Topic 3 - Decison Making To Improve Marketing Performance Flashcards
1
Q
What are departmental objectives known as ?
A
as functional objectives
2
Q
What are some marketing objectives ?
A
Increase sales volume
Increase sales value
Increase market size for respective departments
Increase market share
Increase brand loyalty
3
Q
What are ways to measure a businesses success ?
A
market growth
sales growth
market share
4
Q
What’s market growth ?
A
Market growth describes when an industry grows in terms of either volume or value.
For example, the automotive industry in the United Kingdom is worth £77.5 billion in value. A 10% increase in market growth would mean the industry was now worth £77.5 billion x 1.10 which gives £85.25 billion
5
Q
What is market share ?
A
Market share refers to the proportion of a market that a business controls in order to satisfy customer needs.
For example, if the BBC has a 29% market share of the UK television market, then it provides 29% of the TV watched in the United Kingdom
6
Q
How do you calculate market share ?
A
Market share can be calculated: (sales of one product divided by total market sales of that product) multiplied by 100.
7
Q
What is sales growth ?
A
Sales growth occurs when a business increases its sales in terms of volume or value.
For example, Netflix has 130 million active subscribers and if this increases in volume by 20%, there will be 130 million x 1.20 which gives 156 million subscribers.
If each customer pays £50 per year, then Netflix sales will rise by 26 million x £50 = £1.3bn.
8
Q
What’s an example of how a coffee shop can increase brand loyalty?
A
Offer a free coffee for every 10th coffee bought
9
Q
If Sky has 400 million subscribers globally and this increases in volume by 5% a year. How many subscribers will Sky have next year?
A
420 million subscribers
10
Q
The coffee industry is worth £800 million in the UK. Starbucks’ sales are worth £250 million. What is Starbucks’ market share?
A
Calculate the proportion of total sales
250 ÷ 800 = 0.3125
Turn calculation into a percentage (market share)
0.3125 × 100 = 31.25%
11
Q
What is market research ?
A
the process of collecting and processing information about the market that a business operates in
12
Q
What are things that market research gathered information on ?
A
Demand
Competition
Target market
13
Q
Why does market research focus on demands ?
A
Insights into customers’ wants and needs can help a business to improve the product, spot market opportunities and stay competitive.
Insights into overall demand trends can help a business to spot opportunities for growth and potential threats from new products/technology.
14
Q
Why does market research focus on competition ?
A
Market research into competitors can help a business understand the major threats in the market and then prepare the business to deal with these threats.
Market research for established fashion labels like H&M would identify the threats that come from online platforms like ASOS or Boohoo.
15
Q
Why does market research focus on target market ?
A
Market research into a business’ target market will give the business insights into their customers’ wants and needs and how they are changing over time.
16
Q
What is qualitative market research ?
A
Qualitative research generally collects information about opinions and views rather than things that can be quantified.
For example, research into whether customers think the customer service at Waitrose is good is qualitative research.
17
Q
What is quantitative market research ?
A
Quantitative research collects factual information on things that can be quantified and recorded easily.
For example, research into the number of cans of Coca Cola sold in the UK last year is quantitative research
18
Q
What are the types of market research ?
A
Qualitative
Quantitative
19
Q
What is market mapping ?
A
products mapped based on their price and quality
20
Q
What is is the benefit of market mapping ?
A
Once businesses have segmented the market, they can use market mapping to identify a gap in the market by looking at what competitors offer.
Competitors products are mapped against different variables based on the features that they offer.
For example, products could be mapped based on their price and quality.
21
Q
What is often used to perform market research ?
A
Sampling
Technology
22
Q
What is sampling ?
A
Sampling occurs when a business selects a sample of the population to save collecting data from everybody in that population
Reduces marketing costs
23
Q
What’s an advantage of sampling ?
A
Sampling reduces cost as a business can choose a cross-section of the population instead of collecting data from everybody.
24
Q
What’s the disadvantage of sampling ?
A
Sampling may not accurately reflect the full target market if the sample is not chosen properly
25
How is technology used to analyse market research ?
By completing calculations and creating graphs and charts which can be used by managers and leaders
26
What is the primary benefit of sampling when conducting market research?
Reduced costs
27
What does price elasticity of demand (PED) measure ?
the responsiveness of quantity demanded to a change in price
28
What do businesses use PED to understand?
how the quantity demanded by customers will change in response to price
29
What is the formula for PED ?
PED = (% change in quantity demanded)÷ (% change in price
30
Why is the PED coefficient (number) usually negative?
as an increase in price will result in a decrease in quantity demanded and a decrease in price will result in an increase in quantity demanded
31
What does a large PED coefficient (number) indicate ?
the greater the responsiveness of quantity demanded to a change in price
32
What is a good known as if the PED is less then 1 ?
(whether positive or negative) then this is described as price inelastic.
This means that a change in price will lead to a change in quantity demanded which is proportionally less than the change in price
33
What is a good known as if the PED is greater than 1 ?
(whether positive or negative) then this is described as price elastic.
This means that a change in price will lead to a change in quantity demanded which is proportionally greater than the change in price.
34
Petrol has a PED that is relatively inelastic what does this mean ?
a change in price may not affect the quantity demanded of fuel as customers still need to purchase this product as it may be a necessity
35
A local café has increased the price of its cups of coffee by 20% and this has reduced in quantity demanded falling by 10%. What’s the PED
-0.5
36
What does income elasticity of demand (YED) measure ?
the responsiveness of quantity demanded to a change in consumer income.
Businesses can use income elasticity of demand to understand how the quantity demanded by customers will change in response to income
37
What’s the formula for income elasticity of demand (YED) ?
YED = (% change in quantity demanded) ÷ (% change in income)
38
What does a large YED coefficient (number) indicate ?
the greater the responsiveness of quantity demanded to a change in income
39
What does a positive YED coefficient (number) indicate ?
An increase in income will increase demand
A fall in income will decrease demand
40
What does a negative YED coefficient (number) indicate ?
An increase in income will decrease demand
A fall in income will increase demand
41
What is a YED less than known as ?
then this is described as inelastic. This means that a change in income will lead to a change in quantity demanded which is less than the change in income.
42
What is a YED greater then 1 known as ?
this is described as elastic. This means that a change in income will lead to a change in quantity demanded which is greater than the change in income.
43
What can we learn about the income elasticity of Nestle Instant Coffee if a 2% increase in income leads the quantity demanded to fall by 4%?
The income elasticity of demand is -4% ÷ 2% = -2.
An income elasticity of demand of -2 shows that the elasticity is elastic which means that any change in income will result in a greater change in quantity demanded.
The minus shows that an increase in one variable will decrease the other variable.
As income has risen, consumers are likely to have switched from instant coffee, which is an inferior product, to bean-to-cup coffee, which is a normal good.
44
What is market segmentation ?
the process of dividing potential customers into different groups based on characteristics like age, gender, income and much more
45
Why is market segmentation used ?
Choosing market mix
When choosing the product, geographic, promotional and price segmentation can help a business to understand its customers’ needs and wants.
For example, Next provides clothing aimed at infants and toddlers using its Next Kids range.
Choosing promotion
Advertising in a newspaper probably is not the best way to target teenage girls, but a teenage magazine like Bliss might be.
Segmenting a market can give businesses ideas about how best to promote their products.
Market mapping
Market mapping is a process to identify a gap in the market by looking at what competitors offer.
46
What are ways consumers can be segmented ?
Location
Income
Age
Gender
47
What are the two markets that businesses can be segmented into ?
Mass markets
Niche markets
48
What are the characteristics of a mass markets ?
The mass market tries to make products and/or services for all consumers.
The mass market will be larger and the types of products will be more generalised
49
What are characteristics of a niche markets ?
The niche market appeals to a much smaller segment.
The niche market will be smaller than the mass market.
The niche market provides products and/or services which focus on a specialist want or need.
50
In the fast food industry what are the examples of mass markets and niche markets ?
In the fast-food industry there are a few dominant players who appeal to the mass market - McDonalds, Burger King, Subway.
There is a smaller niche market for healthy fast food. This is addressed by businesses such as Leon
51
What are the benefits of mass markets ?
Having more customers.
Benefitting from economies of scale (due to higher output levels).
Can build a strong market presence
52
What are the disadvantages of mass markets ?
Higher levels of competition
Lower profit margins
53
What are the benefits of a niche market ?
Less competition
Specific market
Can develop specific expertise
Higher profit margins
Customer loyalty
54
What are the disadvantages of niche markets ?
No economies of scale.
Vulnerability because they have an undiverse product portfolio
55
What is the marketing mix ?
the combination of factors (the '7Ps') which affect a customer’s purchasing decision
56
What are the 7ps of the marketing mix ?
People
Process
Physical environment
Product
Place
Price
Promotion
57
When a business is deciding its marketing mix, what it may consider ?
The type of product being sold and the influence this may have on the overall decision
58
How can availability effect the marketing mix of a business ?
Convenience items, such as basic groceries, need to be accessed quickly by customers so businesses may focus on marketing mix factors related to speed and availability
59
How can product information effect the marketing mix of a business ?
Shopping items, such as computer tablets and clothes, may be considered for purchase by customers for a longer period so a business may focus on the customer service ‘people’ factor so that customers can access product information easily.
60
How can specialty products effect the marketing mix of a business ?
Specialty products, such as cars and jewellery are luxury purchases for customers. Consumers who buy luxury goods may expect sophisticated stores and customer service processes to support the transaction. Businesses operating in luxury or specialty goods is likely to focus on processes & physical evidence, whilst making sure the other Ps are consistent with their brand.
61
What is the product life cycle ?
The series of stages that a product goes through over its lifetime
62
What are stages of the product life cycle ?
Research and development
Introduction
Growth
Maturity
Saturation
Decline
63
What happens in the research and development stage of the product life cycle ?
Research and development is the stage before a product has actually been made.
Businesses will invest in researching a certain area of the market and if they discover a business opportunity, they may then take the time and resources to develop a product or service that fits a gap in the market.
E.g. A pharmaceutical company may invest into researching a certain disease to see if there is a drug that might help cure it.
64
What happens in the introduction stage in the product life cycle ?
The introduction is the stage where a business introduces or launches the new product (or service) to the market.
Marketing and advertising are important in this stage of the product life cycle because a business needs to find a way to let consumers know what the product is and that the product exists.
65
What happens in the growth stage in the product lifecycle?
Successful products often undergo a period of growth as more and more customers discover and buy the product.
In the early days, just after introduction, the rate of growth tends to increase.
66
What happens in the maturity stage of the product life cycle ?
At this stage, the number of new customers buying the product has slowed down and the market for the product can be considered mature.
But sales of the product are still rising, just less quickly than before (they are rising at a decreasing rate).
E.g.People grow a lot less between the ages of 13 and 18 when compared to age 1 and 6.
67
What happens in the saturation stage of the product lifecycle ?
At this stage, the sales of the product have reached its peak and no longer increase but remain steady.
Essentially all consumers who want the product or service have bought or acquired it.
68
What happens in the decline stage of the product life cycle ?
Changes in fashion, consumer tastes/preferences, technological advances and new competition offering similar products can all mean that the demand for a product begins to fall
69
What factors can effect the decisions on the marketing mix ?
The business’ marketing objectives may affect decisions made about the marketing mix.
The target market may affect decisions made about the marketing mix.
The presence and size of competitors may affect decisions made about the marketing mix.
The type of product may affect decisions made about the marketing mix, for example whether the product is a convenience good
70
What are the types of positions on the bottom matrix ?
A dog product has a low market share and is in a market of low growth, for example DVD and CD discs.
A cash cow product has a high market share and is in a market of low growth, for example Apple TV products.
A star product has a high market share and is in a market of high growth, for example new iPhone smartphones.
A question mark product has a low market share and is in a market of high growth.
71
What was was the product life cycle of DVDs like ?
DVDs had a fairly short product life. They were invented in 1995 and grew rapidly because they were more durable and more convenient to store than video tapes. They declined because new technology (e.g. Netflix and Sky Store) let people stream movies over the internet. The internet had advanced to allow faster and more reliable downloads.
72
What are the 4 key factors that influence a businesses pricing ?
Costs and the product life cycle are internal factors affecting pricing.
The nature of a product and the degree of competition are external factors.
73
How do costs influence a businesses pricing decisions ?
businesses usually aim to make a profit.
A business' price and costs determine how much profit the business will make. Businesses cannot afford to set a price lower than their costs forever.
74
How does the position in the product lifecycle influence a businesses pricing decisions ?
A product's position in the product life cycle helps to determine if a business will charge a high or low price for the product.
When a new product is launched, businesses may charge higher prices to take advantage of exclusivity.
When Apple launches new iPhones (like the iPhone X), they charge higher prices. The iPhone X cost $1,000 in Autumn 2017, but this price fell to $850 by February 2018.
75
How does the nature of the product influence a businesses pricing decisions ?
Whether a good is a luxury good or not, will affect how much a business charges.
Whether the product is hard to differentiate from competitors affects how much a business can charge. If it is similar (homogenous), then businesses usually price at a similar level to competitors.
For example, in the crude oil market, oil is the same no matter who produces it. This means that there is a uniform price (same price for all businesses and customers) in the market.
76
How does the degree of competition influence a businesses pricing decisions ?
The degree of competition affects the pricing decision of businesses because the more competition a business faces, the more options customers have.
When customers have lots of options for similar products, businesses must compete to attract customers using a lower price.
77
What is price skimming ?
A pricing method where a business sets a relatively high initial price and then gradually lowers it over time.
This is often used before a business faces competition in the market. Once competition arrives, there will be downward pressure on the price to fall
78
How does price skimming maximise revenue ?
Consumers who buy early on are willing to pay a higher price but the business can still attract other customers who can pay a lower price later on in the product’s lifecycle
79
How does price skimming cover fixed costs ?
Price skimming can help to recover the costs of research and development, which can be expensive for technology products.
For example, the Apple iPhone X reportedly cost over $1bn in research and development costs.
80
What’s the issue with price skimming ?
A disadvantage of price skimming is that it can slow down the growth of a product and this can give competitors more time to launch a competing product or service.
A business does not maximise the number of sales at the start so competitors can get more of a chance to enter the market.
81
What is price penetration?
Price penetration is where a business tries to increase market share by offering a low initial price. Loss leaders work in a similar way to price penetration
82
How can penetration pricing cause an increase in your market share ?
When these goods or services enter the market, a business can attract customers from established competitors.
Price penetration was used by Apple when they entered the market for activity trackers by launching the Apple Watch. The Apple Watch competed with products by businesses like Fitbit.
83
How does penetration pricing effect shirt term and long term profits ?
In the short term, price penetration can lead to lower average profits than would be earned with a higher price.
However, market share may be more important for the long-term profitability of a business.
84
What are loss leaders ?
Loss leaders are products or services that are sold by a business at a price where the business makes a loss (average revenue < average cost).
Loss leaders can attract new customers or sell to existing customers, in the hope that they make extra (incidental) purchases.
Dollar Shave Club offered to deliver a razor and new razor blades to your house for $1 every month. This was loss making, but it attracted customers who bought extra products.
85
What is competitive pricing ?
Competitive pricing is when a business sets its prices for its products and services based on what other businesses in the market are charging.
Competitive pricing is used when the products in a market are similar.
The petrol sold at petrol stations is usually based on competitive prices. In February 2018, all the petrol stations within 3 miles of Derby city centre were charging 121.9p per litre of petrol.
86
What is cost plus pricing ?
Cost-plus pricing is a pricing strategy where a business charges the customer based on what it costs to produce the product or service.
They work out exactly what it costs to produce the product (or service) on average and then add a “mark-up” (extra amount) on top of this cost to make sure that the business makes a gross profit.
For example, if Kwik Fit bought a Dunlop tyre from its suppliers for £80, then if they added a 25% mark-up, then the tyre would be sold to customers for £100.
87
Who in the year (2000) published a research paper describing the 'Long Pocket Strategy'? Their research concluded that the business with the most money in the bank normally wins a price war between businesses.
Palich et al
88
What are promotional methods ?
Promotional methods are the different methods that businesses use to inform consumers about their products & services in order to persuade consumers to buy them
89
What are some promotional methods ?
Product placement
Public relations
Advertisement
Sponsorship
Sales Promotion
Social media
90
What are platforms for advertisement ?
Newspapers, Magazines, Television, Internet, Billboards or Social Media.
The platform that a business uses depends on the target market of the product or service.
91
When advertising why is the platform that businesses choose is important ?
to make sure that they reach the right target market and have the maximum impact.
For example, social media or a TV programme may be a better way to reach young people than a broadsheet newspaper like The Times
92
What is the aim of PR ?
PR involves managing the spread of information about the business.
The aim of PR is to make sure this information is as positive as possible and reaches the largest possible audience.
93
What’s an example of PR ?
An example of PR is the use of newspaper editorials, where people in a business manage the business’ relationships with different newspapers, sending them articles to publish about the business.
Businesses do not pay the newspaper for this coverage like they would for advertising.
94
What’s the aim of sale’s promotions ?
In sales promotions, businesses try to boost sales using a temporary promotion
95
What are types of sales promotions?
Discount coupons
Point of sales displays
Competitions - For example, “like and share this post for a chance to win a free meal for two at Nandos.”
Free gifts
Value for money offers (e.g buy one get one free)
Samples
96
What is the promotional mix ?
The promotional mix is the combination of different promotional methods that a business uses. For example, a business might advertise largely through TV, but also do some social media advertising and have sponsorship deals in place with athletes
97
What are factors influencing the promotional mix ?
The nature of the product or service
Target market
Finance available
The nature of the market
Competitors actions
98
How does the nature of the product or service influence the promotional mix ?
The type of product (or service) will influence which promotional method needs to be used.
A technical product like a laptop may want to give consumers more information about their product, whilst a simple product like orange juice (Tropicana juice for example) may not need to give info.
A fashion label like Hugo Boss does not have much information to communicate. How their products look is more important.
99
How does target market influence the promotional mix ?
A business' target market for a product (or service) will affect the promotional method that they use because different types of people use different platforms more often.
A business wants to promote its product to its potential customers.
A business that produces women’s underwear will not usually want to promote their product to middle-aged men.
100
How does finance available influence the promotional mix ?
Some businesses will have much more finance (money) available to spend on promotions.
Some promotional methods (e.g. TV advertising) are more expensive than others.
Smaller businesses with less finance are less likely to be able to afford TV advertising.
101
How does the nature of the market influence the promotional mix ?
As a market matures, the rate of growth changes.
If a market is growing slowly, advertising may be less important.
If a market is growing fast, then businesses will be battling for market share and are willing to spend more on advertising as it will affect sales by a larger amount.
102
How do competitor actions influence the promotional mix ?
The promotional mix of competitors might influence a business because they may want to reach consumers using the same channel as rivals.
103
What are the 4 main reasons for promotion ?
To inform/remind customers about the product
To persuade customers to buy the product
To create or increase sales
To create or change the image of a product (or service)
104
How does promotion inform/remind customers about the product ?
A business cannot sell a product (or service) if no consumers know about it.
Businesses must be able to inform their target market about their product (or service) and remind people, at the right time, in the hope that they will buy it.
Reminding customers at the right time is key. There is not much point in promoting Christmas baubles on the 26th December.
105
How does promotion persuade customers to buy the product ?
Promotions are often used to advertise the benefits of using a product and to explain why you should buy it.
These are attempts to persuade the customer that this is the best product for them.
106
How does promotion create or increase sales ?
Informing consumers that are not aware of a business’ products can ‘create’ new sales.
By constantly reminding existing customers about a product (or service) and its benefits, businesses can increase the sales from each customer.
This is more likely to happen during the periods before short “sales windows” like Easter and Christmas.
107
How can promotion create or change the image of a product (or service) ?
A promotion can have a large impact on how customers see a product. If a celebrity uses the product, a business can give the product a fun, luxury or innovative image.
UnderArmour sponsored golfers like Jordan Spieth to create a youthful and cool image after they launched their golf and sporting wear ranges.
A promotion can help to change customers’ perception of a product.
108
What are distribution channels?
The different ways that a business can distribute their product
109
What are some distribution channels ?
Manufacturer-wholesalers-retailers-customers
Manufacturer-retailers-customers
Direct to consumer
110
Can businesses have multiple distribution channels ?
Yes
For example, Nike have their own physical stores, but they also sell online and sell to retailers for them to sell in their stores
111
When a farmer sells their produce in their own farm shop, which distribution channel are they using?
Direct to customer
112
How does the distribution channel manufacturer-wholesalers-retailers-customers work ?
A business can distribute their product via wholesalers. Wholesalers sell products in bulk to a network of retailers and then retailers sell the products to customers.
113
What is the benefit to the distribution channel manufacturer-wholesalers-retailers-customers ?
Wholesalers already have a large network of buyers.
This lets a business reach a lot of customers quickly.
114
What are the negatives of the distribution channel manufacturer-wholesalers-retailers-customers ?
Less interaction with customers
A downside of using wholesalers is that the business will not have much personal interaction with customers.
This can lead to worse customer service.
Profit sharing
Another downside is that both wholesalers and retailers take a cut of the profit. This means that customers are likely to pay higher prices.
This may make the business less competitive on price.
115
How does the distribution channel manufacturer-retailers-customers work ?
A business can choose to skip wholesalers and sell directly to retailers. A retailer is any shop that sells directly to the customer in small quantities. Tesco and the corner shop at the end of the road are both examples of retailers.
116
What are the benefits of the distribution channel manufacturer-retailers-customers ?
Higher margins or lower prices
Bypassing wholesalers makes it likely that customers will pay lower prices because the business is “cutting out a middle man”.
Going directly to retailers means that a producer or manufacturer can have complete control over which shops customers can buy their products from.
A luxury brand may not want their products stocked in Tesco or TK Maxx as it may lead consumers to perceive their brand as lower quality
117
What are the negatives of the distribution channel manufacturer-retailers-customers ?
Hard to contact retailers
It can be hard for a business, especially new start-ups, to get retailers to stock their products.
This means that it can be harder for a business to reach as many people and it could take longer to sell a business' products.
Higher logistics costs
Selling to retailers directly may increase a business’ delivery and logistics costs if they have to deliver all the products to a retailer themselves.
118
Why might a start-up use a wholesaler to sell their products?
It’s hard to get retailers to stock their products
119
How does the distribution channel direct to consumer work ?
Direct to consumer distribution involves selling directly to individual customers. This is the cheapest channel for the consumer and it is often done by businesses using their own website.
120
What are the benefits the distribution channel direct to consumer ?
Nobody else takes a cut
Selling direct to consumer lets a business charge the lowest price possible to the consumer because there are no intermediaries (organisations in the middle) who take a cut of the profit.
Alternatively, the business can charge the same price and have a higher margin.
E-commerce
It is becoming easier to reach more consumers directly with the use of e-commerce and m-commerce.
This means that lots of businesses don't need to set up physical stores.
121
What is the negative to the distribution channel direct to consumer ?
Hard to reach customers
It can be hard to reach as many customers as quickly because a business will have to invest time and money into setting up new stores or their own website.
122
Why is it becoming easier for businesses to reach more customers without setting up a store?
E-commerce and M-commerce
123
What are prime examples of how technological advances can impact businesses ?
E-commerce and M-commerce
124
What is E-commerce?
Describes the purchases that take place electronically on the internet
125
What is M-commerce ?
is buying goods online using a mobile phone.
126
Trainline sell train tickets via their mobile app and website. What type of commerce are they taking advantage of?
E-commerce and M-commerce
127
What are the benefits of E-commerce and M-commerce?
Cheaper to set up a business
It is cheaper to set up a business that uses e-commerce.
Businesses don’t have to invest lots of money in opening stores and hiring people to work in-store.
Amazon was started by Jeff Bezos. He initially sold books from his garage and the only investment that he had to make was on a website and some books, rather than leasing (renting) a store. Amazon is now worth over $700bn.
Reach more customers
Businesses can now easily sell their products to customers all over the world without setting up a physical store there.
A business’ products can reach international markets without setting up stores or overseas subsidiaries.
Small businesses in particular rarely have the finance (money) needed to set up shops internationally. Before e-commerce, expanding was harder for small businesses.
Because businesses are selling directly to the consumer, no middlemen take a cut, and so the business can offer a lower price to the customer.
The business has lower average costs and usually lower prices.
This should help a business to remain competitive.
128
What are the negatives of E-commerce and M-commerce?
Increased competition
Because e-commerce allows a business to easily reach wider markets, UK businesses face more competition. Foreign businesses can compete in the UK more easily.
For example, AussieBum sells men’s underwear and sportswear directly to customers in the UK from its production plant in Sydney, Australia. Prices are cheaper for UK customers than buying from approved retailers like House of Fraser and this allows AussieBum to compete against brands like Ted Baker in the UK.
Increased competition can have a negative effect on profits.
Investment needed
Businesses must invest in specialists who can build websites.
Large businesses who sell a large volume of products may have to invest in warehouses and fulfilment centres.
Selling online can create problems
Some goods are hard to judge from a computer or mobile phone. Consumers may want to see a product in person before buying it.
For example, people may want to sit on a sofa or mattress before buying it. However, companies like Casper are now successfully selling mattresses online. They offer a money back guarantee if people do not like their mattresses.
129
What are the 7ps of the marketing mix ?
Price
Product
Place
Physical environment/evidence
Process
Promotion
People
