Flashcards in Marketing Deck (8)
Discuss the costs and benefits to a business by diverse brand portfolio.
•Spreads risk across brands as they operate in different markets
•Existing customers may become loyal to more than just one brand leading to repeat sales
•Increased expenses from duplication of marketing resources
•If a brand becomes associated with negative publicity other brands may be affects.
Describe the extension strategies which may be used by an organisation to prolong a product’s sales and profits.
•Improve the product – this may enhance the product with a new feature
•Change the packaging – updating the packaging can make the product more appealing to new markets eg family packs
•Change the channel of distribution – costs can be reduced by changes to how the product is distributed - for example selling online saves store expenses.
•Reduce the price – this may help the product compete with similarly priced rivals in the market
•Add a promotion – this can be a very good way of bringing new customers to the product by raising awareness
•Rebrand the name - to something more modern and appealing. However, this is at the risk losing loyal customer base.
Describe pricing strategies available to an organisation.
•Premium pricing is when a high price is constantly set creating an image of exclusivity
•Penetration pricing sets the price initially low and increases the price over time.
- Suitable for launching products into new markets
•Loss leader sets the selling price below the cost price to attract customers who then purchase other goods at full price.
•Market skimming is when a high price is initially set on a new/unique product then lowers over time to encourage sales.
Describe ways in which public relations (PR) can maintain/improve a businesses image.
•Issuing press releases to help explain actions taken to rectify any existing problems.
•Organising press conferences will allow media or other affected stakeholders to ask questions/investigate what the business plan to do to tackle any issues.
•Donating to charities/sponsorship should give the business a good reputation for assisting to resolve social issues or provide assistance to the local community.
Justify the use of technology in the marketing function of a large organisation.
•Use of social media is a suitable method of promoting the company to younger and technology-enabled markets.
- This can reduce promotion costs compared with more traditional methods of advertising
•Online shopping can attract a greater number of customers globally increasing market share.
- Customers can shop in the comfort of their own home meaning they are not restricted to shop opening hours.
•Sending e-mails to target existing customers with any deals/vouchers they may like increasing customer loyalty.
Describe the following elements of the extended marketing mix:
• physical evidence.
TIP: Description and example/impact.
•People is any member of staff who comes into contact with the customer.
-All staff need to be trained in customer care to ensure they are helpful and polite.
Process is the the systems and procedures that deliver a product/service.
-Short waiting times when phoning and queues in store are examples.
Physical evidence is the environment experienced by the customer.
-How the store is laid out and designed impacts this element.
Into-the-pipeline sales promotions are offered by the manufacture. Justify 3 methods.
Trade credit allows the retailers to save their cash for other expenses which is ideal for new or struggling purchases.
Sale or return allows retailers to try new products without the risk of being stuck with unsold stock.
Staff training means that staff in the retailers will become experts in the product which can impress customers, encouraging sales.