Marketing Mix Flashcards
what is the marketing mix?
the combination of product, price, place and promotion for any business venture
what is the product portfolio? + benefits
the mix of products the business produces and sells
- spreads fixed costs
- allows the targeting of wider markets
- opportunity for growth
what is a unique selling point (USP)?
something that differentiates the product from its rivals
what is branding?
a name, term, sign, symbol or design that identifies a seller’s products and differentiates them from their competitors
why is increasing brand awareness important?
- create brand loyalty
- differentiate the product
- develop a brand image
- retailers will be more willing to stock
what are the downsides of increasing brand awareness?
- high cost of advertising
- loss of brand value for one product can affect a whole range
- brands invite competition
- high cost of research and development
what are the 6 purposes of packaging?
design, convenience, inform, protect, cost, environment
what is a marketing plan? + advantages and disadvantages
a detailed statement of how the company’s marketing strategy will be put into action
ad: forces a business to think about the future, improve co-ordination, ensures objects are achieved
dis: costly and time-consuming, can de-motivate employees
what is product differentiation?
making your products different from the competition, and separating your brand from competitor brands
how can products be differentiated?
methods of promotion, packaging, quality and reliability
what is the product life cycle?
has to do with the life of a product in the market with respect to sales
what are the stages of the product life cycle? and what happens in each
development – high costs (R&D, market research, product design)
introduction – product is launched, sales are usually slow
growth – sales increase, starts to earn enough money to pay back their initial investments
maturity – sales increasing/revenue increasing
saturation – there is slower rate of growth
decline – sales begin to fall (support the product or remove it from the market)
what are extension strategies?
medium-/long-term plan for lengthening the life cycle of a product or brand, or
to generate more sales
what are some examples of extension strategies?
change appearance, new feature, new promotions
what are reasons for change in the product life cycle?
fall in demand, recession, goods available from other supplier
