THEME 1 SECTION 3: (MARKETING MIX AND STRATEGY) Flashcards
Changes to the design mix to reflect social trends
- Ethical sourcing
- Minimise waste
- Up-cycling
2 Types of Promotion
- Advertising
- Sponsorships
2 Types of Branding and the benefits
- Emotional branding, Online branding
- Added value, Charging premium prices
3 Factors that affect pricing strategies
- PED
- stage of the life cycle
- competition
Define PRICE SKIMMING
Setting prices high when a product first reaches a market, boosting the products images and who is able to buy it.
Define PRICE PENETRATION
Setting a low price to attract consumers and gain market share.
Define PREDATORY PRICING
Pricing products at a rate that competitors cant compete with to drive them out of the market,
Define COST-PLUS PRICINGING
Adding a specific mark up percentage to a products unit costs
Define Multichannel distribution
selling to consumers through more than one channel or method
Explain the two types of distribution channels
Direct distribution = Selling straight to consumers, ie through online distributions. Gives business more control
Indirect distribution= Involves third parties, like warehouses, wholesalers, and retailers. Allows manufacturers to move stock easier.
Explain the 4 quadrants in the BOSTON MATRIX
- star products: High market share and growth, are potential market leaders
- cash cows: high market share low growth, the product bringing in the most profits often in its maturity phase
- question marks: low share, high growth, often new products with potential
- dogs: low share and growth, basically lost cause, little to no profit
Define the term branding
Branding is a way of identifying your business. It is how your customers recognise and experience your business.
Identify and explain the stages in a products life cycle
- The product life cycle is is a marketing strategy to view where your product is and how best to create plans for it
- Research and Development: This stage is when the products are being designed and market
- Introduction: This is when the product is first launched.
- Growth: There are more sales and growth, with new customers and repeats.
- Maturity: Sales reach a peak and profitability increase because fixed costs have been paid off.
- Saturation: This is when the market is full, sales begin to fall
- Decline: Products no longer appeal, can be for varying reasons. It could stay profitable if the price was reduced enough.
what is the difference between B2B and B2C marketing?
B2B marketers sell to other businesses, and their marketing efforts are aimed at a small group of professionals who make a purchase decision on behalf of their organizations.
- It is harder, takes longer, and is more expensive to convert a B2B customer.
What is an extension strategy?
- Extension strategy is a practice used to increase the market share for a given product and keep it in the maturity phase of the marketing product lifecycle rather than going into decline.
