Business - 1.3 Marketing mix and Strategy

Name the marketing mix

Product

Promotion

Price

Place

What is the design mix

Function

Aesthetics

Cost

How do changes in social trends affect the design mix?

Changes in social trends can influence consumer preferences, leading to shifts in function, aesthetics, and cost considerations in the design mix to better meet market demands.

• waste minimisation

• re-usable products

• recyclable

• sourced ethically

The challenges of product design

Adapting one element can affect other components. E.G reducing cost may have an impact on the product's quality or functionality.

Advantages of adapting designs to reflect social needs

• helps businesses cut cost - reducing waste

• reflecting social trends = sell larger quantities

• USP

What are the aims of promotion (anagram)

Awareness

Interest

Desire

Action

AIDA

Define promotion

Aims to inform customers and potential customers about the product/ service and persuade them to buy it

What is above the line promotion

Above the line promotion = forms of advertising through mass media channels such as TV, radio, newspapers, and the internet, aimed at a wider audience.

What is Below the line promotion

All other forms of advertising that is not advertising - sales promotion, public relations, merchandising, direct selling and trade fairs

What factors influence promotion?

the target audience

technology

promotional budget

the message

Define - brand

a brand is a product with unique characteristics that distinguish it from other products, often associated with a name, logo, or design that creates a lasting impression in the minds of consumers.

Define branding

branding is creating an image of the product in the mind of the consumer ; which gives the product identity

Types branding

Sponderships

Emotional Branding

viral marketing

What is the importance of branding

Added value - enables higher price to be charged - increases in profitability - competative advantage - lowers vulnerability in competition and creates stronger bond

Reduced PED - strong branding persuades customers that substitutes are less acceptible - reducing PED - less price inelastic - higher total revunue

define - Distribution (place)

distribution refers to how the product gets to the customer.

What are the 4 parties in a distrinution network

Agents

retailers

Wholesalers

Distributer

• Intermediaries = takes some of the profit and responsibility

Describe the 4 stages of distribution

Producer - wholesaler - retailer - consumer

retailer doesnt have purchasing power to buy from manufacturer = wholesaler provides producers to get their product into retai

wholesaler bears the distribution costs

wholesalers provide storage facilties ; reduce producers stock holding cost

Describe the 3 stage of distribution

Producer - retailer - consumer

Advantages of 3 stage distribution include lower costs, reduced inventory requirements for producers, and increased market reach for retailers.

Disadvantages of 3 stage distribution channels include less control over product placement, reliance on retailer performance, and potential for reduced profit margins.

Describe two stage distribution channels

Producer to consumer = disintermediation (no middle man)

Advantages -

• producers sell directly to the consumer = no intermediaries = producer can control their markup = can be sold at a competative price

• producers close relationship = direct feedback = can react faster to change in consumer needs + market conditions

• lower costs for consumers, increased profit margins for producers.

What factors effect the appropriate distribution channel

• nature of the product

• stage of the life cycle

• market coverage

• customer expectation and preferances

What influences price

Levels of competition and their prices - best value product = prices competitive

PED - PED = elastic total revenue can change if there is a price change

PED inelastic = USP, strong branding can set higher prices = higher total revenue

Stage in the Product Life Cycle -

What are the 7 types of Pricing strategies

• Price skimming - price high to low - attract early adopters - higher sales revenue

• Penetration Pricing - low initial price - penetrate new market ( new products only) = gain market share

• Cost plus = cost of the product + markup = selling price

• Predator pricing = illegal - setting low prices to cut out competition

• Phycological pricing= e.g "£1.99 vs £2.00”

• Competative pricing - setting prices based on competitors' prices in the market.

• discriminative pricing = setting different prices for the same product based on factors such as customer segment

Define - Marketing strategy

a plan of activities to achieve a marketing objective

define niche market

where a business targets to a smaller segment of a large market, where the customers have specific wants and needs

define mass market

where a business sells into a large part of the market, where there are similar products to offer

define outbound marketting

includes any strategy that involves pushing out a message to customers - above and below the line methods

define inbound marketing

Includes any technique that attracts potential customers to a website

What are the stages of the “product life cycle”

• introduction

• growth

• maturity

• saturation

• decline

PPA - product portfolio analysis

can be used to track the development of multiple products over time - taking into account growth sales and market conditions

The boston Matrix - what are the axis

Market growth and market share

What are the 4 boston matrix components

Problem child (question mark)- high growth, low market share

Dogs - low market growth, low market share

cash cows - low market growth, high market share

stars - high market growth high market share