Marketing Flashcards
Marketing MIX
Product- This is the actual product/service that customers pays for.
Price-This is the amount a customer is prepared to pay for a good or service
Promotion- This is the way in which an organisation make consumers aware of their goods/services and then persuades them to buy it
Place-This is where the business sells it goods and services to the customer ,where the customers can buy the product Ex, in-store or online(e-commerce)
Pricing Strategies
Competition – Should the business charge the same price for competitors or adopt its own pricing strategies
Quality – Does the product you are selling reflect the quality
Image- Businesses will set the price depending on the product price range example Competitive Pricing, Premium Prices, Low Pricing
production cost – Business will charge more than they paid for during making
profit per unit – Business will sell their products at an amount they can make a decent profit on
Factors to consider when considering the PRICE
- How much is ost to make the product
- Check what competitors have priced it at
- Which market segmentation/type of customers are you selling to
Factors to consider when selecting a location
-Transport Links
Most companies will want to be close to public transport, so customers and staff can get there easily
-Parking Facilities
If you have parking facilities you can pull more customers than your competitors as they may not have one
-Environmental Impact
Business needs to avoid doing harm to the environment where possible
eg. not cut down trees to build premises
-Competition nearby
If competition is nearby you may benefit from their existing customer
-Close to customers/Population
It will impact the number of customers and the ability to hire staff
-Cost of premises
Cheap premises might be in a bad area
-Close to suppliers
Selling to Different places
Is a business decides that a physical place is not suitable for their product or not pulling enough sale then they may decide to sell online. This is called
e-commerce(Electronic commerce)
-Using e-commerce give business access to customers all over the world.
-This is knows as being able to reach a target market/market share.
Advantages to Business doing e-commerce
- Product info can be updated and accessed easily
- Cost Effective and open 24/7
- You get increased brand recognition advantages( higher sales)
- Business don’t necessarily have to pay for premises
- More environmentally friendly
Advantages to Customers buying online
-Customers worldwide can be targeted
-Customer can buy online 24/7 from anywhere they want
-Online discount can be given(Customer get more value for money)
Stock availability can be checked before buying resulting in no late delivery
-3D views on product can be seen
Disadvantages to Business doing e-commerce
-Employees would need training to maintain website/apps resulting in more costs
-Packing and distribution can be very expensive
Businesses will often be reliant of a 3rd party carrier to complete distribution
-Market research need to be very detailed to the meet the needs of customers
Disadvantages to Customer buying online
- Goods can’t be seen or handle before purchase
- Customers might not want to give details to business
- Technical problems while ordering
- No personal contact to business
- Inconvenient to return products/may get damaged in trasnport
Distribution
Businesses decide how to physically get the product to the customer
Things to consider when selecting a distribution method
- How much products can be transported
- Location
- Price
- Time
Distribution Methods
Plane
Train
Van-Car
Boat
Air Distribution Advantages and Disadvantages
Advantages- -Can be transported across the world - Large amount of small things can be transported Disadvantages- -not a door-to door service -expensive -Large items can't be transported
Rail Advantages and Disadvantages
Advantages-
- Large products can be transported
- Large quantity can be transported
Disadvantages-
- No train station at location
- No door-to-door service
Road Distribution Advantages and Disadvantages
Advantages-
- Cheaper than others
- Delivery is often quick
- Door-to-door service
Disadvantages-
- Not environmentally friendly
- Difficult to transport large product
- Roadwork can cause lates
