1.3 marketing mix

marketing strategy?

A medium to long-term plan to achieve marketing objectives through the use of its marketing mix

marketing mix?

How a business uses the four key components of its marketing strategy: Product, Price, Place & Promotion (the 4Ps)

marketing strategies?

short term activities to boost sales, e.g. sales promotions.  

design mix?

The features of a product that allow it to both meet the needs of the market and make effective use of a business’ resources

feature of design mix?

aesthetics, function and economic manufacture

The product life cycle?

A theoretical model which describes the stages a product goes through over its life 

extension strategy?

A medium to long term plan to extend the life of a product and delay/prevent decline

product portfolio?

the range of products and/or brands sold/produced by a business

boston matrix?

a model which helps businesses to analyse their product portfolio by assessing the relative market share and market growth of their products 

stars?

products with a high market share in high growth markets. 

cash cow?

products with a high market share in low growth markets 

question marks?

products have a low market share in high growth markets

dogs?

products with a low market share in low growth markets 

promotion?

the part of the marketing mix designed to inform customers about a product and/or persuade them to buy it

promotional mix?

the combination of promotional activities that a firm uses in order to create awareness and generate sales.  

 

advertising?

paid for communication that can use a variety of media, e.g. print, tv or social media

brand?

a business or product that is easily distinguished from competitors.

branding?

The process of differentiating a product from its competitors through the name, sign, symbol, design or slogan linked to that product.  

 

Corporate branding

The process of creating and promoting a brand image for an entire corporation, encompassing its values, identity, and reputation

product branding?

creating and promoting a unique brand identity for a specific product, distinguishing it from competitors in the market. 

 

added value?

rice - unit cost (The enhancement of a product or service that goes beyond its basic features, often increasing its perceived worth and justifying a higher price)

why is customer loyalty important?

less effected by ped

repeat business

cost effiencey

how to get customer loyalty?

quality

customer service

good branding

loyalty schemes

pricing strategies?

The methods that an organisation uses to price a product in order to meet marketing objectives

penetration pricing?

Setting a low price at launch and increasing price later in the product lifecycle

price skimming?

Setting a high initial price at launch and lowering price later in the product life cycle. 

pros of skimming?

maximises revenue

recovers r&d costs

cons of skimming

limited sales-high initial prices scare of customers

may attract competition

pros of penetration?

grow market share

econs of scale

cons of penetration?

pregnancy

risk of brand image damage

low profit margins

cost plus pricing?

Based on placing a percentage mark-up on the unit cost of producing a good or service 

competitive pricing?

When a business sets a price for its products after considering the prices set by its competitors. This usually means setting price the at the same price as the market leader or below.

dynamic pricing?

A flexible pricing strategy in which the price of a product or service is adjusted based on various factors in real-time, e.g. changes in demand, competitor actions etc

distributing channels?

how a product passes from the producer to the final customer, often via channel intermediaries.

channel intermediaries

organisations involved in various stages of distribution e.g. wholesalers and retailers

wholesalers?

buy products from producers in bulk and supply in smaller quantities to retailers  

multi channel distribution?

when a producer uses more than one path to consumers, e.g. via retailers and direct via the producers' website.