chapter 12 - the marketing mix Flashcards
definition of:
marketing mix
a term used to describe the activities which go into marketing a product/ service
the 4ps of marketing mix?
price
place
promotion
product
what kind of products are there?
consumer goods
consumer services
producer goods
producer services
what makes a product successful?
- design
- quality
- not difficult to make
- satisfy customers’ needs and wants
stages of product development
- generate ideas
- select best ideas
- decide whether it will be successful in market
- develop prototype
- launch product to test market
- go to a full launch to whole market
benefits of developing new product
- unique selling point
- diversification of business
- expand into new/ existing market
cost of developing new product
- lack of sales if target market is wrong
- loss of image if fails to meet customers needs
- cost of developing prototypes
- cost of carrying out market research and analysing findings
definition of:
unique selling point
special features of a product that distinguishes it from competitors’ product
definition of:
brand image
an image or identity given to a product which gives it a personality that distinguishes it from other competitor’s brand
definition of:
brand name
unique name given to a product that distinguishes it from other brands
definition of:
brand loyalty
customers repeatedly buy from the same brand of product instead of competitor’s product; business ensures repetitive sales
definition of:
packaging
physical container or wrapping for a product, often for selling appeal and promotion
role of packaging
- suitable for product
- promotion
- provides info abt product
product life cycle
introduction
growth
maturity
decline
introduction of product life cycle
price skimming
informative advertisement
no sales yet
no profit yet
growth product life cycle
sales growing rapidly
lower down price - competitors entering
persuasive advertising used
profit can cover development cost
maturity product life cycle
sales growing
competition become intense
advertising level highest to maintain sales
profit highest
decline product life cycle
product lost its appeal
product withdrawn
advertising stops
how to extend product life?
- modify product (colours shapes designs)
- introduce improved version
- sell through diff retail outlets (e- commerce)
- use new advertising campaign
- sell into new markets/ another country
