1.3 Marketing Mix and Strategy Flashcards
What is the marketing mix?
The main variables comprising a firm’s marketing strategy.
What are the seven Ps of the marketing mix?
Product
Price
Promotion
Place
People
Packaging
Process
What are the main benefits of maximum appeal to consumers?
Differentiation
Added value
Increased reputation and brand loyalty
Higher profit
What are the three factors of the design mix?
Function
Aesthetic
Cost
What social trends can lead to changes in the design mix?
Waste minimisation and recycling
Ethical concerns (child labour and fair trade)
What are the main aims of promotion?
Attract new customers / retain existing customers.
Improve position in market.
Survival and growth.
Increase awareness of product.
What are the main types of promotion?
Advertising
Public relations
Seasonal promotions
Free gifts and competitions
Offers e.g. BOGOF
Endorsement
What are three types of branding?
Individual product brand
Brand family
Corporate brand
What are the benefits of branding?
Added value
Reduced PED
Ability to charge premium prices
What are four methods of building a brand?
Differentiation / USP
Advertising
Sponsorship
Social media
What social trends have led to changes in branding and promotion?
Use of:
Viral marketing
Social media
Emotional marketing
What are the six main pricing strategies?
Price skimming
Price penetration
Cost plus
Predatory
Competitive
Psychological
What six factors can influence choice of pricing strategy?
PED
Level of competition
Strength of brand
Level of differentiation
Stage of product life cycle
Costs and need for profit
What three factors influence the chosen method of distribution?
Location
Credit terms
Willingness to display products in prominent positions
The wider marketing mix
What three factors influence influence a business’s choice of distribution?
Type of product
Nature of market
Technical complexity of product
What is multichannel distribution?
Where firms use more than one type of distribution channel e.g. shops, online, click and collect.
What are the four possible stages of distribution?
Manufacturer
Wholesaler
Retailer
Consumer
What social trends influence distribution channels?
Online distribution
Changing from product to service
What are the five stages of the product life cycle?
R&D
Introduction
Growth
Maturity
Decline
What extension strategies can be employed to prolong a product’s decline?
Finding new markets for existing products
Changing the appearance or packaging
What are the four categories that comprise the Boston Matrix?
Star - Problem child or Question mark
Cash cow - Dog
What are the characteristics of a ‘star’ product?
Market leader
High market share, high market growth
Fast growing
Substantial profits
Requires substantial investment for growth
Could become future cash cows
What are the characteristics of a ‘cash cow’?
Profitable
High market share, low market growth
Generate more cash than needed to maintain market share
Milked for profit
What are the characteristics of a ‘problem child’ / ‘question mark’ product?
Rapid growth
Low market share, high market growth
Poor profit margins
Enormous demand for cash
Need to be turned into rising stars
What are the characteristics of a ‘dog’ product?
Greatest number of products in this category
Low market share, low market growth
Markets are not growing - little new business
Operate at a cost disadvantage
High chance of being discontinued
How can business’s develop customer loyalty in a B2B market?
Tailoring to customer
Personal service
Reliability
How can business’s develop customer loyalty in a B2C market?
Establishing a strong image
Branding
Mass distribution
