Unit 3 Flashcards
Why do businesses need to think about marketing?
- Reduce risk of product failure
- Understand their customers
What is product trial?
A business getting customers to try its products for the first time
What is repeat purchase?
When customers buy a product more than once
What are some ways to induce product trial?
- Advertising
- Low trial prices
- Free samples
What are some ways to induce repeat purchase?
- Special promotions
- Reminder adverts
- Product innovations
What are the 4 stages of the product life cycle?
- Introduction
- Growth
- Maturity
- Decline
What are some extension strategies?
- New packaging
- New design
- Advertising
What is a product mix/portfolio?
The range of products a business sells
What are the 4 sections of the boston matrix?
- Star
- Question
- Cash cow
- Dog
What is product differentiation?
Making a product different from other prouducts
How can you differentiate your product?
- Quality
- Customer service
- Design/packaging
What is just in case/just in time stock management?
- Just in case > keeping spare stock to deal with change in demand
- Just in time > making stock when ordered - to order
What are some benefits of just in case?
- Can deal with a change in demand
- Replace damaged goods
What are some benefits of just in time?
- Cheaper
- Employees don’t have to focus on managing stock
What are ways to improve cash flow?
- Delay pay invoices
- Use cheaper suppliers
- Reduce credit terms with customers
