Studied by 2 people
Product
both physical (goods) and non-physical (services) items sold by a business or purchased by a customer.
Price
The value of a good or service that is paid by the customer.
promotion
The various marketing processes used to inform customers about a product and persuading them to purchase the product.
place
The marketing process of getting the right products to the right customers in the right place and at the right time
people
the importance of employee-customer relationships in the marketing of a service
processes
the importance of delivery processes in the marketing of a service processes of operations, managing customer feedback, and identifying consumer needs
after-sales care
value-added services
payment systems
delivery services
queuing systems
physical evidence
the importance of tangible physical evidence in the marketing of a service
product life cycle
different stages that most products go through from their research and development (R&D) stage to their final removal from the market.
R&D
development of a product pre-launch
Intro
low profit and marketing is vital
Growth
exponential growth of sales
Maturity
sales revenue peaks, sales become saturated and extension strategies are considered
Decline
sales fall significantly, emergence of substitutes, eventual withdrawal of product
Extensions strategies
reducing price
different promotional strategies
product modifications
product differentiation Strategies
rebranding
Boston matrix
outlines the product portfolio of a business, based on market share the product possesses and growth rate of the market that its in:
star: high market share, high market growth, holding strategy
problem child(?): high market share, low market growth, building strategy
cash cow: low market share, high market growth, harvesting strategy
dog: low market share, low market growth, divesting strategy
Brand
the registered name used to identify a product of a particular business organization.
Branding
marketing technique used to give a product/business a unique identity/name
Brand awareness
The degree of customer knowledge and recognition of a particular brand in order to gain more customers.
Brand development
communicating the value of a brand and what the brand stands for.
Brand loyalty
The degree of customer devotion to a particular brand
Brand value
The expected earning potential of a brand
Cost-plus pricing (or mark-up pricing)
Adds a profit margin to the costs of production, in order to determine the profits
penetration pricing
setting low prices so as to gain entry in a new market.
Loss leader pricing
Pricing a product below its cost of production so as to attract customers to also buy other items (with a higher profit margin).
Predatory pricing
charging a low price, sometimes even below the cost, so as to damage the sales of rivals.
Premium pricing
charging significantly higher prices than similar or competing products in the market.
Dynamic pricing
charging different prices based on the ability and willingness of customers to pay at a specific time
Competitive pricing
setting prices relative to competitors
Contribution pricing
setting the price of a product at a level higher than the direct costs. each sale earns the firm a positive contribution towards paying its indirect costs.
ATL
through independent consumer media, business does not have direct control over.
ATL PROMOTIONAL METHODS
television
radio
cinema
magazines
newspapers
outdoors: billboards, posters
celebrity endorsements
BTL
form of promotion where the business has direct control with little dependance on external media agents
BTL PROMOTIONAL METHODS
direct mail
pr
sponsorship
point of sale promotion
customer loyalty Programme’s
merchandising
exhibitions
sales promotions
TTL
combinations of ATL methods and BTL methods across multiple platforms, its a more integrated approach to reach more audience
TTL PROMOTIONAL METHODS
360 degree marketing (consistent message through use of all all and btl platforms)
digital marketing (use of online marketing channels)
Zero-channel distribution network
no use of intermediaries / direct distribution
One-channel distribution network
involves the use of a single intermediary
Two-channel distribution network
involves the use of two intermediaries, usually wholesalers and retailers. good for mass produced products and when goods need to be distributed over long geographical distances
agents
independent intermediaries help to sell a vendor’s products in return for commission
retailers
commercial businesses that sell a manufacturer’s products directly to consumers.
wholesalers
intermediaries that buy products from a manufacturer and sell these in smaller quantities to retailers.
Three-channel distribution network
uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers. often the case of agents selling products in overseas markets.
Note
Flashcard