Chapter 4 The Marketing Mix Flashcards
Objectives • State the 4Ps; Product, Price, Place and Promotion • Understand that products can be goods, services or both • Identify the different aspects of a product • Explain the importance and the usage of branding • Explain what is packaging • Explain the importance of support services • Explain the importance pricing • State what are the 3 Cs. State the factors to consider when pricing a product. • Describe the different pricing techniques. State the factors to consider choosi
What are the 4 Ps of Marketing?
- Product
- Price
3.Place
4.Promotion
What is product?
Anything a business offers to satisfy customer’s needs and wants.
What is an aspect of a product?
Aspect is something part of the product.
Different Business use different aspects of its products to differentiate them from competitors
What is Branding?
Branding is the use of a name, term, symbol, design to Identify a product.
What is Brand Loyalty?
Customer willing to pay high for the brand.
Customer is loyal to the brand and repeatedly buy the brand’s products.
Customer is willing to put extra effort to get hold of the brand’s products.
What is a good brand?
A good brand is remembered by customers
Customer and Business perspective of brands?
Customer Perspective
Brand is value
Brand makes it easy to shop
Brand is status
Brand is personal choice
Business Perspective
Brand builds customer loyalty
Brand makes it easier to introduce new products to its customers.
What is Packaging?
Packaging is how a product is packed.
This includes container, wrapper, label, description and instructions on how to use the product.
Other functions in packaging
Promotes image of brand
Protects & Contains
Makes product easier and safer to use
Prevents spoilage
Prevents shop lifting
What is Support Service?
Services that businesses use to differentiate their products from competitors.
Example:
Customer Service
Free installation
On site repair service
Warranty
Fast & reliable delivery
What is pricing?
Setting of the price for the product.
Pricing is important as it affects how much a business earns.
Too high a price, customer will not buy the product.
Too low a price, business cannot earn enough to cover its expenses.
What is the 3 Cs of Pricing?
Customers
Costs
Competitors’ Prices
What are the 5 common types of Pricing Techniques?
Product Line Pricing
Set Different prices for different versions of the same product.
Example:
Hotels quote different rates for rooms of different sizes
Airline companies price their tickets according to
economy class, business and first class.
Product Bundle Pricing
Pricing a few items of related products into a bundle.
The bundle of products is offered at a reduced price
Example:
In restaurants, they offer set meals which is less than the total cost of its separate items.
Optional product pricing
Setting prices of optional or accessory products along with the main product
Example:
Pizza restaurants offer their customers a range of toppings but there will be a charge on the toppings
Promotional Pricing
Set prices below the listed price in order to increase short term sales.
Example:
Special discounts during festive season such as Chinese New Year, Christmas, Hari Raya and Deepavali.
Odd Even Pricing
Setting prices just below an even amount
Example:
Instead of pricing a product at $20, the price is set at $19.95
What is Place?
It is the location to sell its products
Location is VERY IMPORTANT.
It is one of the factors that determines how successful a business will be.
What is promotion?
Promotion is informing target customers that the right product is available at the right price, the right time and the right place.
The purpose of promotion is to influence target customers to buy the product.
What are the types of promotion techniques used by businesses?
The various promotion techniques are:
Advertising
Refers to attracting the public attention to a product or business.
Advertisements are paid for and can be in print, broadcast or electronic media
Print Advertising
Use colourful pictures to attract potential customers to buy a product.
USE AIDA – Attention , Interest, Desire, Action to create effective print advertisement.
Broadcast Advertising
Television and radio advertising can reach a wide audience.
Electronic Advertising
Mobile Phone advertisements have become more popular with the increase in mobile phone usage
Personal Selling
Personal Selling involves interpersonal communication with potential customers.
The aims are to make and build customer relationships
Eg, insurance and banking services
Direct Marketing
A promotion method that sends customised messages directly to target customers
Eg, telephone calls, emails, text messages
Public Relations
Public relations refer to activities that communicate messages to the public to create goodwill towards a business.
Eg, News, Special events, website, sponsorship, corporate identity materials
Sales Promotion
Short term incentives offered by businesses to encourage their target customers to buy a product
Sales promotion techniques are used to attract customers to buy now rather than later.
Eg, discount coupons, price discounts, contests, gifts
