Narketing Flashcards
What are the 7ps
Product
Physical
Process
People
Place
Promotion
Price
Product
Good or services the customers buys
Eg proposition at hotel : “good nights sleep guaranteed”
Price
How much the customer pays
Eg dynamic pricing
Place
How the product is distributed to the customer
Eg predominantly sold direct
Promotion
How the customer is found and persuaded to buy
Eg tv advertising
Process
Systems and processes that deliver a product to a sustomer
Eg online booking
Physical
Elements of the physical environment the customer experience
Eg facilities
What is an effective marketing mix
Achieves marketing objectives
Meets customer needs
Is balanced and consistent
Creates a competitive advantage
Influences on marketing mix
The market
Consumer markets where businesses are selling to the public B2C
Internal influences on marketing mix
Promotion
Price
Credit
Building relationships
Time
Delivery conditions
External influences on marketing mix
Political factors
Economic
Social
Technology
Legal
Environmental
Competition
Types of consumer goods
Convenience products
Shopping products
Specialty products
Convenience products
Brought frequently and little planning or shopping efforts
Tended to be low price and widespread distribution such as crisps
Shopping products
Bought less frequently
Tends to be higher price with selective distribution usually promoted through adverting and resellers
Eg clothing or furniture
Speciality products
Unique characteristics
High price and exclusive distribution, limited outlets and the promotion is more carefully targeted
Eg cars
Core benefit
The prime function of a product
Tangible product
Features and additional functions of the product
Augmented product
Additional non tangible benefits
What are the 6 stages of product life cycle
Development, introduction, growth, maturity, saturation, decline
Advantages of product life cycle
Tracks sales
Helps managers plan their marketing activities
Suggest adaption
Negative of product life cycle
Not always clear where the product is
Does not explain chamge in sales
Can be difficult to read
Axes and positions of Boston matrix
X is market share
Y is Marley growth
Top left is questions marks
Top right is stars
Bottom left is dogs
Bottom right is for cash cows
Question mark products
Low share and cash flow is negative
Have potential buy future is uncertain
Could become a star or a dog
They should invest to imcrease market share
Build selectively
Invest in promotion as they need market research to appeal to more customers
Star products
High share of a growing market
Require high marketing spending
Net cash inflow is neutral
They should build sales
Spend to keep competitors at bay
Repel challenges from competitors
Cash cow products
High share of a slowly growing market
Mature stage in cycle
Little potential for growth
Defend market share
Aim for short term profits
Reduce investment in order to maximise short term cash flow and profits
Dog products
Either products that have failed or are in the decline phase of their life cycle
Low share of a slow growth market
Not going anywhere with no real potential
Phase out or sell off
Not worth investment in
Any profit made has to be re invested just to maintain market share
Price skimming
Set a high price to maximise profit when launched
Product is sold to different market segments at different times
Objective is to maximise profit per unit to achieve quick recovery of development costs
Penetration pricing
Offer a product at a low start price (opp to skimming )
Aim is to gain market share quickly and build customer loyalty
Price can be increased once target market share is reached
Eg razor handles
Dynamic pricing
Business set flexible prices for products or services based on current market demands
Promotional methods
Sales promotion
Advertising
Direct selling
Personal selling
Sponsorships
Public relations
Merchandising
Advertising
A paid form of non personal communication
- wide coverage
Usually very expensive
Sales promotion
Short term tactic to increase sales
Eg special offers
Help reach sales target
Increase market share
Direct selling
Directed by email, text, social ,edit etc
Focused on target market
Can be personalised
Usually cheap
However can be perceived as intrusive and junk mail
Personal selling
Involves a meeting between the business rep and customer
Enables negotiations
What influences choice of promotional methods
Stage in life cycle
Competition
Marketing budget
Technology
Target market
