MARKETING: Strategies Flashcards
What are the four main variables of market segmentation?
- Demographic: age, occupation, religion, gender.
- Geographic: urban, suburban, climate.
- Psychographic: how the consumer lives and thinks like lifestyle, personality, motives.
- Behavioural: how the consumer interacts with products - like loyalty, usage rates, price sensitive.
What are the main points of differentiation for businesses?
Customer service, environmental and ethical concerns, convenience.
Branding definition.
The name, term, symbol, design that identifies a product from its competition.
What are the benefits of branding for businesses?
- Can introduce new products onto the market because consumers are already familiar with the brand.
- Encourage customer loyalty.
What are the types of branding?
Brandmark: a solitary graphic (Apple).
Wordmark: the logo is the name of the business.
Lettermark: based off a few letters, usually initials.
Combination: a combination of a brandmark and a wordmark, e.g. Pepsi.
Emblem: combine images with text, e.g. Starbucks.
What are the branding strategies businesses can use?
Private/house brand: one that is owned by a retailer or wholesaler, e.g. Myer selling Miss Shop.
Generic brand: no brand name at all, only the name of the product in plain packaging.
Manufacturer brand: owned by producers.
What is an advantage of manufacturer branding?
Are recognised across the country and offer reliability with constant quality.
What are the benefits of packaging?
Preserves the product, protects the product from damage or tampering, assists with the display of the product, makes transportation easier.
Labelling definition.
The presentation of information on a product or its package.
Cost-based pricing.
The business determines the total cost of producing one unit of the product.
Cost × Mark-up percentage = Price
What is a disadvantage of cost-based pricing?
Difficulty in accurately determining an appropriate mark-up percentage.
Marketing-based pricing.
Set prices according to the level of supply and demand.
When demand for a product is greater than its supply, there will be a shortage in the market. This will force up the price of the good.
What is a disadvantage of market-based pricing.
Levels of supply and demand will constantly change.
Competition-based pricing.
Price is determined in comparison to what competitors are doing.
Price skimming.
Charging the highest possible price for the product during the introduction stage of its life cycle.
Price penetration.
Charging the lowest price possible for a product to quickly achieve a large market share for a product - will discourage competitors from entering the market.
Loss leader.
Selling at or below cost price to attract customers to the business.
Business makes a loss on this product, it hopes that the extra customers will buy other products as well.
Price points.
Selling products only at certain predetermined prices which assists customers to locate the product they need.
Advertising.
A paid form of messaging designed to lead to sales.
What are some examples of advertising?
Outdoor advertising - on billboards, public transport etc.
Telemarketing - use of the telephone to personally contact a customer.
Personal selling.
Involves the activities of a sales consultant directed to a customer in an attempt to make a sale.
What is an advantage of personal selling?
Offering informed recommendations - customer satisfaction is increased, resulting in a good reputation for the business.
Sales promotion.
Offering an inducement to customers in an attempt to sell more of its product
What are some types of sales promotion?
Limited time offers, free gifts, samples,
