Chapter 12 Marketing mix: product Flashcards
What is the marketing mix
Describes all the activities which go into marketing a product or service. Includes the product, price, place and promotion
4Ps of the Marketing mix
Product
Price
Promotion
Place
What is product (marketing mix)
Applies to the good/service itself.
Addresses the design, features and quality of the product.
Most imp P
What is price (marketing mix)
The price of the product/service itself.
Must cover all costs
What is place (marketing mix)
Refers to the channels of distribution which are selected.
How and where your products get sold
What is promotion (marketing mix)
How the product is advertised/promoted.
How people are made aware of the product.
Types of product
Consumer good
Consumer service
Producer good
Producer service
What is a consumer good
Goods used to satisfy individual wants and needs which are consumed by the consumer themselves.
What is a consumer service
A service that is directly consumed by the consumer themselves.
Eg: house cleaning
What is a producer good
Goods that are produced for the production of other goods.
Eg: Machinery:
What is a producer service
Services that a business provides for other businesses.
Characteristics of a successful product
Shouldn’t be difficult/expensive to produce.
The quality of the product should be appropriate for the brand image
The product should be unique or have a unique feature.
The product needs to satisfy consumer wants and needs.
Stages of product development
Generate ideas
Select the best ideas for further research
Decide if the company would be able to sell enough
Develop a prototype
Launch the product in a small area
Large scale launch if the small one was successful
Ideas, selection, sell, prototype, test, launch
ST LISP
Generate ideas stage (1) - product dev
Brainstorm within the firm
Decide if company can sell enough (3) - product dev
Compare the price of the product to the cost of production
Develop a prototype (4) - product dev
Gives insight into the processes of production, the requirements, etc.
Launch product in a small area (5) - product dev
Small scale launch/pilot test to see the reaction of the customers
Full launch of product (6) - product dev
Large scale launch
Benefits of creating a new product
if the product has a USP - can lead to more market share in new or existing markets.
Allows business to diversify
What is a USP
Unique selling point, a special feature of a product that differentiates itself from the products of competitors.
Costs of creating a new product
Market research cost
Trial costs
If the target market is wrong then wont make much money
Company image may take a hit if product fails to satisfy customer needs and meet expectations
What is a brand name
Unique name of a brand that distinguishes it from other brands
What is brand loyalty
Consumers keep buying the same brand again and again instead of choosing a competitor’s brand
What is a branding
Process where a business makes itself known to the public and differentiates itself from competition
