2.2.5 Using the marketing mix to make business decisions Flashcards
How can product influence the other elements?
Price - customers may demand a low-priced product so a bsuiness will need to produce their product cheaply = lower quality product
promotion - may include changing the the packaging of a product to make it more appealing to customers
Place - technology has led to customers changing where and when they demand their products. Led to change in the format of products
How can price influence the other elements?
Product - strong brands and premium quality products will have higher prices
Promotion - special offers and discounts can reduce the price charged for a product
Place - an internet-based business can charge a lower price because it doesn’t have to pay costs associated with having premises.
How can promotion influence the other elements?
Product - Life cycle of a product may influence the promotion used for it. When a product is new it will require lots of promotion compared to the maturity stage when promotion happens less
Price - a high priced, high quality product will be promoted differently to a cheaper product (buy-one, get-one-free). Higher quality product may focus more on public relations
Place - e-tailers and high street retailers operate in a competitive environment and so offer a variety of promotions to attract customers
How can place influence the other elements?
Product - the nature of the product will affect where it can be sold
Price - high-priced items will be only available at exclusive stores
promotion - heavy promotion will mean a product needs to be available at more location and for an extended time (black friday)
What is a competitive advantage?
Advantage held by a business that allows it to perform better than its competitors
How can a business gain a competitive advantage?
Innovative goods or services that exceed customer needs
New technology or buying cheaper raw materials reduces the cost of production allowing a business to sell its products cheaper
Effective promotion
Dispatching orders quickly
Offering excellent after-sales care
being available in locations and times convenient to customers
Provide great customer satisfaction
Repeat purchases
