Marketing : Unit 36 - 39 Flashcards

1
Q
  1. What is marketing mix?
A
  • Elements of a firm’s marketing that are designed to meet customers’ needs.
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2
Q
  1. What are the 4 marketing mix?
A
  • Product
  • Price
  • Promotion
  • Place
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3
Q
  1. What is the process of product development? (5) define each.
A
  • Generating ideas (ideas of new products coming from business owners)
  • Analysis
  • Development ( this stage involves carrying out experiments, using simulations, building models, producing samples and initial testing)
  • Test marketing ( testing the product in a small section of the total market)
  • Commercialization and launch ( a business puts the “final touches” to the product)
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4
Q
  1. Define the development process.
A
  • This stage involves carrying out experiments, using simulations, building models, producing samples, and initial testing.
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5
Q
  1. What is a product?
A
  • The goods and services produced by businesses are called products.
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6
Q
  1. Why is packaging important to a product? (6)
A
  • Consumers judge the quality of the product by its packaging.
  • Is used to attract the eye of customers.
  • To protect the product.
  • Make it easy to transport.
  • Make it easy to use product.
  • carries information about the product and promotes brand image.
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7
Q
  1. What is the product life cycle?
A
  • Level of sales at the different stages through which a product passes over time.
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8
Q
  1. What are the 5 stages of a product life cycle?
A
  • Development.
  • Introduction.
  • Growth.
  • Maturity and saturation.
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9
Q
  1. What are extension strategies?
A
  • Extension strategies are which lengthen the life of a product before it starts to decline.
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10
Q
  1. What are the benefits of using extension strategies to lengthen the life cycle of products?
A
  • Competitors will find it more difficult to enter the market.
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11
Q
  1. What are the 6 ways of extension strategies?
A
  • Finding new markets/users.
  • Finding new uses for a product.
  • Modifying the product.
  • Develop the product range.
  • Change the appearance or packaging.
  • Encourage more frequent use of the product.
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12
Q
  1. What is a product portfolio?
A
  • Is the range of products a business is currently marketing.
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13
Q
  1. What is the Boston matrix?
A
  • 2x2 matrix that describes products according to the market share they enjoy and whether the market has any potential for growth.
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14
Q
  1. What are the 4 categories in the Boston matrix
A
  • Stars.
  • Cash cows.
  • Question marks.
  • Dogs.
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15
Q
  1. What does the star represent?
A
  • Stars are valuable products for a business, they have a higher market share.
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16
Q
  1. What does the cash cow represent?
A
  • Cash cows are mature products, they have a high market share but the market is not likely to grow very much.
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17
Q
  1. What does a question mark represent?
A
  • Are products with a low market share but the market is growing.
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18
Q
  1. What does a dog represent?
A
  • Dogs are at the end of their life cycle.
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19
Q
  1. What is early adopters?
A
  • consumers who are keen to buy new products as soon as they are launched.
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20
Q
  1. What are the 7 methods of pricing?
A
  • Cost plus pricing.
  • Competitive Pricing.
  • Psychological pricing.
  • Penetration pricing.
  • Price skimming.
  • Promotional pricing.
  • Dynamic pricing.
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21
Q

What is cost-plus/cost-based pricing? give advantages and disadvantages.

A

Pricing by adding a percentage (markup) to the costs that make a profit for a business when setting the price.
Ad: Easy to apply.
DisAd: Could lose sales if the price is higher than competitors.

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22
Q

What is penetration pricing? give advantages and disadvantages.

A

Setting a low price to start with in order to get established in the market: price may be raised once established.
Ad: Sales are high.
DisAd: profit per unit is less.

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23
Q

What is competition-based pricing? give advantages and disadvantages.

A

Pricing strategies are based on the prices charged by rivals.
Ad: Sales are likely to be high.
DisAd: Market research can be time-consuming and costly.

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24
Q

What is skimming/ creaming pricing? give advantages and disadvantages.

A

setting a high price initially and then lowering it later.
Ad: good quality product.
DisAd: May cut off potential customers.

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25
What is promotional pricing? give advantages and disadvantages.
Promotional pricing usually involves lowering the price of a product for a short period of time to draw in customers. Ad: Gets rid of any unwanted stock. - Renews interest in the business. DisAd: Sales revenue will be low.
26
What are the reasons for promotional pricing? (4)
- to get rid of old stock. - to generate some cash quickly to help solve a cash flow problem. - to generate renewed interest in an existing product. - To attempt to win a larger share of the market by encouraging brand switching.
27
What are the 3 examples of promotional pricing?
- Discounts and sales. - Psychological pricing. - Loss leaders.
28
What is dynamic pricing? give advantages and disadvantages.
Pricing for basically the same product because they have different demand levels. Ad: Increases sales revenue. - Increases profits. - Ensure all seats are filled. DisAd: - High cost of constantly changing prices in the business. - High cost of consumers in choosing the best price.
29
What is loss leaders?
- product sold below cost to draw in customers.
30
What is psychological pricing?
- Is to set the price slightly below a round figure. Consumers are tricked into thinking that 99.9 is cheaper than 100. Ad: - High price for high-quality product. - Charging process just below the whole number. DisAd: Low price for regular customers.
31
What is place?
- It refers to the location where people can buy products.
32
What are distribution channels?
- Route taken by a product from the producer to the customer.
33
What are the 5 distribution channels?
producer - retailer - customer producer-wholesaler -retailer -customer producer -wholesaler - consumer producer- agent - retailer- consumers producer- agent - consumers
34
What are the 4 advantages of direct selling (one-level channeling)? 4 diasdvantages?
Ad : - All profits go to the manufacturer. - This is the fastest and shortest channel. - Manufacturer has full control. - Direct contact with customers. - Manufacture will respond quickly to customers. Disad:- manufacturers bears stock holding costs - maintaining retail outlets are costly. - the manufacturer cannot focus on production.
35
What are the are 4 advantages of retailing /two-level channeling? What are 3 disadvantages of retailing/ two-level channeling?
- Ad- Retailers are specialists. - manufactures stock holding costs will fall as a retailer is bearing them. - Easier for manufacturers to focus on production. - Disad - Retailers take a big share of profit margin. - Manufacturers have less control over distribution. - No direct contact with customers therefore producers cannot respond quickly - Retailers sell competitors products as well.
36
37
What is an intermediary? What are the two intermediaries?
- a person or organization that helps to arrange agreements or business deals between other people or organizations. - - Retailers. - Wholesalers
38
Who are wholesalers?
- persons or businesses that buy goods from manufacturers and sell them in smaller quantities to retailers.
39
Who are retailers?
- Businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to consumers.
40
What is bulk breaking?
- Dividing a large quantity of goods received from a supplier before selling them in smaller quantities to customers.
41
What might be some features of some common retailers?(8)
- independents. - supermarkets. - department stores. - multiples or chain stores. - superstores or hypermarkets. - street vendors. - market traders. - online retailers.
42
What is e- commerce/ e- tailing?
use of electronic systems to sell goods and services.
43
What are the 4 benefits to consumers of online distribution?
- It is cheaper because online retailers often have lower costs. - Consumers can shop 24/7. - there is generally a huge amount of choice. - People can shop from anywhere if they have access to the Internet.
44
What are the 7 benefits to businesses of online distribution?one disadvantage of online distribution?
- Retailers may not have meet costs of operating costs. - Lower start-up costs. - lower costs when processing transactions. - Less paper is needed for business documents. - payments can be made and received online. -B2C businesses can offer goods to a much wider market. - Businesses can serve customers 24/7. - Businesses have more choices when locating their operations. - Product isn't tangible (customer)
45
What are the 3 other distribution methods?
- direct selling. - wholesaling. - Agent / brokers.
46
what is direct selling? What is wholesaling?
- where businesses sell their products directly to consumers. - it is when wholesalers buy from manufacturers and sell to retailers.
47
What is agent/ broker?
intermediary that brings together buyers and sellers.
48
What are 4 factors that are appropriate for choosing a distribution channel?
- nature of the product. - the market. - cost. - control.
49
What are the two types of promotion?
- above-the-line promotion. - below-the-line promotion.
50
What is above-the-line promotion?
-Placing adverts using the media, outside the business.
51
What is below-the-line promotion?
- Any promotion that does not involve using media.
52
What is merchandising?
- the way in which goods are arranged and place in a store.
53
What is coupons?
- printed piece of paper given to customer by the seller, allowing the customer to pay less than usual for the product when they next but it, or get a free gift.
54
What is direct mail?
- advertisements that are sent to people in the post, often people who have been chosen because they might be interested in product.
55
What is advertising?
communication between a business and its customers where messages are placed in the media to encourage the purchase of products.
56
What are the 5 different types below-the-line promotion?
- Sales promotions. - Merchandising and packaging. - Direct mailing. - Direct selling or personal selling. - Exhibitions and trade fairs.
57
What are the 6 above-the-line promotion?
- Television. - Newspaper and magazines. - Cinema. - Radio. - Posters and billboards. - Internet.
58
What are sales promotion? (6)
- Free gifts. - Coupons. - Loyalty cards. - Competitions. - BOGOF offers. - Money off deals.
59
What are 3 examples of merchandising?
- Product layout - Display material (posters, leaflets used to display certain products with the aim of persuading customers to buy) - Stock
60
What are the 4 advantages of using exhibitions and trade fairs?
- products might be tested out in consumers before full launch - Some exhibitions are overseas and can be used to break into foreign markets. - Products can be physically demonstrated and questions can be answered
61
What are the public relations?
Attempt by a business to communicate with interested parties.
62
What are 4 number of approaches that might be used by businesses to attract publicity?
- Press release. (some information about the business may be presented to the media). - Press conference. ( Where representatives face the media and present information verbally). - Sponsorship. (making a financial contribution to an event in return for publicity). - Donations.
63
What is press conference?
Where representatives face the media and present information verbally.
64
What is sponsorship?
making a financial contribution to an event in return for publicity.
65
What is donations?
Donations to charities and local community might be used by business.
66
What is press release?
-information about the business may be presented to the media.
67
- What is main advantage of PR to a business?
- it is cheap method of promotion.
68
What are 4 ways to of promotion using technology?
- Online targeted advertising - Viral advertising - Social media - E- newsletters
69
What is e-newsletters?
- These are documents sent electronically to interested parties.
70
What is viral advertising?
- direct marketing technique in which a company persuades Internet users to forward its publicity material in emails or via social media
71
What is exposure?
- advertising and publicity that is used to sell a product or service.
72
What are 6 advantages of using social media in advertising?
- It is relatively cheap. - Businesses can respond immediately to developments in the industry. - The quality of customer service can be improved as communication with customers is easier. - The method has a huge reach - Adverts can be accurately targeted. - Links can be used to draw traffic into the company websites.
73
What is branding?
Branding involves giving a product a name, term, sign, symbol, design, or feature that allows consumers to instantly recognize the product.
74
What are 5 benefits of branding?
- differentiate the product. - create customer loyalty. - help recognition. - develop an image. - raise prices when the brand and images become strong.
75
What is product positioning?
way that people think about a product in relation to the company's( other products and to competing products, or the way that the company would like them to think about it.)
76
What is subscription pricing?
- amount of money you pay regularly to receive a newspaper, magazine, broadcasting or telephone service.
77
What are the 5 main different promotion methods(strategies) used in different segments?
- Advertising. - Sponsorship. - Product trials. - Special offers. - Branding.
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