Marketing Stratgies

Question 1

MARKETING STRATEGIES

What is Market Segmentation

Answer 1

market segmentation involves dividing the total market into groups of people who share one or more common characteristics.

Question 2

MARKETING STRATEGIES

How can the Market Segememt be broken up into?

Answer 2

demographic, geographic,
psychographic and behavioural

Question 3

MARKETING STRATEGIES

Example of Market Segmentation?

Answer 3

Question 4

MARKETING STRATEGIES

What is product/service Differentiation?

Answer 4

product/service differentiation is the process of developing and promoting differences between the business’s products or services and those of its competitors

Question 5

what is positing?

Answer 5

Positioning refers to the technique in which businesses try to create an image or identity for a product different to the image of its competing products. It is also concerned with how potential buyers perceive the product.

Question 6

MARKETING STRATEGIES

What are the 4 P’s

Answer 6

Price
Prodcut
Promotion
Place

Question 7

MARKETING STRATEGIES

What are strategies in Product?

PORDUCTS

Answer 7

Branding, Packaging, Labelling and positioning

Question 8

What is Branding?

Answer 8

Branding is the use of a name, term, symbol, or design that helps consumers identify products and distinguishes the business from its competitors.

Question 9

MARKETING STRATEGIES

What are the Benefits of Branding?

Answer 9

Branding provides benefits for both buyers and
sellers. Branding helps consumers:
* . identify the specific products that they like.
* evaluate the quality of products, especially
when a consumer lacks the expertise to judge
a product’s features
* reduce their level of perceived risk of
purchase.
* gain a psychological reward that comes from
purchasing a brand that symbolises status and
prestige.
Branding helps businesses:
* gain repeat sales because consumers recognise the business’s products
* introduce new products onto the market because consumers are already familiar with the business’s existing brands
* with their promotional activities because the promotion of one product indirectly promotes all other similarly branded products
* encourage customer loyalty. This has the added benefit to the business of being able to charge a higher price for the product.

Question 10

What is Packaging?

Answer 10

Packaging involves the development of a container and graphic design for a product. It preserves and protects the product from damage, attracts customer attention, assists with display, and makes transportation and storage easier.

Question 11

MARKETING STRATEGIES

What are the Pricing Methods?

PRICE

Answer 11

Cost-Based, Market-Based and Competition-Based

Question 12

MARKETING STRATEGIES

What are the Pricing Strategies?

PRICE

Answer 12

• Price Skimming
• Price Penetration
• Loss Leader
• Price Points

Question 13

What is Price Skimming?

Answer 13

Price skimming is where a business charges the highest possible price for their product during its introduction stage. This approach targets consumers who are status-conscious and willing to pay more for higher quality, novelty, or prestigious status.

Question 14

MARKETING STRATEGIES

What is Price Penetration?

PRICE

Answer 14

price penetration when a business charges the lowest price possible for a product or service so as to achieve a large market share

Question 15

What is a Loss Leader?

Answer 15

A loss leader where a product is sold at or below its cost price. The psychology behind this method is that once customers are in the store, they will usually buy extra products and spend more than what initially attracted them.is

Question 16

MARKETING STRATEGIES

What is Price Points?

PRICE

Answer 16

Price points is selling products only at certain predetermined prices. This pricing strategy is used mainly by retailers. used to cover a wide range of consumers.

For example, a jeweller may offer a line of watches priced at $55, $75 and $95 regardless of how much they cost at wholesale. In practice, this means the store would not
apply a fixed mark-up to the products.

Question 17

What is the price and quality interaction?

Answer 17

The price and quality interaction refers to the perceived relationship between the price of a product and its quality, which helps determine the image customers have for products. Prestige or premium pricing is a strategy where a high price is charged to give the product an aura of quality and prestige. This strategy is based on the tendency for consumers to assume that expensive products are superior to lower-cost products. Higher-priced and infrequently purchased items imply a strong price-quality relationship. However, some consumers believe that high prices just reflect expensive packaging, which may reduce sales as there is little difference between high* and low-priced products.

Question 18

MARKETING STRATEGIES

What is the 4 methods outlined in the Promotion Mix?

Answer 18

Question 19

MARKETING STRATEGIES

What are Opinion Leaders?

Answer 19

An opinion leader is a person who influences others. Their opinions are respected and they are often sought out for advice.

Question 20

MARKETING STRATEGIES

Why is a Mix of Promotional Strategies Important?

Answer 20

it’s important for businesses to use a mix of
promotional strategies in order to cater to the needs of everyone in their target market. Businesses should not simply aim to satisfy one type of buyer; the aim of promotion is to attract as many potential customers as possible.