Marketing mix and strategy Flashcards
What is the design mix?
- Function (purpose)
- Aesthetics (sensory stimulation)
- Cost (produce and make a profit)
What are the benefits of adapting the design mix to social trends?
- Reduce waste = lower costs and higher profits
- Popular + sell in large quantities = raise revenue and improved profits
- USP
- Avoid negative publicity
What types of promotion is there?
- Above-the-line (advertising in the media)
- Below-the-line (promotion not using media)
What types of above-the-line promotion is there?
- informative (increase awareness)
- persuasive (convince)
- reassuring (comfort existing customers)
What types of below-the-line promotion is there?
- Sales promotions
- Public relations
- Packaging and merchandising
What types of brands are there?
- Manufacturer brands (created by producers of goods)
- Own-label brands (manufactured for wholesales or retailers by other businesses)
- Generic brands (only contain the name of the actual product rather than a company name)
What are the benefits of strong branding?
- Added value
- Ability to charge premium prices
- Reduce price elasticity of demand
How might a business build a brand?
- Exploiting USP’s
- Advertising
- Sponsorships
- Using social media
How might a business change branding and promotion to reflect social trends?
- Viral marketing (encourages people to pass on message to others about a product)
- Emotional branding (using emotions of consumers to build a brand)
What types of pricing strategies are there?
- Cost plus (adding a percentage mark up to the costs )
- Competitive (based on rival prices)
- Penetration (setting low prices when launching)
- Predatory (low price forcing rivals out)
- Psychological (slightly below a rounded figure)
- Skimming (high price initially, then lowering it)
What is a distribution channel?
A route taken by a product from the producer to the customer
What is direct selling?
producers selling their products directly to customers
What are the advantages of direct selling?
Intermediaries aren’t required, producers able to make more profit.
What is retailing?
A business that buys goods from manufacturers and wholesalers, and sells them in small quantities to consumers.
What is wholesaling?
A business that buys goods from manufacturers and sell them in smaller quantities to retailers
What are agents?
An intermediary that brings together buyers and sellers
How have distribution channels changed to reflect social trends?
- online distribution
- changing from product to service
What are the stages of the product life cycle?
- Product development
- Introduction
- Growth
- Maturity
- Decline
What are the extension strategies?
- Product adjustment (improvements, updates, extending range)
- Promotion (campaigns)
What is a product portfolio?
The collection of products a business is currently marketing
What is the boston matrix?
a 2x2 matrix model that analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market.
What criteria categorise products in the boston matrix?
two criteria:
- market growth (how fast the market for the product is growing)
- relative market share (how strong is the product)
What are the four categories in the boston matrix?
- Stars (high market growth, high market share)
- Cash cows (relatively high market share, weak market growth)
- Question marks (low market share, fast growing market)
- Dogs (low market share, low growth)
What do stars bring to a business (boston matrix)?
- Invest in product to cope with growing market and sales
- Net cash flow may be nearly zero due to outflow for promotion and high levels of profit.
What do cash cows bring to a business (boston matrix)?
- High levels of profits
- little need for investment
- positive net cash flow
What do question marks bring to a business (boston matrix)?
- likely unprofitable
- potential to become a star due to growing market
- net cash flow zero or negatives
- high levels of investment
What do dogs bring to a business (boston matrix)?
- Poor sales and profits
- Net cash flow may be zero or negative
What is a market strategy for mass markets?
- Product (many products, differentiated, USP)
- Price (become price leaders)
- Promotion (heavy investment)
- Place (multiple channels to distribute goods)
What is a market strategy for niche markets?
- Product (highly differentiated, high quality)
- Price (high prices)
- Promotion (targeted promotions in specialised publications)
- Place (exclusive distributers or private)
What are outbound marketing strategies?
To direct marketing material at potential customers whether they are expecting it or not.
What are inbound marketing strategies?
Attracting potential customers to websites when they are looking for suppliers or solutions to problems (blogging for example)
What are hybrid marketing strategies?
A combination of both outbound and inbound methods. Outbound strategies may be implemented in the short term as inbound strategies take around 6 months to generate results.
How might a business develop customer loyalty?
- Communication (informed)
- Customer service
- Customer incentives (Rewards)
- Personalisation
- Preferential treatment
