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28 Cards in this Set
- Front
- Back
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Define Market Segmentation |
Dividing the market by Age, Gender, Location and income |
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Why do businesses segment the market |
To try to find a target market to zone in on |
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Define Product |
The good or service produced to meet a consumer need |
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Define Product life cycle |
Refers to the theory that most products pass through distinct life stages |
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Name the six phases in the product life cycle |
Product development, Launch, Growth, Maturity, Saturation, Decline |
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Ways to increase the length of the product life cycle |
Redesigning the marketing, Increase durability, make a new model |
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Name uses of packaging |
Protection/easy storage, provides information, the silent sales person |
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Benefits of branding |
Customer recognition, encourages brand loyalty, higher prices, easier to launch new products |
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Define Price |
The amount of money required to obtain a Product through legal means in a captialist country |
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Define Pricing Strategy |
Setting a price to maximize sales |
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Define Mark Up Pricing |
Adding a % to a cost of production |
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Define Psychological Pricing |
Setting a price based on customer expectation |
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Define Premium Pricing |
Setting a higher price to create an image of quality i.e Beats |
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Define Price Skimming |
High price at launch to recover huge production costs |
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Define Profit Maximizing |
Setting the highest possible price to maximize profits quickly |
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Define Penetration Pricing |
Initial low price to capture a large market share |
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Define Discriminatory Pricing |
Different prices for different customers |
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Define Predatory Pricing |
Setting your price low to drive competitors |
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Define Loss Leader |
Product sold at or below cost to generate other sales |
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Name the four chains o distribution |
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Factors influencing the choice of distribution channel |
Target Market, Product Image and Number of stages |
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Why consider Target market when choosing a distribution channel |
Will the chosen channel allow the product to reach the consumer |
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Why consider Product Image when choosing a distribution channel |
How will the chosen channel affect the brand image |
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Why consider the number of stages when choosing a distribution channel |
Each stage in the channel will increase the price for consumers and reduce profit margins for the producer |
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Define Promotion |
Refers to all efforts (excluding price) made by a seller to influence the target market to buy |
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Define Advertising |
Consists of messages designed to inform, persuade or remind people to buy a product or service |
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Define Sales Promotion |
Specific insentives offered to customers to attract attention to improve sales and brand loaylty |
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Define Public realations PR |
Communicating with the media to create good publicity for a firm or it's products |
