1.3.1-1.3.4 Marketing Mix Flashcards
What is the marketing mix?
Elements of a firms marketing strategy that are used to make products attractive.
What are the 4 p’s associated with the marketing mix?
P-Product
P-Promotion
P-Price
P-Place
What is a product?
A good or service a business provides
What is the Design Mix?
Refers to a products design including
FUNCTION, AESTHETIC AND COST.
What is direct distribution?
Manufacturer»Consumer
What is Modern distribution channel?
Manufacturer»Retailer» Consumer
What is Traditional Distribution?
Manufacturer»wholesaler»retailer»Consumer
Name two advantages of direct distribution.
1)Less costs»decrease in prices
2)enables small businesses to reach wide markets» sell online
Name two disadvantages of direct distribution.
1)Websites can be expensive to run
2)Small business not online» not established
Name two advantages of modern distribution channel.
1)Retailer responsible for holding goods
2)Retailers can add extra value by offering extra services eg repair
Name two disadvantages of modern distribution channel.
1)High competition» other business use same retailer
2)Reputation of retailer» decrease sales of product
Name two advantages of Traditional distribution.
1)Wholesalers can offer trade credit
2)Break bulk and sell in desired quantities
Name two disadvantages of Traditional distribution.
1)More intermediaries»each one takes % of profit
2)More trust and reliance needed
What are the 7 factors affecting method of distribution.
1.Type of product
2.Market
3.Quantity and frequency
4.Geographical location
5.Cost
6.Degree of control
7. Speed
What is Price?
The amount of money a consumer has to pay to receive the good/service
What are the 6 pricing strategies?
1.Cost plus
2.Price skimming
3.Penetration pricing
4.Predatory pricing
5.Competitive pricing
6.Psychological pricing
What is cost plus?
A percentage mark up added to the cost of producing a hood to calculate selling price.
What is price skimming?
High price at first to regain costs then slowly lower the price over time
What is penetration pricing?
Setting a low initial price for a new product to gain a foothold and gain market share
What is predatory pricing?
When prices are set low for a certain amount of time to push competitors out of the market.
What is competitive pricing?
Prices based on other competitors. Often the same or lower.
Try to compete on other factors of marketing mix
What is psychological pricing?
When a firm sets a price for a product enticing the consumer to buy thinking it’s cheaper than it actually is.
£9.99 instead of £10
What are 6 factors affecting choice of pricing strategy?
1.PED
2.Number of USP
3.Level of competition
4.Strength of brand
5.Stage in product life cycle
6.Costs and need to make profit
