Chapter 19- Marketing Mix Flashcards
What is the marketing mix?
A combination of four elements that can help a business market its products or services to its target market
What are the 4P’s?
Product
Price
Place
Promotion
Product:
A product is the actual item (either a physical good or a service) provided to meet customer’s needs
What influences the success of a product?
Design
Product Life Cycle
Branding
Unique Selling Point (USP)
Talk about a specific product you have studied in relation to PRODUCT.
Apple mostly comes out with a new iPhone product every year, which replaces the previous ones
What are the iPhone products currently available and where are some on the Product Life Cycle?
iPhone X (introduction) iPhone 8 (growth) iPhone 7 (maturity) iPhone 6s (decline) iPhone SE (decline?)
What is the USP?
The unique selling point is what makes the product different from the competition and is highlighted to encourage people to buy the product
What USPs does the Apple iPhone have?
- Unique operating system (iOS)
- Apps that can only be bought in the Apple App Store
- Good quality camera, although it is debated whether it is the best
- Siri
Price:
Refers to the amount of money a seller charges a customer for a product or service
What does the price charged depend on?
Cost of producing product/ service Amount of profit the business wants to make Stage of product life cycle Competitor’s prices Target market
Pricing Strategies:
Cost-plus pricing
Loss leaders
Premium pricing
Penetration pricing
Cost-plus pricing:
Takes the cost to make the product and adds a percentage of profit on to get the final cost of the item for customers
Loss leaders:
Selling a product below the cost it takes to make in order to attract customers
Premium pricing:
Charging a permanently high price to give the impression of luxury
Penetration pricing:
Charging a low price when a product is first introduced to encourage sales but increasing the price once sales have reached a certain level
Apple iPhone pricing strategy:
Apple use a premium pricing strategy for their iPhone products. They charge a high price for their products and this is accepted by their target market as they are loyal to Apple (brand loyal)
Place:
Refers to where customers will buy the product and the channel of distribution used to get the product to its location
Channel of distribution:
Refers to the way in which the product gets from the manufacturer to the consumer.
What are the 4 different channels of distribution?
Manufacturer to Consumer EG online from company website
Manufacturer to Large Retailers EG Tesco
Manufacturer to Wholesaler to Retailer EG Dealz
Manufacturer to Wholesaler to Consumer EG Amazon
Apple iPhone and Place:
Apple use the following channels of distribution to sell their iPhone:
Manufacturer to Consumer through their website (www.apple.com) and their Apple Stores
Manufacturer to Large Retailers EG CompuB and Harvey Norman
Promotion:
Refers to raising customer awareness of the product or brand in order to increase sales and create brand loyalty
Methods of promotion: (4)
Advertising
Sales Promotion
Social Media
Celebrity Endorsement
Advertising:
Includes communicating with the public to let them know about a product and get them interested in buying it EG television, radio, newspapers and billboards
Sales Promotion:
There are incentives offered to customers to attract them to buy a product EG free samples
Social Media:
Many businesses use social media to promote their product to potential customers EG Facebook
Celebrity Endorsement:
Businesses pay celebrities to promote their products by wearing them or appearing in an advert for the product EG David Beckam and H&M
Apple iPhone and Promotion:
Apple uses the following promotional methods to get customers interested in their iPhone products:
Advertising
Personal selling
Social media
Apple and advertising
Apple advertise by many means, such as the television, online adverts, magazines and billboards
Personal selling:
Sales people in their stores help customers pick the product suitable for them. Apple are also known for their after-sales support services IE ‘Genius Bar’
Apple and social media
Apple have social media accounts on Facebook and Instagram