2.2 Making Marketing Decisions

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  • Created by: pinkbeer
  • Created on: 13-01-20 16:36
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  • Making Marketing Decisions
    • Design Mix
      • Function
        • How well the product does its job
        • Two of the same product may have different functions
        • It is also how easy the product is to use
        • Improving the products functionality is a way a business can improve their product
      • Aesthetics
        • Refers to the look, feel and visual of the product
        • Very important for some products but doesn't matter for others
        • Often it is the most important element
      • Cost
        • A product has to be financially viable for the business to succeed
        • Some products have low production costs but this some times means the function and the aesthetics are not as good
    • Product Life Cycle
      • Introduction
        • Research and development and launch of a product
        • Sales are low as not many people about the product
        • Will not be making any  profit yet and will need a lot of promotion
      • Growth
        • The product becomes more popular and sales rapidly increase
        • Must keep up with demand and may increase the price
      • Maturity
        • Sales have peaked and are likely to receive repeat purchases
        • Will use promotion strategies to remind customers about the product
      • Decline
        • Sales start to drop and product loses popularity
        • Will start to lower the price and use a range of promotional tools
      • Extension Stratergies
        • An action taken to try and extend the product life cycle
        • Lowering Prices
        • Increasing Advertising
        • Rebranding
    • Differentiation
      • Ensure product provides unique features
      • Give the product a unique style/ design
      • Create and use a distinctive brand
      • Provide excellent customer service everytime
      • Ensure product is of high quality
    • Promotion Strategies
      • Advertising
        • When a business pays to put out and advert to communicate a message
        • Colour humour imagery and emotive language are used to grab attention
        • Advert placed at the right time can have a massive impact on product awarness
        • May cost a lot and hard to analyse impact
        • Choice of advertising will depend on size of business, nature of market and type of product
        • will choose the best advertising based off of their target market
      • Sponsorship
        • When a business supports an event, activity, person or organisation either financially or providing it with a product or service
        • Encourages positive consumer attitudes, and generates awareness of its product or service
      • Product Trials
        • Free access or giveaway of a product to encourage potential customers
        • Very expensive an dused in the introduction phase
      • Special Offers
        • Boost sales over a short period of time
        • Used to entice customers into the shop and also to clear stock
      • Publicity
        • Any communication about a business it can be good and bad
      • Branding
        • Way in which people recognise a company. Creates brand loyalty
      • Technology
        • Targeted Advertising
        • Social Media and viral advertising
        • Apps
        • Emails and  E-newsletters
    • Price
      • Base of popularity, brand loyalty and similar products
      • High Volume
        • Producing a lot of a product for a low cost
        • Low production costs and low price
      • High Margin
        • Try and maximise the gap between cost and price
        • Very few will buy so not produce a lot
      • Technology
        • Able to change price based on demand
        • Able to sell products on free games
        • Easy to compare prices
      • Competition
        • If competition is high prices are set low
        • If low competition prices will be higher
      • Market segment
        • In mass markets prices will be lower
        • In niche markets prices will be higher
    • Place
      • Retailing
        • Selling products through a physical building
        • Face to face support, able to trail product
        • Physical retail is a sign of long-established and trustworthy business
        • Have to pay rent and manufactures have to reduce their margin
      • E-tailing
        • When product or service is sold directly through a website
        • Lower rent costs, can access national and international markets and startups are easier to set up
        • Allowed new markets to grow
        • Customers worried about the quality and buying of fake websites, have to manage own distrubution costs and have to undertake alot of marketing
    • Marketing Mix
      • For a business to work it must have an integrated marketing mix
      • Usually one element will be more important than the others
      • A competitive advantage must be sustainable and difficult for a rival to replicate

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