Unit 2- Marketing

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Define product portfolio
the range of products sold by a business
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Benefit of selling more than one product?
attracts new customers by aiming at different target markets, has diversity so that if 1 product declines increasing sales of another can replace it, to offer wider range of goods to support the original product
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Downfalls of a large product portfolio?
bad publicity of 1 product can affect the company's whole image, cost of developing+selling a lot of products are high, some products may fail if not enough market research hasn't taken place
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The order of the product life cycle?
Launch= sales starts slowly, Growth= sales accelerate, Maturity= sales level off as competitors enter the market, Decline= sales fall as it becomes less popular
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Extension strategies to extent PLC?
updated designs are an extension strategy that are expensive, new advertising campaign,targeting new markets + new brand image
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Define extension strategies in PLC?
is steps taken to extent the life cycle of a product
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Define diversity
spreading risk buy selling in different markets
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Define price skimming
when a high price is set for a product to create a high quality and exclusive image. Used when theres high demand+helps firm obtain the money need to repay development costs. Works best when products unique as people are willing to pay more.
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Define penetration pricing
setting a price at a low level in order to gain sales quickly+works best when customers are sensitive to pricing. Way to get market share quickly+to establish product as market leader. But can make image seem like low quality
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Define competitive pricing
used to try and match the price that others are charging and if products are similar, price influences customers purchasing decisions. Used in markets with big firms competing directly against each other e.g.- supermarkets who show good value
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Define cost plus pricing
methodical approach which ensures that the business covers its costs+makes a profit. Common for retailers to buy at certain price and add on a % to the re sell it. The strategy does not directly consider what people are willing to pay
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Define loss leader
setting a price at a loss to the customers will buy more of something else, where the firm makes a profit. eg- charge low for a printer but make the ink cartilage expensive
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What factors influence pricing:
costs, degree of competition+nature of the market, demand`
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What does promotion do?
informs consumers on new products, creates brand image, helps achieve sales growth+ supports other marketing decisions
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Define promotional activities
different ways in which a firm communicates with its consumers
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Define advertising
has to be paid for+can appear on tv, newspaper/magazines+billboards. Celebrities can create an exclusive image for a products through advertising.
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Define sales promotion
includes discounts such as BOG off, coupons+competitions. Encourages customers to buy more than 1 product or choose there product range rather than competitors.
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Define PR
Arranges free media coverage of its product+activities. Cheaper than advertising however you can't control what will be said about the business or the owners
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Define personal selling
most businesses have a sales force to help promote their product by visiting different stores to get them to stock their product.
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Define direct marketing
using direct means to contact consumers to increase sales through email, mail and telemarketing
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Factors that influence promotion
costs as business has to be able to afford the promotional technique, target audience and competitors promotion
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define channel of distribution
how the ownership of the product passes from the producer to final consumer
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How does producer-retailer-consumer work
appropriate for growing businesses that want to cover large markets, used by food companies selling through target supermarkets
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How does producer-wholesaler-retailer-consumer work
suitable for growing businesses with limited finance+ want holding stock+transport costs to be paid for by another business. used in food producers aiming to sell to widely dispersed conviniece stores
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Define retailer
holds stocks of the product+arranges appropriate presentation
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Define producer
offers suitable discounts to retailer
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Define wholesaler
buys products from producers in bulk+supplies smaller quantities to retailers
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Ways of connecting the distribution channel:
telesales, mail order and online selling
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Other cards in this set

Card 2

Front

Benefit of selling more than one product?

Back

attracts new customers by aiming at different target markets, has diversity so that if 1 product declines increasing sales of another can replace it, to offer wider range of goods to support the original product

Card 3

Front

Downfalls of a large product portfolio?

Back

Preview of the front of card 3

Card 4

Front

The order of the product life cycle?

Back

Preview of the front of card 4

Card 5

Front

Extension strategies to extent PLC?

Back

Preview of the front of card 5
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