7 p's of marketing mix Flashcards
what is m mix
The marketing mix describes all of the marketing activities and decision that help influence a customer’s decision to buy a product.
explain the product life cycle
R and D - MR, prod devel, prep of production.
intro - released - lots of promotion.
growth - sales rising - high likely hood of comp entering market.
maturity - steady sales - usually cut budgets here - once sales go below break even point then sales r considered low.
decline - abt to leave market - loss of market share - falling sales.
how to extent the maturity state?
new tp but MR
product development - redesign and packaging BUT may feel dissapointed n tricked that u changed
low price but bad quality
give deals - market penetration - promotional Strats but maybe tired hard to change mental image = not worth it.
new variations
4 parts of product branding
1 - awareness
2 - development
3 - loyalty
value (assets, market share, etc)
why is branding imp?
- clear image about bus
- can charge higher price cuz of its value
- legally protected (can be) - awareness and value
ALL pricing methods
1- penetration
2- cost plus
3 - loss leader
4- predatory
premium
5- dynamic
6- comp
7- contribution
what is PED and what do each numbers mean?
how responsive demand is to changes in price.
1 or +1 = elastic
1=unit elastic
0 - -1 = inelastic.
how to calc contribution per unit and total
per unit= price per unit - variable costs per unit.
total = cont per unit X quantity.
if ur total costs r higher than ur fixed costs what is it?
profitable.
what is the RS between PLC, Investment, profit, and cash flow
based on what stage ur at in ur PLC ur inv will depend on that (should u inv more or less etc), thus it will tell u if u have high or low, and pos or neg profits, which will lead to ur cash flow overall and tell u if that’s good or bad, high or low, pos or neg.
what r the 4 types of promotion?
ATL
BTL
TTL
SMM
ATL?
independent mass media - promotion is external to the business itself - paid form.
magazine, Tv, radio, newspaper.
+/- of ATL
+:
large reach
goo brand image and awareness
large market - can reach tp and segmented pop
-:
exp
not very targeted to specific people
hard to calc roi
BTL?
within the business itself - business Pays for its promotional activities.
loyalty cards
after sales service
direct marketing - emails
personal face to face
merchandising
+/- of BTL
+:
highly targeted
good rs w customers
ez to measure
cheaper
-:
not wide reach
may be cultural issues 2 specific markets - but if its targeted u can avoid that
have to train employees = costs.
TTL?
mix of BTL and ATL
digital
SMM
360˚ - everyone everywhere
+/- of TTL
building brand
gen convos
ez to customize
relavent tp - keep under control
best of both words - 360˚ marketing
good reach
new form of marketing
-:
costly
time waste
may not be suitable for business type/plan and marketing obv
SMM?
influencers, ads, user-gen-content, 1-1 msgs
+/- SMM
+:
wide range of audience
more info abt trends and customer pref
feedback
good rs w customer
less costs
-:
timely
train employees
not in all markets
ppl dont engage well
not uptodate info reached
neg comments - spread hate.
what r places
and what r the types
dist channels
wholesaler - buys big quantities - stores and breaks bulk to sell. low diet costs and stores in a branch may have comp
retailer - received small quant of ur g/s - sells individually to ppl
agent - not part of bus selling g/s on their behalf acts on behalf of other company - dont own the g/s
can get physical or online
what r the 3 types of intermediary channels?
1 - 0 int - producer to consumer
2 - 1 int channel - producer, wholesaler to consumer.
3 - 3 or more int channels, producer, wholesaler, agent, retailer, consumer (or remove agent).
what to consider when picking an intermediary channel?
looks at
markup costs
time
big or small reach
# of sales u get
control
overall expenses - storage + delivery.
def people
customer service - employees
what does it mean by cultural diff in service rs
when someone does something and it is interpreted in another way - good or bad.
what diff cultures value - hofstedes cultural dimensions
diff cultures have diff ways of communicating
what customers expect also when employee is w them.
def processes
procedures and policies on how a business would get the product to the consumer and quicker = efficiency.
what are the 5 main processes (there are more tho but these r the main)
1- ASS (aft sales service)
2- customer feedback
3 - services (all activities in the interaction between customer and business)
4 - delivery systems (int channels - online, physical - convenience - quick, on demand delivery).
5 - placing and paying - cash counter = quick , sequrity and speed.
def physical evidence
atmosphere and vibe
visual, sensory and auditory information a consumer sees when enters a store, or purchases from a company.
IS TANGIBLE BUT THESE R THINGS THEY DONT BUY JUST THINGS THAT MAKE THEIR SERVICE AND EXPERIENCE BETTER!!.
