marketing mix Flashcards
marketing mix
The marketing mix is a term created by Jerome McCarthy (1964), originally used to describe the four key components of marketing physical goods: product, price, promotion and place. Bernard H. Booms and Mary J. Bitner (1981) added an extra 3 Ps to the marketing mix to cover the marketing of intangible services: people, processes and physical evidence.
-key components of marketing physical goods
product
physical good, intangible service provided by a business
price
the value of a good // intangible service that is paid by the customer, covering the costs of production
promotion
informing customers about a product and persuading them to purchase it, through marketing
place
the plans and processes of getting the goods to the customers, at the right place at the right time in the most convenient and cost efficient way
people
the importance behind employee customer relationships so well skilled employees must be hired and trained customer care
process
the extended marketing mix is about the way in which a service is provided or delivered to customers. It refers to the operational aspects of a service
the importance of delivery processes in the marketing of a service.
physical evidece
the tangible aspects of a business, such as physical appearance, hhysical evidence has a direct impact on customers’ perceptions of a business and the quality of the services it provides.
key stages of product life cycyle
- research and development
- launch
- growth
- maturity
- decline
research and develeopment
investigating, designing and developing a product before it is launched on the market for sale.
launch
the product is introduced to the market, it will be first purchased by innovators but most customeers wont be aware of it so promotion snd marketing is key
growth
sales revenue increases
product becomes popular in the market
competitors enter the stage
maturity
sales revenue peak or plateau, so the firm has to turn to product differentiation strategies and product life extension strategies
decline
sales revenue continually decline which leads to the eventual withdrawal of a product
extension strategies (definition)
business strategies are marketing strategoies applied in order to prolong the priduct life cycle either in the product enterns or during the decline period