1.3 - Marketing Mix and Strategy Flashcards
What are the 3 elements of the design mix?
- Cost
- Aesthetics
- Function
What is the importance of aesthetics in the design mix?
Designers must consider elements of a product, such as its size, appearance, shape, smell or taste, or the presentation of a service, because it has an impact on what choices consumer makes.
What is the importance of cost in the design mix?
A well-designed product needs to be economically viable. This means that a business should be able to produce and sell the product or service at a profit.
What is the importance of function in the design mix?
A product or service must be fit for purpose, which means that it must be capable of doing the job that it is sold to do.
What changes in social trends may require a change in the design mix?
People have become increasingly aware about the effects their lifestyles have on the environment. Worries about global warming, resource depletion and pollution have encouraged many to adopt more environmentally friendly lifestyles.
What is resource depletion?
Resource Depletion is reducing the amount of resources used to create products.
This involves:
* Waste Management - smaller and lighter products with fewer components; less single use and disposable products; less packaging
* Design for re-use - products that can be taken apart more easily to repair or re-use
* Design for recycling - increased use or recycled materials in the products
What are the advantages of using a Resource Depletion strategy?
- You can save money through more efficient use of raw materials, packaging and technology.
- It allows you to cut your waste disposal costs.
- Compliance with environmental legislation becomes cheaper and more straightforward.
What are the disadvantages of using a Resource Depletion strategy?
- Business many need to redesign products and production methods.
- Sourcing of recycled materials can be difficult.
What is ethical sourcing?
Ethical sourcing means that businesses only use materials, components and services from suppliers that respect the environment, treat their workforce well by paying them a fair wage and providing a safe working environment, and generally trade with honesty.
What are the advantages of using an Ethical Sourcing strategy?
- Used to market the business and build trust in the brand.
- Ethical produce is a growing market, so can help attract investors.
- Sourcing ethically also helps motivate staff and promote loyalty.
- Prevents future problems.
What are the disadvantages of using an Ethical Sourcing strategy?
- Finding ethical suppliers and enforcing strict regulations can be time-consuming, difficult to manage and costly.
- Production costs are increased.
- Need to balance profit margins with what consumers are prepared to pay.
What are the two types of branding?
- Manufacturers brands - created by the manufacturers, use advertising and promotion to build brand loyalty. Can charge higher prices, consumers stay loyal - repeat purchases.
- Own-label brands - created by the retailers, good value for money for the consumer. High profits for the retailer, ties consumer to retailer, gives retailer bargaining power with major manufacturers to supply brands at discounted rates.
What are the benefits of strong branding?
- Added value
- Ability to charge premium prices
- Reduced price elasticity of demand (inelastic)
What are the 4 ways that a business can build a brand?
- Unique selling point / product differentiation
- Advertising
- Sponsorship
- The use of social media
How does having a USP help build a brand?
Having features in your product that other businesses don’t have. Firms use patents and copyright laws to stop other firms using features that they have created.
However, it can involve a lot of R&D (costly).
How does Advertising help build a brand?
The role of advertising is to reinforce messages about the superiority of a product.
However advertising campaigns can be very expensive.
How does a Sponsorship help build a brand?
Sponsorships involve associating a product with particular activities and events to build the ‘personality’ of your brand. e.g. red bull and extreme sports.
However, bad publicity associated with the activity can damage the brand.
How does the use of social media help build a brand?
Social media offers a platform for businesses to build the voice, look and feel of their brand. It often involves the use of influencers.
However, this relies on the popularity and behaviour of influencers to support the brand image.
What are the two types of promotion?
- Above-the-line promotion is what is generally called advertising. It is used to reach a mass audience.
- Below-the-line promotion targets consumers directly and are often used to support above-the-line promotion: personal selling, direct mailing, trade fairs, and exhibitions.
What is emotional marketing?
- Emotional marketing seeks to create a bond between the consumer and the product by provoking an emotional response to the advertising.
