1.3 Marketing Mix & Strategy Flashcards
Factors in the Design Mix
Function
Aesthetics
Cost
what is the Product design mix
-intergration of functionality, aesthetics, cost to enhance user experience
-to differentiate the products/services in a competitive marketplace
Function
-relates to quality and reliability, how well a product/service is at its purpose
-concentrates on practical features like strength, durability, flexibility
+ how easy for consumer use
Aesthetics
-appearance,hels differentiate, focus on principles e.g. shape,colour,texture
e.g. iPhone
-aims to achieve balance etween functional efficiency and visual attractiveness
Cost
-business focusing on being economically viable therefore aim to minimise cost
-cost involves managing and optimising financial resources e.g cost of production
Design for waste minimum
-refers to reducing quantity of resources that are discarded in production
-makes products last longer so energy/resources used span longer time frame
-making reusable
-make products smaller/lighter- less resources used
Re-use + Recycling
-designing a product to allow for disassembly at end of its life and the re-use of the materials aligns with sustainability goals and reduce environmental impact
-e.g. Reusable water bottles
Ethical Sourcing
-involves business buying materials that are produced with fair working conditions/pay and minimum impact on environment
-considers enviromnental & social impact of supply chain
e.g. Lush- renowed for ethical sourcing
Promotion
set of marketing activities & communication strategies undertaken to raise awareness, generate interest and persuade
Above the Line Promotion
-involves mass media advertising that reaches a broad audience, used to build brand awareness/image
e.g TV, Radio, Billboard, Newspaper
Why: Mass reach, brand building, reaching diverse audience, creating emotional connections
Below the Line Promotion
-focuses on more targeted, personalised strategies to engage specific segments of market, more cost effective
e.g. PR, Exhibition, Sales Promotion, Direct mailing
Why: Targeted Marketing, Buildinhg Relationships, Cost efficiency, Measurable results,
What affects the Type of Promotion
-Cost
-Market Type
-Product Type
-Stage in product life cycle
-Competitors
Types of Branding
Manufacturer Brands- brand created by manufacturer of product, aim to establish direct relationship, creating loyalty e.g Apple, Nike
Own label brands- manufactured for retailers by other businesses, retailer then sells that product under their own name e.g Sainsburys Beans
Generic Brands- products that contain the name of actual product rather than company/brand e.g. Paracetamol, Bin Bags
Benefits of Strong Branding
Added value- enhances percieved worth of product/service, +ve distinction & association, creates trust , recognition
Charging Premimum £- ability to charger higher as there’s consumer trust in brands quality + reliability
Reduced PED- reduces £ elasticity of demand by establishing consumer loyalty & fostering trust through consistent quality, +ve experience
Ways to build brand
Unique Selling Point- differentiates from competitors
Advertising-to raise customer awareness to persuade purchases
Sponsorship- funds provided for sporting, cultural or social event in return for display of business
Social media-direct engagement with target audience, builds relationship, conveys brand personality
Changes in branding&promotion to reflect social trends
Viral Marketing- encourages customers to share info/ads through existing social media, provvides business with rapid/widespread exposure e.g Dollar shave club
Social Media- business should reflect social trends in social media, adapting content to align with prevalent values, helps with direct communication e.g M&S suing Aldi
Emotional Branding- differentiates business in competitive markets fostering a deeper emotional bond with consumers, inreased customer retention e.g Nike ‘just do it’
Cost plus pricing
