Paper 1 Divider 6 Flashcards
Marketing mix
Elements of a firms marketing strategy that are designed to meet customer needs
Price
Amount charged for a product
Product
The good/service being sold to the customer
Place
E.g, shops, online, vending machine
Promotion
Advertisement strategies
People
The staff interacting with customers
Process
How easy it is to buy the product
Physical enviroment
Well lit shop, features of their premises
Influences on marketing mix, competitors
Price may be simula to competitors, need to spend more on promotion
Influences on marketing mix, target market
High price at elated customers, promotion where lots of people will see it
Influences on marketing mix, positioning
Exclusive products, high trained staff
Influences on marketing mix, location
E.g, click and collect
Influences on marketing mix, availability
How long its been avliable and low price on new products so customers buy it
Influences on marketing mix, frequency on purchase
Impulse/emergency/regular
Influences on marketing mix, where its sold
Online/vending machine/in store
Influences on marketing mix, market research
How it should be changed to meet customer needs
Effects on changes of elements
Marketing will need to work with operations to ensure the process and physical enviroment elements meet customer needs and expectations
Product life cycle
- development
- introduction
- growth
- maturity
- decline
- shows the sales of a product over time to ensure most effective decisions are made
- businesses develop new products to increase sales and competition and complétive advantage
- new products come about by innovation
- unique selling points measured in reliability, how comfortable the customer feels using the product
Extension strategy
- product development: packaging/new features
- market development: new markets/overseas
- price: special offers and reductions
- promotion: new advertising campaign
- place: internet, through other shop chains
Balanced portfolio
A business has a mix of products, in terms of dogs/cash cows etc
Needed because it reduces risk
Portfolio analysis
- a business product range can be shown on the Boston matrix so a business can analyse the market position of its product portfolio in terms of market share and growth
- then they can make decisions about product strategy and how to manage the product
Penetration pricing
- a business sets a low price to begin with to get customers intérêts then raised
- e.g, razors and replacement blades
- aims to get a new product established in the market
Penetration pricing adv
- target lower income segments, could boost revenue
- could attract customer loyalty due to high sales volume, harder for competitors to enter the market
Penetration pricing disad
- brand image could appear cheap or low quality
- customers may expect low prices so will stop buying when price increases
Price skimming
- charges a high price to begin for new products entering the market
- used to generate high levels of revenue before competitors enter the market
Price skimming adv
- must have product creates a buzz, increasing demand
- early adopter exclusivity, want to stand out, be the first willing to pay high prices
Price skimming disad
- adverse impact on brand image when prices are reduced, loss of exlusivity
- early adopters will feel annoyed as price falls
Branding
- the process of creating a distinctive and lasting identity in the minds of consumers
- used to attract loyal customers
- differentiates from competitors
- can charge higher prices and get away with it, e.g, apple
Promotion
- informing customers and persuading them to buy a product and increase sales
- promotnal mix is combination of promotional techniques that are used to promote a product
Multi channel distribution
- selling products through more than one channel of distribution, e.g, through internet, e.g, apple
- used because more market coverage = more customers
People
- the employees who provide goods and services to customers
- friendly
- helpful
- knowledgeable
- achieves customer loyalty and gives good reviews
Process
- the customers experience of getting the goods and services
- ordering clothes online process
- supermarkets, self scanning
- amazon prime, next day delivery
Physical enviroment
- looks nice, hygienic, spacious
- the surroundings of the customer when using the business
- can create a good or bad business image
Intergrated market mix
-where a consumer gets a single, clear idea and image of the product which can persuade them to make a purchase
Intergrated marketing mix
- product life cycle: development, introduction, growth
- Boston matrix: cash cow money to fund stars and question marks
- type of product: convince/luxury/normal/special
- target market: luxury goods/product/people/process
- market positioning: ensure customer needs are met and know how the products will work
Internal
- marketing objectives: to increase sales value and market share
- finance: money avlaible to fund staff training
- hr: more staff required to meet customer demand
External
- competition: price matching and expansion
- economy: launch cheap versions of their product
Digital marketing
- social media
- banner advert
- pop ups
- emails
- can be updated quickly
- can be sent frequently
- cheap to produce and update
- tailored to customer needs
