U7 Flashcards
Marketing strategy and product development
Marketing Strategy consists of:
- PEST - business environment
- Analysis of target market for new products
- Sales goals in terms of volume and revenue
- marketing budget
- marketing mix
What is PEST analysis?*
That’s analysis of wider business environment, consist of:
1. Political / legal
2. Economic
3. Social / cultural
4. Technological factors
What is Four ‘P’s?
That;s 4 main elements of marketing (each started from ‘P’):
1. Product
2. Price
3. Place (=distribution)
4. Promotion
Marketing mix
That’s the set of tools and marketing operations, which company use to achieve market aims. Another term for four ‘P’s and sometimes fourth P is added ‘Package’ and sixth, ‘People’
Why packaging is underestimated in marketing?
It attract customer, describe product and protect them.
Whats’s mean people in marketing mix?
This refers to skills of staff responsible for pre-sale and after-sale customer experience.
What is ‘total product offer’?
This name reinforce sense of diversisty elements which make up a ‘product’. It consists of:
1. value-for-money
2. brand name
3. image
4. packaging
5. convenience of sales channel
6. store surroundings
7. service
8. speed of delivery
9. guarantee
etc.
How do marketers identify needs of market?
Collencting data using market research
What is secondary data?
That’s information which is already available. For example:
1. Company sales figure
2. External data found in published sources
3. customer buying patterns in markets where this product has been just available.
What is primary data?
Data collected for the first time.
What is quantitative information?
Information gaining by survey. Carried on representative sample of people
What is qualitative information?
Information gaining through focus groups or face-to-face interview
What is benchmarking?
Looking at the activity of competitors, their product range and marketing strategy
What is ethnography?
Studying people behaviour in natural environments
What is industrial product?
B2B product
What is consumer product?
B2C product
What is third category product?
This might be a product for use in hospitals, schools etc (B2G)
What is ‘mass market’?
The product designed for everyone.
Explain methods of segmentation market?
- Product-related: comfort, safety, luxory
- Demographic: age, gender, income
- Psychograpchic: attitudes, lifestyle, opinions
- Geographical: region, post code
Explain methods of determining prices.
- Cost based pricing: add a specific markup to base cost to give selling price
- Break even analysis: determine minimum sales volume that cover all the costs
Explain origin of new product ideas
- Market research
- Pre-sales and after-sales staff listening to customers
- Customer making direct suggestions
- Competitor activity (including reverse engenering)
- R&D department
- External changes in the market
Explain key concepts
Product line: group o frelated products which are phisicly similar or intended for the same market
Product mix (product range): assortment of product lines and individual offerings
Product life cycle: indroduction -> growth -> majority -> decline
Explain branding
brand: the name, symbol or design which identify a product
trademark: a name of symbol that cannot be used by another producer
brand loyalty passes through three stages:
1. Brand awarness
2. Brand preference
3. Brand insistance
Explain industrial (B2B) products
Installations: major capital items, heavy equipment. ..
Accessory equipment: hand tools, photocopiers
Components parts
Raw materials
Supplies: expense items that do not become part of finall product (ex. copy paper)
Explain pricing strategies
Profitability: the normal busness aim of achieving a return investment by maximizing revenue and minimalizing costs
Market share: increasing your percentage of market by selling at low price, even if it means that profits are also low
Matching the market leaders: setting the price according the market standard and competite by design, service, convenience
Prestige pricing: setting a high price to maintain an image of quality
Identifying the correct price point: increase the prize beyond a certain point will damage sales
Social objectives: governments can subsidize prices so that low-incom groups can afford a basic product
