2.2 Making Marketing Decisions
- 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
- Function
- 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
- Introduction
- 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
- Advertising
- 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
- Retailing
- 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
- Design Mix
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