mr smith-theme 3 marketing mix and strategy Flashcards
what are the 3 types of branding
Manufacturer or corprate branding
Own branding
Product branding
cooperate branding
company
how a business presents itself
lots of separate product brands within cooperate brand
e.g Kellogg’s has recongiseable brand and then several products using that logo
own branding
in house type of branding
not recongsie brand
cheap to produce and sold at cheaper prices
adv-consumes have a cheaper option then the big brands
dis-can associate own branding as being lower in quality
product branding
product
specific individual products that a cooperate brand makes
individual product will have its own logo, and slogan
cooperate brand included to show its associated with them
customers will trust it more
ADV-customers are willing to buy more as trusted product
DIS-some customers may not be happy paying higher prices
rebranding
marketig stratgy where desivgn, promotion, pricing is changed
busienss may want to aim its product at different target market
may chnage identitiy as no longer suitable
reasons business makes a strong brand
add value to product
consumer percieves it as high quality
more desirbale then substitutes
prepared to pay premium price
can create barrier so harder for new comers to enter market
penetration pricing
low to high
product charged at low price initially to attract customers
targets people with less money
can be used as an extension strategy technique-increasing a products life cycle
DIS-hard to change price without customers noticing
ADV-
emotional branding
branding product so it matches lifestyles, asspirations and values of target market to trigger emotional response
price skimming
high to low
product charged at high price when first reaches the market
can be for new technology
people willing to spend more on ‘new in thing’
high price boosts product image
product been on year or so, reduced
everyone who /is prepared to pay higher price at start is now gone
DIS-product may not want to pay initial high price
customers who payed normal initial price may be annoyed that they didnt get the lower price
cost plus pricing
firm adds a percentage mark up to the costs of making the product
predatoory pricing
delibertayly reducing prices to push other businesses out of market
once competitor gone, will increase price again
competitive pricing
charging products at same prices as competitors to be in more compeotive market
psycholgoical pricing
charging products at 9.99 rather then 10
in head,makes customer feel there spening much less when actually onely 1 pence difference
high price people asssociate as being high quality
low price people asssociate as being low quality
distribution
two stage channel
manufacturer-consumer
three stage channel
manufacturer-retailer-consumer
four stage channel
manufacturer-wholesaler-retailer-consumer
two stage distribution channel
manufacturer-consumer
using online services/ecommerce
can also be done by door to door selling
adv-business doesn’t have to pay for staff or shop
indirect selling-three stage channel
manufacturer-retailer-consumer
used for recreational items e.g clothes,shoes
retailers are located in places convenient to sellers
indirect selling-four stage channel
manufacturer-wholesaler-retailer-consumer
traditional channel of distribution
used for groceries
what do wholesalers do
buy goods from manufacturers in bulk
sell them in smaller quantities to retailers
manufactureres dont have to wait till cutomers buy their product as get cash beforehand
adv of wholesalers
manufactureres can recieve cash before consumerrs even buying the products
store more goods than a retailer can-act as retailers cupboard
retailers do not have to make as many journeys, reducing transport costs
definition of channel of distribution
channel product takes from manufacturer to consumer
multi channel distribution
business sells through more then one method
e.g. online and in store
e.g. clothes shops ZARA
has clothes shop online and actual clothing shop to visit
online distribution
selling services/streaming/downloading rather then a physical product
adv of online retailing
-customers recives it immediately(doesnt have to wait for delivery)
-cost savings/no packaging used
-enviromentally friendly-no costs for transporting goods
dis of online retailing
staff need to be trained for IT work
product life cycle
shows the sales of a product over time
what are all the stages of a product life cycle
DIGMD
development
introduction
growth
maturity
decline
development stage of product life cycle
product is developed
marketing department do market research
costs are high, no sales yet to cover costs
has high failure rate as product may not have enough demand or the price of making the product is more then how much they are getting for it(profit reduced)
introduction stage of product life cycle
product is launched
business promotes product to build sales
may use price skimming to cover promotional costs
may use penetraton pricing to encourage sales
sales go up buy sales revenue must cover costs of developpment before product can make profit
growth stage
sales grow fast
new cutsomers and repeated customers
product may be improved and devloped, may be targeted at different target market
maturaity stage of product life cycle
sales reach a peak
profit increases as fixed costs for development have been payed off
saturation(market is full and reached max growth) sales begin to drop
more liekly to drop for products that dont need buying regualrly (long-lasting)
decline stage of product life cycle
product doesnt appeal to customers any more
sales fall and profits fall
if promotinal costs reduceed enough, product may stay profitable
sales carry on falling, product withdrwn or sold to another business
caused by product become obselete or change in consumer trends/tastes
what is an extension strategy
strategy that increases product life cycle when product starting to decline
examples of extension strategies
product development-improving or redesigning a product
promotion-running special offers, ad campaign
boston matrix
compares market growth and market share
each circle in matrix represnts a product
size of the circle represnts sales volume
what are the 4 factors in the Boston Matrix
SQDC
question marks
stars
cash cows
dogs
question marks
all new products
small market share high market growth
are not profitable yet
could succeed could fail
cash cows
high market share but low market gowth
maturity phase
produced in high volumes, low costs
stars
high market share and high market growth
in growth stage
have most potential
competitors may take advanatge of growth
dogs
low market share an low market growth
if product no longer making profit, may be sold off
practically a lost cause
mass marketing strategy
needs to appeal to whole market instead of individual segments
need to have mass appeal
what are marketign stretegies used for
B2B marketing-sale of one business product to another business
e.g. gloves to hospital
B2C marketing-sale of businesses product to consumers
e.g. ready meals to shoppers in supermarket
B2B doesnt need to think of emotioal component, only has to think abou.t informtaive component
B2B more leiktly to use trade journals and shows rather then adverisitng echniques bc taget audience wont be there
customer loyalty
strong customer service before and after purchase
sales people try to make customers happy so that they repeat purchasing
customers need info on fucntion and quality of good before buying it
after pruchase also imporant if any issues occur
customer feel more valued and more likely to repeat any purchases
loyalty cards
tesco clubcards
stamp each time visit Starbucks
