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14 Cards in this Set
- Front
- Back
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Marketing mix: |
The marketing mix is the four key decisions that a business must take in order to market products effectively. These four decisions are often called the four ps. |
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Four Ps: |
The right product at the right price with the right promotion in the right place. |
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Businesses may need to...... to meet the changing needs & expectations of consumers: |
Develop new products. Change an existing product. Change an existing product to enter a new market. |
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Creating a brand image increases a businesses revenue because:
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Their product can be priced higher than less well-known brands. It is easier to launch new products onto the market because consumers already know and trust the brand-They have customer loyalty. |
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Product life cycle:
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The life cycle represents the sales of the product over time. The product life cycle is divided into four main stages: Introduction stage: Sales are low Growth stage: Sales are increasing Maturity stage: Most profitable stage Decline stage Sales are falling |
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Extension strategies:
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Extension strategies are marketing activities to extend the maturity stage of a product.
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Extension strategies include:
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Finding new markets for the product Finding new uses for the product e.g. a fizzy drink advertised as a sports drink |
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How can packaging affect the sales of a product?
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Well-designed packaging sends the message to consumers that 'this is a good quality product'
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Market skimming:
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Setting a high price for a new product that is unique or very different from ant other product on the market
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Penetration pricing:
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Setting a low price on a new product for the purpose of attracting customers to buy it.
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Competitive Pricing:
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Setting a price similar to that of competitors' products which are already established in the market.
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Price elasticity of demand:
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Measures by how much the demand for a product changes when there is a change in price.
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Price inelastic demand:
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Is when the percentage change in demand/(sales) is less than the percentage change in price.
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Price elastic demand:
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The percentage change in demand/(sales) is greater than the percentage change in price.
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