marketing mix

What is Promotion in the Marketing Mix?

Promotion aims to get customers' attention to inform or persuade them about a product or service. It involves advertising, public relations, digital marketing, and other techniques to increase product awareness and sales.

Different Forms of Advertising

Media Advertising: Includes TV, radio, print, digital, billboards, etc. Digital Advertising: Uses platforms like social media, influencers, and website ads. Direct Marketing: Directly reaching customers via email, mail, phone, etc.

Advertising and Product Life Cycle

Introduction Phase: Informative advertising for new products. Growth Phase: Focus on differentiating from competitors. Maturity Phase: Reinforce brand and product improvements.

Branding and Product Image

Branding helps distinguish products with logos, slogans, and packaging. Strong branding can allow higher prices and customer loyalty.

Sales Promotion vs. Advertising

Sales Promotion: Special offers, competitions, and discounts to increase short-term sales. Merchandising: Displaying products in stores to attract attention. Direct Selling: Sales reps or online methods to reach customers directly.

Public Relations

Involves managing company relationships with media, press, and the public to improve brand image and product awareness.

The Promotional Mix

A mix of advertising, public relations, sales promotions, and direct marketing. The mix depends on product, target market, budget, and competitors' activities.

Distribution Channels

Direct Selling: Selling directly to consumers (e.g., online). Indirect Selling: Using wholesalers and retailers to distribute products. Multi-Channel Distribution: Using multiple platforms (retail, online, etc.) to reach customers.

Choosing a Distribution Channel

Companies consider cost, control, and customer reach when selecting a distribution channel. More intermediaries reduce control but can expand market reach.

Types of Distribution Channels

Direct: Manufacturer → Consumer. One-Level: Manufacturer → Retailer → Consumer. Two-Level: Manufacturer → Wholesaler → Retailer → Consumer. Multi-Channel: Using several methods (physical stores, e-commerce, etc.) to reach customers.

Product Placement and Outlet Strategy

The location of a product in a store or online affects customer purchasing decisions. Companies use strategies to place products in high-traffic areas (e.g., near the checkout or at the top of search results).

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Answer

What is the Product Life Cycle?

The product life cycle shows the stages products go through, including development, introduction, growth, maturity, and decline. It helps in determining marketing decisions.

What happens during the Development stage of the Product Life Cycle?

The R&D department develops the product. Costs are high, and the product may fail due to low demand or high production costs.

What happens during the Introduction stage of the Product Life Cycle?

The product is launched into one or more markets. The price may be high to cover promotional costs or low to encourage sales (penetration pricing).

What happens during the Growth stage of the Product Life Cycle?

Sales grow, competition may increase, and the product may undergo improvements or differentiation to stay competitive.

What happens during the Maturity stage of the Product Life Cycle?

Sales peak, and the cost of development is covered. Companies may try to extend the product life with additional features or promotions.

What happens during the Decline stage of the Product Life Cycle?

Sales fall, and profits decrease. Some companies may discontinue the product or reduce marketing efforts.

What are Extension Strategies for Products?

Extension strategies prolong a product's life by improving or redesigning it, changing its packaging, or targeting new market segments. For example, rebranding or introducing a new version.

How does the Product Life Cycle influence marketing decisions?

The product life cycle helps marketers decide on product, price, promotion, and placement strategies for each stage, such as focusing on promotion in the introduction stage and price adjustments during maturity.

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What factors influence pricing decisions?

Pricing is influenced by product costs, customer budget, market demand, stage of the product life cycle, competitors’ pricing, and company objectives (e.g., increasing market share or brand image).

What is Price Skimming?

Price skimming is when a company sets a high price for a new product to maximize early profits and gradually lowers it over time. It is often used for technology products.

What is Penetration Pricing?

Penetration pricing involves setting a low initial price to attract customers and gain market share quickly. It can be problematic as customers may expect the low price to continue.

What are some other pricing strategies?

Predatory pricing: lowering prices to drive competitors out of the market. Competitive pricing: setting prices in line with competitors. Psychological pricing: pricing to create a perception of higher quality.

What is Dynamic Pricing?

Dynamic pricing involves changing prices based on market demand and competitor prices, such as for airline tickets or hotel rooms.

How do companies use promotional pricing strategies?

Promotional pricing involves offering products at discounted prices for a limited time to attract customers. It can be effective for increasing sales during the introduction or growth stages.

What is Industrial Marketing?

In industrial marketing, companies sell products to other businesses rather than directly to consumers. Pricing decisions are often based on building long-term relationships and offering added value such as spare parts and services.

Product Life Cycle - Development

Phase where R&D develops the product; high costs, risk of failure.

Product Life Cycle - Introduction

Product launched; requires heavy promotion, either high or low price.

Product Life Cycle - Growth

Sales increase, competition rises; focus on differentiation.

Product Life Cycle - Maturity

Sales growth slows, market saturation; focus on loyalty and improvements.

Product Life Cycle - Decline

Sales fall, may discontinue or redesign the product.

Extension Strategies - Product Development

Improving, redesigning, or adding features to a product to extend its life.

Extension Strategies - Market Development

Targeting new markets or segments to extend the product's life.

Extension Strategies - Promotion Adjustments

Introducing new promotional campaigns to revitalize a product.

Boston Matrix - Stars

High market share in a fast-growing market; needs continued investment to maintain growth.

Boston Matrix - Cash Cows

High market share in a slow-growing market; generates consistent cash flow.

Boston Matrix - Question Marks

Low market share in a fast-growing market; uncertain potential.

Boston Matrix - Dogs

Low market share in a slow-growing market; may be discontinued.

Integrated Marketing Mix - Product

What is being sold, including features, design, and branding.

Integrated Marketing Mix - Price

How much the product is sold for; includes pricing strategies.

Integrated Marketing Mix - Place

Where the product is sold and how it is distributed.

Integrated Marketing Mix - Promotion

Methods used to promote the product, including advertising and public relations.

Integrated Marketing Mix - People

Staff interactions with customers and the service experience.

Integrated Marketing Mix - Physical Evidence

Tangible elements that support the service (e.g., store, website design).

Integrated Marketing Mix - Process

The systems and procedures for delivering the product or service.

Marketing Mix Adjustments - Competition and Technology

Marketing mix must adapt to competition and technological advancements in the market.

Marketing Mix Adjustments - Target Market

Adjusting the marketing mix based on the preferences and needs of the target market.

Product Life Cycle & Marketing Mix - Early Stages

Focusing on product development and promotion strategies.

Product Life Cycle & Marketing Mix - Growth Stage

Focusing on product improvements and brand positioning.

Product Life Cycle & Marketing Mix - Maturity Stage

Marketing focuses on maintaining market share through differentiation.

Product Life Cycle & Marketing Mix - Decline Stage

Marketing reduces as sales fall; consider product discontinuation or relaunch.