1.3 Marketing Mix and Strategy Flashcards
Marketing Mix (4Ps)
Price
Place
Promotion
Product
Design Mix
cost, function, aesthetic
Promotion
Promotion is a way to build brand awareness
Methods of promotion 5
personal selling
advertising
sales promotion
sponsorships
digital communication
Pros Cons of Advertising, sales promotion, Sponsorships
Advertising
P-can be seen by large audiences can create brand images
C-Expensive, effectiveness can be difficult to measure, customers may ignore it
Sales promotion-
P-quickly boosts sales, encourages impulse buys
C- can attract deal-seeking customers who wont bring loyalty
-may reduce sales of full price products
Sponsorships
P-new customers from sponsor, brand awareness built
C-may not affect sales, can be expensive, tied with negative publicity.
benefits of branding 3
added value
can charge higher prcies
lowers PED
Ways to build a brand
USP
Advertising
Sponsorship
Social Media
6 Pricing strategies
Cost plus
Skimming
Penetration
Competitive
Predatory
Psychological
Cost Plus
Firm calculates cost of production then adds a % mark up to find the price
Price Skimming
Initial high price set which can be lowered to ensure sales
helps to recoup costs from R&D
Penetration
Initial low price to gain market share which can be raised
Competitive pricing
Based off competitors prices and are made the same or slightly lower to gain sales
Psychological Pricing
Uses customer emotions and attitudes to set price eg. £9.99 instead of £10
What is the 2 stage distribution channel
Producer–>Consumer
What is the 3 stage distribution channel
Producer–>Retailer–>Consumer
