The Marketing Mix AS Business

Flashcards about the Marketing Mix

Marketing Mix

The combination of product, price, place and promotion for any business venture.

Product Portfolio

The mix of products the business produces and sells.

Packaging Design

Should be eye catching, help the consumer distinguish them from other products. It should be consistent with the brand image.

Convenience of Packaging

Consumers must be able to open the products easily in order to access the contents.

Protection in Packaging

The contents must be well protected and not easily damaged

Information on Packaging

Customers require to be fully informed about the ingredients used in their products that they purchase.

Environmental Factors of Packaging

More consumers are becoming environmentally aware and recyclable materials are used when possible.

Unique Selling Point

Something that differentiates the product from its rivals.

Branding

A name, term, sign, symbol or design that identifies a seller’s products and differentiates them from competitors’ products.

Product Differentiation

Making your products different from the competition.

Marketing Plan

A detailed statement of how the company’s marketing strategy will be put into action.

Product Life Cycle

Product life cycle has to do with the life of a product in the market with respect to sales.

Development Stage (Product Life Cycle)

Substantial negative cash flow caused by spending on R&D, market research, product design and preparing for production.

Introduction Stage (Product Life Cycle)

Product is launched onto the market but sales are usually slow – a good deal needs to be spent for promotion in order to boost sales.

Growth Stage (Product Life Cycle)

As sales increase, the business will hope to earn enough money to pay back their initial investments.

Maturity and Saturation (Product Life Cycle)

Sales increasing/revenue increasing – cash can be reaped from sales once they have stabilised during the maturity stage.

Decline Stage (Product Life Cycle)

Sales of the product begin to fall – decisions have to be made as to whether to support the product or remove it from the market.

Extension Strategies

A medium-/long-term plan for lengthening the life cycle of a product or brand, or to generate more sales.

Boston Matrix

This shows the market share of each of business’ products and the rate of growth of the markets in which they operate.

Cash Cows (Boston Matrix)

High market share in a relatively slow growing or declining market. High sales generate cash, which may be used to help support new products being launched in new or existing market segments.

Problem Child/Question Mark (Boston Matrix)

Low market share in a high growth market. Could well provide a lot of revenue in the future, but are probably the most difficult to manage.

Star (Boston Matrix)

High market share in a high growth market. Does well in a growing market.

Dogs (Boston Matrix)

Low market share in a low growth market. They hold little appeal unless they can be revived.