Chapter -7:Marketing Mix

Branding

Fieffées tiares a company’s products from competitors

Benefits of Strong Brand Name

Differentiate product, Higher prices, Loyalty, Market Position

Benefits of strong brand for consumer

Confidence, provides image, Connvince , Help judge a product

Own brand products

Products sold by retailers under the retailers own name and logo

Reasons to have an own brand

Lower prices for consumers, higher profit margin, customer loyalty, recognisable procuts

Benefits of own brand for consumers

More choice and cheaper prices

Factors when designing a product

Cost, feasibility, meets markets needs, legal requirements

Functions of packaging

Increases sales, protection, info, convince

Product Life Cycle 1. Introduciton

Product Laucnhed alongside promotional campaign, low sales and profits

-Heavy cost of advertising, low sales, business needs cash reserves

Product Life Cycle 2. Growth

Sales and Profits grow as brand awareness increases, takes market share

-Recipts exceed payments, net cash surplus, business adds to reserves

Product Life Cycle 3. Maturity

Sales reach peak, products is very well known, time to research new products or adaptations

-Excellent cash flow, cost of reminder advertising is low

Product Life Cycle 4: Saturation

Profits are steady,market share fully reached, adjust marketing mix

-Cash flow negatively impacted by new advertising

Product Life Cycle 5. Decline

Sales and Profits fall due to competitors. Product is phased out.

-Cut selling price and stop all promotions

Extending Product Life cycle

Product- Adaptation Price -Cheaper version Place - Connveint place Promotion-sponsorship

Premium Pricing

Higher than rivals to show its premium

Price skimming

Higher price at start, lower it after

Penetration pricing

Make a loss to gain market share

Psychological pricing

€499

Bundle pricing

Sell at lower prices when products bought together

Cost plus pricing

Add % on top of costs

Tired pricing

Different features to for different prices

Predatory pricing

Lower price to eliminate competition

Facts to consider when setting price

CPU, competitors, Consumer expectations, legal requirements

Advertising

Communication of information to a target market so that they know that the business has something for sale and to convince them to purchase it through different media

Functions of Advertising

To inform, To persuade, To remind , To be competitive , Generic advertising

Public Relations

Is all efforts by a business to create and maintain good public image. It aims to achieve favourable public image and build good corporate image

Methods

Sponsorship, Socail Media, Charity, Celeb endorsement

Personal Selling

When a salesperson is in direct contact with the customer and tries to verbally persuade to buy a good or service

Benefits of personal selling

Upselling, info to consumers, sales conversion, feedback

Challenges of Personal Selling

Trainning, costs , ruin shopping experience

Sales promotions

Short term gimmicks used to encourage consumers to makes purchases

Type of Sales Promtons

Compétions, Spécial Offers, Loyalty cards, Money off vouchers

ICT impact of Advertising

Online advertising to younger segments

Impact of ICT on Public Relations

Social media can interact with consumers

Personal Selling

iPads on shop floor

Sales promotions

Share and win competitions

Place

Distributing the right product or service to the customer at the right place and right time

Traditional

Manufacturer- Wholesaler- Retailer- Consumer

Alternative

Manufacturer- Retailer- Consumer

Direct

Manufacturer- Consumer

Agent

Manufacturer- Agent - Consumer

Factors to consider when chasing channel

Profit margin, type of Good, market size, technology

Benefits of small business using direct

Less overheads, global reach,24/7, higher profits

Challenges of small business using direct

Harder to become known, increased cost for consumer,loss of feedback form wholesale

Benefits of small business using large retailer

Restailera advertising, research, more sales, exposure

Challenges of small business using large retailer

Own brand, lack of negotiation, competition