1.3 Marketjng Mix And Strategy Flashcards
Design mix and examples
Function , products that emphasise this (washing machine and battery)
Aesthetics, (handbag )
Cost
How design mix is changing due to social trends
1.sustainability - source inputs that aren’t harming environment, enable recycling
2.ethical - how your products made harming anything?
Marketing mix (7)
Product,place,price,promotion,
People,process,physical
Product life cycle and what is its used for
-development(no sales, research)
-intro(product launched, negative cash flow)
-growth(fast growing sales , profits rise)
-maturity(sales slow, more competitors)
-Decline(falling sales)
Used for- forecasting future sales trends
Extending the product life cycle and criticisms of product life cycle
Extensions strategies - lower price, change promotion,change packaging.
Criticisms- shape and duration varies, difficult to recognise where your product is in the cycle.
Boston matrix
A model used to analyse the strategic position of product and brand portfolios.
High growth rate, low growth rate, high market share, low market share.
Stars-high growth, Hugh market share
Cash cows- low growth, high market share(mature successful products that need investment)
Question marks- high growth, low market share (have potential need investment)
Dogs- low growth, low market share(usually sold or closed businesses)
Benefits of effective branding
-adds value, can charge higher prices
-build brand loyalty
7 types of brands
Product brand- specific products e.g marmite
Service brand- brands that add value to services e.g Uber
Umbrella brand- assigned to more than one product e.g Cadbury
Own label - promoting brand name e.g bbc
Global brand - recognised worldwide e.g McDonald’s
Aims of promotion and promotional mix
Aims- to inform and persuade about the existence of a product.
Promotional mix - advertising, personal selling, sales promotion, public relations, direct marketing.
Advertising key pints and +-
Paid for communication (tv,radio,billboards)
+wide coverage,control of message
-expensive
Personal selling points +-
Promoting person to person (by phone,meetings,knocking on doors)
+high customer attention
-labour intensive
Sales promotion points and +-
Includes free samples, BOGOF offers
+effective in boosting sales fast
-sales may only be short term
Financial objectives and marketing objectives
F- maximise profits, maximise sales revenue, improve cash flow
M- improve market share,build a brand, prevent competition
Price skimming
Charging a premium price when a product is first launched in order to maximise revenue per unit.
Cost-plus pricing
Price is set by applying a percentage margin based on the unit cost if production or supply
Penetration pricing
Offering a significantly low price than normal to maximise volume sold
Dynamic pricing
Setting flexible prices for products or services based of market demands
Aim of effective distribution
To make products available in the right place at the right time in the right quantities
Distribution channels
Retailer- producer,retailer,customer (customer conviencince)
Wholesaler- producer,wholesaler,retailer,customer(bulk they make money by buying in bulk)
Distributors- producer,distributor,customer(distributed sell on)
Agents-producer,agent,customer(services,travel)
Distribution types
Indirect- producer to customer
Multichannel distribution +-
For example apple, selling directly to customers and retailers.
+allows more target segments to be reached, higher revenue
-complex to manage
