component 1 definitons marketing mix Flashcards
the institute of marketing quote
marketing is the management process involved in identifying and satisfying customer requirements profitably
market orientation
when a businesses marketing activities will be dictated by the market attempting to meet the needs of the market with little refrence to internal strenghts of rhw business
product orientation
base its products or services on what it perceives its internal strengths, focus on developing and making product and selling it without trying to find out the wants of the customers
asset orientation
relates customers tastes to businesses own strengths
penetration pricing strategy
launching the product at a low price and gradually increasing the price overtime when the product moves through its life cycle
skimming pricing strategy
where customers are desperate to purchase on the launch and prepared to pay a premium price maximising businesses revenue price decreases over the lifecycle of the product, purchacsed by thoes less willing to pay premium prices
cost- plus pricing
where profit % us added to the average cost of producing the good, changes in cost are directly passed onto the buyer, every good sold has profit
contribution pricing
price based on variable plus contribution towards overheads and profits
competitive/ going rate pricing
taking price out of the equasion when making purchasing decisions for customers basing there decisions on other aspects of the marketing mix
psycological pricing
prices are set at the level that matches what consumers may expect to pay. Consumers perceive that they are receiving value from the price paid
The policy of pricing goods just a little below a round figure, such as £19.99, feel like they are saving money
predatory pricing
pitching product price at a very low level which rivals will struggle to match in the long term damaging markets price margins forcing firms to leave the market giving the firm a greater market share
loss leader pricing
selling products at a lower price than it cost to produce the product which will attract customers to the store where they will earn profit by customers purchasing other products and then earn customer loyalty
place
a term we give to distribution, process of getting a firms product to the market
multi channel distribution
use of multiple channels or platforms to sell and distribute products and services to reach customers through various chanels like physical stores and online marketplaces and social media platforms
promotion
various activities and startegies used to communicate, advitise and promote a productor service to a target audience but also gain up to date information
above the line promotion
also known as advertising, used to reach mass audiences, carried out through various media platforms e.g., TV, magazines, social media etc- long term strategy
persuasive advertising
sells the product through image and style and asperations of potential buyer ,creating a strong brand prescence and influneces customer by repeated exposure
informative advertising
focuses on providing factual information about a product or service, communicating features, benefits and value of a product helping customers make an informed decison
below the line promotion
marketing activities that arent carried out though traditional mass media channels often used to support above line promotion targetting customers directly
marketing
Marketing is the management process involved in identifying, anticipating and satisfying customer requirements. Process of getting the right product to the right place at the right price at the right time.
The marketing mix
Marketing mix is a combination of product, price, place and promotion for any business venture
Product portfolio
The product portfolio is the mix of products the business produces and sales.
Unique selling point
Don’t think about differentiates the product from its rivals
branding
It’s a name, term, sine, symbol or design that identifies a seller’s products from and differentiates them from competitors products
Marketing plan
A marketing plan is a detailed statement of how the company’s marketing strategy will be put into action
The product life cycle
Product Lifecycle has to do with the life of a product in the market with respect to sales. Product pass through these stages at different speeds, some products do not make it past the early stages and fail
Extension strategies
A medium / long term plan for lengthening the life cycle of a product or brand or to generate more sales likely to be implemented during the maturity or decline stages
Boston matrix
The Boston matrix shows the market share of each businesses products and the rate of growth the markets in which they operate
Distribution channels
The route forward chain / path taken by a product as it passes from the producer to the ultimate / final consumer. The more distribution channels are business has means they have the ability to re reach a wider potential market
