Strategies for products and markets Flashcards
What is marketing?
The management process that identifies, anticipates and supplies customer needs efficiently and profitably
What is marketing research?
The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services
What is marketing mix?
The set of controllable marketing variables that a firm blends to produce the response it wants in the target market
What is marketing mix?
The set of controllable marketing variables that a firm blends to produce the response it wants in the target market
What are the 4Ps for a product industry?
Product
Promotion
Place (distribution)
Price
What does ‘Product’ consider in the Ps model?
What the consumer is physically buying:
Brand
Quality
USP
What does ‘Promotion’ consider in the Ps model?
To create awareness and interest for products
Advertising
Sales promotion
Public relations
Personal selling
What does ‘Place’ consider in the Ps model?
Place (distribution) considers the length, breadth and complexity of distribution
Direct selling e.g. Internet sales, direct mail order, personal selling
Indirect selling - via distributors, wholesalers etc
What does ‘Price’ consider in the Ps model?
The prices charged to customers
4 Cs - Costs, customers, competition and corporate objectives
What pricing strategies should be considered?
Price skimming- initially high price for customers willing to get it sooner
Penetration - Low price to increase market share
Price discrimination - different for different customer groups
Perceived quality - reflects quality
Going rate - match competition
Cost plus pricing- add mark-up to the cost of product
What are the additional 3Ps for a service industry?
People - attitude, professionalism
Process - systems and procedures
Physical evidence - customers can actually see or experience
What is Price Elasticity of Demand?
Change in demand/ change in price
Looks at the degree to which demand is affected by a change in price
What factors can affect the PED?
Availability of substitutes
Time - short run less elastic
Competitors pricing
Nature of product
Proportion of income
What is the result of an inelastic product?
Increasing the price will increase the total revenue
What is the result of an elastic product?
Increasing the price will cut the total revenue and fewer units will be sold
