1.3 marketing mix

whats the design mix

aesthetics

function

economic manufacture (cost)

types of promotion

personal selling

sales promotions

digital communication

sponsorship

types of branding

product branding: use name to promote one product (coca cola)

own product brand: use of retailers name to promote specific product (tescos finest)

corperate branding: use logo/ name promote all products (apple)

benefits of strong branding

added value

charge premium price

reduced PED

ways to build a brand

USP

advertising

sponsorship

use of social media

pricing strategies

cost plus (set price which gives profit margin, pizza)

competative (products directly in line w competators

price skimming (high price at start of launch to cover r and d costs, xbox)

penetration (low price at launch to encourage consumers to try)

predatory ( pricing just lower than competattors)

psychological (1.99 rather than 2 quid)

factors that determind pricing strategy

amount of USP

PED

levels of competativeness

strength of brand

costs

why can online businesses offer cheaper prices than physical shops

they have no overheads

what is distribution

process of getting the right product to the consumer in the right place

what does distribution channel depend on

what product is

the market it operates in

target market

whats the product life cycle

stages a product goes through from when it is introduced into the market until it is removed.

what are stages of product lifecycle

development: no sales

intro: low sales, advertising

growth: rapid growth and marketing investment to incr customers

maturity: products have intense comp, markets satursted

decline: products withdrawn from market

what are the extension strategied for product lifecycle

change of product: development or modificstion

change the promotion: rebranding

what is the boston matrix

tool used by busines to analyse product portfolio

what are the four areas in the boston matrix

low growth low market share: dog, no investment in the decline phase

low growth high market share: cash cow, good sellers

high growth high share: star, should become cow in time

high growth low share: question mark, potential to become stars

marketing suitable for niche market

smaller segments, grouped into age, gender, income

marketing suitable for mass market

cater for everyone, sell to all

b2b marketing

business 2 business

promoting product at trade fairs, talking to purchasers

b2c marketing

business 2 consumer marketing