Theme 1 - section 3 (marketing mix and strategy) Flashcards
(44 cards)
Promotion is designed to ……
Inform consumers about a product, or persuade them to buy it.
Positives of advertising through the media
- Target customers
- Can be expensive (at prime times)
- Easy way to reach out to customers.
- can be cheaper in general
Negaives of advertising through the media
- May be ignored to to vast competition
- cost must be worth it
- follow legal contrasts
Ways of promotion that dont involve advertising are….
- sales promotions ( BOGOF deals )
- Mail shots
- Personal and direct selling
- Event sponsorship
- Public relations.
Branding creates …..
A clear and obvious name, logo or statement.
Corporate branding…..
This is how a business presents itself. Within corporate brands there may be seperate product brands, e.g. Kellogs
Product branding……
Relates to specific individual products that a coorporate brand makes.
- usually hasits own logo and slogan.
- e.g. rice crispys
Own branding
Brands that are in house to a supermarket or retailer.
- usually sold at a cheaper price
- e.eg tescos finiest
sometimes products need …..
re branding
Benefits of strong branding
- add value
- less price elastic
- percived as higher quality
- brand loyalty
- harder for newcomers to enter market.
ways to build a brand …
- create a USP
- Advertising
- sponsorship
- viral marketing
- communicating through social media
channels - Emotional branding
Factors that can effect pricing decisions
- customer pereferances
- PED of a product
- stage of life cycle
- businesses objectives
- Level of competition
- how strong the usp is
what are all the pricing strategys
price skimming
penetration pricing
cost plus pricing
predatory pricing
competitive pricing
psychological pricing
price skimming
New products are sold at high prices when they first enter the market, trying to gain a strong brand image.
Penetration pricing
Launching a product at a low price in order to attract customers and gain market share.
cost plus pricng
firm adds a percentage mark up to the costs of making or buying a single product
predatory pricing
when a fim deliberately lowers prices in order to force anothere firm out of the market.
competitive pricing
when a business monitors and bases their prices based off competitors pricing.
psychological pricing
firms base the price off customer expectations. e.g instead of selling a product at £4 , they would sell it at £3.99
what is a channel of distribution ?
the route a product takes to get from a manufacturer to a consumer.
what are retailers ?
shops who sell to consumers.
What are wholesalers ?
Organisations who buy goods from manufacturers in bulk and sell them in smaller quantities retailers. They make distribution simpler.
What are agents
people who sell products to customers on behalf of the business
Direct selling ( stage 2 channel )
manufacturer -> consumer
