1.3 Marketing Mix and Strategy Flashcards
What is the design mix?
Function cost and aesthetics
3 fundamental elements that must be taken into consideration during the r&d stage
How does the design mix change with social trends?
- Ethical sourcing
- waste minimisation
- sustainability
What is a brand?
Name sign symbol design or slogan linked to a particular product or service to differentiate from competition
What is promotion?
Any type of marketing communication used to inform target audiences if the relative merits of a product, service brand or issue most are persuasive in nature
What are the types of promotion?
- advertising
- sales promotion
- pr
- sponsorship
- direct selling
- digital marketing
What is branding?
Process of creating a distinct identity for a business in the mind of its target audience
What are the benefits of strong branding?
- added value
- ability to charge premium prices
- reduced ped (less sensitive to price changes) (inelastic)
What are ways to build a brand?
- usp
- advertisement
- sponsorship
- social media
3 changes in branding and promotion to reflect social media?
- viral marketing
- social media
- emotional branding
Why do businesses enter the decline phase?
- technological advancements
- change in consumer taste and behaviours
- increased competition
- failure to innovate and develop the product
What are ways to extend the product life cycle?
- lower prices
- change promotion
- change product (restyle)
- look for alt distribution channels
- develop new market segment
- find new uses
- reposition the product (new market)
What are the product life cycle stages?
- R&D stage
- introduction stage
- growth stage
- maturity stage
- decline stage
What is the product life cycle?
A theoretical model which describes the stages a product goes through over its life
What are the benefits of the product life cycle?
- forecast future sales and trends
- help with market targeting and positioning
- help analyse and manage product portfolio
What are the weaknesses of the product life cycle?
- decline is not inevitable
- shape and duration varies from product to product
- strategic decisions can alter it
- length cannot be reliably predicted
- difficult to recognise where product is in its life cycle
What are the 6 pricing strategies?
- cost plus pricing
- competitive pricing
- price skimming
- penetration pricing
- predatory pricing
- psychological pricing
What are the factors that determine the most appropriate pricing?
- number of usps / differentiation
- ped
- level of competition in the business environment
- strength of brand
- stage in the product life cycle
- costs and need to make profit
What is the Boston matrix?
A marketing portfolio analysis tool that illustrates the performance of a company’s products based on level share (sales) and market growth (potential)
What is distribution?
the process of getting the right product or service to the consumer in the right place
What is a distribution channel?
this moves a product through the stages from production to final consumprtion
What is a multi channel distribution?
involves a business using more than one type of distribution channel
What are the advantages of retailers?
- convenience for customers
- often uk wide reach to customers
- retailer chooses final price
- after sales support
What are the advantages of wholesalers?
- economies of scale
- reduces transport costs
- wholesaler makes a profit by adding a profit margin onto the price paid by the retailer
What is an agent?
they are involved in negotiating a scale on behalf of the seller - they are usually paid a commission and are usually service workers (travel)
