Theme 1 - Marketing mix and strategy Flashcards
What is the marketing stratergy?
Marketing stratergy is the plan a business uses to reach is marketing objectives
What are the marketing mix 4 ps?
Product
Promotion
Pricing
Place
What is design mix?
The design mix includes function, aesthetics and cost
A business needs to make sure that the product is functinal, has good llooks and isnt too costly to produce
The product needs to meet the needs of the customer and be able to fulfil its function
The design must be aesthetically pleasing but the design cant be too costly to produce
How do changing social trends influence the design mix?
Businesses may need to alter the aesthetics or function of their products in response to changing social trends, many consumers are concerned about the overuse of resources and businesses want to minimise the amount of waste they produce
e.g. starbucks in 2013 started selling reusale coffe cups and PG tea bags used ro contain plastic in 2018 but in 2020 they whole range was biodegrable
Consumers are also increasingly demanding that raw materials should be ethically sourced
What is promotion?
Promotion is deisgned to inform consumers about a product and persudae them to buy it, its the use of marketing tools to bring a product to attention of potential buyers.
Promotional objectives include increasing sales and profits and increasing awareness of the product
What is media advertising?
Adverts can be used to promote goods and services and also ro promote a firms public image
Advertising uses various media including tv, radio, billboards etc and the choice of media depnds on who the target customers are amd how many see/hear the ad
What is digital communication?
Online adverts targeted at customers who hace shown interest
Advertising on mobile phones
Viral marketing businesses get users to pass on adverts to other people
This is a cheaper form of advertising, however many digital ads are just ignored
What is sales promotion?
Includes things like competitions, free gifts and special offers
What is BOGOF?
BOGOF ( buy one get one free)
A business offers one item for free when another is bpught and this is used to encourage customers to go into the shop and buy the item
Pros:
- Very popular with shoppers
-Encourages trial and use of the product
- Good to encourage buyers to switch brand and boosts sales
Cons:
- Loss of profit because if there is an increase in costs this will not be balanced by the increase in sales
What are price discounts?
That the RRP (retail reccomended price) of the product has been reduced
Pros
- Great way to clear out of date stocl
Cons:
- Customers may regard business as a cheap option and too many discounts businesses become suprlus
What are money off coupons?
Coupons can be used to capture new customers as it adds on incentive to buy ( time limit)
Coupons can be used with existing customers to encourage repeat purchases
Pros:
- Coupons can help the customer feel they are
getting better value for money
-Coupons are available from websites, loyalty
cards, store magazines and on the back of some
packs to encourage repeat purchase
Cons:
-Reduced profits from the cost of running the
promotion
-Some customers may be waiting for the coupons
before they purchase
-Customers may have been wanting to make a
purchase anyway
What are samples/giveaways?
Businesses may send out or give away free samples to customers in order to persuade them to try the product for the first time give aways may occur in the front of a magazine
Pros:
- Ideal for new product launches
-Works especially well with some products e.g.
shampoo, food etc.
-Encourages word-of-mouth promotion
Cons:
- Can be complicated to send in the post – needs a
database of customers
-Can be expensive as giving away some of the product
for free
What are special events?
Activities that the business does to encourage customers to try the product
Events can be shows, fetes, fairs etc
Pros:
- Encourages customers to
attend
-Rewards loyal customers with a special event
-Ideal for small businesses
Cons:
-Can be expensive
-Hard to measure how valuable this marketing is
What is point of sale?
Point of sale display is usually a cardboard display
stand located close to the till within a shop
This is to draw customer attention and trigger an
“impulse” purchase
Pros:
-Ideal way to promote new products
Works best with products that have an event or
holiday tie in e.g. crème eggs for Easter
Manufacturers can add extra punch to the
promotion by giving a discount
Cons:
-Only successful if the product meets the needs of
the customer
Needs to be designed and out to stores in time for
the event / holiday
Displays may be put in poor locations by shops e.g.
next to a broken till or one that is rarely opened
What is personal selling?
Personal selling is an effective way
to manage business to customer
relationships
The sales person acts on behalf of
the organisation and is useful to
customers as a technical advisor
Sales people are well trained in the approaches and techniques of personal selling
However, sales people are very expensive in terms of salary, training,
commission
-For example salesmen and saleswomen are often used to sell cars or home improvements where the profit margin is high
-Salespeople are useful where the product comes with a range
of features which need to be
explained or “upsold” e.g. a cold
climate convenience pack on a
new car
What is direct marketing?
Highly focussed targeted mail
based on what customers have
bought before
Can be e-mail or by post
May be special offers to re-engage
customers who have stopped
buying
Carefully tailored to items that
customers have bought before e.g.
holidays, hotels, travel deals etc.
