Marketing - The 5 Ps Flashcards
Focus on core
Providing a relatively narrow range of products
Product proliferation
Providing a diverse range of goods and services
Product development
When a firm creates a new or improved good or service for release into an existing market
Advantages of focusing on core
-concentrate on areas of expertise
-more likely to recognise the needs of the market
Factors of proliferation
-spreads risk
-appeal to different market segments
-customer tastes will change
Technology as a factor on new product delevelopment
-creates totally new products that meet a customers need
-goods and services can become more advanced and can be made more cost effectively
Competitors actions as a factor of product development
-a new product can be introduced to match competitors
-can give businesses ideas for a new product
Entrepreneurial skills of managers and owners as a factor of product development
-business can gain first mover advantage
-can encourage and motivate workers so they come up with more innovative ideas
Consumer products
Bought by final consumers for personal consumption and they differ in the way consumers buy them
Industrial products
Bought for further processing for use in conducting a business and is bought by other businesses
Influences in pricing decisions (5)
The costs of production
The price elasticity of demand
Competition
Quality
Brand
Penetration pricing
A strategy in which low prices are set to break into a market/ to achieve a sudden increase in market share
Benefits of penetration pricing
-builds loyalty
-hooks people in
Price skimming
A pricing strategy where a firm charges the highest initial price that customers will pay and then lowers it over time
E.g. iPhones
Benefits of price skimming
-increases early adoption customers
-maximises profits
