60
Q

What are some criticism of the prooduct life cycle model?

A
  • shape and duration of the cycle varies from product to product
  • length cannot be reliably predicted
  • decline is not inevitable
61
Q

What is the boston matrix?

A

model for portfolio analysis

62
Q

What are the two areas in the boston matrix?

A
  • market share

- market growth

63
Q

What are stars in the boston matrix?

A

high growth products competing in markets where they are strong compared to competition

64
Q

What are cash cows in the boston matrix?

A

low growth products with a high market share. mature succesful rpdoucts tht need little investment

65
Q

What are question marks in the boston matrix?

A

products with low market share and opering in high growth markets (have potential)

66
Q

What are dogs in the boston matrix?

A

low market share in low growth markets

Business A-level (29 decks)

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