the marketing mix Flashcards
what are the 4 Ps
price
product
promotion
place
what is price
the amount of money that a customer will need to pay to receive the product
factors affecting price
the amount of competition from other businesses
customers opinions about the products value
what is product
the actual good or service that the business is offering for sale
what is promotion
the range of activities undertaken by a business to make customers aware of its products and to encourage them to buy them
examples of promotion
offering discounts
television or billboard advertising
using social media such as FB and twitter
sponsoring people or organisations such as sport teams or individual athletes
what is place
where the customer can purchase the product
examples of place
online
through a retailer
direct from the manufacturer
what can place also refer to
the route that a product takes to get from the manufacturer to the end customer
how do all the elements work together
competitive environment
changes in consumer needs or trends
changes in technology
what is the competitive environment
number and relative power of businesses competing in one market
examples of how a business may respond to its competitors (4)
changing a products price to match or undercut its competitors, be wary of price war
altering aspects of an existing product or bringing out a new product with a unique feature to achieve product differentiation
undertaking promotional activities to boost brand awareness to increase brand loyalty
changing/ increasing number of places the products are available to the customer to maintain or increase market share such as introducing an e commerce site
examples of changing consumer needs on marketing mix
introducing e commerce for increased convenience of internet shopping
launching new products to respond to consumer trends such as veganism or whole food diets
changing prices in response to economic conditions, such as customers reducing amount they spend during recession
opening more small local stores to make products more easily accessible to consumers who don’t own cars
what is undercut
sell the same product for a lower price than competitors
price war
when competing businesses try to undercut each other by lowering prices
leads to an ongoing battle where only the customer benefits not the businesses