marketing mix and strategy Flashcards
design mix + changes reflecting social trends
aestethics - the look/taste/feel
functions - how efficiently product works
Economic manufacture - considers the ease and economy with which the item can actually be made on the scale required
CHANGES - environmental concerns
- ethical sourcing
Public relations
describes attempts by a business to create publicity e.g glitzy product launch party
Promotion + branding
promotion - describes methods used by a business to communicate info and persuade customers to buy the product
Brand - recognisable logo or name that helps differentiate a product or business
types of promotion (long term short term)
LONG TERM + SHORT TERM long term - advertising - public relations SHORT TERM - buy one get one free - seasonal price cutting
types of branding + changes reflecting social trends
- individual brand (no attempt to push company name)
- brand family (brand that is used across a load of related products )
- corporate brand (using company name as a brand)
CHANGES - viral marketing/social media/ emotional branding
PRICING STRATEGIES
FOR NEW PRODUCTS - price skimming (prices really high - looks desirable may look like a rip off )
- penetration (launching new product at low price - boost sale volume, quality look bad)
FOR
FOR EXISTING PRODUCTS
- cost plus (guarantees profit, adds desired percentage into total costs) (unit cost +%)
- predatory (set price low)
- competitive (charging price the same as market)
- psychological (£9.99 vs £10)
factors to determine price strategy
- level of differentiation
- PED
- Lvl of competition
- strength of brand
- stage in product life cycle
- costs and need to make profit
DISTRIBUTION + how it changes
-the way a product is sold to consumers
-through different channels (the route a product takes from producer to consumers - distribution channel)
HOW IT CHANGES
-online retail allows smaller firms to reach worldwide audiences
- some services can’t be met to online, only face to face
DISTRIBUTION CHANNELS
- traditional channel
- direct to retailer/be your own (suppliers sell products straight to retailers)
- producer - consumer ( selling products from warehouses)
product life cycle
- introduction (sales are low)
- growth (sales begin to rise)
- maturity (growth in sales now stabilises)
- decline (product begin to fail so business use an extension strategy to extend life)
EXTENTION STRATEGIES- adding features - changing materials
- launching variants
- finding new users/ aiming at a different market segment
PRODUCT PORTFOLIO + boston matrix
product portfolio shows all the range of product a business sells
- they analyse products in the portfolio using the boston matrix:
it identifies:
- problem child (low market share/ high growth)
-rising star (high market share/growth)
-cash cows (stable - high market share/ low growth)
- dogs (low share/low growth, most likely killed off)
marketing mix
PRODUCT - what is it
PRICE - how much is it sold for
PLACE - where is it sold (online/IRL)
PROMOTION - how is it advertised
MARKET STRATEGIES
MASS - wider audience or niche?
NICHE - indepth understanding of customer needs
B2C - checking all aspects of marketing mix to ensure meeting all customers needs met (social media, ads, direct selling)
B2B - characteristics of product that business customers look for
PRICING CHANGES REFLECT SOCIAL TRENDS
- online sales (more sensitive online than irl due to easier to compare on comparison sites
ways to build a brand
advertising
USP
sponsorship (reach mass audience)
digital media (social media build relationships with consumers)
