2.4 the marketing mix pt1
- Created by: hanfa
- Created on: 18-12-20 21:44
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- 2.4 the marketing mix is made up of the 4P's : product, price, promotion and place
- place: physical and digital distribution:
- physical distribution: movement of goods from producer to consumer.
- channel 3: producer to wholesaler to retailer to consumer: like baked beans
- chanel 1: producer to consumer like farms.
- channel 2: producer to retailer to consumer: like electronics
- digital distribution: the consumer can download directly from the seller like music or Netflix. 24/7 availability and no extra costs required. but physical goods cant be distributed, its competitive and customers are sceptical about online
- physical distribution: movement of goods from producer to consumer.
- price: decisions made to make a profit, like how new a product is, the quality, the number/nature of competitors, the costs, customer knowledge etc.
- pricing methods:
- skimming: a high price is charged for a new better product to make a large profit then the price is reduced when the competitor starts to sell.
- cost-plus pricing: cost is calculated and an amount of profit is added on to ensure a profit is always made,
- promotional packaging: price is lowered to persuade customers to buy stock that remains, or if sales are slowing down.
- competitor pricing: business looks at competitor prices before deciding, depending on the product the business bases it around theirs.
- penetration: a low price is charged to persuade customers to try it, then the price increases when sales grow
- pricing methods:
- promotion: to inform the customers about what is for sale and persuading them to buy the main 2 are point of sale and advertising.
- point of sale promotions: a benefit the customer will receive when they purchase the product
- price reductions: to sell off old stock but this means the business will make less profit.
- competitions: form of voucher or something to enter a competition with buying the product.
- loss leaders: some goods are sold at a loss to encourage customers to shop there
- free samples: given to tempt people into buying a product.
- advertising: giving the customer info about the product and persuading them to buy it.
- television: often expensive but reaches a wide audience and advertisers know what crowd watches each channel.
- websites: lots of information published to potential customers, but would cost lots to maintain.
- print media: mostly local, targets a range, usually jobs but can easily get ignored,
- radio: cheaper than TV but products cant be seen only verbal.
- social media: cheap method reaches large numbers of people but might not reach everyone like older crowds.
- point of sale promotions: a benefit the customer will receive when they purchase the product
- product: the business must design, invent or innovate so they make a product customers want to buy.
- design: when a business plans what a product will look like and what it will do,
- invention: when the business comes up with a new product or service
- innovation: when a business improves a product which already exists.
- the product life cycle refers to the 4 stages a product will go through
- introduction: the product is new, sales are just beginning
- growth: sales grow quickly
- maturity: sales reach their peak
- decline: sales begin to fall
- place: physical and digital distribution:
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