a model to help firms develop an effective marketing strategy
economic manufacture combined with the overall design of a product
→ the ways society as a whole behaves and the values that determine that behaviour
e.g., health issues, being environmentally healthy, ethical sourcing, waste minimisation, scarce resource depletion (sustainability)
landfill - materials are buried
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the part of the marketing mix that focuses on persuading people to buy the product
branding - the skill of giving a product its distinctiveness
brand names - create an identity for products and highlight the ways they are different from competition
brand loyalty - refers to the way how customers will make many repeat purchases
Television adverts (3 types)
main aim: designed to increase awareness of a product by focusing on the features of the product
main aim: adverts designed to put pressure on a customer often to buy their product rather than the competition’s, often appeals to emotions
main aim: adverts aimed at existing customers and that they were right to buy the product
+ seen by large numbers of people
+ a quick way of reaching out to potential customers in a given area
+ informs and persuades so as to increase sales
+ can be tailored to suit the needs and size of the market
- with so much advertising about, it can be difficult for an advert to get noticed
- can be very expensive
- no way to assess how many people saw it/reacted to it
- many fast forward through the adverts, as so much is no longer live
Digital promotion
main aim: aimed to attract customers from online users
+ it is cheap and has the potential to reach a large number of people
+ the internet never sleeps so reaches potential customers at all times all over the world
+ once started a campaign can develop a life of its own without any need for the firm to be involved
- there is a lot of competition
- customers can easily ignore it - scroll past/skip
Sales promotions
main aim: to increase sales by making the product cheaper
+ tempt customers to buy now and so save money
+ hopefully leads consumers to ignore rival more expensive options
+ some offers will develop customer loyalty
- some customers will take advantage of the cheap offer and stock up, leading to reduced profit margin for the firm
Public relations
main aim: to increase sales by improving the company’s image
+ reaches a wide range of people
+ enhances a firm’s reputation leading to greater sales or customer loyalty
- can be expensive
- no guarantee it will have any effect on customers
- sponsorships etc can backfire
Merchandising and packaging
main aim: to increase sales by making the product eye catching
+ placing products by the checkout increases compulsive buys
+ can often be cheap as all you are doing is moving merchandise around
+ enhances the shopping experience so can build customer loyalty
- designing new packaging can take time and expense
Direct mailing and direct selling
main aim: creates direct contact between the salesperson and the customer
+ message can be adapted to suit the customer and any queries can be handled so increasing the success rate
- people dislike cold callers which can damage the firm’s reputation
- can be very costly to employ and train a skilled sales force
Exhibitions and trade fares
main aim: enables the firm to do face-to-face sales to both commercial buyers and consumers
+ products can be tested out on consumers before a full launch
+ products can be demonstrated and questions answered
+ often attracts media interest which gives free advertising
- can be expensive
- if don’t have skilled staff can result in few sales
USP → recognition → build reputation → brand loyalty
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[[==traditional advertising is dead==[[
the way forward is:
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distribution - getting products to the right place at the right time for consumers
it is so important because:
<<a distribution channel is the route taken by the product as it moves from the producer to the consumer<<
choosing the right channel depends on:
2 stage distribution channel (producer → customer)
+ allows to sell at higher price
+ you can keep all profits
- lower customer base
- you have to pay for storage (+delivery if online)
- more expensive for customer may steer them away
3 stage distribution channel (producer → retailer → customer) RETAILER IN CONTROL
+ allows to spread product further
+ trustworthy retailer makes customers feel product is trustworthy
- can be very expensive to pay retailer
3 stage distribution channel (producer → retailer → customer) PRODUCER IN CONTROL
+ no storage costs
+ don’t have to worry about making sales → can focus more on the product
- if the retailers are rude etc, it ruins the firm’s reputation
4 stage distribution channel (producer → wholesaler → retailer → customer)
+ don’t need storage (no storage costs)
+ able to focus on the products
+ paying for wholesaler expertise in managing and selling product
- have to rely on the wholesaler to distribute goods
- less profit
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price x quantity = revenue
revenue - costs = profit
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have to take into account:
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