1.3 - Marketing mix and strategy Flashcards
What is the marketing mix?
The 4Ps
-Price (pricing, price strategies, discounts, payment methods)
-Promotion (advertising, sponsorship, direct marketing)
-Place (location, transport, inventory)
-Product (quality, features packaging, services)
What are the 3 elements within the design mix?
-function/s
-aesthetics
-cost
Explain ‘function’
-intended purpose and the specific tasks it is designed to perform
-this is the most important aspect as it reflects how well the product is likely to meet the needs of the costumer for its use
Explain ‘aesthetics’
-the products visual & sensory appeal, including its form, shape, colour and texture.
-aesthetics plays an important role in attracting costumers, creating brand loyalty and creating ‘word of mouth’
e.g. apple are known for their pleasing looks
Explain ‘cost’
-cost of production must be considered as it affect the price point a product can be sold at
-a well-designed product should balance cost and value, therefore costumers perceive the product as valuable enough to justify its cost
Why do businesses adapt their product design to social trends?
-Social trends influence customer preferences, requiring businesses to adapt.
e.g. Resource depletion & Ethical sourcing.
-This helps businesses stay competitive and meet consumer expectations.
What are the types of promotion methods and explain them (BAPSS)
-branding, logo/slogan, people are able to idetnify e.g. KFC ‘finger lickin good’
-advertisement, persuading costumers to purchase your product e.g. newspapers, billboards, TV
-product trials. temporarily offering of a product e.g. netflix 2 week trial.
-special offers, point of sales display, e.g, buy one get one free
-sponsorship, paying an event to display your business name e.g. HP on spurs shirts
What are the different types of branding and explain them?
-Corporate Branding
-Own brand product
-Product Branding
What is corporate branding, & list the advantages and disadvantages?
Corporate branding is using a brand name or logo to promote all the products or services offered by a company. e.g. nike
+Creates strong brand recognition and reputation
+Can use its strong costumer loyalty base to introduce new products successfully
+helps build economies of scale by producing multiple products
What is product branding, & list the advantages and disadvantages?
Product branding is the use of a unique brand or logo to promote a specific product. e.g. kitkat
+aids differentiation from competitors
+associates products with a specific quality
+allows companies to market product to different market segments
-creating a unique name and design for every product can be expensive
-different product within your range may meet different levels of quality, affecting customer satisfaction
What is own brand product, list the Adv & Disadvantages?
Own brand product is the use of a retailers name to promote a specific product or service. e.g. Tescos Finest.
+can build customer loyalty
+can help retailers differentiate
+allows retailers to offer lower cost products
-companies like asdas own may have a lower preceived quality
What are the benefits of strong branding?
-creates added value (perception of high quality)
-creates ability to charge premium prices (customers willing to pay more due to brand)
-reduced price elasticity of demand
What are the ways to build a brand?
- strong USP(creates differentiation)
-advertising
-sponsorship
-use of social media (building a large following and creating a community)
How can businesses adapt their branding and promotion to reflect social trends?
Viral marketing
-this can be used to promote product by creating content at specific times, which can easily be commented on by viewers.
Social Media
-businesses must adapt their social media to keep up with the latest trends e.g. Tiktok
Emotional branding
-used to build strong emotional connections with customers by appealing to their values, beliefs and emotions
What are the different types of pricing strategies?
-Price skimming
-Psychological
-Predatory
-Competitive
-Penetration
-Cost-plus
What is Price skimming?
Price skimming is when a business sets a high price for a new product when it’s first introduced. e.g. apple macbook
What is psychological pricing?
This strategy takes into account the customer’s emotions, beliefs & attitudes e.g. £9.99 instead of £10.
What is predatory pricing?
Setting low prices to drive its competition out of the market
What is Competitive pricing?
This is when a business sets its prices according to competitors.
What is price penetration?
When a business initially sets a low price to gain market share.
What is Cost-plus?
Business calculates the cost of production and then adds a markup to determine the final price, e.g. unit cost + (mark up % x unit cost)
What are some of the factors that determine the most appropriate pricing strategy?
-number of USPs, products with many USPs will be highly differentiated from other competitors therefore they can charge higher prices. e.g. Nvidia
-level of competition, in highly competitive markets businesses may have to lower the price of their products to remain competitive e.g. Ryanair
-strength of the brand, a strong brand with a loyal customer base can demand higher prices e.g. nike tech fleece.
What changes have been made to pricing strategies to account for social trends?
Online sales
-online sales have allowed customers to have 24/7 access to their product range therefore it is more appealing to the customer, because of this businesses can use dynamic pricing.
Price comparison sites
-websites like comparethemarket.com have enabled retailers to match their prices to other retailers.
What are distribution channels?
Distribution channels are the way in which good/services move from the manufacturer to the customer.
