Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business 2 > The Marketing Mix(12,13,14,15) > Flashcards

The Marketing Mix(12,13,14,15) Flashcards

1
Q

What is the marketing mix?

A

It is a term used to describe all the activities which work towards marketing a product/service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 4 Ps of the marketing mix?

A
  • Price: High/Low? Competitors’ prices?
  • Product: Who will buy it? Packaging & Design?
  • Place: Which distribution channel? Where is it sold?
  • Promotion: How will consumers know about the product?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are 4 types of products?

A
  • Consumer goods
  • Consumer services
  • Producer goods
  • Producer services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What makes a product successful?

A
  • Needs to satisfy consumer needs & wants
  • Needs to be the right quality in relation to price
  • Not too expensive to produce, reasonable profit made
  • Design, product must look nice
  • Needs a USP (Unique Selling Point)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Stages of product development?

A

Get ideas–>Further research–>Forecasted sales–>Make prototype–>Test market–>Full launch

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Benefits/Costs of developing new products?

A 
\+USP
\+Diversification
\+Expansion (into new & existing markets)
-Costs of research, trials, waste, analysis
-Lack of sales if target market is wrong
-Loss of brand image if product fails
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is brand image?

A

The identity given to a product which distinguishes it from other products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is brand name?

A

The unique name of a product which differentiates it from others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is brand loyalty?

A

When consumers keep buying the same brand repeatedly, instead of buying other brands

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is packaging?

A

Packaging is the physical container or wrapping of a product. It is used for selling appeal and promotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What functions does packaging perform?

A
  • Provides info aboot product
  • Protects the product, makes it easier to transport
  • Easy to open/use product from packaging
  • Looks nice, promotes brand image
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the stages of the product life cycle?

A
  • Development: Prototype made, tested. No sales
  • Induction: Introduced into market, sales start to grow
  • Growth: Sales grow faster, persuasive advertising used
  • Maturity: Sales increase slowly, intense competition
  • Saturation: Sales stabilize at highest point, profits fall
  • Decline: No appeal any more, no one buys it anymore
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How can a company extend the product life cycle?

A
  • Introduce variations of product or change packaging
  • More advertising
  • Introduce product into new markets
  • Introduce an improved version of the product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why do businesses implement pricing strategies?

A
  • To try to enter a new market
  • To increase market share
  • To increase profits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the main methods of pricing?

A
  • Cost-plus pricing
  • Competitive pricing
  • Penetration pricing
  • Price skimming
  • Promotional Pricing
  • Psychological pricing
  • Dynamic pricing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is cost-plus pricing?

A

Cost-plus pricing involves estimating sales, calculating cost of producing them all, then adding a %age mark-up for profit. It’s easy, but bad if competitors’ prices are less

17
Q

What is competitive pricing?

A

It is when product is priced in line or just below competitors’ prices. Sales are likely to be high, but expensive market research is involved

18
Q

What is penetration pricing?

A

It is when the price is set lower than competitors in order to enter a new market. It ensure sales are made when the product enters, but as price is low, profits are low

19
Q

What is price skimming?

A

It is when price is set high for a new product on the market. It may improve brand image and establish the product as being of good quality, but consumers may not buy it because of the high prices

20
Q

What is promotional pricing?

A

It is when the product is sold at a low price for a limited amount of time. It is useful for getting rid of unwanted stock and can help to boost sales, but revenue will be lower.

21
Q

What is psychological pricing?

A

It is when attention is paid to the effect of the price upon the consumers’ perceptions of the product. May involve very high prices for high-quality products as status symbols or prices like $3.99

22
Q

What is dynamic pricing?

A

It is when different market segments are charged different prices, like student discounts, etc. Leads to increased profit, revenue

23
Q

What is price elasticity of demand?

A

It is a measure of the responsiveness of demand to a change in price

24
Q

What are two types of promotion?

A
  • Advertisements: “above the line” promotion.

- Sales promotion: “below the line” promotion, coupons, gifts, etc.

25
Q

What are the aims of promotion?

A
  • To inform consumers about the product
  • To introduce new products/enter new markets
  • To increase sales/improve brand image
  • To compete with other biznesses
26
Q

What are two types of advertising?

A
  • Persuasive advertising: Trying to persuade us to buy

- Informative advertising: Provides info aboot product

27
Q

Name a few different ways of advertising through media.

A
  • Television, cinemas, product placement
  • Newspaper, magazines, leaflets
  • Radio
  • Internet
  • Posters/billboards
28
Q

What is sales promotion?

A

Incentives like special offers/deals aimed at consumers to achieve short-term increases in sales

29
Q

Gimme the different types of sales promotion.

A
  • Price reductions
  • Gifts, BOGOF
  • Competitions/Lucky draws
  • Free samples
  • After-sales service
30
Q

What are the advantages of sales promotion?

A
  • Promotes sales during the lean season
  • Encourages new consumers to try existing/new products
  • Encourages customers to buy your product, and in greater quantities
31
Q

Advantages/disadvantages of advertising on social media websites?

A

+Targets specific group, people always see advert
+Fast, easy, cheap, reaches large audience
-Consumers may get annoyed
-Ads may be altered/misused, lack of control over ad

32
Q

What is a distribution channel?

A

It is the means by which a product is passed from place of production to the consumer

33
Q

What are advantages/disadvantages of distribution channel 1?
Producer—–>Consumer

A

+Simple, cheaper, can be sold via internet
+Suitable for fertilisers, etc.
-Usually impractical, expensive
-Some products can be sent by post

34
Q

Advantages/disadvantages of distribution channel 2?

Producer—>Retailer—>Consumer

A

+Large quantities sold to retailers, less distribution costs

-No direct contact with consumers

35
Q

Advantages/disadvantages of distribution channel 3?

Producer–>Wholesaler–>Retailer–>Consumer

A

+Wholesaler stores many products for a long time
+Small retailers can buy small amounts, can get credit
+Less storage costs, transport costs, paperwork
-Wholesalers are expensive, slow, far away
-Wholesalers may not have all all products

36
Q

Advantages/disadvantages of distribution channel 4?

Producer–>Agent–>Wholesaler–>Retailer–>Consumer

A

+Assistance in entering new markets, advice on local markets

-Less control over product sold to customers

37
Q

Advantages/disadvantages of e-commerce?

A

+Cheap, far-reaching, easy, B2B easier, access to many consumers

  • No contact with consumer, competition from other websites, transport costs
  • Setting up websites is time-consuming & expensive

Business 2 (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions