Module 3 Flashcards
What is the marketing mix?
Not t be considered in isolation!
Product People Place Physical evidence Price Possess Promotion
What is the life cycle?
start up growth shakeout maturity decline
What is start up?
industry is new
high costs
low sales
high prices
few businesses
What is growth?
industry becoming more established
lowering costs
increases in sales
falling prices
increasing competition
What is shakeout?
still growth, but slowing
some lose the race to become market leaders
What is maturity?
demand is satisfied and customer preferences are cemented
difficult to improve market share
customers prim focus is cost
What is decline?
falling demand
What are the barriers to entry?
- capital -high set up costs
- differentiation
- advertising
- switching costs
- distribution channels
- supply channels
- intellectual property
- taxes
- laws and regulations
- retaliation
What are some of the key legal considerations for a start up?
- employment
- company formation
- taxes
- trading
- advertising
What are the bases of segmentation?
- demographic
- socio-economic
- geographic
- personality and lifestyle
- circumstances of purchase
- customer priorities
What are the possible launch costs?
- equipment
- property
- raw materials
- company formation
- employment
- promotion
What are the advantages/disadvantages of free without adverts?
maximise market share
no money is made
What are the advantages/disadvantages of free and with adverts?
maximise market share and generates income
may impact brand
What are the advantages/disadvantages of freemium?
promotes growth
limited demand for premium if free is adequate
What are the advantages/disadvantages of upfront charge?
clear uncomplicated
limits demand
