Marketing Mix Flashcards [PRICE]

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  • Created by: Kathryn
  • Created on: 07-05-14 13:39
What is a USP? [price]
A feature of a product that makes it distinctive
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What does having a USP allow for? [price]
Enables a firm to change more. Helps develop brand loyalty. Need to innovate constantly for successful USP.
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What three levels can the nature of a product be analysed on? [price]
Core benefit (what it does). Tangible product (spec/features). Additional benefits ('augmented product' e.g service support)
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What is the product life cycle.
A theory which predicts the stages a product goes through.
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Key features of Development + Introduction stage.
Development - involves long lead time before sales achieved, may not be successful. Introduction - promotion costs high, low capacity utilisation, lots of cash going out.
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Key features of Growth and Maturity stage.
Growth - Exanding market but arrival for competitors. Easier to distribute. Unit costs fall with economies of scale. Maturity - Rivals enter market, slower sales. High capacity utilisation.
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Key features of Decline stage.
Boe ties and board games. Falling sales, as is profit. More competitors leave market.
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What's an Extention strategy?
Occurs when marketing activities are changed to prevent sales falling.
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Examples of extention strategies.
Encourage usage, reduce the price, adapt the product, promotional offer, change image.
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What is the Boston Matrix
Method of product portfolio analysis that examines the products of a business in terms of market share and market growth.
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What is a question marks (in terms of boston matrix)
Low share of fast growing market, cash flow normally negative. Have potential but future is uncertain. Could be either a star or a dog.
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What is a Star?
Position of leadership in high growth market. Requires high marketing spending. Net cashflow neutral or at best. Modestly positive.
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What is a dog?
Low share of slow growth market. Not going anywhere, no real potential. Products that have failed or in decline phase of cycle. Best option close or sale.
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What is a Cash Cow?
High share of a slow growth market. Successful product but at mature stage of the PLC. Little potential for growth. Large positive cashflow.
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Other cards in this set

Card 2

Front

What does having a USP allow for? [price]

Back

Enables a firm to change more. Helps develop brand loyalty. Need to innovate constantly for successful USP.

Card 3

Front

What three levels can the nature of a product be analysed on? [price]

Back

Preview of the front of card 3

Card 4

Front

What is the product life cycle.

Back

Preview of the front of card 4

Card 5

Front

Key features of Development + Introduction stage.

Back

Preview of the front of card 5
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