Strategies Flashcards
How are markets segmented?
Demographic
Geographic
Psychological
Behavourial
What is a Demographically Segmented Market?
A market segmented based on:
- Age
- Gender
- Occupation
- Income
- Ethinicity
What is a Geographically Segmented Market?
Market segmented based on
- Reigon
- Urban
- Rural
- City
- Climate
What is a Psychographically Segmented Market?
Market Segmented based on:
- Lifestyle
- Personality
- Socio-economic groups
What is a Behavourally Segmented Market
Market segmented based on:
- Loyalty
- Use rates (frequency)
- Price Sensitivity
Why is Differentiation important?
Differentiation is important because it allows the bus. to identify and promote key differences between their products and those of its competitors
- Stand out from the crowd
- Innovation within the market
How can business’s differentiate
- Price
- Quality
- Convenience
- Customer Service
- Social / Ethical
What is Positioning?
Involves the development of a product image (in the mind of the consumer) in relation to other similar product.
- Positioning Graph (High Price or Low Price, High Quality or Low Quality)
List the 7p’s
- Product
- Price
- Promotion
- Place / Distribution
- People
- Processes
- Physical Evidence
- e-marketing
- Global marketing
List the Product Strategies
- Branding
- Packaging
What is branding and give some benefits
A brand is a name, term, symbol, design that identifies a specific product and distinguishes it from its competitors
- Helps customers identify specific products that they like (develops customer loyality)
- Helps businesses introduce new products as customers already aware of the business brand (introduction of one product indirectly promotes all branded products.)
. e.g. apple introducing a new iphone.
Differentiate between Different branding strategies
Manufacter’s Brand (National brand)
- When a manufacturer owns a brand name
- Recognised across countries e.g Kraft
House Brand (Private brand)
- Brand owned by wholesaler or retailer
- Products often cheaper because wholesaler / retailer can buy a lower cost
e. g. Myers
Generic Brands:
- Products with no brand name at all
e. g. Homebrand
Why is packaging an important product strategy?
The Packaging is the first impression on a product. Packaging is a form of communication, customers see the colurs and draw conclusions before they see the label.
Certain packagaing can create images such as Luxury and Exclusiveness
Why is Labelling required? Give some requirements on labels.
Labelling put in place to protect customers from misleading or deceptive claims and the unsafe use of products.
Requirements:
- Name and Description of Food
- List of Ingrediants
- Name and Address of Supplier
List the Pricing METHODS
- Cost based pricing
- Market based pricing
- Competition based pricing
Describe Cost based pricing
Business determines total cost of producing on unit then adds a markup e.g. 15%. –> provdes a profit margin.
Describe Market Based Pricing
Prices set accordingly based on level of Supply and Demand
High Demand = Higher Prices
Low Demand = Lower Prices
Describe Competition-based pricing
Basing price based on competitor’s prices.
“We’ll beat competitors by 10%”
Below competitors = breaking into established market
Equal to competitors = No market research required
Above competitors = Status buyers / superior appeal
List the Pricing STRATEGIES
- Price Skimming
- Price penetration
- Loss leader
- Price Points
Describe Price Skimming
Product price set as high as possible during introduction phase “initial hype” then gradually skimed down.
e.g. Technology - Apple
Describe Price Penetration
Business charges lowest possible price for product without losing money to quickly achieve a large market share for product.
- -> Discourages competitors to enter market
- -> hard to signiciantly raise prices
Describe Loss Leader
Products sold at or below cost price for a Limited time offer / limited amount of goods.
–> Attracts customers to the shop and what they lose on the product they make back on other products bought by the customers.
Used when:
Bus. is overstocked on product / slow to sell
Increase traffic flow to gain new customers
To build repuation for low prices
Describe Price Points
Selling products are predetermined prices, used mainly by retailers
–> Makes it easier for customer to find a product they need. price often associated with the quality of the product. Also easier to encourage customers to trade up to a more expensive model
e.g. Jewler.
List promotion Stategies
- Adversting
- Personal Selling
- Relationship marketing
- Sales Promotions
- Publicity and public relations
- Opinion leaders
- Word of Mouth