Unit 3.4- Marketing mix Flashcards
What is the marketing mix?
combination of marketing decisions that influence a customer’s decision to buy
What are the 7 p’s
- Price
- Place
- Promotion
- Physical environment
- People
- Product
- Process
What are the internal influences on the marketing mix?
- financial position
- staff
- operations
- objectives
What are the external influences on the marketing mix?
- Political and Legal factors - new legislation
- Economic factors - growing economy
- Social factors - greater environmental concerns
- Technological factors - online promotion
- Competition
What is an consumer product?
Consumer products are bought by customers (B2C)
What is an industrial product?
Industrial products are sold to businesses which use them in their own processes (B2B)
What are the 3 sub categories for consumer products?
- Convenience items - such as milk and bread widely distributed
Shopping goods - products where customers compare features and price
Speciality products - such as a sports car or Rolex,
What does product consist of?
- The core benefit it provides
- The tangible product - refers to the features such as its specifications, its reliability and its design.
- The augmented product
What are the 5 sections of a product life cycle?
- Research and development
- Introduction
- Growth
- Maturity
- Decline
What are some extension strategies?
- Increase promotional expenditure to renew interest in the product or to increase usage
- Revamp the product in some way - new packaging/flavours
- Find new target market segments - new countries
- Find new usage
What are the 4 sections of the boston matrix called?
- Dog
- Star
- Question mark
- Cash cow
What does a dog have?
Low market share
Low market growth
What does a question mark have?
High market growth
Low market share
What does a cash cow have?
Low market growth
High market share
What does a star have?
High market growth
High market share
Why would you need new product development?
- The existing products are coming to the end of their life cycle
- New opportunities are opening up due to changes in the market
- There is a desire to build on the strengths of the brand
- It is a way of achieving growth
- To match what competitors are doing
What is new product development?
involves investment to modify an existing product or replace it with a new one.
What are the influences on pricing decisions?
- Cost
- price elasticity of demand
- Positioning
- Stage of the products life cycle
- Other elements of the marketing mix
- Competitiveness of the environment
What are the 8 pricing strategies?
- Price skimming
- Penetration pricing
- Cost plus pricing
- Loss leader pricing
- Competitive pricing
- Dynamic pricing
- Psychological pricing
- Premium pricing
What are some promotional method?
- Advertising
- Direct marketing
- Public relations
- Packaging
- Branding
- Sponsorship
- Sales promotion
- Loyalty cards
What affects what promotional method a business may use?
Target audience Promotional budget The message Technology Positioning Competitive environment
What is meant by a brand and why is it so important?
A brand is a promise to deliver certain benefits and services.
When making distribution decisions a manager will look at?
- The degree of coverage
- Costs
- Nature of the product
- The control over the product’s price and promotion
- Customers expectations
What is e-commerce?
The buying and selling of products through an electronic device such as the internet.
