Marketing Mix Flashcards
What is branding
It is what differentiates a companies products from those of its rivals by giving it a name design logo or slogan 
What are the benefits of branding?
Higher prices – a strong brand as usually associated with higher quality and if the brand builder reputation for high-quality allows for them to charge higher prices which increases profitability
Customer loyalty a strong band associated with good quality will develop a loyal customer base
Helps differentiate products they’ll stand out from competitors
Easier to launch new product – if there’s a strong brand that Business will have to spend less money on advertising when launching new product
What are the factors that should be considered when choosing packaging?
Legal requirements – packaging must include information about the product being bought certain information should be included on the packaging like nutritional information on food products
Recyclable – by using recyclable materials it shows the business is eco-friendly and attracts customers who want to be sustainable
Protection – packaging protects the product when it has been delivered and stored
Differentiation from competitors – packaging should be appealing to the customers and make it stand out. The colour shape size and design contribute to what customers expect
What are the stages of the product life-cycle ?
Introduction
Growth
Maturity
Saturation
Decline
How do you extend the product life-cycle?
Add new features to improve the existing product
Adjust the pricing strategy that is being used to attract new customers
Change your update where the product is sold adding an option to buy the product online
An advertising company could be launched or sales promotion, such as two for one
What are the factors that need to be considered when deciding on a price for a product/service?
The cost of production
Competition
Target market – you must consider the disposable income of the target market
Stage of the product life-cycle, the product is in
What are some low-cost pricing strategy?
Penetration Price
Loss leader pricing
Predatory pricing
What is penetration pricing?
It is choosing a lower price initially which may lead to losses but then overtime increase it once market share has gained
What is loss leader pricing?
Selling four below the production cost
What is predatory pricing?
It is when you share prices lower than competitors
What are some high price strategies?
Premium pricing and price skimming
What is premium pricing?
Charging a high price to create the image of superior quality over competitors
E.g. Rolex
What is Price skimming?
High prices are charged initially and the price falls overtime. Initially to attract customers who want new products
E.g. new PlayStation
What are some other strategies for pricing?
Psychological pricing
Mark up pricing
Price discrimination 
What is psychological pricing?
It is choosing a price to create an illusion of good value so the customers buy an emotion
E.g. buying a chocolate bar for £6.99 instead of £7
What is markup pricing?
It is when a business had a percentage onto the cost of production
It is to cover all costs and make a percentage profit on top of usual profit
E.g. cinema selling popcorn for €5 instead of how it buys it for €1
What is price discrimination?
It is charging different prices to different segments of the market. To maximise the companies revenue.
E.g. Spotify offers a sub subscription fee for students that is cheaper than the standard adult fee
What are factors to consider when choosing channels of distribution?
The nature of the product – e.g. it has a short self life
Market size – when the volumes of sales are high and it can be stored for a long time it is useful to sell through a wholesaler
Technology – technology is reducing the reliance on the middle man in the channel of distribution using online shopping
Cost – the most stages the more expensive product will become for the consumer. The greater the number of channels to lower the profit margin for the producer.
What does ASAI stand for?
Advertising standards authority Ireland
What is advertising?
Communication of information to a target market so they know what the Business has for sale and to convince them to buy it
What is generic advertising?
It is used to convince the customer to think about a type of product rather than a specific brand for example the Irish dairy Council promote Irish dairy products rather than a specific brand like AVONONMORE
What is persuasive advertisement?
It aims to come into class that their product will bring value to their lives for example L’Oreal try to persuade their customers. They will have healthy hair by using their product.
What is informative advertising?
It conveys facts for the purpose of educating the audience, rather than increase in sales for revenue for example advertising during the pandemic about COVID-19
What is competitive advertising?
The brand is advertised as superior to similar products with the aim of taking market share from competitors for example Tesco comparing some of the prices of their products to Aldi
