MARKETING MIX
- Created by: Caitlin Christie
- Created on: 15-05-17 14:05
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- MARKETING MIX
- Price
- Refers to the amount of money a firm requires in return to provide the good/service
- Factors influencing price
- The nature of the product
- Luxury goods with a reputal brand = high price expectation
- Products which are necessities e.g. bread = Customers know what to pay
- Level of Competition
- Price consumers are willling to pay (PED)
- The cost of production: ALL costs must be covered to make a product
- The nature of the product
- Pricing strategies
- Competitive pricing
- Price is set at the same price as competitors or slightly lower
- Penetration pricing
- Product is priced low to attract consumers > creates loyalty then price is increased
- Predator/ Destroyer Pricing
- Prices set so low to drive out competition. Once competititon is out, price increases
- Psychological pricing
- Prices set at lower prices i.e. 99p. Designed to convince customers they are getting a good deal
- Skimming/ Creaming
- Launching a new product: prices set extremely high and gradually reduced
- Cost plus Pricing
- Firm calculates average cost then adds on a markup based on target profit
- Competitive pricing
- Product
- refers to anything which is offered for sale on a market that is capable of satisfying consumers
- Layered Product Model
- Benefit "core": highlights for the consumer the benefits gained when buying a product e.g. food = to satisfy hunger
- Actual product: what draws you to the actual product e.g. colour
- Augmented product: other add-ons which can influence the purchase e.g. free delivery/ returns
- Product Life Cycle
- Place
- The means by which the product will be distributed at a time and location convenient to the consumer
- Channels of Distribution
- Refers to the system of organisation through which goods and services are transferred from the manufacturer to the final consumer
- Choosing a distribution channel
- Cost of distribution channel
- Level of control: how much manufacturer can dictate in terms of % markup, shelf space and advertising
- Geographical coverage
- Reliability of the channel
- Methods of transport
- Road
- Rail
- Air
- Sea
- Pipeline/ Cable
- Physical Environment
- Where the company operates - working environment e.g. e-commerce = website, shop = shop layout, welcoming, lighting, etc.
- Processes
- Any system employed by the business to get to consumer e.g. ICT, clock in/out, delivery tracking
- People
- All about employees - training is incorporated here to ensure staff can deliver a professional service
- Promotion
- The process by which businesses communicate information about their products in an attempt to persuade consumers to purchase them.
- AIDA Model
- The stages a consumer goes through before making a purchase.
- Promotional Strategies
- Advertising
- refers to the process of drawing attention to a brand, product or company.
- Sales promotion
- Price discounts
- Loss leaders: made to draw in customers
- Point of sale: e.g. chewing gum beside till
- Sponsonship
- Public Relations
- Showing that you are a reputal brand. Allows company to create a positive image, establishing good will amongst their customers while subtly advertising their brand
- Charity events, prduct placement, sponsoring award ceremonies
- Advertising
- Price
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