1.3 Marketing Mix and Strategy

Define the marketing mix

The framework for businesses to create and implement successful marketing strategies including product, price, place and promotion

Define the design mix

The combination of function, aesthetics and cost which make up the product’s design

Define the function (design mix)

The intended purpose and specific tasks a product intends to perform

Define the aesthetics (design mix)

The product’s visual and sensory appeal, including form, shape, colour and texture

Define the cost (design mix)

The cost of production

Define social trends

Changes in attitudes, behaviours and lifestyles of people

Define promotion

Generating customer awareness, interest and desire for a product/servoce

Define advertising

Promotion through paid channels such as TV and radio

Define direct marketing

Communicating directly with customers through email, text, social media or post

Define sales promotions

Techniques encouraging purchase by offering temporary incentives such as BOGOF

Define personal selling

When a salesperson interacts one-on-one with potential customers

Define sponsorship

An agreement for a business to provide financial support to something in exchange for marketing exposure

Define public relations

Building and managing relationships with the public, such as community outreach

Define branding

The process of creating a unique and identifiable name, design or symbol that differentiates a product/company

Define manufacturer/corporate branding

Use of company name/logo to promote all products offered by the company

Define added value

Creating a perception of quality, reliability or trust

Define viral marketing

Strategy where online platforms promote products by creating content at specific times with easy customer interaction

Define emotional branding

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

Define cost-plus pricing

Calculating cost of production and a markup to find price

Define price skimming

Setting a high price at first product introduction, and gradually lowering it to ensure sales

Define penetration pricing

Setting a low price when first introduced

Define predatory pricing

Setting low price to drive out competitors

Define competitive pricing

Basing price of off competitors’ prices

Define psychological pricing

Including customers attitudes towards the product (i.e. 9.99 instead of 10)

Define distribution channels

Various intermediaries where goods/services move from the manufacturer to the customer

Describe the four stage distribution channel

Producer, wholesaler, retailer, consumer

Describe the three stage distribution channel

Producer, retailer, consumer

Describe the two stage distribution channel

Producer, consumer

Describe the product lifecycle

Development, introduction, growth, maturity and decline

Define an extension strategy

A technique to extend the life of a product beyond its natural life cycle

Define a product-related extension strategy

Changing or modifying the product to make it more appealing to customers

Define a promotion-related extension strategy

Changing the marketing and promotion of the product to extend its life cycle

Define the Boston Matrix

A tool used by businesses to analyse their product portfolio and make strategic decisions about a product

Define B2B

Marketing focused on selling products from one business to another

Define B2C

Marketing focused on selling products/services directly to consumers