1.3 Marketing mix and strategy Flashcards
the 3 functions of the design mix
function
aesthetics
cost
what is the design mix
the combination of elements that make up a products design
what happens if you balance all 3 elements
functional, and attractive whilst also being cost effective for both the manufacturer and the consumer.
what is function and why is it the most important in the design mix
- its the purpose and how well specific tasks are intended to perform
- its the most important, how well it meets the needs of customers
2 aspects of Aesthetics on the design mix
-a products visual and sensory appeal
and so
-by attracting customers it will help build brand loyalty and encourage positive word of mouth.
2 aspects of Cost in the design mix - a well designed product
-cost considers cost of production as it directly influences price
and if
-if a product is well designed it should balance cost and value
what are social trends and what it requires a business to do
-social trends are the changes in attitudes, behaviours and lifestyles
-this requires as business to adapt their product to remain relevant
the 2 social trends that affects a companies design mix
resource depletion
ethical sourcing
2 changes as a result of resource depletion on customers and the design mix - give an example
- customers becoming more aware about the need to conserve natural resources
and so - design mix may change to reflect waste minimisation and recycling
Superdry announced jackets use only recycled polyester (plastic bottles) rather than new polyester
ethical sourcing as a social trend on the design mix- give an example
- ethical sourcing means products are produced without exploitation of workers or environmental damage
and so - companies may change their design mix to incorporate sustainable materials and production processes
Tonys Choco lonely, produces chocolate made from cocoa farmed with 100% free child labour
what is promotion
important element of the marketing mix to generate customer awareness.
give 3 types of promotion
these different types of promotional methods available to a business to communicate with their target market
why promotion is important in the marketing mix
-A business can communicate its value proposition to differentiate itself.
and so
-a business can build brand awareness and loyalty - may lead to repeat purchases
advertising 2 benefits 2 drawbacks
benefits:
-reaches large audiences and increases brand awareness
-creates specific brand image e.g comparethemarket (meercat)
disadvantages:
-expensive
-effectiveness is difficult to measure
direct marketing 2 advantages 2 drawbacks
benefits:
-targets specific audiences and can personalise their message to individuals
-its measurable, enables business to track and adjust their strategy if needs be
drawbacks:
-intrusive to customers, may be perceived as spam
-Costly method if business doesn’t have a established customer database
sales promotion (buy one get one free) 2 advantages 2 drawbacks
Benefits:
- customer engagement boosts sales
-can encourage impulse purchases
Drawbacks:
-expensive especially if promotion requires heavy discounting
-Deal seeking customers - may not be loyal to brand sand reduce sales of full priced products
personal selling 2 advantages 2 drawbacks
benefits:
-build relationships with their customers and understand specific needs
-personalised advice and guidance
Drawbacks:
-expensive as cost to hiring and training sales staff
- Difficult to scale to large audiences
Sponsorship 2 advantages 2 drawbacks
benefits:
-builds brand awareness
- creates emotional connections
drawbacks:
-expensive for high profile events
- may not directly drive sales
public relations 2 advantages 2 drawbacks (KFC FCK)
benefits:
- can enhance a businesses reputation and credibility therefore higher customer loyalty
- Cost effective compared to advertising or personal selling
Disadvantages:
-Time consuming
-difficult to measure direct impact of PR activites on profits
digital communications 2 advantages 2 drawbacks (instagram marketing)
benefits:
-specific customer segments
-real time engagement and feedback
drawbacks:
-Significant investment in technology may be required
-Not effective in reaching older or less tech savvy audiences
What is branding
creating a unique and identifiable name or other feature that differentiates a product or the company from its competitors
3 ways in which branding is important
-recognition and identity
-differentiates from competitors
-supports marketing and advertising efforts
3 types of branding available to businesses
corporate branding
product branding
own brand product
what is corporate branding (think nestle)
use of companies name or logo to promote all of the products offered by the company
corporate branding 3 advantages 2 drawbacks
Benefits:
-strong brand recognition and reputation - customer loyalty
-leverage existing reputation - introduce new products
- builds economies of scale by promoting multiple products under one brand, less marketing costs
Drawbacks:
- if reputation is damaged by one product can have a negative effect on all products offered.
- intense competition may affect sales of all products
what is product branding - coco-cola
use of a unique name or design to promote a product.
product branding 2 advantages 2 drawbacks
benefits:
-a distinct identity helps differentiate it from competitors
-allows business to market different products to different segments e.g. coco-cola and coke zero
Drawbacks:
-very costly to create and promote a new brand for each product
- different products within the brand may have different levels of quality
what is own brand product (private label branding) e.g tesco
use of a retailers name to promote a specific product. tescos finest range
own brand product (private label) 2 advantages 1 drawbacks
benefits:
-retailers can differentiate themselves from competitors
-retailers can offer products at lower prices than branded products which can increase sales
drawbacks:
-own brand products have lower perceived quality than branded products, may affect customer loyalty
3 benefits of a strong brand with brief definition of each
added value - better perception of quality
charge premium prices - willing to pay more as its perceived as worth the extra cost
reduces price elasticity of demand - less sensitive to price changes therefore more likely to continue purchasing even if price increases
the 4 ways to build a brand
USP
Advertising
Sponsorship
Social media
so what is the difference between branding and promotion
branding is creating a unique and identifiable name, whereas promotion is generating customer awareness
types of pricing strategies
what are the 5 stages of the product life cycle
label the boston matrix
