1.3 Marketing Mix And Strategey Flashcards
What is the marketing mix?
The marketing mix is the 4P’S product, place, promotion, price
What are the 4P’S
Product, place, price, promotion.
What do the 4P’S do?
They work together to satisfy the needs and wants of the market.
What is the design mix?
A combination of elements that make up a products design that are Cost, Aesthetics and Function
What are the types of promotion?
Sponsorship, Public relations, Advertising, Direct marketing, Sales promotion, Personal selling, Digital communication.
What are the advantages and disadvantages of advertising?
+ reach large audience
+ create specific brand image
- difficult to measure the effectiveness
What are the types of Branding?
- Product branding
- Own brand product
- Manufacurer/ corporate branding
What are the benefits of branding?
Added value
Ability to charge premiums
Reduced PED
What is cost plus pricing?
◦ Where the business calculates the cost of production and then adds a markup to determine a price
What is price skimming?
◦ Setting a high price initially and then dropping it down
What is predatory pricing?
◦ Sets very low prices to drive competition out of the market
◦ Considered anti-competitive in many countries
What is pyschological pricing
◦ Takes into account customer emotions, beliefs and attitudes e.g. 4.99
What is competitive pricing?
◦ Business sets prices based on prices of competitors
What is penetration pricing?
◦ Sets a low price initially for the product whilst it enter the market
What are the factors that influence the choice of pricing strategy?
◦ Number of USPs/Amount of differentiation
◦ PED
◦ Levels of competition in the business environment
◦ Strength of the brand
◦ Strange in product life cycle
◦ Costs and the need to make a profit
