Marketing Mix Chpt 22 Flashcards
(21 cards)
What Is Marketing and How Do Businesses Identify and Reach Their Target and Niche Markets to Satisfy Customer Needs?
Marketing is the process of identifying and satisfying customer needs and wants while making a profit.
A target market is the group of people to whom a business aims to sell its products or services.
A niche market is a small, specialised segment of a larger market for a particular product or service e.g. folding bikes.
What Are the 4Ps of the Marketing Mix?
MARKETING MIX:
The marketing mix is a combination of four elements that can help a business market its products to its target market and maximises profits.
These elements of the marketing mix (4Ps) are: Product, Price, Place, Promotion
What Is a Product and How Does It Meet Consumer Needs?
PRODUCT
A product is an actual item (either a physical good or a service) provided to meet consumers’ needs. In the marketing mix, the product element includes: Design, Product Life Cycle, Branding, Unique Selling Point (USP).
What Is Product Design and Why Is It Important?
Design
Design is the first stage in making a product. Well-designed products are useful, attractive, easy to use and long-lasting.
What Are the Stages of the Product Life Cycle?
Introduction: The new product is launched. Sales will be slow until consumers become familiar with it.
Growth: Sales increase rapidly as more consumers learn about the product.
Maturity: Sales growth increases at a slower pace and may start to level off, often due to competitors entering the market.
Saturation: Sales reach their peak because there are many competitors in the market and because most consumers already have the product.
Decline: Sales fall due to changes in taste/fashion or the introduction of a new or better product. The product may be withdrawn from the market e.g. Apple iPod
What Are the Stages of the Product Life Cycle?
Branding
A brand is a name, symbol, design or other feature that makes a product easy to recognise and distinguishes it from competing products. Some large shops have their own brand products. Own-label brands are generally developed by a retailer rather than by a producer.
Eg. Tesco Finest
What Is a Unique Selling Point (USP) and Why Is It Important?
Unique Selling Point
A business will try to create a unique selling point (USP) for its product or service. This is what makes the product different from its competitors.
What Is Cost-Plus Pricing and How Does It Work?
Cost-plus pricing: The business calculates how much it costs to produce a product, then adds a percentage mark-up to make a profit.
What Are the Different Pricing Strategies Used by Businesses?
Pricing Strategies
Businesses use different strategies to decide how to price their products or services.
Cost-plus pricing: The business calculates how much it costs to produce a product, then adds a percentage mark-up to make a profit.
Competitive pricing: The business sets a price that is similar to rival products. For example, Coca-Cola and Pepsi have similar prices.
Premium pricing: The business charges a permanently high price to convey an image of exclusivity or quality for example BMW cars, designer clothing, perfume.
Penetration pricing: The business charges a low price when a product is new to the market to get consumers interested in it.
Peak load pricing: A business charges a higher price during periods of high demand and lowers the selling price when demand falls.
Psychological pricing: A business may set a price slightly below a round number in the belief that consumers will see it as cheaper, for example €599 rather than €600.
What Are the Different Methods Businesses Use to Promote Products?
PROMOTION
The promotion mix is the combination of promotional activities that a business uses to communicate with existing and potential customers.
Businesses can promote their goods and services in many ways, including:
Advertising
Sales promotion
Social media
Public relations
Merchandising
Celebrity endorsement/influencers
Sponsorship
Product placement
Personal selling
What Is the AIDA Model and How Does It Guide Consumer Behavior?
The AIDA Model
A - attract attention.
I - capture the interest of the consumer.
D - create a desire for the product.
A - lead to action (purchasing the product).
What Is Advertising and How Does It Promote Products?
Advertising
Advertising involves communicating with the public to let them know about a product and get them interested in buying it.
What Are the Different Types of Advertising and What Are Their Purposes?
Types of Advertising
1. Informative advertising provides information about a product or service to the general public.
2. Persuasive advertising convinces/persuades people that they need a particular product or service.
3. Competitive advertising is used by businesses to convince people that their product is better than their competitors’ products.
4. Reminder advertising is used to remind customers that a product is still available and continues to be good value for money.
5. Generic advertising is when firms in an industry work together to produce an advertisement to persuade people to buy that particular type of product rather than a specific brand., e.g. ‘Drink more milk’
What Is the Role of the ASAI in Regulating Advertising in Ireland?
ASAI
The Advertising Standards Authority for Ireland (ASAI) is a body set up and financed by the advertising industry that ensures that all marketing communications are legal, decent, honest and truthful.
How Do Different Advertising Media Reach Different Audiences?
Advertising Media
The most common media for advertising are television, radio, newspapers, magazines, cinema, billboards and the internet.
What Is Sales Promotion and How Does It Attract Customers?
Sales Promotion
Sales promotions are incentives offered to customers to attract them to buy products:
Free samples
Loyalty card schemes
Buy one, get one free (BOGOF)
Money-off vouchers
)
Gifts with purchase
› Competitions
Bonus packs, e.g. 50% extra free
What Is Public Relations and How Does It Benefit a Business?
Public Relations/Publicity
Public relations is used to help create a positive image of the business This may be achieved by organising charitable events, giving back to the local community or by minimising any negative story about the business.
What Is Celebrity Endorsement and How Does It Benefit Businesses?
Celebrity Endorsement/Influencers
Many companies provide free products to influencers who will tell their followers about the products on Instagram, Snapchat or Facebook.
What Is Sponsorship and How Does It Benefit Businesses?
Sponsorship
Businesses sometimes sponsor events, sports competitions, teams or venues.
They do this by providing financial support in return for promoting the business and/or its products.
How Do Businesses Use TV Shows and Movies for Product Placement?
Product Placement
Businesses often pay a lot of money for their latest products to appear in TV programmes or movies.
How has merchandising impacted advertising?
Merchandising
This can involve using in-store displays and promotions designed to generate consumer interest in a specific product.
