CH5 Flashcards
What is marketing mix
Set of marketing tools that a marketer can control in order to deliver satisfaction to his target market
What are the promotion mix or the marketing communication mix
- Product
- Price
- Place
- Promotion
What are the marketing mix strategies
Product mix strategy
pricing mix strategy
Distribution
Promotion
What is product strategies and the 2 major levels marketers formulate and implement product strategies
Company’s decisions and actions related to the management of it’s products
-Product line level
- Individual product level
Important issues marketer needs to consider at the individual product level
- Product attributes
- quality, features, design and style etc
- Branding
- brand image
- Labelling
- can identify products, describe product features and promote product
- Product support services
- delivery, instillation and repair etc
2 common characteristic of product line level
- similar production requirements
- satisfy the same or similar consumers with similar needs
2 ways product line may be expanded
- Line filling : downward and upward stretching, by adding prodcuts
- Line stretching : provide more choices to keep competitors away
What is pricing strategies
Company’s decision and actions related to setting of prices for it’s products
Factors affecting pricing strategy
Internal factors: marketing objectives, marketing mix strategies, costs
External factors: nature of market, consumer demand, competitor’s strategies
4 major marketing objectives that may affect pricing decisions (within internal factors)
- Survival
- lower cost to retain customers - Current profit maximization
- increase price for higher profit - Market share leadership
- increase market share, earn profits in the long run - Product quality leadership
- increase price
Different nature of markets ( external factor)
- Perfectly competitive market
- undifferenciated product
- all follow each other and set similar pricings - Monopolistically competitive market
- highly differentiated product - Monopoly
- 1 company or supplier e.g mtr - Oligopoly
- only a few competitors
2 different pricing strategies for new products
- Market skimming: set high initial price price to get revenur from those who are willing to try out new products
- Market penetration: set low prices to attract those who are curious to try new products
What is distribution strategy
Company decisions and actions that are aimed at making it’s products more accesible to target consumers
Steps of designing the marketing channel
- Analyze market needs
- Set channel objectives
- Determine types of intermediates
- Determine no. of channel levels
- Determine no. of channel members at each level
- intensive
- extensive
- selective
What is promotion strategies
Company’s decisions and actions regarding how to communicate merits of it’s products to target consumers
