Elements Of The Marketing Mix Flashcards
Marketing mix
The activities influencing wether or not a customer buys a product. The elements of the mix can be analysed using the 4 Ps: price, place, product and promotion.
Product
Refers to all factors relating to a product’s design, specifications and features. They’re the aspects of the product itself which makes it sell. A business may alter these to appeal to different customers.
Promotion
To communicate something about a product. For example, letting people know that the business exists, telling them about the product or a special offer, highlighting a USP ect. The right form of promotion depends on the product.
Price
Pricing involves multiple aspects: wether a customer pays in instalments or the full amount at once, cash or card, bulk buying discounts, the price relative to competitors, if it’s good value for money.
A business has to cover it’s costs to make a profit. Generally, higher priced products will sell less units but with higher profit per unit. Lower priced products will likely make more sales but more will need to be sold to make a big enough profit.
Place
The way in which products are distributed. Are they sent directly to customers (via the internet) or in shops? What are the shops like?
(Factors influencing choice in marketing mix) the product
Is it distinctive? Does it need a unique design? How long should it last?
Something unique and durable could justify a higher price.
(Factors influencing choice in marketing mix) competitor’s products
What do they offer? How does your product compare?
It may be necessary to offer a lower price in order to compete
(Factors influencing choice in marketing mix) target customers
The income, age, location, ect of customers will impact what they want to buy.
Products should aim to satisfy what a customer demands
(Factors influencing choice in marketing mix) business approach
If products match the competitions, then a business may need to sell them for a lower price.
If a product aims to be different or better than the competition’s, it can justify a higher price.
Promotional activities
The different ways in which a firm tries to communicate with customers
(Types of promotional activity) advertising, including:
Newspapers, magazines, television, internet, billboards
(Types of promotional activity) PR activities
Actions used by a business to arrange free media coverage of it’s activities/products. Can be cheaper than paying for advertising, but you can’t control what is said by the media
(Types of promotional activity) sales promotions
Short-term incentives to encourage customers to buy. Could be: discounts, two-for-one offers, coupons, competitions, point of sale displays (in-store displays to attract buyers), free samples ect.
(Types of promotional activity) person selling
A sales force to help promote products. Might visit stores and persuade the stores to stock their products. Will inform businesses about offers and the benefits of the product over the competition’s.
Reasons for promotion
-inform/remind customers about a product
-create or increase sales
-create or change the image of the product
-persuade customers to buy the product
