1.3 - Design mix Flashcards
What is a marketing strategy?
The marketing strategy is the plan a business uses to reach its marketing objectives.
The marketing mix makes up this strategy
What is the marketing mix?
- Price
- Product
- Place
- Promotion
A business will need to consider the 4ps when deciding on a marketing strategy
What is the design mix?
- function
- aesthetics
- costs
A business might focus on different parts of the design mix.
What might influence the design mix?
- Changing social trends
- consumers wanting businesses to be enviormentally friendly
What is promotion?
Promotion is designed to inform consumers about a product or persuade them to buy it.
Promotional objectives include increasing sales and profits, and increasing awareness of a product.
What are the different methods of promotion?
- Special offers
- Direct marketing
- Personal/direct selling
- Event sponsorship
- Public relations (PR)
How can businesses advertise through the media?
Advertising uses various media including print, film, TV, radio, billboards, internet.
Online adverts can be targeted at customers who have shown an interest in a product.
Advertising on mobile phones has become more popular since you are only charged when someone clicks on it.
Viral marketing is when businesses use social media for free to promote and reach a large audience.
What is branding?
Branding creates a clear and obvious logo, name or statement. This means that customers will insatntly recognise promotional material from a particular business or for a particular product.
What are the different types of branding?
- Corporate branding - how a business presents itself
- Product branding - specific individual products that a corporate brand makes
- Own branding - brands that are in house to a supermarket or retailer
What is rebranding?
Rebranding is a marketing strategy that can involve a change to the design, promotion, pricing, or distribution of an existing brand.
A brand might want to reposition a product and aim it at a different target market or try to overcome competition from anothe business/
Why is strong branding beneficial to a business?
Building a strong brand allows a business to add value to its products.
The consumer percieves the product to be of a higher quality or more desireable, and are prepared to pay a premium price.
What are some of the ways to build a brand?
- Basing the brand around the products USP
- Advertising to increase customer awareness about a product
- Sponsorship
What is emotional branding?
Emotional branding is where the branding of a product is matched to the lifestyle, values, aspirations of consumers to trigger an emotional response so that they buy that product.
What are some of the factors that affect a businesses pricing decisions?
- The price of a product is affected by all the other Ps in the marketing mix
- The price is set to cover the cost of making the product
- The price needs to be acceptable to consumers
- The stage of the life cycle that the products in
- The level of competition in the market
- The price has to be in line with the businesses objectives
- A product with a strong USP might be able to command a higher price
What are the different pricing strategies?
- Price Skimming - when new and innovative products are sold at high prices when they first reach the market, and the price is then dropped considerably when the product has been on the market for around a year.
- Penetration pricing - launching a product at a low price to attract customers and gain market share
- Cost plus pricing - when a firm adds a percentage mark up to the costs of making or buying a single product
- Predatory pricing - when a business deliberatly lower prices to force another business out of the market
- Competitive pricing - when a business monitors their competitors prices to make sure that their own prices are set an equal or lower level
- Psychological pricing - bases the price on the cusstomers expectations, a high price may make customers think the products high quality
