Marketing Mix And Strategy 1.3 Flashcards
Define design
The balance between attraction and affordability for customers
What does the design mix include
Aesthetics (looks)
Function (purpose)
Cost (production)
How does design add value
- differentiates from competition (unique)
- Branding
- attracts customers
Sustainability (in terms of consumer purchase)
Making something using materials that will still be around for future generations
Benefits of waste minimisation
- keeps productions costs down
- helps save materials for future generations
- reduces businesses carbon footprint
- good image / reputation (attracts good attention)
What does ethical sourcing include?
- equality and fair treatment for employees
- safe conditions for employees
- fair trade for suppliers
Branding
The skill of giving a product or service distinctiveness (personality)
Advantages of branding
- effective promotion
- customers are more likely to repeat purchase
- easier to persuade retailers to stock
Corporate brand
So powerful and distinctive that they stand on their own e.g marmite (represents all products)
Brand family
a company that represents many products
benefits of strong branding
- adds value
- charge premium prices
- reduces PED
ways to build a brand
- USP (product differentiation)
- advertising and promotion
- digital media and sponsorships
what is viral marketing?
social media that provides a high speed of a product being displayed to a large audience
benefits of using social media?
- targeting can be very precise
- creates bond between consumer + brand
- crowdfunding
what is crowdfunding?
receiving external finance from many individual, small investments, usually through a web-based appeal
emotional branding?
- an attempt to create an emotional connection between customers and the brand.
persuasive advertising
designed to create a distinctive image e.g. McDonalds and its slogan
public relations
attempt to affect consumers’ image of a product without spending money on media advertising. e.g. making contacts with journalists or obtaining sponsorships
capacity utilisation
measures the actual usage of your facilities as a percentage of the maximum possible
pricing strategy
the plan for setting a products price for the medium to long term
skimming (new products)
used when their is no competition. initial price is high and covers development costs as well as being profitable
penetration (new products)
launching a product into a market with similar products to try and gain market share
cost-plus (existing products)
cost of production then adding a percentage mark-up that reflects the profit level that the business wants
competitive pricing
price set at market level or at a discount price - this is used in highly competitive market
predatory
pricing low enough to drive your rivals out of business (if the predator is financially strong, or the other company is financially weak)
psychological
businesses think prices like 50p and 1.00 psychological price barriers - so they use 49p and 99p
distribution?
getting the product to the right place for customers
opportunity cost?
the cost of missing out on the next best alternative when making a decision
impulse purchase
buying in an unplanned manor - because you see it
direct to retailer?
large producers ——-> retailers
direct online
sells directly to customer (mail order or online)
producer keeps 100% selling price
online retail
selling items off of another established platform e.g. amazon
what is a product life cycle?
shows the sales of a product over time
5 stages of PLC
development intro growth maturity decline
extension strategy?
prevent decline in sales
examples of extension strategies?
- relaunches with new variations and features
- promotion e.g. targeting a new segment of a market
portfolio analysis
examines the existing position of a firms products
