Marketing Mix

What is a Product?

A product is an item or service offered up for sale.
A product for marketers is anything that can be offered to a market to satisfy a need or want

What is the BCG Product Portfolio Mix?

- designed to help businesses with long term strategic planning through consideration of growth opportunities by review of its product portfolio
Stars
- Includes products with high market growth rate and high relative market share
Question marks
- Includes products with high market growth rate and low relative market share
Dogs
- Includes products with low market growth rate and low relative market share
Cash Cows
- Includes products with low market growth rate and high relative market share

What are the different pricing methods?

lassical economics approach:
1) Quantity demanded = f (Price)
2) Profit = Quantity (Price) × [Price – Unit Cost]
3) Find price to maximize profit (Find price where Marginal Cost = Marginal Revenue).
Cost Oriented Pricing
- When a company sets its prices as costs + markup percentage or fixed amount (cost plus)
Competitive Oriented Pricing
- When a company bases its prices primarily on what its competitors are charging rather than on cost or demand
Demand Oriented pricing
- When a company sets its prices in accordance with demand
Gabor Granger
- Customers are asked to indicate their buying intention for a product at a number of price levels
- 1 = Will never buy …
- 4 = Likely to buy
- 5 = Will absolutely buy

What is Revenue Management?

Revenue management is the science and art of selling the right product to the right customer at the right price at the right time.
- Revenue management through Temporal Price Discrimination:
- Temporal price discrimination is when the producer charges a high price initially however reduces the price over time

What is Promotion Mix?

What is advertising budgeting?

Affordable method
- This method involves setting an advertising budget according to the companies affordability
Percent of sales
- This method involves setting advertising expenditures at a specified percentage of sales.