Unit 3 - Marketing Managment Flashcards
What are the 7p?
People
Place
Product
Price
Process
Physical environment
Promotion
What does stp stand for?
Segmentation, targeting and positioning
What is targeting?
Targeting is when a business decides what market they want to operate in
What are the 5 marketing objectives?
Sales volume and value
Market share
Sales growth
Market share growth
What is market segmentation
Occurs when the market is split into subgroups of consumers with similar characteristics
Why is market segmentation used
Helps identify different types of consumers wants and needs
What is positioning
About creating an image inside the consumers mind of the brand and where the business is placed in the market
Give 5 benefits of STP
- Establish a pricing strategy
- Identify new target markets
- Identify profitable customers
- Improve existing products and operations
- More effective marketing
What can the market be split into
Demographic
Geographic
Income
Behavioral
What is socio economic groups
The profession of consumers
What is product portfolio analysis
Looks at the range of products a brand has under its control
What is the value of the Boston matrix
- AIDS decision making
- Enables a business to balance their portfolio
- Helps categorise products in brand
Describe a cash cow
High market share, low growth
Use profits to reinvest into question marks and stars
Less need for promotion as low competition
Want as many cash cows as possible
Describe stars in the Boston matrix
High market share, high growth
Increasing competition means more needs to be spent on promotion
Want to turn into a cash cow
Enjoys increasing sales revenues
Describe a question mark in the Boston matrix
Low market share, high growth
Requires heavy attention for promotions and investment to achieve potential
Product can be successful with enough demand
Describe a dog in the Boston matrix
Low market share, low growth
Likely to be discontinued however could drill be profitable
What is the product life cycle
Shows sales over time from development until the product leaves the market
Give 5 extension strategies
Pricing
Alternative distribution
Promotions
Repackaging/branding
New and improved
What is penetration pricing
Low initial price
Mass market
Gain market share
Increase price later on
What is price skimming
High initial price
Used to innovative products
Price dropped later on
What is multi channel distribution
Where a business sells through more than one method
