2.2 Marketing Mix Flashcards
What are the 4 Elements of the Marketing Mix?
Product
Price
Place
Promotion
Describe the ‘Product’ element in the marketing mix
Product Range - A range of products is offered
Product Differentiation - Selling a range of products
Describe how the price element works in the marketing mix
When deciding a price for products, a business needs to consider:
Prices charged by competitors
How prices can be used to increase sales of the product
Will prices cover costs of production?
Economies of Scales (Buying in Bulk)
Give some methods of promotion
Advertising (local press) Free Publicity Recommendation (word of mouth) Direct Mail (Letters, leaflets) Personal Selling Own website Banners/Popups on other websites
What are the advantages and disadvantages of some methods of promotion?
Advertising:
Advantage - Raises awareness of the product
Disadvantage - Costs money and newspaper will be full of adverts
Free Publicity:
Advantage - Free Advertising as local press have written the story
Disadvantage - Feedback can’t be controlled
Recommendation (Word of Mouth):
Advantage - Free and Quick
Disadvantage - Message might be turned into negative publicity
Direct Mail:
Advantage - Suitable to local area
Disadvantage - Mostly ignored
Personal Selling:
Advantage - Get instant feedback
Disadvantage - Ignored by people and time consuming
Own Website:
Advantage - People can find more information, cheap to set up, can be updated and everyone can see it
Disadvantage - People may not be aware about the website
Banners/Popups on other websites:
Advantage - Easy to grab attention but attractive to design
Disadvantage - People get rid of them as they can be annoying
How does a business select suitable methods?
According to their budget (Budget is usually small)
Give the definition of a wholesaler
Buying large quantities of products from suppliers but selling it in smaller volumes to retailers
Give the definition of a retailer
Shops that sell to a customer the products they have purchased from other companies
