11. Marketing mix Flashcards
define product
- physical good
- service
- combination of two
classification of product
- consumer
- organisational
3 categories of consumer product (important)
- convenience (milk, paper, pen)
- shopping (television, insurance)
- specialty (jewelry, wedding rings)
3 categories of organisational product (important)
- production: use directly into product
- expense: consume within one year while producing goods
- capital: permanent
define product mix
group of product that a firm makes for sale
- nestle: grocery, icecream
define product line
group of product related closely, with similar function and same group of customers
- nescafe: rich, regular, mild
7 steps of developing new product (super important)
- idea
- screening - objective
- concept testing - market research
- business analysis - production cost
- prototype developing
- product testing and test marketing - limited production, trial sell in limited areas
- commercialisation - begin full scale production
4 stages of PLC
Product Life Cycle
- introduction
- reach marketplace
- promotional and development cost erase profit - growth
- attract customers, sales climb rapidly
- start to make profits - maturity
- sale grow slow, to the end, and fall
- profit level are high - decline
- sale fall, new product take away sales
define pricing
the process that set what a company receive as an exchange of product
examples of pricing objective
- price-maximising
- market share: low price for new product
define cost-oriented pricing
to make profit and cover the production cost
define markup - formula
amount added to an item purchase cost to sell it with profit
= (profit / cost) x100%
breakeven point formula
- total revenue = total cost
- no profit no loss
= total fixed cost / (price - variable cost)
variable cost and fixed cost
variable - changes with quantity
fixed - incurred regardless the quantity
formula of profit
= total revenue - (total fixed cost + total variable cost)
