Marketing Mix Flashcards
What is a marketing mix?
It refers to the marketing process responsible for identifying, anticipating, and satisfying customer requirements profitable
It describes the key elements used by an organization to help meet its marketing objectives
What is the structure of marketing?
Segmentation and targeting
Positioning and differentiation
What are the bases of segmentation?
Geographic
Demographic
Psychographic
Behavioral
What is a product?
A product is anything that can be offered to the market that might satisfy a need or want
Product feature: Product characteristics
Product benefit: Value for customer
What are the types of product benefits?
Functional benefits
Operational benefits
Personal benefits
Quality
Financial benefits
What are the stages of the product life cycle
Introduction
Growth
Maturity
Decline
Always use sales and profits to explain
What are Kotlers five product levels?
Core benefit: fundamental need or want that satisfies a consumer
Basic/Generic product: Version of product that only contains the characteristics necessary to function
Expected product: Set of attributes that buyers normally expect
Augmented product: Inclusion of additional features
Potential product: Transformations that the product could undergo in the future
What is place?
It represents the place the products can be purchases or would be distributed.
Distribution channel (can by physical or virtual0
What are the channels of distribution?
Distributor
Super stockist
Wholesalers
Retailers
What are the 4 distribution strategies?
Direct distribution: Manufacturers sell products directly to consumers
Intensive distribution: In the intensive distribution strategy, companies place their products in as many retail locations as possible.
Selective distribution: hybrid of intensive and exclusive distribution
Exclusive distribution: manufacturers make a deal to sell their product only to one specific retailer.
What is price?
It is the amount a customer pays for the product
What are the two types of pricing strategies?
Cost based pricing: Design a product, determine costs, set price based on costs, convince buyers of product value
Value based pricing: Assess customer needs and perceptions, set target price based on customer perceived value, determine costs that can be incurred, design a product to deliver at desired value and target price
What are the 6 types of pricing strategies?
Penetration pricing: sets initial low price tp quickly gain market share. Penetrate at the cost of initial profits. Later can gradually increase
Skim pricing: Set relatively high price for a product intended to target early buyers who want to pay premium price to get it first. Later lowers to attract a broader customer base
Economic pricing: Pricing is based on economic principles of supply and demand
Premium pricing: Sets a higher price than its competitors to convey the perception of higher quality, exclusivity, and value
Captive product pricing: Offers core product at a lower price but requires complementary products to fully utilize the core product
Psychological pricing: Setting prices to appeal to the psychology and perception of consumers. Influences consumer behavior and purchasing decisions. Prices made to seem more attractive or appealing
What is promotion?
Activities meant to communicate and persuade the target market to buy the company’s products
- It is the link between company and consumers
- It serves as a channel for conveying the brand message, building awareness and driving sales
What are the elements of the promotional mix?
Advertising
Public relations
Personal selling
Sales promotion
What is advertising?
Process of creating and delivering persuasive messages through various media to inform, educate and persuade, remind a target audience about a product, brand, service or organization.
eg: paid messages on tv, radio, print, online and social media
Pros: Mass reach, brand awareness, message control, creative opportunities, measurability
Cons: Cost, Ad avoidance, Saturation, Clutter, message misinterpretation
What is Public Relations?
It focuses on building and maintaining a positive image and reputation for the company
eg: media relations, event planning, crisis management
Pros: Reputation management, Cost effective, Third party validation, Crisis management, Media relations, Community engagement
Cons: Lack of control, longer term impact, limited reach, resource intensive, digital landscape
What is personal selling?
It involves the direct personalized communication between a sales person and a potential customer. It is effective for products that require explanation, demonstration or customization
Pros: Direct communication, Relationship building, customization, complex products, immediate feedback
Cons: Resource intensive, limited reach, time consuming, subjectivity, measurement challenge
What is Sales promotion?
They are short term tactics aimed at encouraging consumers to make a purchase. Used to boost sales, clear excess inventory, introduce new products, enhance brand visibility
Eg: Discounts, Coupons, rebates, free samples, contests and sweepstakes, loyalty programs, flash sales, gifts with purchase
Pros: Immediate sales boost, Customer attraction, clearance of excess inventory, product introduction, customer engagement
Cons: Profit erosion, brand image, cannibalization, customer loyalty to the promotion, increased costs
What are promotional channels?
Advertising channels: print and broadcast media
Personal selling channels: sales person
PR Channels: press releases
Sales promotion channels: Discounts
Digital and social media channels: Websites, SM
Word of mouth or referral channels: recommendations
Content marketing channels: Blogs, videos and podcasts
