Studied by 2 peopleMaturity
________ or saturation: sales fail to grow, but they do not decline significantly either.
Predatory pricing
________: deliberately undercutting competitors prices in order to try to force them out of the market.
Consumer durables
________: manufactured products that can be reused and are expected to have a reasonably long life, such as cars.
Extension strategies
________: marketing plans that extend the maturity stage of the product before a brand new one is needed.
Psychological pricing
________: setting prices that take account of customers perception of value of the product.
Growth
________: if the product is effectively promoted and well received by the market, then sales should grow significantly.
Promotional pricing
________: special low prices to gain market share or sell off excess stock includes "buy one get one free.
Introduction
________ is when the product has just been launched after development and testing.
emotional attachment
A(n) ________ can develop between the brand and customers, increasing customer loyalty.
Market skimming
________: setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand.
Boston Consulting Group
________ (BCG) matrix: method of analyzing the product portfolio of a business in terms of market share and market growth.
Loss leader
________: product sold at a very low price to encourage consumers to buy other products.
Internet
________ (online) marketing refers to advertising and marketing activities that use the ________, email and mobile communications to encourage direct sales via electronic commerce.
Penetration pricing
________: setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales.
Brand
________: identifying symbol, name, image or trademark that distinguishes a product from its competitors.
Channel of distribution
________: chain of intermediaries a product passes through from producer to final consumer.
Promotion mix
________: combination of promotional techniques that a firm uses to communicate the benefits of its products to customers.
Product
end result of the production process sold on the market to satisfy a customer need
Consumer durables
manufactured products that can be reused and are expected to have a reasonably long life, such as cars
Product life cycle
pattern of sales recorded by a product from launch to withdrawal from the market
Growth
if the product is effectively promoted and well received by the market, then sales should grow significantly
Maturity or saturation
sales fail to grow, but they do not decline significantly either
Extension strategies
marketing plans that extend the maturity stage of the product before a brand new one is needed
Boston Consulting Group (BCG) matrix
method of analyzing the product portfolio of a business in terms of market share and market growth
If its a newly launched product, its going to need heavy promotional costs to help it become established
this finance could come from the cash cow
Brand
identifying symbol, name, image or trademark that distinguishes a product from its competitors
Brand awareness
extent to a which a brand is recognized by potential customers and is correctly associated with a particular product can be expressed as a percentage of the target market
Brand loyalty
faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands
Brand value (or brand equity)
premium that a brand has because customers are willing to pay more for it than they would for a non-branded generic product
Family branding
marketing strategy that involves selling several related products under one brand name (also known as umbrella branding)
Product branding
each individual product in a portfolio is given its own unique identity and brand image (also known as individual branding)
Company or corporate branding
company name is applied to products and this becomes the brand name
Own-label branding
retailers create their own brand name and identity for a range of products
Manufacturers brands
producers establish the brand image of a product or a family of products, often under the company's name
Cost-plus pricing
adding a fixed mark-up for profit to the unit price of a product
Penetration pricing
setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales
Market skimming
setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand
Psychological pricing
setting prices that take account of customers perception of value of the product
Loss leader
product sold at a very low price to encourage consumers to buy other products
Promotional pricing
special low prices to gain market share or sell off excess stock includes "buy one get one free"
Predatory pricing
deliberately undercutting competitors prices in order to try to force them out of the market
Promotion
use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy
Above-the-line promotion
form of promotion that is undertaken by a business by paying for communication with consumers, e.g
Below-the-line promotion
promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase, e.g
Sales promotion
incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
Promotion mix
combination of promotional techniques that a firm uses to communicate the benefits of its products to customers
Viral marketing
use of social media sites or text messages to increase brand awareness or sell products
Guerrilla marketing
unconventional way of performing marketing activities on a very low budget
Channel of distribution
chain of intermediaries a product passes through from producer to final consumer
Note
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