Marketing Mix Flashcards
(41 cards)
Define the marketing mix
The combination of marketing that influences a customers decision to buy
What are the 7 Ps?
Product
Price
Place
Promotion
Physical environment
Process
People
Describe product
The product itself including features design reliability guarantees after sale service (it can be a service too)
Describe price
The prices of all versions of the products and payment terms
Describe place
Distribution channel I.e how the product moves from the producer to the final customer eg can the customer buy direct from the producer
Describe promotion
How the business communicated about its product
Describe people
The people (employees ) involved in the transaction. The skills and attitude affect customers perceptions of the product.
Describe physical environment
The physical premises -how this looks affect your perception of the product
Describe process
How you buy the product eg internet , mobile phone payments , queueing at tills? How easy is it ? Customer experiences ?
What are the internal reasons why the marketing mix may have to change?
Changes in available finance could affect price promotion or product
changes in staff could affect people and products (skills changing)
greater efficiencies meaning prices can be loaded
changing objectives for example improving product to try and get repeat customers
What are the external reasons why the marketing mix may have to change ?
Political and legal – if the legislation changes products may have to be adapted for example product safety or labelling
Economic -if as a recession the prices may have to be lowered and vice versa
Social – trends towards social responsibility (to be environmentally friendly )
Technological -may make changes to product possible or allows alternative payment options (process)
Competition-if this increases then the features may need to change and be promoted more
What is a consume product ?
Products bought for consumption by the general public e.g luxury goods, everyday goods, impulse purchases
How does marketing mix affect luxury goods?
People and physical environment are very important
Promotion is targeted
Price is less important
Distribution channels may be limited
How does the marketing mix affect everyday goods?
Distribution channels are very wide
Physical environments is less vital
People are less vital
How does the marketing mix affect regular purchases?
Price product and promotion are very important
What are industrial products
Products sold to businesses for use in their own processes
If a business sells industrial products what are professional buyers like?
Less interested in packaging or branding and are more interested in the technical performance of the product
Will want to understand how the product gives value for money and helps to improve competitiveness (could affect the price and people elements)
Process of purchase would also be important for the business
What does the product consist of ?
The core benefit eg drier dries clothes
The tangible product I.e its features , specification
The augmented product I.e the extras such as brand name ,guarantee , after sales service
Why is product often viewed as the most important element?
If the product isn’t right customers aren’t going to buy again (lack of repeat custom )
What is product differentiation.
Developing and marketing a product that is distinctly different to rival products . It’s the USP or point of difference
How could a business achieve product differentiation?
Different features than rivals
Ethically sourced goods
Better quality than competitors
Offer a guarantee that rivals don’t
Benefits of product differentiation
Can charge a higher price (premium pricing )
Could create price inelastic demand (becomes very niche )
What is the product life cycle ?
Shows the sales of a product over time
What are the five main stages of the product life cycle ?
Development
Introductions
Growth
Maturity
Decline
