unit 3 - chapter 10 Flashcards
Marketing mix definition
the combination of marketing choice that can be used by a business to influence consumers to buy products
what are the 7 P’s of the marketing mix
- price
- product
- place
- promotion
- people
- physical environment
- process
what does price mean in the marketing mix
price of the product,
- prices for different versions of the product
- can people pay in instalments
what does product mean in the marketing mix
the product itself
- physical features and specifications of the product
- design
- how reliable
- any garuntees
what does place mean in the marketing mix
distribution of the product
- how the ownership of the product moves from producer to consumer
what does promotion mean in the marketing mix
way in which the business communicates
- advertising
- public relations
- sponsorships
- sales promotion
- sales team (to contact customers or distributors)
what does people mean in the marketing mix
people involved in the transaction
what does process mean in the marketing mix
how you buy the product
- online shopping
- ques
- parking
- time taken to checkout
what does the physical environment mean in the marketing mix
the physical premises of the business
- how the business presents themselves (building design and decoration)
what are the 4 stages of the marketing process
- segmentation
- targeting
- positioning
- marketing mix
internal influences on the marketing mix
- changes in financial position
- changes to staff brings new marketing oppurtunities
- changes to operations
- changes to objectives
external influences on the marketing mix (PEST-C)
- political and legal factors
- economic factors
- social factors
- technological factors
- competition
what are the 2 types of products
-consumer
-industrial
consumer products definition
goods bought for consumption by the general public
industrial products
are goods bought for use in business processes
what are 2 differences of industrial products
- less packaging and branding
- want to understand exactly how the product brings value and helps their business
what are the 3 types of consumer products
- convenience items
- shopping goods
- specialty goods
what are convenience products
widely distributed products to consumers, widely available in most stores
- if not in one store close competitors are available
e.g milk, newspaper
what are shopping goods
customers compare price and features between options and take time before decisions
- bigger purchases
e.g washing machine, fridge
what are specialty products
time taken to decide could be months/years, consumers willing to travel far for them and brand/physical environment is very important
rolex watch, sports car
what are the 3 features of a product
- core benefits
- tangible
- augmented
what is tangible
(3 features of a product)
- specifications
- reliability
- design
what is augmented
( 3 features of a product)
refers to the “extras”
- brand name
- the delivery
- any guarantees
- after sales-service
product life cycle definition
a model that shows the sales of a product over its life.
what are the 4 stages of a product life cycle
introduction, growth, maturity and decline
product portfolio analysis definition
examines the arket position of all of the products of a business
e.g in terms of market share or market growth
what are the 4 aspects of managing products
- product life cycle
- new product development
- branding
- product portfolio analysis
what is the development stage in the product life cycle
investment into research and development, products are tested
- cashflow is negative
what is introduction stage in the product life cycle
when the product is launched, sales could be low, high levels of investment for advertising
what is the growth stage in the product life cycle
when sales begin to increase fast-rate, still investment
- cash flow should be becoming positive
what is the maturity stage in the product life cycle
the rate of growth sales begin to slow, sales could be high but not increasing rapidly
why do products reach the maturity stage in the product life cycle
- due to competitors entering the market
what is the decline stage in the product life cycle
sales are falling, advertisement slowed/stopped,
- positive cash flow
why might products enter the decline stage of the product life cycle
- new and better products
- reduction in advertisment
extension strategy definition
when a business tries to prevent sales of a product from falling and avoid or delay the decline stage of the cycle
what do the 3 extension stratergy graphs look like
page 126
what are 5 extension strategy’s
- find new uses
- increase usage
- find new market segments
- promote more effectively
- modify the product
boston matrix definition
analyses all of the firm’s products in terms of their market share and the growth of the market
balanced portfolio definition
an appropriate mix of products in terms of their market shares and market growth
what are the 4 names of the boston matrix
- cash cows
- dogs
-stars - question marks / problem children
what are dogs
(boston matrix)
low share of a slow-growth market
- either invest to reinvent the product
- or let the product die and decline
what are cash cows
(boston matrix)
high market share but slow growing market
- don’t need heavy promotion
- high sales because they are known
e.g hienz beans
what are problem children / question marks
(boston matrix)
fast growth market, but low market
- problem because they may turn well or not
what are stars
(boston matrix)
fast growth markets and high market share
- needs investing and promoting to remain a star
price skimming definition
occurs if a relatively high price is charged when a product is launched
penetration pricing definition
occurs when a business charges a low price to gain market share
- mainly when PED is elastic
what are the 6 factors effecting that influences pricing
- stages of the products life cycle
- costs
- PED
- positioning
- other elements of the marketing mix
- competitiveness of the environment
dynamic pricing definition
occurs when prices are changing rapidly in response to changing in demand conditions
viral marketing definition
marketing technique that uses social media and networks to raise brand awareness and boost sales
what are the 5 influences on the promotional mix
- promotional budget
- target market
- the message (e.g redbull, high energy sporty)
- positioning
- competitive environment
multichannel distribution definition
customers can buy the product in several ways
5 influences on distribution decisions
- the degree of coverage
- the cost of different distribution strategies
- the nature of the product
- how customers expect to access the product
E-commerce definition
buying and selling of products through an electronic medium such as the internet
