marketing mix and strategy Flashcards
what are the four Ps of marketing?
Price
product
promotion
Place
What is the design mix?
function
Aesthetics
Cost
what is a product?
Anything that’s capable of satisfying customer needs
What’s the role of product design?
A good design, contributes to a product usefulness as well as it looks
what is function?
The way of product works and its reliability
what aesthetics?
how it appeals to the customer in terms of looks, and feels based on subjective judgement of customers
what is ergonomic manufacture?
Does the design allow the product to be made and sold profitably?
what are features of products that emphasise function?
More predictable, stable demand
Longer product lifestyle
lower Promotional cost
reputation for quality
Economic manufacture through economies of scale
features of products that emphasise aesthetics
Higher added value
Shorter life cycle
Need for greater promotional support
What is sustainability?
Making a product without affecting long-term supplies of the impasse into the product
how is sustainability addressed designing making a product?
-Minimising waste in production
-Enabling recycling, or reusing of the product
What environmental issues does product design need to consider?
-use of raw materials
-Energy use and impact on climate change
-Waste and pollution produced by business
-Impact the business has unemployed and local wider internal community
what are three examples of ethical sourcing
-Fair trade
-Ethical supply chain
-Organic products
what could happen if issues are discovered in the supply chain
Could damage the reputation of the company
what is price?
The value of consumer is prepared to pay in exchange for taking ownership of a product or service
What is the channel of distribution?
The method by which goods or services are transferred from producers to consumers
what are two examples of channel of distributions
-Direct selling-producer straight to consumer-increasing in popularity
-E-commerce-selling via Internet
what is marketing planning?
Deciding what marketing objectives are, and finding solutions
what are the steps of marketing planning?
-Do annual audit(plan) by gathering research from market research
-Get smart marketing objectives
-Get strategies to deliver objectives
-Evaluate success
what are marketing objectives?
The expected outcomes of business is trying to attain through its marking activities at the end of a given time period
what must marking objectives be?
-Smart
-In line with other objectives
-A way of measuring performance overtime
what is personal selling?
-promotion on a person to person basis
-meeting with customers to close sales by phone, meetings and door knocking
advantages of personal selling
-higher customer attention
-message is customised
-interactive
-persuasive impact
-relationship development
disadvantages of personal selling
-high cost
-labour intensive
-expensive
-can only reach a limited number of customers
what are sales promotion
short term incentives to increase sales
eg/ coupons, money off or free samples
advantages of sales promotion
-effective at achieving a quick boost in sales
-encourages customers to trial a product or switch brands
disadvantages of sales promotion
-effect is short term
-customers may come to expect or anticipate further promotion
-may damage brand image
what are public relations
-PR activities are those that create goodwill toward an individual, business, cause or product
what are the aims of PR
-achieve publicity about business
-build image and reputation
-communicate effectively with customers
what are typical PR activities
-promoting new products
-enhancing public awareness
-projecting business image
what’s direct marketing
-promotional material directed through mail, email, social media or phone to individuals or businesses
what does direct marketing allow
allows business to generate a specific response from targeted groups of customers
-and allows business to focus on marketing objectives such as building customer loyalty
advantages of direct marketing
-focuses limited resources on targeted promotion
-can personalise marketing message
-easy to measure response and success
disadvantages of direct marketing
-response rates vary enormously
-negative impact of junk and spam mail
-database is expensive to maintain
what is viral marketing
uses social media and online platforms to try to produce increases in brand awareness or to achieve other marketing objectives
what is brand stretching
-where a brand is used for a diverse range of products not necessarily connected
-eg virgin
uses for promotion
-increase sales
-attract new customers
-encourage customer loyalty
-create an image
- encourage brand switching
main aims of promotion
-to ensure that customers are aware of the existence and positioning of products
-used to persuade customers the product is better then competing products
what is advertising
-paid for communication
-eg/ tv, radios and newspapers
-mass marketing advertising is very expensive
advantages of advertising
-higher customer attention
-message is customised
-interactive
-persuasive impact
-potential for development of relationships
-adaptable
-opportunity to close sale
disadvantages of advertising
-high cost
-labour intensive
-expensive
-can only reach a limited number of customers
what is a brand
-a product that’s easily distinguished from other products so that is can be easily communicated and effectively marketed
-a brand name is the name of the distinctive product
benefits of effective branding
-adds significant value from customers POV
-able to charge higher prices and demand is more inelastic
-builds customer loyalty
what’s brand extension
when a business uses a brand name on a new product that has some of the brands characteristics
-eg/ mars bar and mars ice cream
what are the 6 types of branding
-product brand
-service brand
-umbrella ( family) brand
-corporate brands
-own label brands
-global brands
what’s product brand
brand associated with specific products
-eg/ fast moving consumer goods brands like marmite
what are service brands
brands that add percieved value to services either delivered face to face or online
-eg uber
what are umbrella brands
-brands assigned to more than one product
-makes different product lines easily identifiable by consumer by grouping as one
-eg dove
what are corporate brands
refers to the practice of promoting the brand name of a corporate entity
-nestle
own label brands
-where retail outlets assign their corporate branding to a range of goods and services
-tescos finest
what are global brands
-recognised and operating world wide
-ikea
what is price?
What the buyer is prepared to pay in exchange for a product or service
-Very important part of the marketing mix
-Directly influences profits by creating revenue rather than affecting costs
What does price help do?
helps differentiate to product from others
-e.g. high price might suggest a high-quality
what objectives influence price setting?
-Maximising profits
-Maintaining or increasing market share
-Entering a new market and getting a product or service, accepted by customers in the Newmarket
-Increase sales volumes
What is cost plus pricing?
Setting a price by adding a fixed amount or percentage to cost of making product
what is penetration pricing?
Setting a very low price to gain as many sales as possible
What is price skimming?
Setting high price before other competitors come into the market
what is predatory pricing?
Illegal
-Setting a very low price to knockout all other competitors
What is competitor pricing?
Setting price based on competitors price
What is psychological pricing?
Setting a price, just below a large number to make it seem smaller
-E.g.9.99, not 10
What are loss leaders?
Products of data loss to entice customers in hopes they will purchase other goods or become loyal customers
advantages of loss leaders
-Good method of short-term pricing
-Can have just a few products in a much wider range
disadvantage of loss leaders
customers come to expect low prices
overtime what must price be?
More than the related cost in order to make a profit
Benefits of pricing based on costs
-easy to calculate
-Price increase can be justified when cost rise
-Managers can be confident, each product is being sold at a profit
Drawbacks of pricing based on cost
-ignores PED
-Ignore competition
-Profit lost if price is set below, what customers are willing to pay
-Business has less incentive to control costs
What is dynamic pricing?
pricing strategy in which businesses set flexible prices for products or services based on current market demands
what are the four stages of the product life cycle?
-Launch or introduction
-Growth
-Maturity or saturation
-Decline
What happens in the launch stage of a product life cycle?
-Sales starts slowly as consumers get to know products
what happens in the growth stage of the product life cycle?
Sales accelerate due to advertising and promotion
What happens in the material stage of the product life cycle?
Sales level off as competitors market or tastes change
what happened in the decline stage of the product life cycle?
Sales sales full as it becomes less popular and may eventually be taken off the market
what are extension strategies?
Steps taken to extend the lifespan of a product
What are four extension strategies?
-update designs
-New ad campaign
-Target new markets
-New brand image
what is marketing strategy?
-Plan for future marketing activity that balances company objectives, available resources and market opportunities
-Implemented through the marketing mix
what is marketing strategy for mass markets?
-Brands need to differentiate their product
-Successful branding can lead to distribution levels close to 100% and control over pricing
What is the marketing strategy for niche markets?
-need a patient approach
-Focus on reinforcing the distinctive characteristics of each product
what is the marketing strategy for business to consumer?(B2C)
-Lots of advertising and marketing
-Keep product vibrant and distinctive with a critical focus on marketing mix
what is the marketing strategy for business to business?(B2B)
-selling to other businesses which could redistribute the product
-Price is the most important factor, but equally product quality, place and promotion
