THEME 2.2 - Making Marketing Decisions

KEY TERMS

Design Mix

The features a business considers when developing a new product - function, aesthetics, cost.

Function

How well a product does its job eg a mug holding drinks and being easy to drink from

Aesthetics

The visual attractiveness of something.

Cost

Making sure the product is financially viable, being about to produce it at a cost that allows profit.

Product

All the issues that must be considered when developing your product eg size, name, ingredients, branding etc

Product Life Cycle

The stages a product passes through from its development through to its possible withdrawal.

Introduction

The point where sales are low due to lack of product awareness and costs are high due to development and promotion.

Growth

The point at which a product's sales are growing, creating income for the business.

Maturity

The point at which a product's sales start to peak.

Decline

The point at which a product's sales start to fall.

Extension Strategies

Methods used to try and extend the life of a product and prevent it falling into decline.

Differentiation

Making your product seem different to that of the competitors, this can be done through product design.

Branding

A named product that customers perceive as different to others and are willing to pay extra for.

USP

Something that makes a product stand out from its competitors.

Customer Service

The service given before, during and after purchase.

Price

All the issues that must be considered when deciding what to charge for your product eg image

Promotion

All the issues that must be considered when deciding how to advertise your product to the customers.

Sponsorship

When a business pays you to advertise their name for them eg on football shirts.

Product Trial

When customers buy a product for the first time and decide whether or not they will buy it again.

Repeat Purchase

When a customer buys a product more than once.

Market Segment

Part of the market that has similar buying habits. This could be age, gender, income...

Viral advertising

Getting individuals to spread a message about a product through their social networking.

Targeted adverting

Advertising to customer you know might want your product or have bought it before.

Place

All the issues that must be considered when deciding where to sell your product and how to get it to your customers.

Retailer

A business that sells goods direct to a consumer through a 'bricks and mortar' shop.

e-Tailers

A business which sells goods direct to a consumer via the Internet.

Marketing Mix

The combination of price, product, promotion and place in a way to attract and satisfy customers.

Integrated Marketing Mix

Has a theme and all the 4 Ps support each other.

Competitive Advantage

The things that give your business an edge over the competition.