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
Sea Advantages and Disadvantages
Advantages-
Large products can be transported
Over the world distribution
Disadvantages-
- Time consuming
- Not door-to-door service
Sale Promotion ways
Special Offers Deals(2 4 1, BOGOF,)- In order to entice customers to buy the product
Free Samples- Business offer free sample as form of promotion to potential customer to try the product and hope they would enjoy it and make a purchase.
Loyalty Card-Customers can scan these as they shop and build “points” with the business which is later exchanged for voucher, or the card may instantly produce a discount
Methods of Advertising
Broadcast Media(Tv and Radio)
Benefits: Disadvantages:
-Large target audience -Tv commercial most expensive
-Sound and images(TV) way of advertising
-Give them a lot info in 30 sec -Streaming people fast forward
commercial commercials
-many go in a break during
commercial
Print MEDIA(Newspapers and magazines)
Advantages: Disadvantage:
-More cost effective than broadcast -Often mostly black and white
-Target both local and national customers -Decline in sales of print media as
-Can look back lots of info is now online
SOCIAL MEDIA/apps
Advantages: Disadvantage:
-Can use on the go -you need a phone(expensive)
-Can often use free-wifi in public area - Can be high cost to design app
to be customer frienly
Ethical Marketing
No matter which way you advertise your advert need to be ethical
-This means that the advert is fair and not misleading or offensive to consumer
-Businesses can do this by abiding advertising controls
EXAMPLE OF ETHICAL MARKETING
-Cigarettes are now covered up
-Not using skinny models all the time
What is the importance of ethical marketing
- Creates a responsible reputation which encourages sales
- Attract consumers by developing trust which encourages loyal customers
- Promotes a green image, which may attract customers to the shop with an organisation which is ethical over competitors who are not not ethical
Technology in marketing
The marketing department will often use technology to help them with their roles(product,price,place,promotion)
Ex.
-specialist software-Use specialist software to produce a quality product
-top of the range hardware- To help them achieve their goals faster
-access and control of social media- Help them advertise easier
-apps- Lets them have multiple advertising methods
