the marketing mix Flashcards
The Marketing Mix
The combination of product, price, place and promotion for each business venture
Product Portfolio
The mix of products a business produces and sells
Purposes of Packaging
-Design-eye catching
-Convenience-easy access to contents
-Protection-contents must be well protected
-Information-fully informed on ingredients
-Environmental Factors-recyclable materials
-Costs-materials
Branding
It is a name, term, sign, symbol or design
that identifies a seller’s products and differentiates
them from competitors’ products.
Marketing Plan
A marketing plan is a detailed
statement of how the company’s marketing
strategy will be put into action.
The Product Life Cycle
Product life cycle has to do with the life of a product in the market with respect to sales. Products pass
through these stages at different speeds – some products do not make it past the early stages and fail
Stages of the PLC
- Development– During the development stage, negative cash flow-spending costs & preparing for production.
- Introduction– The product is launched onto the market
- Growth- sales increase, the business will hope to earn enough money to pay back their initial investments.
- Maturity and Saturation – Sales increasing/revenue increasing-slower rate of growth- competition
- Decline – Sales of the product begin to fall- support product or remove
Extension Strategies
- New feature
- Develop a wider product range
- Change brand name/packaging/appearance
- Produce different quality
- Market in different places
- New promotions
- Adopt new pricing strategies
Boston Matrix
The Boston Matrix shows
the market share of each of business’
products and the rate of growth of
the markets in which they operate.
Cash Cows
High market share in a relatively slow growing or
declining market. High sales generate cash, which may be used
to help support new products being launched in new or existing
market segments. Less money is likely to be used on supporting
cash cows as they are already established.
Question Mark
low market share in a high growth market. Could well provide a lot of
revenue in the future, but are probably the most difficult to
manage. The market is growing and, therefore, achieving a
higher market share would be the objective. Relatively high
levels of investment are needed to keep the products going
with re-launches. If this has been tried before, may abandon the
product.
Star
high market share in a high growth market. Does well in
a growing market. May well need protection from competitors
and money from the cash cows can help to fund heavy
promotion.
Dogs
low market share in a low growth market. They hold little
appeal unless they can be revived. Will probably be withdrawn
from the market or may be given one last chance. Dogs may be
sold onto other companies and removed from the portfolio.
