Marketing

    Cards (53)

    • What does market segmentation involve?
      Dividing the market
    • Market segmentation uses characteristics such as age, gender, income, and socio-economic group
    • What is one factor that influences affordability in socio-economic terms?
      Income
    • Ethnic and cultural groups are equally likely to use any product.
      False
    • What do businesses need to understand about their customers?
      Their needs
    • A customer purchases and pays for a product or service
    • The ultimate user of a product or service is called a consumer.
    • What does market size measure?
      Total sales
    • The value of a market is calculated by multiplying the number of units sold by the price
    • Market growth is measured in percentage terms.
    • What does market share represent?
      Proportion of a market
    • The marketing mix includes price, product, place, and promotion
    • Successful marketing ensures a product satisfies customer needs at the right price with effective promotion.
    • Stages of the product life cycle
      1️⃣ Development
      2️⃣ Introduction
      3️⃣ Growth
      4️⃣ Maturity
      5️⃣ Saturation
      6️⃣ Decline
    • A unique selling point (USP) is something that sets a product or service apart from its competitors
    • What are two functions of product packaging?
      Information and protection
    • Branding helps build a recognizable logo or slogan.
    • Extension strategies are used to stop sales from falling
    • What is one example of an extension strategy?
      Rebranding the product
    • What is penetration pricing used for in marketing?
      Encourage sales
    • A key advantage of penetration pricing is its ability to develop market share.
    • Raising prices after using penetration pricing can lead to customer loyalty.
      False
    • What is the primary goal of price skimming?
      High initial profits
    • Price skimming can help a business earn a reputation for high quality.
    • Price skimming is a long-term pricing strategy.
      False
    • What is the main advantage of competitive pricing?
      Firm remains competitive
    • Competitive pricing requires time-consuming research of competitors' prices.
    • Price discrimination involves charging the same price to all market segments.
      False
    • What is a key benefit of price discrimination?
      Attract lower-income customers
    • Cost-plus pricing ensures that every good is sold at a profit.
    • Cost-plus pricing considers competitors' prices.
      False
    • What does psychological pricing aim to influence?
      Emotional responses
    • Psychological pricing can nudge customers to make a purchase.
    • Customers are always attracted to psychological pricing strategies.
      False
    • What is the purpose of using loss leaders in pricing?
      Gain market share
    • Loss leaders can boost sales of other more profitable products.
    • Customers may expect low prices permanently after loss leaders are used.
    • What is the role of a distribution channel in marketing?
      Move products to consumers
    • Intermediaries are independent firms that assist in the flow of goods from producers to end users.
    • Match the intermediary with its role:
      Producers ↔️ Supply goods and services
      Wholesalers ↔️ Buy in large quantities
      Retailers ↔️ Sell to customers