Marketing Mix Flashcards
What are some of the roles of marketing?
- Advertisement
- Market research
- Categorise/create brand image
- Locations/choice of retailers
- Websites/apps/social media
- Develop new products/ work on new markets
- Ambassadors/collaborators
- Product placemtent
- customer service
- Manage business reputation/PR
- calculating/forecast sales
- Determine prices
- packaging
- identifying trends
- sponsorship
- merchandising
- special offers
What does AIDA stand for?
- Awareness
- interest
- desire
- action
What are the 4 ps?
- Product
- Place
- Price
- Promotion
What is product-orientated marketing?
A marketing strategy that focuses on creating the best possible product
What is an advantage of product-orientated marketing?
Focuses on creating and offering high-quality goods and services
What is a disadvantage of product-orientated marketing?
Can risk neglecting market research and other areas that may help the company understand the consumer and the market.
What is market-orientated marketing?
Focuses on identifying customers needs and desires in order to develop new products.
Advantage of market-orientated marketing
Improves customer service and product support geared to solving concerns raised by consumers
Disadvantage of market orientated marketing
Reduces innovation
What is asset-led marketing?
A mix of both product and market orientation… using a businesses strengths to meet the customers tastes and wants.
Assets in this case include labour skills, patents and branding as well as capital machinery.
What do promotional stratergies aim to do?
Draw attention to a product or service, with the intention of gaining new customers and retaining existing customers.
What are the objectives of promotion?
- To increase sales: increase revenue by getting new customers. This satisfies shareholders and creates retained profit for reinvestment inti the business.
- Raise awareness: makes everyone aware of existing and new products.
- To target specific groups: aiming promotion at specific sub-groups in order to encourage sales of particular products.
- To try and beat the competition: a business will attempt to try and persuade customers to switch to purchasing their products and thereby increase their market share.
- To develop/improve the image of the company: this will raise brand awareness and give people confidence in the company’s products
- To reassure consumers after the products have even purchased: Builds confidence in the product, in the hope more will be purchased at a later date.
What are the stages of buying a products?
1) being unaware of the products existence
2) awareness of the products existence
3) understanding the benefits of the products
4) establishing a liking for, or commitment to the product
5) Finally, the purchase.
What is above-the-line promotion?
Generally called advertising. It is used to reach a mass audience. Above-the-line promotion is through independent, mass media which is indirect and allows a business to reach a wide/large audience.
What are the methods of above-the-line promotion?
- (regional) television
- (local) newspapers
- (local) radio
- (local) magazines
- bilboards
- cinema
- Websites/internet
What does the choice of media used for promotion chosen depend on?
- Target market
- Whether the object is to convey information or another type of message
- Cost —> more important to small businesses
- The reach of the media: who sees what type of media
- The product itself
What is below-the-line promotion?
Offers a wide range of alternative promotional strategies and these are often used to support above-the-line promotion.
Below-the-line promotion targets consumers directly.
What below-the-line promotional strategies are used to target consumers directly?
- Personal selling: using staff to speak directly to the public. Although it does not reach a wide audience but it can persuade customers on the edge.
- packaging
- Sales promotion: buy one get one free etc. encourages consumers to buy more of a product.
- Direct mailing (junk mail): send consumers offer or information on products
- Public relations: for example, media reports and sponsoring events could be a way of building brand image and trust with potential customers through third party organisations
How is below-the-line promotion used for different products?
It’s often used for short term periods as offers and promotions come and go quite quickly. However, for other products, such as industrial goods, producer goods and financial services, personal selling plays a long-term role in establishing a relationship with the consumer
Why do we promote?
- To inform - raise awareness of the products existence and its features.
- To persuade - convince people they should buy the product
Why is promotion so important?
More customers -> more revenue -> more market share -> more brand recognition
Define price
The amount charged by a business for a good or service.
What are pricing stratergies?
There are a range of pricing tools that can be used to help achieve the long term aims of the business.
What are the 2 types of pricing stratergies?
Market focused
Cost based
