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A Level Business > Theme 1.3 Marketing Mix and Strategy > Flashcards

Theme 1.3 Marketing Mix and Strategy Flashcards

1
Q

What is a product?

A

Anything that is capable of satisfying customer needs

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2
Q

What is the design mix?

A

The 3 fundamental elements of product/service design that must be taken into account during the research and development stage (prior to the launch)

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3
Q

3 parts of the design mix?

A

Function
Aesthetics
Economic manufacture

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4
Q

What is the ‘function’ part of the design mix?

A

The way a product works

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5
Q

What is the ‘aesthetics’ part of the design mix?

A

How the product appeals to the customer in terms of how it looks, feels etc
A popular way to differentiate a product

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6
Q

What is the ‘economic manufacture’ part of the design mix?

A

If the design allows the product to be made and sold profitably and how much value is added during the production process

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7
Q

3 ways the design mix is changing to reflect social trends

A

Sustainability
Waste minimisation
Ethical sourcing

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8
Q

3 ways the design mix is changing to reflect social trends

A

Sustainability
Waste minimisation
Ethical sourcing

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9
Q

What is sustainability?

A

Making a product without affecting the long term supplies of the inputs into the product

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10
Q

3 examples of ethical sourcing?

A

Ethical supply chain
Organic products
Fairtrade

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11
Q

Penetration pricing?

A

A business initially sets a low price to begin with then increases the price when customers are gained

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12
Q

3 reasons that a business uses penetration pricing?

A

To break into a new market
If there’s lots of competition in the market
If product is not unique

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13
Q

Price skimming?

A

A price set high when launched e.g. tech/fashion industries

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14
Q

What 3 types of products is price skimming suitable for?

A

One that is superior to competitors due to USP
Latest product/invention on the market
High price interprets high quality

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15
Q

Cost plus pricing?

A

Adding a mark-up on top of cost to make a unit to gaurentee profit

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16
Q

2 drawbacks of cost plus pricing?

A

Ignores market conditions. The price could be much higher then competitors

May be difficult to identify precisely all the costs associated with the production of one unit e.g. wages per unit

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17
Q

Predatory pricing?

A

Involved charging a very low price for a period of time until one or more rivals leave the market
It is illegal

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18
Q

Psychological pricing?

A

Setting the price slightly below a round figure e.g. 99p or 9.99

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19
Q

Drip pricing?

A

When a firm only advertises part of a product/services price and reveal other prices later as the customer gets towards checkout online
e.g. booking a holiday

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20
Q

What is product portfolio analysis?

A

looks at the range of products and brands that a business has under its control e.g. Cadbury

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21
Q

5 aims of product portfolio?

A

Reached a wide audience through product and market development

Spread risk

Objective of growth

Identify and fill gaps in the market

EOS

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22
Q

What are ‘star’ products in the Boston Matrix?

A

Products that are sold in high growth markets and have high level of market share

23
Q

What do ‘star’ products require?

A

Ongoing investment to maintain their market position

24
Q

What are ‘cash cows’ products in the Boston Matrix?

A

Products sold in in low-growth markets and have a high market share e.g. Coca-Cola
They generate more cash than they need to maintain their position

25
Q

What can cash cows do with the extra cash they earn?

A

To fund development of other products

26
Q

What are ‘question mark’ products in the Boston Matrix?

A

Products that are sold in high growth markets and have a relatively low market share

27
Q

What do ‘question mark’ products require if they are to improve their level of market share and become stars?

A

Significant investment

28
Q

What are ‘dogs’ products in the Boston Matrix?

A

Products sold in low growth markets and have a low market share

29
Q

What should businesses do with their dog products?

A

Divest so that finance and effort may be invested in other products

30
Q

5 factors that determine the most appropriate pricing strategy for a particular situation?

A

Number of USP
Price elasticity of demand
Amount of competition
Strength of the brand
Stage in product life cycle

31
Q

2 advantages of using

A
32
Q

2 advantages of tv promotion?

A

Can reach a national audience
Can see the product

33
Q

3 disadvantages of tv promotion?

A

People skip through adverts
Expensive especially at peak times
More people use netflix/prime/youtube instead of tv now

34
Q

2 advantages of newspapers?

A

Can use cut out vouchers
Can include lots of info

35
Q

Disadvantage of newspapers?

A

Very little people buy them anymore

36
Q

2 advantages of magazines?

A

Can target audience
More likely to be engaged in magazine adverts

37
Q

2 disadvantages of magazines?

A

Can be expensive
Magazines have deadlines

38
Q

2 advantages of cinema promotion?

A

Viewers are more likely to pay attention to
Targeted advertising

39
Q

2 disadvantages of cinema promotion?

A

Some people don’t go into cinema until after the adverts
Very expensive

40
Q

2 advantages of radio promotion?

A

Can target specific radio stations e.g. talksport

Engaging

41
Q

2 disadvantages of radio promotion?

A

Cannot see the product
Have to remember details

42
Q

2 advantages of posters and billboards as promotional methods?

A

Cheap and highly visible

43
Q

2 disadvantages of poster and billboard promotion?

A

Limited audience and environmental impact

44
Q

2 advantages of website promotion?

A

Can include lots of info
Can reach global audience

45
Q

2 disadvantages of website promotion?

A

Can be costly to set up
Cybercrime

46
Q

2 advantages of social media promotion?

A

Cheap
Target audience

47
Q

2 disadvantages of social media promotion?

A

Costly to target all forms of social media
Time consuming

48
Q

3 benefits of strong branding?

A

Added value
Ability to charge premium prices
Reduced PED

49
Q

4 ways to build a brand?

A

USP
advertising
sponsorship
use of social media

50
Q

Distribution?

A

Locations where consumers can buy from

51
Q

Distribution channel?

A

The route taken by a product from the producer to the consumer

52
Q

4 forms of direct selling?

A

Hairdressers
Direct mail
Door to door selling
dentists

53
Q

Retailers?

A

Businesses that buy goods and sell them straight to consumers

54
Q

4 common types of retail outlets in UK?

A

Independents
Supermarkets
Department stores
Online retailers

A Level Business (4 decks)

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