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Business > Theme 1.3 Marketing mix and stratergy > Flashcards

Theme 1.3 Marketing mix and stratergy Flashcards

1
Q

What is marketing

A

Marketing involves getting the right product to the right place, at the right price and promoting your product so that the consumers know about it.

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2
Q

What is the Marketing mix ( 4 P’s)

A

Place
Product
Price
Promotion

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3
Q

What is the design mix 3 aims

A

Function
Costs
Aesthetics

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4
Q

What is a product

A

A product is anything that is capable of satisfying customer needs

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5
Q

Features of Products that emphasise Function

A

Longer product life cycle
Lower promotional costs
More predictable and stable demand
Build reputation for quality

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6
Q

Features of Products that emphasise Aesthetics

A 
High added value
Demand fuelled by customer aspiration 
Potentially shorter product life cycle
Attracts imitation = need for design protection
Need for greater promotional support
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7
Q

Features of Products that emphasise cost

A 
Brand development costs are reduced
Demand fuelled by lower price
Demand increases when there is a decline in the economy
High levels of competition 
Low promotion costs
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8
Q

What is sustainability

A

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

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9
Q

What is a product portfolio

A

A product portfolio is a group of products that a company sells

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10
Q

What is a brand

A

A brand is a method of differentiating one product from another so that it can be easily communicated and effectively marketed.

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11
Q

What is a brand name

A

the name / logo / design / colour (etc) of the distinctive product.

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12
Q

Key benefits of effective branding

A

Adds significant value (from customer point of view)
Able to charge higher prices + demand is more price inelastic
Builds customer loyalty & aspiration

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13
Q

Types of branding

A

Manufacturer or Product brand Service brand
Umbrella (“Family”) brand
Own-Label brands
Generic brand

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14
Q

Example of product brand

A

Pot noodles
Marmite
Vaseline
(Any brand with specific products)

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15
Q

Examples of service brands

A

Uber

Vue

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16
Q

Example of Umbrella (family) brands

A

Cadbury
P&G
Unilever
Coca cola

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17
Q

Example of own-label brands

A

Tesco beans

Tu - Sainsburys

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18
Q

Example of Global brands

A

Coca cola
Ikea
Mc donald’s

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19
Q

Example of Generic brands

A

Tin foil
Carrots
Aspirin
(Products that are named after the product not company)

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20
Q

Benefits of branding

A

Added value
Premium pricing
Reduced PED

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21
Q

What are the 3 ways advertising can be categorised

A

Informative
Persuasive
Reassuring

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22
Q

What’s below the line promotion

A

refers to any form of promotion that does not involve advertising

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23
Q

Examples of below the line promotion

A
  • Sales promotions
  • Public relations
  • Merchandising and packaging
  • Direct mailing
  • Direct selling or personal selling
  • Exhibitions and trade fairs
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24
Q

What is public relations (PR)

A

Public relations activities are those that create goodwill toward an individual, business, cause or product

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25
Q

What is a sponsorship

A

when a payment for an event, person, organisation is given in return some consideration of benefit

26
Q

Activities of a PR

A
  • Promoting new products
  • Enhancing public awareness
  • Projecting a business image
  • Promote social responsibility
  • Projecting business as a good employer
  • Obtain favourable product reviews / recommendations
27
Q

What is direct marketing

A

Promotional material directed through mail, email, social media or phone to individuals or businesses

28
Q

What is viral marketing

A

Viral marketing uses social media and online platforms to try to produce increases in brand awareness or to achieve other marketing objectives

29
Q

Benefits and Drawbacks of Personal Selling

A 
Advantages
High customer attention
Message is customised
Interactivity
Persuasive impact
Potential for development of relationship
Adaptable
Opportunity to close the sale
Disadvantages
High cost
Labour intensive 
Expensive
Can only reach a limited number of customers
30
Q

Benefits and Drawbacks of Advertising

A

Advantages
Wide coverage
Control of message
Repetition means that the message can be communicated effectively
Effective for building brand awareness and loyalty

Disadvantages
Often expensive Impersonal
One way communication Lacks flexibility
Limited ability to close a sale

31
Q

Benefits and Drawbacks of Sales Promotion

A

Advantages
Effective at achieving a quick boost to sales
Encourages customers to trial a product or switch brands

Disadvantages
Sales effect may only be short-term
Customers may come to expect or anticipate further promotions
May damage brand image

32
Q

Benefits and Drawbacks of Direct Marketing

A

Advantages
Focus limited resources on targeted promotion
Can personalise the marketing message
Relatively easy to measure response & success
Easy to test different marketing messages
Cost-effective if customer database is well managed

Disadvantages
Response rates vary enormously
Negative image of junk mail and email spam
Databases expensive to maintain and keep accurate

33
Q

Benefits and Drawbacks of Viral marketing

A

Advantages
Cheaper than other forms of marketing
Can personalise the marketing message and target through cookie analysis
Relatively easy to measure response & success - through clicks
Easy to test different marketing messages

Disadvantages
Response rates vary enormously
Negative image of viral marketing - can be annoying
Can be ignored / disposed of by the reader easily
Can reach the wrong audience

34
Q

What are some main factors that influence pricing

A 
Costs
PED
Market share
Stage of pricy life cycle
Marketing objectives
Market positioning
Competitor pricing
35
Q

What is price skimming

A

Set a high price to maximise profit

36
Q

What is penetration pricing

A

Offer a product at a low

introductory price

37
Q

Examples of price skimming

A

iphones

Electronics

38
Q

Examples of price penetration

A

Sainsburys value product

39
Q

What is competitive pricing

A

Setting the price according to what the rivals are charging

40
Q

What is dynamic pricing

A

Dynamic pricing is a pricing strategy in which businesses set flexible prices for products or services based on current market demands

41
Q

Examples of dynamic pricing

A

Amazon

Uber (How far your travelling and location)

42
Q

What is predatory (destroyer) pricing

A

Setting a low price forcing rivals out of business

43
Q

What is psychological pricing

A

Setting the price slightly below a round figure

44
Q

What is Loss leader pricing

A

Products are sold below cost to lure buyers into the store.

45
Q

Main objective of distribution

A

To make products available in the right place at the right time in the right quantities

46
Q

What is a distribution channel

A

A distribution channel moves a product through the stages from production to final consumption

47
Q

Key advantages of retail distribution

A
  • Convenience for customers
  • Often UK-wide reach to customers
  • Retailer chooses the final price
  • Retailer handles the financial transaction
  • Retailer holds the stock
  • After-sales support (e.g. returns)
48
Q

What is an agent

A

advertise and promote the products and services of a business to increase sales

49
Q

What is multi-channel distribution

A

Multi-channel distribution involves a business using more than one type of distribution channel

50
Q

Example of multi-channel distribution

A

Apple - 450+ retail stores in 15 countries, Online stores, Multiple retail partners (E.g EE)

51
Q

What is a product life cycle

A

A theoretical model which describes the stages a product goes through over its life

52
Q

Key uses of product life cycle

A

Forecast future sales trends
Help with market targeting and positioning
Help analyse & manage the product portfolio

53
Q

What can cause products to be scrapped before launch

A
  • Inadequate demand
  • Action of competitors
  • Change in the external environment
  • Production problem
  • High costs
  • Does not fit in the firm’s product range
  • Life cycle expected to be too short
54
Q

What are the stages i’m in the product life cycle

A
  • Development
  • Introduction
  • Growth
  • Maturity
  • Decline / End
55
Q

What happens at the introduction stage

A

New product launched, low level of sales, high unit costs

56
Q

What happens at the growth stage

A

Market expands, sales grow faster, unit costs fall with economies of scale

57
Q

What happens at the maturity stage

A

Slower sales growth as rivals enter the market = intense competition + fight for market share, high profits for those with high market share

58
Q

What is the decline stage

A
  • Falling sales
  • Market saturation and/or competition
  • Decline in profits & weaker cash flows
  • More competitors leave the market
  • Decline in capacity utilisation
59
Q

How can you extend the product life cycle

A

Lower price
Change promotion
Change product (re style or improve)
Alternative distribution channel

60
Q

What is the boston matrix

A

A chart with an axis on market share and market growth

61
Q

What are the 4 areas on the boston matrix

A

Question marks - Top left
Stars - Top right
Dogs - Bottom left
Cash cows - Bottom right

62
Q

What do the 4 areas on the boston matrix show

A

Top left - High market growth, low market share
Top right - High market growth, high market share
Bottom left - Low market growth, Low market share
Bottom right - Low Market growth, High market share

Business (12 decks)

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