Unit 5: Marketing Flashcards
What is Marketing Mix?
The Elements that must be considered for good marketing
What are the Four Ps in Marketing Mix?
1) Product: Producing products that fulfil customers needs/wants
2) Price: Reasonable price for product
3) Promotion: attract more customers
4) Place: The area which the product is sold needs to be near target customers
What is Market Research?
Identifying the size of a market, its competitors and finding out what customers want/need
What is Segmentation?
Dividing people within a market into different groups [Age, Income, Location and Gender]
Why is Market Research Beneficial for a Business?
- They can make calculated Business Plans
- Identifying and Satisfying the Customers needs will allow a business to; Increase sales, Beat Competition etc…
What is Primary Research?
Describe an Advantage and a Disadvantage.
Gathering new data [interviews, postal questionnaires etc…]
(+) Up-To-Date, relevant and specific
(-) Expensive and Time-Consuming
What is Secondary Research?
Describe an Advantage and a Disadvantage.
Using Research that has been conducted [internet, news etc…]
(+) Cheap and easily accessible
(-) Possibly out of date and not specific about you products
What is Quantitative data ?
Numerical Data [Statistics etc…]
What is Qualitative data ?
Subjective Data
What is a Products Life Cycle?
- Look at Product Life Cycle *
1) Research and Development of Product
2) Introducing Product to the Market
3) Growth [Product begins to establish itself]
4) Maturity [Peak of product; most profit]
5) Decline [market favours ‘new’ things and sales drop]
What is ‘Extension Strategy’?
When a Business attempts to drag out the life of a product
What are some Extension Strategies?
- Adding Different Features
- Targeting new markets [Eg; new country , age group etc…]
- Lowering Price
What is Product Portifolio?
The products a Firm sells
What is the Boston Matrix?
- Look at a Boston Matrix Box*
A way for a Firm to analyse its product portfolio [the Market Share of each product is considered, as well as its growth.]
What does Broad Product Portfolio mean?
To Sell a range of Different Products in your business
What is Diversification?
Designing and producing more products
What are the Benefits of Developing New Products?
- Businesses are less reliant on the maturity of one product
- Increase Revenue
- New opportunities to expand and grow the business
What are the Risks of Developing New Products?
- Costly; investing into research and development is expensive
- Time-Consuming
- Wasting recourses; if customers happen not to be interested
- Ruin Reputation; if a the new product is low quality
Benefits of developing a Brand Image?
- Easily Recognised [increase trust in Quality]
- Increase Repeat Purchase [as product is established]
What is a Unique Selling Point [USP]?
A feature that sets your product apart from that of the competitors
What are Internal Factors that can influence Pricing Decisions?
- Objectives and Aims [maximise profits, or market share]
- Life Cycle of Product
- Internal Costs [cost for equipment, energy etc…]
What are External Factors that influence Pricing Decisions?
- Nature of Market [is it a high end luxury market or one for bargain-grabbing]
- Competition in Market [the price competitors price their products etc…]
What is Price Penetration
Describe a Pro and Con.
Firms offering very low prices for new products to get lots of people to try it.
(+) Establish Market Share
(-) Little Profit
What is Loss Leader Pricing
Describe a Pro and Con.
Setting Price of a certain Product below cost so customers will buy other products that actually make profit.
(+) Draw traffic away from competition
(-) No profit made
