1.3 Marketing Mix Flashcards
What is the process of identifying, anticipating and satisfying consumers’ requirements in a profitable way?
Marketing
Marketing involves understanding consumer needs and delivering products that meet those needs while ensuring profitability.
What are the four elements of the marketing mix?
- Price
- Product
- Promotion
- Place
These elements are critical for developing effective marketing strategies.
What are the components of the design mix?
- Function
- Aesthetics
- Cost
The design mix helps ensure that a product is fit for purpose, visually appealing, and cost-effective.
How can the function of a product be evaluated?
- Fit for purpose
- Performance
- Ergonomics
- Usability
- Safety
- Reliability
- Functionality
These factors determine whether a product meets consumer needs effectively.
What is the significance of aesthetics in product design?
More stylish products tend to sell better with a more premium price
Emotional attachment to a product can influence purchasing decisions.
What does ethical sourcing ensure?
Products are produced in safe facilities, respecting the environment, and treating workers well with fair wages
Ethical sourcing is increasingly important to consumers.
What is the aim of promotion?
To draw attention to product/business to gain/retain customers
Effective promotion strategies are crucial for business success.
What are the two types of promotion?
- Mass Appeal
- Targeted
Each type uses different methods to reach consumers.
What are the benefits of strong branding?
- Adding value
- Ability to charge premium price
- Reduces price elasticity of demand
Strong brands can maintain customer loyalty even when prices rise.
What does USP stand for?
Unique Selling Proposition
A USP helps differentiate a product from its competitors.
What are the types of pricing strategies?
- Cost-Plus Pricing
- Competitive Pricing
- Price Skimming
- Penetration Pricing
- Predatory Pricing
- Psychological Pricing
Each strategy has its own advantages and is used in different market scenarios.
What does cost-plus pricing involve?
Adding a % mark up on top of the cost of production
Commonly used by retailers, bakeries, and sandwich shops.
What is price skimming?
Setting a product at a higher price and lowering it over time
This strategy is often used for tech products.
What is the impact of online sales on pricing?
Easier to compare prices, requiring stronger branding/lower prices to persuade customers to switch
Online sales have changed consumer behavior significantly.
What are distribution channels?
The route a product takes from producer to consumer
Understanding distribution channels is key to effective product delivery.
What is the role of intermediaries in distribution?
They are each party in a distribution channel such as wholesalers, retailers, and agents
Intermediaries help facilitate the movement of goods.
What is an example of a change in distribution due to social trends?
Rise of online distribution
Online distribution offers convenience and a wider audience.
What is the product life cycle?
Stages a product goes through from introduction to decline
Understanding the product life cycle helps businesses manage their products effectively.
What are extension strategies?
- Regular updates/expanding product range
- Rebranding
- Targeting new market segments
- Discounts
- Adding extra features
These strategies help prolong the product’s life in the market.
What does the Boston Matrix categorize?
Products based on their market growth and market share
It helps businesses allocate resources effectively.
What characterizes a ‘Problem Child’ in the Boston Matrix?
A product that requires investment to improve its market position
This product may be new and needs time to build customer loyalty.
What is a ‘Cash Cow’?
A product that is profitable with high customer awareness and requires no extra investment
Cash cows provide steady revenue for businesses.
How do loyalty cards help businesses?
Encourage repeat purchases
They are a common strategy to build customer loyalty.
