Marketing Mix Flashcards
What is the place of the marketing mix?
Where products are made available to customers.
Where it’s sold e.g. Shops, online etc.
The way the product is distributed and how it gets from producer to consumer.
What are the 4Ps?
Product
Price
Place
Promotion
What’s the price of the marketing mix?
Price is the amount customers are charged for items.
(Costs are the expenses of a firm.)
Value for money
Low (penetration), competitive and high (skimming) pricing.
It reflects the value which customers have towards the product.
Customers are also willing to pay more for USPs.
What’s the promotion of the marketing mix?
The communication between the business and customer which makes customers aware of the product
Promotion refers to the methods used by a business to make customers aware of its product.
e.g. Advertising, sponsorships, sales promotions and public relations.
What the product of the marketing mix?
A product is goods or a service that is sold to customers or other businesses.
Customers buy a product to meet a need. This means the firm must concentrate on making products that best meet customer requirements.
The product itself has to meet the needs of customers and have the correct attributes and features which customers want. Successful businesses will try and differentiate their products.
This involves the quality, brand name, reputation, packaging, service etc of the service or goods.
What’s a brand?
The name, symbol design or any other unique product feature that customers can identify, which allows a firm to differentiate itself from competition.
Brands can help create customer loyalty, leading to repeat purchases and word of mouth recommendation therefore the company is able to increase the product trial and revenue.
They’ll be able to charge higher as the product will appear premium and better quality.
This helps differentiate the product against competition also as many people may prefer to pay more for a high quality product than less for an average product.
How can a business differentiate?
Logo Name Quality Content Design Packaging
What are the stages of the product life cycle?
Introduction (few sales, product introduced to public)
Growth (main time of promotion)
Maturity (more constant, high sales)
Decline (product loses popularity)
Extension strategy (aimed to maintain or increase sales to prevent decline)
What’s a product portfolio?
A product portfolio looks at the range of products and brands that a firm has under it’s control.
It helps: Build the brand name Infiltrate new markets and build loyalty for new customers Maximise profitability Spread risk
What’s market share?
The percentage of the market held by a company or product.
What’s market growth?
The increase in value of the market.
What are the 4 features of the Boston matrix?
Problem child (High market growth, low market share) - intro
Star (High market growth, high market share) - growth
Cash cow (Low market growth, high market share) - maturity
Dog (Low market growth, low market share) - decline
What’s the Boston matrix?
A way of analysing a product portfolio (the range of products under a firm) and identifying which products are successful or not and which stage of the product life cycle they’re in.
This is based on their market share and growth.
What’s price skimming?
(Premium) involves setting a high price at the launch of the product because some customers would be willing to pay a high price for the product in order to get it immediately.
This can lead to higher revenues at the high end of the market. Once skimmed, the prices are lowered.
What’s competitive pricing?
Setting a similar price to competition to keep up with/be ahead of competition.
