Ch 24- Marketing Mix Flashcards
Marketing
Identifying and satisfying customer needs and wants while making a profit
Market segmentation
Dividing the market into segments to promote different products to each group of customers
Methods of segmentation
Gender Age Income Location Lifestyle
Target market
The group of people a product is aimed towards
Marketing mix
Four elements that helps a business sell its product to its target market
Four marketing mix
Product
Price
Place
Promotion
Goal
To combine these elements to increase customer satisfaction and sales
Product
An actual item provided to meet customers needs
Product elements
Design
Product life cycle
Branding
Unique selling point
Design
The first stage in making a product. Should be attractive, easy to use and long lasting
Product life cycle
Intro- sales low until it becomes familiar
Growth- sales incense rapidly
Maturity - increase at a slower rate
Saturation- sales reach the peak
Decline- sales fall due to change in trends
Life cycle can be extended by
Changing price
Introducing new versions
Changing outlets
New advertising methods
Brand
A name/symbol that makes a product easy to recognize
Advantage of branding
Increase sales
Easier to introduce new products
Higher prices can be charged
Encourages customers to buy profits from the brand (brand loyalty)
Unique selling point
Used to differentiate its products from competitors eg Toyota is reliability
Price
The amount of money a product costs
Price is determined by
Cost of making it
Amonnt of profit wanted to be made
Competitors prices
Target market
Pricing strategies
Cost plus pricing
Loss leaders
Premium pricing
Penetration pricing
Place
Where customers buy the product and the channel of distribution used to get it there
Channel of distribution
The way a product gets form the manufacturer to the customer
Channels depends on product, legal requirements and image of the product
Types of retailers
Department store Chain store Supermarkets Discount retailers Franchises Independent retials Online stores
Promotion
Raising customer awareness of the product or brand to increase sales and create brand loyalty
Businesses use promotion to
Launch a new product, increase sales of existing products and to increase brand loyalty
Advertising
Involves communicating with the public to let them know about a product
