Marketing Mix Flashcards
What are the 4 P’s in the Marketing Mix?
Product, Place. Price, Promotion
What does an effective marketing mix achieve in term of buisiness objectives?
It allows a business to have an increase number of sales and therefore market share, and also increase the business’s profit.
What does an effective marketing mix achieve in term of buisiness objectives?
It allows a business to have an increase number of sales and therefore market share, and also increase the business’s profit. It is also used to develope customer loyalty and create a unique selling point.
Businesses considers what things when making a product?
Functionality, reliability, durability, suitability and packaging, and fashionable and in keeping with social trends.
Give an example of a product and how it is or can be developed to further ensure that they meet the need of the consumers?
Kia Sportage (Target Audience - Families): bigger car, sun shade, USB charging in back seats, more safety features.
What are the 2 most common pricing strategies?
Price Skimming-High initial price and lowers it over time. Penetration Pricing-Attract customers with low price initially and then raise the price
How is price skimming an effective pricing stategy?
It first charges the highest price fot customers who are willing to purchase it at the highest price to get the lastest thing called “early adopters”. The price the gradually goes down to attract more audience.
How is penetration pricing a good strategy?
Is attacts customers with its low inital price and helps it penetrate the market and attract consumers away from competitors.
If the wrong price is chosen, this could…
Lead to decreased sale and profit as less customers are willing to pay for your product and will go towards your competitor.
It’s Important to consider your target market when developing your product as…
If you effrectively satisfy your customer’s needs, they will gravitate towards your and establish a good brand reputation and customer loyalty.
What does place refer to?
It refer to where the product will be sold and how it will be distributed.
What are the considerations when it come to place?
Where will people be looking for youyr product?
Will they need to hold it in their hand/try it on?
Will you use third party sellers or not?
What are examples of products and the typical places that they will appear in? (e.g. surf board-near a beach)
Wedding dress: cities
Affordable swedish design funiture: highly populated area+easy to get to.
Fast food: Near a large shopping district, schools, sport stadiums, etc.
It’s important to consider your target audience when deciding where to retail your product as…
it may allow your audience to easily and effectively access the products. If it is in the wrong place, there will a decrease number of sales as less of your target audience is going to see it and this will result in decreased profit.
What does Promotion refer to?
It is how the product will be advertised.
