Marketing Mix Flashcards
1
Q
Current Marketing Trends
A
- demarketing
- purpose
- authentically inclusive marketing
- building the intelligent creative engine
- meeting customers in a cookieless world
- designing a human-first experience
- elevating the hybrid expereince
- supercharging customer service with AI
2
Q
de-marketing
A
- Stop encouraging consumers to buy more products
- Go into the service business to provide for consumers
- Reduce the demand or deriving frugal consumption
- Demarking – reducing the demand
3
Q
Authentically inclusive marketing
A
- Addressing social inequalities
- Commitment to DEI
4
Q
Building the intelligent creative engine
A
Remote workers – new talent that can fill skill gaps, more diverse thoughts, geographically closer to business partners
5
Q
Meeting customers in a cookieless world
A
Shift to first party data strategies
6
Q
Designing a human-first experience
A
Data-driven experiences that foster trust and create customer value
7
Q
Elevating the hybrid experience
A
Create more personalization, innovation and connection
8
Q
Supercharging customer service with AI
A
Combine AI and customer service to deliver a true end-to-end experience
9
Q
Understand integrative nature of the marketing mix
A
All elements must work together to communicate to the consumer
- Ex – high-end skin care
- Sold through a subscription service
- Priced above the competition – high price consumers believe it will be high quality
- Promoted as an elite product
10
Q
Total Product Concept
A
- Everything a consumer receives, including all tangible and intangible attributes
- It moves beyond the physical product
- Even after the product has been used by the consumer – where does it go, the responsibility of the producer to close the loop
11
Q
brand
A
- the name, term, symbol, or design that identifies a company’s product
- The perception of how the consumer views the product
- The total collection of experiences they had with the brand
- Ex – Nike checkmark and slogan
12
Q
brand insistence
A
- Marketing mix reinforcement brand promise – is customers experience the benefits that you promised, they begin to trust your brand
- Customers are not just loyal to the brand, they are insistent on it – meaning they tell everyone that they need the product
13
Q
building brand insistence
A
- awareness
- relevent differentation
- value
- accessability
- emotional connection
14
Q
awareness
A
- Customers and key stakeholders must be aware that the product exists
- Communicate what you are offering
- Make it the first thing that comes to their mind – a good promotional strategy
15
Q
relevent differentation
A
- Proof points
- Reason to believe
- The leading edge indicator of future market share and profitability
- Providing a unique benefit
- Has to be solving a customer problem and providing a solution
16
Q
value
A
- Price perspective
- Does your brand deliver a good value for the price
17
Q
Accessability
A
- Customers and potential customers perceive the brand to be convenient
- Must be able to find it
18
Q
emotional connection
A
- The brand connect with people on an emotional level
- Relationships you form with customers
- Want the emotional connection to be positive
19
Q
brand connects to purpose
A
- Want to connect brand to a larger purpose
- Want to build an emotional connection with customers
- – Ex – Dove, they have a strong brand that is built around the purpose of body positivity
- It is authentic and aligned with their brand
- Think about what the brand stands for, what it is against, and where it should go next
20
Q
product classification
A
- convenience goods
- shopping goods
- speciality goods
- unsought goods
21
Q
convenience good
A
- Relatively inexpensive
- Buyers spend little shopping effort
22
Q
convenience good
- subcateogory
A
- emergency
- impulse
- staples
23
Q
emergency
- consumer behaviour
A
buy when they run out
24
Q
emergency
- marketing mix
A
- Distribute intensively
- Place at point of purchase
- Ensure high visibility – front of store
25
emergency
| - examples
- toilet paper
- masks
- water
- gas
26
impulse goods
| - consumer behaviour
- buy on impluse
27
impulse goods
| - marketing mix
- Distribute intensively
- Gain good shelf position
- Place of purchase
28
impulse goods
| - examples
- candy
- gum
- lottery tickets
29
staples
| - consumer behaviour
- Buy frequently and routinely with little thought
30
staples
| - marketing mix
- Build brand trust
- Distribute intensively
- Gain good shelf position
31
staples
| - example
- bread
- milk
- fruit
32
shopping
| - subcategory
- homogenous
| - heterogenous
33
homogenous
| - consumer behaviour
- Buyer perceives products as very similar – no unique benefit
- determines final purchase by lowest price – only price is different
34
homogenous
| - marketing mix
- Distribute strategically
- Near competitors
- Highlight price
35
homogenous
| - examples
- sugar
- flour
- toaster
36
heterogenous
| - consumer behaviour
- Buyers perceives products as having significantly different criteria to purchase
- Customers spend more time – looking at quality
37
heterogenous
| - marketing mix tatics
- Distribute strategically
- Near competitions – want to make an easy comparison for customers
- Use personal selling to emphasize benefits
38
specialty goods
| - consumer behaviour
- Buyer is willing to spend high levels of effort
- Customer will plan purchase
- Often does not compare alternatives
39
specialty goods
| - marketing mix tactics
- Distribute exclusively using selective channels that match special image
- Does not need to be widely available to everyone
- Use personal selling
40
specialty goods
| - example
- High end cars
| - Engagement ring
41
unsought goods
| - consumer behaviour
- Buyer does not seek product until a significant event happens – but then puts some effort into purchase
42
unsought good
| - marketing mix tactics
- Build brand value
| - Use personal selling
43
product lifecycle stages
- introduction
- growth
- maturity
- decline
44
introduction
- Introduction of product
- Few competitors, sales and profits are low
- Trying to appeal to early adopters
45
growth
- Profits tend to peak in the growth stage
- New uses (new flavours)
- New users – baking soda, arm and hamor
- Product life cycle is extended
46
maturity
- The peak of sales
| - Profits decline
47
decline
- Declining sales and profits, consumers needs change
- Reduce marketing and minimize production costs
- Possibly eliminate the product if the company has introduced a new product in the earlier stages of the product life cycle
48
when do profits peak
growth stage
49
when do sales peak
maturity stage
50
pricing considerations
- company costs
- customer's capacity and willingness to pay
- competitors price
- coordination with marketing mix
51
company costs
| - influence on factor
Choice of Business Model, Economic Conditions (can increase cost/ access of inputs)
52
company costs
| - impact on price
Price floor
53
company costs
| - how to determine
breakeven point
54
customer's capacity and willingness to pay
| - influence on factor
Economic Conditions, Stage of Life Cycle, Perception of Value
55
customer's capacity and willingness to pay
| - impact on price
Price ceiling
| How much consumers will buy for it
56
customer's capacity and willingness to pay
| - how to determine
Gain customer feedback
57
Competitors Price
| - influence on factor
Economic conditions, stage of life cycle
58
Competitors Price
| - impact on price
Price floor and price ceiling
59
Competitors Price
| - how to determine
Conduct competitive research
60
Coordination with Marketing Mix
| - influence on factor
Marketing decisions
61
Coordination with Marketing Mix
| - impact on price
Price floor and price ceiling
62
Coordination with Marketing Mix
| - how to determine
Communicate with colleagues
63
price skimming
charging the highest price possible for a product during the introduction stage, helps recover the high costs of research and development quicker
64
price penetration
Selling new products at low prices in hopes of achieving large sales volume and market share
65
psychological pricing
encourage purchases based on emotional responses rather than rational responses
66
Odd number pricing
odd numbers below dollar amount
67
Multiple unit pricing –
setting a single price for two or more units, 2 cans for 99 cents
68
Reference pricing
pricing a product at a moderate price and positioning it next to an expensive item
69
bundle pricing
packaging 2 or more products together
70
Everyday low pricing
low price for its products consistently rather than setting high prices and frequently discounting them
71
customary pricing
sets the price of goods primarily on the base of tradition
72
product line pricing
establishing and adjusting prices of multiple products within a product line
73
Captive pricing
the basic product in the line is priced low, while the price of items required to operate or enhance it are set higher
74
premium pricing
highest quality product or the most versatile version of similar products in the line is given the highest price
75
price lining
selling goods only only at certain predetermined prices that reflect definite price breaks
76
promotional pricing
price leaders, specialty event pricing, comparison discounting
77
price leaders
priced below the usual markup, near cost or below cost
78
speciality event pricing
involves advertised sales or price cutting linked to holiday season, or event
79
comparison discoutning
sets the price of a product at a specific level and simultaneously compares it with a higher price
80
Factors impact distribution options and why they are important
- Purchase is a function of desire and availability/ accessibility
- Value proposition you are offering and make sure that the marketing channels align with that
- direct
- indirect
81
Purchase is a function of desire and availability/ accessibility
- Needs to be available for the customer, make sure they can find it – helps to build brand loyalty
- Distribution decisions are costly, time consuming, and not easy to changed after implementation
82
convenient goods
want them available everywhere
83
Value proposition you are offering and make sure that the marketing channels align with that
Unique benefit coincides with the channels unique benefit coincides with the channels unique benefit
84
direct
your own website or store
85
indirect
selling to wholesalers, going to an agent or broker
86
Understand the benefits of using intermediaries
- Efficiency and assortment for consumers – allowing the producer to broaden and ease reach
- Break bulk shipment into smaller quantities
- --- Sell one to the retailer who buys in bulk – more efficient, selling at a cheaper price to wholesalers, channel is breaking it up for you
- Valuable market information – consumer insights
- --Can see the whole picture of their consumers
- Instant sales infrastructure
87
cost of using intermediaries
- Each intermediary takes a “cut” for functions performed
Ex – inventory management, warehousing, transportation
- Manufacturing loses control over final price to consumers
- Loss control over marketing and effort
88
cut solution
- Solution = demand backward pricing
- Work backwards to see what price you will sell to the wholesaler
- Start with the price that customers are willing to pay
89
loss of control solution
- provide incentives to push product through the channels
- Volume discounts – incentives for them to sell the product
- Co-op advertising and detailing – pay portion of the cost, then they can choose where they are in the flyer
- Detailing – own people to make displays in grocery stores – creativity, takes control back
- Training – sales people, how to use the product/ benefits – make them more knowledgeable
- Selective/ exclusive arrangements – product classification/ distribution density – only buy product there
90
Understand the objectives of a promotional strategy
- convinve customer with a clear and consistent message
- Evoke action
- Make them aware product exists, create desirability
- Sell products – drive them through interest and desire which will lead them ot action
91
factors influence a
| company’s choices for their promotional strategy
- Resources
- Objectives
- Nature of target market
- Product characteristics
- Must be consistent with business model, align and be integrated
92
Four components of the promotional mix
- Advertising
- Personal selling
- Sales promotion
- Publicity
93
Advertising
- Any paid form of non-personal presention by an identified sponsor
Ex – TV commercials, ads, social media, influencers
- Communicate unique benefit to position product in consumer’s mind
- Reinforce the message into the consumer model
- Bring them through the funnel and make aware and purchase the product
- Digital advertising – allow companies to target consumers, reach a lot of people
94
Personal Selling
- Face to face presentation to prospective customer
| - Physically, online/ digitall, working with a salesperson
95
Personal Selling
| - benifits
- Individual attention and immediate feedback – can focus on individual needs, tailor the products to the consumer
- Adaptable/ flexible messaging
96
Personal Selling
| - drawbacks
- More expensive – takes longer (paid longer), hire more people
- Lower control – requires significant training, people sell in different ways, can loose some techniques – end up where employee is not fully representing the company
97
Personal Selling
- Nature of the product – expensive
| - Nature of the industry and market – impacts amount of information you must convey, degree of customozing possible
98
sales promotion
- Should be done every week, promotion is meant to induce and incentivise consumers to come buy now, make them think that time is running out
- Marketing events or sales efforts that stimulate buying – must still align with marketing mix
99
sales promotion tactics
- encourage trial products
- boost customer loyalty
- gain attention in retail environment
- identify prospects or build relationships
- cross- sell other company products
- attract new customers
100
Boost customer loyalty
frequent user incentives (loyalty cards, double star day)
101
Gain attention in retail environment
point of purchase displays
102
Identify prospects or build relationships
contests (roll up the rim)
103
encourage trail products
sample (costco)
104
Public relations and publicity
- Third product objectivity – a launch
- Gains publicity and news attention
- Should not be the only tactic since it is hard to come up with something more important than other issues – COVID, politics
- Try to find local angle – Kitchener
- Seen through a 3rd party neutral source – not paying someone
- Any communication or actively initiated by a company that is designed to win goodwill or prestige for a company/ person
- Greater impact due to perceived objectivity
- If efforts spent = positive → free publicity
105
Public relations and publicity
| - drawbacks
cannot control what people will say
