Marketing Mix and Strategy 1.3 Flashcards
What are the 3 elements of the design mix?
- Function
- Economic manufacture
- Aesthetics
What is function as part of the design mix?
- Way a product works
- Do what it needs to?
- Reliable?
What is economic manufacture as part of the design mix?
- Made + sold profitably?
- Value added?
What is aesthetics as part of the design mix?
- Appeals to customers
- Based on subjective judgement of customers
- Differentiation
How does the design mix change to reflect social trends?
- Sustainability-> making product without affecting long term supplies of inputs
- Ethical supply chains
- Minimise waste-> lean production + recycling
What is the benefit of effective branding?
- Adds significant value
- Able to charge higher prices
- Builds customer loyalty
What are the different types of brands?
- Product brands
- Service brands
- Umbrella brands
- Corporate brands
- Own label
- Global brand
What is the aim of promotion?
- Ensure that customers are aware of the existence + positioning of products
- Persuade customers that product is better than competition
What is the promotional mix?
Promotional methods that businesses use to pursue its marketing objectives
What are the main elements of the promotional mix?
- Advertising
- Sales promotion + merch
- Personal selling
- PR
- Direct marketing
What is advertising?
- Paid for communication
What are the benefits of advertising?
- Wide coverage
- Control of message
- Repetition means message communicated effectively
- Builds brand awareness + loyalty
What are the drawbacks of advertising?
- Expensive
- Methods impersonal
- One way communication
- Lacks flexibility
- Limited ability to close sale
What is personal selling?
- Promotion on a person to person basis
- 2 way communication
- Meeting with customer to close sale
What are the benefits of personal selling?
- High customer attention
- Message customised
- Interactive
- Persuasive impact
- Adaptable
What are the drawbacks of personal selling?
- High cost
- Labour intensive
- Expensive
- Only reach limited number of customers
What is a sales promotion?
- Tactical point of sale material designed to stimulate purchase
What are the benefits of a sales promotion?
- Effective at achieving quick boost in sales
- Encourages customers to trial product
What are the drawbacks of a sales promotion?
- Sales effect short term
- Customers may come to expect further promotions
- Damage brand image
What is PR and what do they do?
Personal relations create goodwill towards a business
Aim:
- Build image + reputation
- Communicate
Activities:
- Promote products
- Enhance awareness
- Project business image
- Obtain product reviews
What is direct marketing?
Sending of promotional material directed through mail…
- Allows business to get response from targeted customers
- Business focus on marketing objectives
