1.3 marketing mix Flashcards
What is the marketing mix?
Product
Price
Place
Promotion
What is the design mix?
Functions - purpose
Aesthetics - appeal
Costs - affects price point
What are two current changes in the design mix to reflect social trends?
Changes as a concern due to resource depletion
Changes about ethical sourcing
What is promotion?
This is a crucial role in generating customer awareness, interest and desire
What are the types of promotion?
Digital communications
Sponsorship
Public relations
Advertising
Sales promotion
What are the types of branding and definition ?
Product branding - unique name eg coca cola
Own brand product - retailers name
Manufacturer branding - compant name or logo eg nestle
Advantages of corporate branding ?
Strong brand recognition
Leverage existing reputation
Economies of scale
Disadvantages of Corporate Branding
- If a company’s reputation is damaged by a product it can have a negative impact on all the products offered under that brand
- If the company faces intense competition in one market 9e.g smartphones), it may affect the sales of all the products offered across other markets (e.g laptops and desktops)
Advantages and disadvantges of product branding?
Distinct identity
Market different products to different segments of the market
Customer loyalty
Create a new brand for each product
Might not satisfy consumers
The Advantages & Disadvantages of Own Brand Products ?
Advantages
- retailers differentiate themselves
- lower costs
- loyalty as products are exclusive
Disadvanatges
- lower perceived quality
How do you build a brand?
By developing unique selling points (USPs)
Through advertising
Through sponsorship
Through the use of social media
What are the changes in branding to reflect social trends?
viral marketing, the use of social media, and emotional branding
What is cost plus pricing ?
The business calculates the cost of production and then adds a markup to determine the final price
What is price skimming?
The business sets a high price for a new product/service when it is first introduced to the market
What is this pricing strategy when they set a low price on introduction?
Penetration
What is predatory pricing?
The business sets prices so low that it drives its competitors out of the market
What is competitive pricing?
The business sets its prices based on its competitors’ prices
What is psychological pricing?
This pricing strategy takes into account the customer’s emotions, beliefs, and attitudes towards the product/service
What factors influence the choice of pricing ?
usp
ped
competition
strength of brand
stages in prodict life cycle
costs and need to make a product
What are the changes to be made to account for social trends?
Online sales
Price comparison sites
What is distribution channels?
various intermediaries through which goods/services move from the manufacturer to the end customer
What is a four stage distribution and who uses it ?
A traditional channel consists of four stages: producer, wholesaler, retailer, and consumer
This channel is commonly used for products such as groceries, clothing, and electronics
What is 3 stage distribution and who uses t?
producer, retailer, consumer
This channel is often used for products with high demand or where the cost of distribution is high
what is 2 stage distribution and who uses it ?
manufacturer to consumer
This channel is commonly used for products that are sold online or through direct sales channels
What are the changes to distribution to reflect social trends?
Ecommerce
Shift from product based business to servece based
What are the stages of the product life cycle and what occurs?
development - design
introduction - launch + slow growth
growth - increase in sales
maturity - slowing sales as product reaches peak
decline - product becomes obsolete
What is an extension strategy and why have one ?
extend the life of a product beyond its natural life cycle
designed to boost sales and maintain profitability for a product that has reached the decline stage of its life cycle
What are the 2 types of extension strategy?
Product-related extension strategies
Promotion-related extension strategies
What is product related extenstion strategy and how is it achieved ?
Involves changing or modifying the product to make it more appealing to customers and extend its life cycle
Improvements
Line extensions eg coke zero and diet coke
Repositioning
What is promotion related strategies and how is it achieved?
Involves changing the marketing and promotion of the product to extend its life cycle
advertising
price promotions
sales promotions
What is the boston matrix?
tool to analyse their product portfolio and make strategic decisions about each product
what does the boston matrix consist of ?
Cash cow - high m.s low growth
Dog - low m.s low g.r
Question mark - low m.s high g.g
Star - high m.s low g.r
What is the marketing strategy for mass markets ?
Advertising campaigns, tv, radio, ads
What is B2B marketing?
Focuses on selling products to other businesses e.g. software companies selling to other businesses
What is B2C ?
B2C marketing focuses on selling products/services directly to consumers e.g clothing retailers to build brand loyalty and creating a positive customer experience
How can businesses develop customer loyalty?
Customer serive
Loyalty cards
Saver schemes
