Topic 3 - Marketing Mix and Strategy Flashcards
Design mix
The range of important features when designing a product
Ergonomics
The study of how people interact with their environment and the equipment that they use, often in the workplace
Ethical sourcing
Using materials, components & services from suppliers that respect the environment, treat their workforce well & trade with integrity
Product design
Process of creating a new product or service
Recycling
Making use of materials that have been discarded as waste
Resource depletion
Using up of natural resources
Waste minimisation
Reducing the quantity of resources that are discarded in the production process
Above the line promotion
Placing adverts using the media
Advertising
Communication between a business and its customers where images are placed in the media to encourage the purchase of products
Consumer durables
Goods that can be used repeatedly over a period of time e.g. A car
Below the line promotion
Any promotion that does not involve using the media
Emotional branding
The practice of using the emotions of a consumer to build a brand
Generic brands
Products that only contain the name of the product category, rather than a company or product name
Manufacturer brands
Brands created by the producers of services
Marketing mix
The elements of a business’s marketing, that are designed to meet the needs of customers. The four elements are often called the 4 P’s - Product, Price, Promotion and Place
Merchandising
A promotion specifically at the point of sale of a product.
Own label, distributor or private brands
Products manufactured for wholesalers or retailers by other businesses
Point of sale
Any point where a consumer buys a product
Promotion
An attempt to obtain and retain customers by drawing their attention to a firm or its products
Public relations
An organisations attempt to communicate with interested parties
Sales promotions
Methods of promoting products in the short term to boost sales
Sponsorship
Making a financial contribution to an event in return for publicity
Viral marketing
Any strategy that encourages people to pass on messages to each other about a product or business electronically
Competitive pricing
Pricing strategies based on prices charged by rivals
Cost plus pricing
Adding a % mark up to costs of producing a product, to get a price
Mark up
% added to unit cost that sets a sales price that will make a profit for the business
Penetration pricing
Setting a low price when launching a new product in order to get established in the market
Predatory(destroyer) pricing
Setting a low price to force rivals out of business
Pricing strategy
Pricing policies used by a business, when deciding what to charge for a product
Product life cycle
Shows the different stages in the life of a product, and the sales that can be expected at each stage
Psychological pricing
Setting the price slightly below a round figure
Skimming or creaming
Setting a high price initially, then lowering it later
Unit costs
Average cost of producing one product -
Total Cost/Output
Agent/broker
An intermediary that brings together buyers and sellers
Breaking bulk
Dividing a large quantity of goods received from a supplier, before selling them on in smaller quantities to customers
Direct selling
Producers selling their products directly to customers
Distribution
Delivery of goods from producer to consumer
Distribution channel
Route taken by a product from producer to consumer
E - commerce
Use of electronic systems to sell goods and services
Intermediaries
Links between producer and consumer
Retailer
Business that buys goods from manufacturers and wholesalers and sells them in small quantities to consumers
Wholesaler
A business that buys goods from manufacturers and sells them in smaller quantities to retailers
Boston matrix
A 2 X 2 matrix model that analyses a product portfolio according to the growth rate of the market, and the relative market share of products within the market
Extension strategies
Methods used to prolong the life of a product
Marketing strategy
A set of plans that aim to achieve a specific marketing objective
Product lines
A group of products that are very similar
Product portfolio
The collection of products a business is currently marketing
