businesses and their customers

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  • Created by: amyling
  • Created on: 23-05-16 19:01
why does a business carry out market reseach
to help identify gaps in the market and gives the business oportunities
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what is the marketing mix
all the activities need to market a product
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what are the 4 Ps?
product, promotion, price, place
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what is premium pricing?
when a product is unique or luxury
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penetration pricing?
when the market is already saturated, low price to build a customer base
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What is skimming?
started at a high price which is lowered overtime, for new and unique products
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cost based pricing?
based on the cost to manufacture
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what is destruction pricing?
aimed to destroy competition
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what is competitor based pricing?
same or slightly lower than competitor
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what is psyschological pricing
using £1.99 instead of £2
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what is loss leaders?
selling 1 or 2 items at a low price
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what factors affect price?
cost of production, need for profit, what competitors charge, season, what the market are willing to pay, quantity of stock
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why is product important?
because business always try to provide the products customers want
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what is the product mix?
when a business has more than one product or service they provide
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what is product range?
a business should sell a range of different products
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why do products need packaging?
to protect the goods, give product details, contain goods, differentiate goods
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why is place important?
becuase the products must be available in the store when required otherwise the customer will go to the competitor
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what are advantages of e-commerce?
global market, low costs, wide range of products
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disadvantages of e-commerce?
training, recruitment, security, only image available
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why do businesses switch to e-commerce?
because of competition, productivity, increased profit, new markets, new products, 7 day opening
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why is price important?
it gives you an idea of what end of the market a product is
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why is promotion important?
the consumers will not know about he product if it is not promoted
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give 4 different types of advertising
social media, tv, leaflets, packaging
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what is sales promotion?
a method of promotion which aims to give a short term boost in sales
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what is direct mail
a method of promotion which involves targeting particular customers by sending advertising leaflets through post
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what is market segmentation?
the classification of customers into groups or sub-groups, each of which responds differently to different products or marketing aproaches
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gives 5 ways the market is segemented
income, gender, age, location, culture
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what is the product life cycle
research/development , introduction , growth , maturity , saturation , decline
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what are marketing constraints
laws- preventing business from false advertising, consumers- may not like the way businesses are advertising giving it bad reputation , code of practise- rules whixh businesses voluntarily agree to keep but they have no legal status
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Other cards in this set

Card 2

Front

what is the marketing mix

Back

all the activities need to market a product

Card 3

Front

what are the 4 Ps?

Back

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Card 4

Front

what is premium pricing?

Back

Preview of the front of card 4

Card 5

Front

penetration pricing?

Back

Preview of the front of card 5
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