1.3 Flashcards
marketing mix and strategy
design mix is
the factors needed in designing a product
design mix involves
function
aesthetics
cost
changes in the design mix to reflect social trends
current trend towards resource depletion- where products are being designed for waste minimisation
- deciding what materials to use , this influences aesthetics and cost
re use and recycling and the design mix
- products made to be reused , good value for money
- made using recycled materials , good for the environment
ethical sourcing and the design mix
products made in safe facilities by workers who are treated well , supplier is protecting the environment
promotion definition
the use of marketing tools to bring a product/service to the attention of potential buyers
types of promotion (5)
- sponsorship
- direct marketing
- above line marketing
- below line marketing
- public relations
what is direct marketing
highly focused targeted mail by email or by post
what is above and below the line marketing
Above the line marketing- mass media targeting larger and more general customers
Below line marketing- targeted marketing
what is public relations
building a relationship between the business and the public to create a favourable corporate image
disadvantage of sponsorship
if person being sponsored reputation changes could destroy the brand
types of sales promotion (4)
- BOGOFF
- point of sale (items displayed at till0
- price discounts
- special events
digital communications (3)
- online advertising
- viral strategies
- social media
Ways to build a brand
-exploiting a USP
- advertising especially sponsorship
- social media
benefits of a strong brand
- builds trust
- allows for premium price
-loyalty - recognisable
- remain competitive
- market share
types of brand
manufacturers brand - e.g. kellogs cornflakes
own label brands
generic brands - e.g. carrots
changes in branding and promotion to reflect social trends
social media
viral marketing
emotional branding
factors influencing pricing strategies
- number of USPs
- price elasticity of demand
- strength of brand
- stage in product life cycle
- competitors
- aims and objectives of the business
pricing strategies
- price skimming
- cost plus pricing
- competitive pricing
- predatory pricing
- psychological pricing
what is predatory pricing
businesses sets a low price to price competitors out of the market
competitive pricing
where a business sets prices similar to competitors (helps avoid price wars)
price skimming
sets an initial high price for new product when it has high demand
cost - plus pricing
business bases a price on the unit cost and then adds a percentage as a mark up
changes in pricing to reflect social trends
online sales - websites can offer lower prices than shops, no rent
- price comparison sites, businesses have to price competitively
distribution definition
the process of getting the right product / service to the consumer
4 stage distribution
-
manufacturer
2.wholesaler - retailer
-
consumer
applies to smaller independent shops
3 stage distribution
- manufacturer
-
retailer
3.consumer
applies to mass market products
2 stage distribution
1.manufacturer
2. consumer
where the service is straight to consumer g. dentist
changes in distribution to reflect social trends
online (manufacturers straight to customers)
changing from product to service e.g. cds to streaming services
product life cycle involves
development
launch
growth
maturity
decline
Extension strategies - update..
- updating packaging
2.price reduction
3.,changing target market - advertising
boston matrix layout
market share along the top
market growth along the side
top row: star and question mark
bottom row: cash cow and dog
star product within the Boston matrix
~ high market share
~ high growth
should become cash cows in time if marketing is managed correctly
question mark boston matrix
~low market share
~high growth
potential to become stars if marketing managed correctly
- lots of investment in marketing to succeed
cash cow boston matrix
~low growth
~ high market share
need little or no new investment
dog boston matrix
~ low market share
~ low growth
in decline phase of life cycle
may withdraw / discontinue product
uses and limitations of boston matrix
+ good when reviewing products to decide future strategy
- products may be medium market share
high market share does not always lead to high profits
product portfolio definition
collection of all products or services offered by a company
mass market strategies
marketed all over the world in the same way
large quantities produced, eos
niche market strategies
targeted strategies
B2B or B2C
business to business
business to consumer
