1.3 marketing mix and strategy Flashcards
what is the Marketing mix
The general approach to marketing used by a business.
What are the 4 ps
Product - what kind of product is it
Price - how much are you selling it for
Place - where can u find it
Promotion - how is it going to be advertise
Mass market strategies
Choice between a wider or niche audience
BEN - higher distribution levels and a degree of influence of pricing within the market
Niche market strategies
It gives companies a better understanding of products and customers
BEN - meet customer needs better and higher prices
Business to consumer strategies
hitting all areas of the marketing mix ensuring consumers are getting the product they want and gaining loyalty
Business to Business strategies
Businesses look for the characteristics of products - focusing mainly on the price and reliability of products
define Market strategy
The general approach to marketing within a business
Portfolio and boston matrix
Businesses which sell a variety of products which make up their portfolio - the Boston matrix is a key tool for analysing the success of products in terms of market share and growth.
Problem child -
rapid growing markets - low market share high growth
Rising star
Rapid growing markets - high share high growth
Dogs
usually killed off products.- low share and growth
Cash cows
Stable markets and sell essential items - low growth high share
define Product life cycle
Is a pattern of sales overtime that most products tend to follow
The four stages of product life cycle
Introduction - low slow rising sales
Growth - sales begin to rise
Maturity - growth stabilises and sales reach highest level
Decline - sales phase - usually when extension strategy is used
Define extension strategy
A medium to long term plan for extending the life cycle of a product
Extension strategy examples
Adding extra functions features
Changing materials used
Launching different variants
Targeting new demographic/market
define Distribution channel
the route products take from produce to consumer
define Intermediaries
The businesses relationships between the product and consumer in distribution channels - e.g retailers
first channel - traditional physical sale channel
producer - wholesaler - retailer - consumer
Pushes up selling prices but helps smaller firms reach wider distribution
second channel - direct to retailer/being your own retailer
Producer - retailer - consumer
producers either sell products in bulk to retailers or be your own and have complete control on the way they are sold.
This could be online retail through e-commerce platforms or direct online retail which involves creating your own website and selling through that
3rd channel - producer - consumer
producer - consumer
selling products straight from warehouses - e.g Costco
Changes in distribution reflecting social trends
Online: online retailer has allowed many smaller firms to sell to a world wide larger audience
Services: some businesses can only distribute in person - e.g hairdressing
