Business-making marketing decisions

• What is the importance of changing promotion styles as businesses grow?

  To target correct audiences and support brand image
• What does advertising consist of?

  Newspaper, TV, billboards, magazines, social media
• What is sponsorship in business promotion?

  Giving money to events for brand awareness
• Give an example of sponsorship.

  Arsenal sponsored by Emirates Airlines
• What are product trials designed to do?

  Entice customers to purchase for the first time
• What methods can be used for product trials?

  Reduced price, free trials, coupons, gifts
• What are special offers used for?

  To generate loyalty and support pricing strategies
• Why are special offers often short-term methods?

  Reduced prices lead to reduced profits
• What is the most up-to-date method of promotion?

  Social media
• Why is choosing the correct distribution channel important?

  To effectively get products to customers
• What is a retailer?

  A company that sells directly to consumers
• What is the role of wholesalers?

  They sell products to other businesses
• What is an e-tailer?

  A business that sells products online
• What is a global market?

  Customers from all around the world
• How can the marketing mix elements impact each other?

  Changes in one can affect others, like price
• What is a competitive advantage in pricing?

  Being cheaper than the competition
• What does a coherent marketing mix help create?

  A strong brand image customers trust
• What happens if a business fails to develop a coherent marketing mix?

  It can lead to a confused brand image
• What is penetration pricing?

  Selling at a low price to enter the market
• What is loss leader pricing?

  Charging less than cost to attract customers
• What is price skimming?

  High initial price that drops over time
• What is competitive pricing?

  Charging similar prices to competitors
• What is cost-plus pricing?

  Adding a profit margin to total costs
• What internal factor can impact pricing decisions?

  Technology used in product creation
• How does the product life cycle affect pricing?

  Pricing may vary based on the life cycle stage
• What external factor can impact pricing decisions?

  Raw material costs
• Why should businesses consider competitors' prices?

  To compete effectively in the industry
• What should businesses consider about their target audience when pricing?

  The income available to the target audience
• What is differentiation in business?

  Standing out from the competition
• What is a unique selling point (USP)?

  A feature that makes a product stand out
• What factors are considered in the design mix?

  Function, aesthetics, cost
• What is the development phase in the product life cycle?

  The design phase with no sales yet
• What happens during the introduction phase of the product life cycle?

  Product is introduced, sales may be slow
• What occurs during the growth phase of the product life cycle?

  Sales start to increase, promotion needed
• What characterizes the maturity phase of the product life cycle?

  Sales are at their highest, growth slows
• What happens during the decline phase of the product life cycle?

  Sales begin to fall, product may become obsolete
• What are extension strategies in product management?

  • Methods to increase sales of a product
  • Extend the product life cycle
  • Examples include:
  • Repackaging
  • Rebranding
  • Advertising
  • Adding value
  • Reducing price
  • Targeting new markets
• What are the stages of the product life cycle?

  1. Development
  2. Introduction
  3. Growth
  4. Maturity
  5. Decline