topic 1.3.3 Flashcards
define marketing objectives?
specific goals businesses set to achieve their marketing efforts
how can a business increase their market share?
lowering their prices, launching new products, and strengthening brand name
What are the stages of the product life style?
research and development
introduction
growth
maturity
extention strategy
decline
draw a product life cycle graph
search up a picture and see if u got it right
What is the Boston matrix?
to analyze a firm’s product portfolio based on market share and market growth
draw the boston matrix
HIGH LOW
M | |
A H | |
R I | |
K G | STAR | QUESTION MARK
E H | |
T | |
|———————————- |———————————-
G L | |
R O | |
O W | CASH COW | DOG
W | |
T | |
H | |
M A R K E T S H A R E
Why is the Boston matrix important?
It helps a business decide where to invest resources and which products to develop or discontinue.
What is the marketing mix?
framework for developing a successful marketing strategy
What are the 4Ps?
product
price
place
promotion
What marketing strategy should mass market use?
competitive pricing, heavy promotion, strong branding
What marketing strategy should niche markets use?
product differentiation, premium pricing, focused branding
What marketing strategy should B2B markets use?
relationship marketing, personal selling, bulk pricing
What marketing strategy should B2C markets use?
advertising, branding, digital marketing
how do business build customer loyalty?
consistent quality, loyalty programs (discounts, rewards), custom offers, and exceptional customer service
What are the 3 key factors of the design mix and what do they mean?
function - the product must perform its purpose
aesthetic - visual appeal
economic manufacture - product should be efficient and profitable
What are the types of promotion?
above the line promotion
below the line promotion
sales promotion
personal selling
What do these mean?
above the line promotion
below the line promotion
sales promotion
personal selling
above-the-line promotion: advertisement on TV, radio and newspapers
below the line promotion: direct marketing, email marketing, sponsorship
sales promotion: discounts, coupons
personal selling: direct interactions
What are the different types of branding?
Corporate Branding
Product Branding
Own-Label Branding
Personal Branding
What do these mean?
Corporate Branding
Product Branding
Own-Label Branding
Personal Branding
Corporate Branding: the brand represents the whole business.
Product Branding: each product has its own identity
Own-Label Branding: retailers create their own brands
Personal Branding: influencers and celebrities create a personal brand
What are the advantages of strong branding?
customers perceive the brand as higher quality
they can charge higher prices
demand is less sensitive to price changes
What are the different types of pricing strategies?
cost-plus pricing
price skimming
penetration pricing
predatory pricing
competitive pricing
phsychological pricing
what do these mean?
cost-plus pricing
price skimming
penetration pricing
predatory pricing
competitive pricing
phsychological pricing
cost-plus pricing: price is determined by adding a fixed percentage profit margin
price skimming: setting the price high and gradually lowering over time
penetration pricing: low initial price to attract customers
predatory pricing: setting prices really low and once competitors are eliminated, prices increase
competitive pricing: set prices based on competitors pricing strategy
Psychological pricing: Prices are set to influence consumer perception
What are the advantages and disadvantages of cost-plus pricing?
adv: Ensures a profit
dis: Ignores market demand and competition
What are the advantages and disadvantages of price skimming?
adv: creates an image of exclusivity.
dis: Can deter price-sensitive customers.
What are the advantages and disadvantages of penetration pricing?
adv: Builds customer base
dis: Profit margins are initially low
What are the advantages and disadvantages of predatory pricing?
adv: eliminates competition
dis: illegal in some countries
What are the advantages and disadvantages of competitive pricing?
adv: appeals to price-conscious consumers.
dis: Can lead to price wars
What are the advantages and disadvantages of psychological pricing?
adv: Appeals to customers’ emotions
dis: Less effective for high-value purchases
What is distribution?
how a product moves from the producer to the consumer
