The Market mix Flashcards
what are the 4 Ps
- product
- promotion
- price
- place
product…
it is a good or service produced by the business and then sold in a market which then the consumers are purchasing
place…
it is where the business locates their business and also how the product gets from the manufacturer to the consumer
promotion…
it is the ways a customer is made aware of a product and encouraged and persuaded to buy it
price…
it is how much a business charges customers and the value they have to pay for it
4 stages of product life cycle
1- introduction
2- growth
3- maturity
4- decline
introduction…
- product is introduced to the market
- lots of advertising and promotion to encourage sales
growth…
- sales of product are growing
- sales are growing as more customers know about product
maturity…
- sales of product reach their highest
- most profitable stage
decline…
- sales of product begin to fall
- product is getting older and newer versions are coming onto market
pricing strategies (4)
competition based pricing - setting prices similar to ur competitor
cost plus pricing- add a profit to the cost of making the product
premium pricing- charging a high price for ur product to make it look exclusive
low pricing- keeping the price of ur product low
factors when deciding on a location (5)
target market- being close and easily accessible for your target market customers
Footfall - if you are located somewhere near a large population then footfall will be high. This means that there will be lots of passing trades
finance- the amount of money a business has access to will have an impact on the location of the business
availability of resources - Businesses must ensure that they have sufficient access to the resources they need. For example, being close to suppliers
Health and safety - Businesses which may be a danger to the public may be forced to locate in certain areas.
methods of promotion (5)
product placement- Product placement involves paying to have your product seen in a film or TV programme
celebrity endorsement- this is where a famous personality is seen
actually using the product
or at least recommending it in some way, the business will pay them to promote and sponsor their product
sponsorship- This is when a business sponsors a large event such as a concert, team or a sporting event, which then may remind customers about your organisation
publicity- Publicity involves getting ‘free’ exposure of
your products or business.
Now-a-days publicity can come from YouTube, Instagram and TikTok.
If a video goes viral of someone using your products your sales will spike quickly!
Because this method is promotion isn’t paid for, customers are more likely to trust publicity reviews
advertising- Advertising gives consumers information about the product and/or tries to encourage them to buy it.
• Advertising is important to increase sales because customers can’t buy a product if they don’t know it exists
