1.3 - Marketing Mix & Strategy

35 vocabulary flashcards covering Edexcel A Level Business concepts including the Marketing Mix, Product Design, Branding, Pricing Strategies, Distribution, and Marketing Strategy.

Marketing Mix

A framework consisting of the 4Ps (Product, Price, Place, Promotion) used by businesses to create and implement successful marketing strategies.

Product Design Mix

The combination of three essential elements—function, aesthetics, and cost—that make up a product's design.

Function

An element of the product design mix that refers to a product's intended purpose and the specific tasks it is designed to perform.

Aesthetics

An element of the product design mix referring to a product's visual and sensory appeal, including its form, shape, colour, and texture.

Ethical Sourcing

A production approach ensuring that products are made without the exploitation of workers or causing environmental damage.

Advertising

Promotion through paid channels such as television, radio, print media, and online platforms to reach large audiences and raise brand awareness.

Sales Promotions

Techniques that encourage product purchases by offering temporary incentives or discounts, such as free samples, BOGOF, loyalty cards, or rebates.

Direct Marketing

Communicating directly with customers through emails, text messages, social media, or posts to target specific audiences and personalise messaging.

Personal Selling

A promotional method where a salesperson interacts directly with potential customers one-on-one, either in person or through digital channels.

Sponsorship

An agreement in which a company provides financial or other support to an event, team, or organisation in exchange for marketing exposure.

Public Relations (PR)

Activities focused on building relationships with the public and managing reputation through media relations, crisis management, and community outreach.

Digital Communications

Any form of marketing or communication delivered electronically, including social media, search engine optimisation, or mobile apps.

Manufacturer/Corporate Branding

The use of a company name or logo to promote all products or services offered by the firm, such as Nestlé, Nike, or Apple.

Product Branding

The use of a unique name, design, or symbol to promote a single specific product, such as KitKat or the Big Mac.

Own Branding

Also known as private-label branding, the use of a retailer's name to promote a specific product or service, such as Sainsbury's 'Basics' range.

Unique Selling Points (USPs)

The specific features that make a product or service stand out from its competitors.

Viral Marketing

A strategy in which businesses use online platforms to promote products by creating timely content that can easily be shared and commented on.

Emotional Branding

A strategy where companies build strong emotional connections with customers by appealing to their values, beliefs, and emotions.

Cost Plus Pricing

A pricing strategy where the business calculates total production costs and adds a markup using the formula: $\text{Unit cost} + (\text{Markup percentage} \times \text{Unit cost})$.

Price Skimming

Setting a high initial price for a new product when introduced to recover development costs quickly before gradually lowering it.

Penetration Pricing

Setting a low initial price for a new product or service to quickly capture market share and attract price-sensitive customers.

Predatory Pricing

An illegal pricing tactic where a business sets prices so low that it forces competitors out of the market.

Competitive Pricing

Setting prices based on the prices charged by competitors to maintain market share in highly competitive markets.

Psychological Pricing

A pricing strategy designed to influence customer emotions and perceptions, such as pricing an item at £9.99 instead of £10.

Dynamic Pricing

A pricing technique where retailers adjust prices in real time based on changes in demand, supply, and competition.

Four-stage Distribution Channel

A traditional distribution path moving goods through four successive parties: producer, wholesaler, retailer, and consumer.

Drop Shipping

A distribution strategy where a business sells products without holding stock, having the items shipped directly from the producer to the consumer.

Product Life Cycle

The five distinct stages a product experiences over its life span: development, introduction, growth, maturity, and decline.

Extension Strategies

Techniques used by businesses to boost sales and maintain profitability, extending a product's life beyond its natural decline stage.

Boston Matrix

A portfolio analysis tool that categorises products into four groups based on their market share and market growth rate.

Cash Cow

A Boston Matrix product classification possessing high market share in a mature, low-growth market, generating steady positive cash flow.

Star

A Boston Matrix product classification featuring high market share in a high-growth market, requiring investment to maintain dominance.

Problem Child / Question Mark

A Boston Matrix product classification with low market share in a high-growth market, requiring investment to increase market share.

Dog

A Boston Matrix product classification with low market share in a low-growth market, generating minimal revenue with no growth potential.

Mass Markets

Markets characterised by large numbers of customers with similar needs and wants, where marketing aims to reach a broad audience.