Paper 1 Flashcards
What is the goal of increasing market share?
Achieve greater control in the market, improve competitiveness
This objective focuses on enhancing the organization’s position relative to competitors.
How can a business increase revenue?
Grow sales through expansion, pricing strategies, or promotion
Revenue growth can be achieved by entering new markets or adjusting pricing.
What is the purpose of building a brand?
Create strong brand identity for loyalty and premium pricing
A strong brand can lead to customer loyalty and allow for higher pricing.
List the stages of the Product Life Cycle.
- Development
- Introduction
- Growth
- Maturity
- Decline
Each stage has different marketing implications and strategies.
What are extension strategies in the Product Life Cycle?
- Rebranding
- Entering new markets
- Product updates
These strategies aim to prolong the life of a product in the market.
What defines a ‘Star’ in the Boston Matrix?
High market share & growth
Stars are typically leading products in a fast-growing market.
What characterizes a ‘Cash Cow’ in the Boston Matrix?
High share, low growth
Cash Cows generate steady income but have limited growth potential.
Define ‘Question Marks’ in the Boston Matrix.
Low share, high growth
These products require investment to increase market share.
What are ‘Dogs’ in the Boston Matrix?
Low share & growth
Dogs typically do not generate significant profits and may be considered for divestment.
What are the 4Ps of the Marketing Mix?
- Product
- Price
- Place
- Promotion
These elements are essential for developing effective marketing strategies.
What does the ‘Product’ in the Marketing Mix refer to?
Features, design, quality
The product must meet the needs and preferences of the target market.
What pricing strategies are included in the ‘Price’ of the Marketing Mix?
- Skimming
- Penetration
Pricing strategies can significantly impact market positioning and profitability.
What does ‘Place’ refer to in the Marketing Mix?
Distribution channels
Effective placement ensures that products are available to consumers where and when they want them.
What encompasses ‘Promotion’ in the Marketing Mix?
- Advertising
- Sales promotions
- PR
Promotion involves communicating the product’s benefits to the target audience.
What is a mass market strategy?
Standardised products, wide audience
This strategy aims to reach as many consumers as possible.
What defines a niche market strategy?
Targeted, specialised offerings
Niche markets focus on specific segments of the market with tailored products.
What is emphasized in B2B marketing?
Relationships, technical detail
B2B marketing often involves more complex decision-making processes.
What is the focus of B2C marketing?
Branding, convenience, emotional appeal
B2C marketing targets individual consumers and aims for a personal connection.
What drives consumer behaviour and loyalty?
- Quality
- Service
- Branding
- Trust
These factors influence how consumers perceive products and their willingness to remain loyal.
How is loyalty built among consumers?
- After-sales service
- Rewards
- Communication
- Emotional connection
Effective loyalty strategies foster long-term relationships with customers.
