1.3 Marketing Mix And Strategy (Wip) Flashcards
What is the marketing mix?
A framework of how businesses can successfully implement marketing strategies into their products.
What are the four P’s of the marketing mix?
-Product
-Place
-Promotion
-Price
Methods for ‘product’ marketing?
- Quality
-Features
-Packaging
-Warranties
-Services
Methods for ‘place’ marketing?
-Market coverage
- Inventory
- Transport
- Channels
Methods for ‘price’ marketing?
- Pricing strategy
- Discounts
- Payment terms
- Payment methods
Methods for ‘promotion’ marketing?
- Sales promotion
- Advertising
- PR
- Direct marketing
What is the design mix?
A framework of which elements of design a product needs to be appealing to consumers.
What are the three factors of the design mix?
- Function
- Aesthetic
- Cost
What is the most important design mix factor?
Function as it impacts how the users needs are covered.
What is function?
Function determines how the product is designed to perform the task it is intended for.
What is aesthetic?
Aesthetic involves anyway a product invokes senses including feel, looks, shapes, color and texture.
What is cost?
The cost of production when creating a product. This should be considered as a well designed product balances costs and value.
How do social trends affect the design mix?
Customers may become concerned with how the raw materials are sourced leading to changes of the costs of production.
Customers may also become concerned with resource depletion changing the materials used in production and how wasteful a companies production can be.
What are the types of promotion?
- Advertising
- Public relations
- Sponsorships
- Sales promotion
- Direct marketing
- Digital communications
What is advertising?
Promotion through paid channels such as TV, radio, print media and websites.
What is direct marketing?
When the business directly communicates with a customer through email, text message or social media post to sell a product.
What is sales promotion?
When a business uses sales to encourage customers to purchase a product or service.
Examples: Buy one get one free, seasonal sales, loyalty cards
What is personal selling?
When a business contacts a customer and sells a product via one on one communication in person or through a digital communication channel.
What is a sponsorship?
When a business pays an event or team for marketing exposure, it can take place in forms such as logo placement or naming rights.
What is PR?
When a business builds strong bonds with the public via a good reputation. PR can be built by media relations, crisis management and community outreach.
What is branding?
Branding is a type of product differentiation that involves creating unique and identifiable imagery around a brand. This includes: names, logos, design and symbols.
What are the types of branding?
- Corporate branding
- Product branding
- Own brand product
What is corporate branding?
This is when a company uses one name or logo to promote all products or services offered by the company.
Think Nike!
What is product branding?
This is when a product uses a unique names, design or symbol to differentiate itself from other products the businesses produces.
Think chocolate bars!
What is own product branding?
When a brand uses a label that refers to the retailers name to promote a product.
Think Sainsbury’s owned or basics range!
What are the benefits of branding?
- Added value
- Higher differentiation
- Charge premium prices
- Reduced PED
How can a brand be built?
- USPs
- Advertising
- Sponsorships
- Social media
- Design language
What is viral marketing?
When a business creates content specifically to be commented on encouraging consumers to share it with people via the internet.
What is emotional branding?
When a business builds an emotion connection with consumers via appealing to their values and beliefs.
What are the types of pricing strategies?
- Price skimming
- Predatory pricing
- Market penetration
- Competitive
- Cost, plus
- Psychological
What is cost plus pricing?
When a products cost to produce is calculated and then a mark up is applied to get the final price.
What is price skimming?
When a product first launches at a high price, and then later in the product’s life cycle as sales dwindle the price is gradually reduced.
What is penetrative pricing?
When a product first launches at a low price to enter a market to quickly capture market share. Than once the product has a consumer base prices will be raised.
What is predatory pricing?
When a business lowers the price of its product so low that other competitors cannot sustainably set the price as low leading to them going out of business. Once this has happen pricing is raised.
(illegal in many nations)
What is competitive pricing?
