Marketing

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  • THE 4 P's
    • Promotion
      • Advertisment
        • Paid-for method of promotion
        • Main form of "above the line" promotion
      • Public relations & sponsorship
        • Broad series of activities involving a businees managing its relationships with different parts of the public.
      • Personal selling
        • Businesses use people to sell products once meeting face-to-face.
      • Direct marketing
        • Describes a range of promotional activities that are aimed directly at the customer.
      • Sales promotion
        • Used to persuade a potential customer to buy the product.
    • Place
      • Retailers
        • Final step in the chain.
        • Focused on consumer markets.
        • Specialist chains
        • Department stores
        • Convenience stores
        • Independents.
        • Franchises
      • Wholesalers
        • Stock a range of products from different producers.
        • selling onto retailers
        • Usually specialise in particular products. e.g. Food poducts.
      • Franchises
        • Independent businesses that operate a branded product.
        • Often used by businesses that want to expand.
      • Distributers
        • Similar to wholesalers
        • Taking products from producers and selling them on.
          • Often sell onto the end customer instead of a retailer.
        • After-sale services.
      • Agents
        • Sell the products and services of producers in return fro commision.
    • Price
      • Competitors
        • a huge impact on pricing decisions.
        • influences whether a business can set prices independently
      • Costs
        • A business cannot ignore the costs of production.
        • In th elong term, a business will fail if it sells at a lower price then normal.
        • gross profit margin is too low to cover the fixed costs then it will fail.
      • The state of the market for the product
        • If there is a high demad for a product, but a shortage of supplies a company can up their prices.
      • The state of the economy
        • Some products are more sensitive to changes in umemployment etc.
        • Luxury products will need to have drop their prices when the economy is in turndown.
      • Bargaining power of the customer
        • Who are the buyers of a product?
        • Do they have any bargaining power over the price set?
        • An individual consumer has little bargaining power over a supermarket.
      • Other elements
        • Distribution channels used will affect price.
    • Product
      • Core Benefits
        • What the product does - the main functions of the product.
      • Tangible or physical elements
        • What the product is made of - What it looks like.
      • Augmented benefits
        • The extra elements of the product which adds to the percieved value of the product.
      • Market Research
        • Find out what customers want
        • Who they are
        • Where the gaps are in the market.
      • Product development and testing
        • Making prototypes.
        • experiment by allowing a sample of potential customers to try the product.
      • Distribution of produts to outlet
        • The product cannot be sold unless it is in the position where customers WILL by it
      • Promotional Launch
        • To inform the customer of new features
        • The customers need to know when the product is ready. etc...
  • Price
    • Competitors
      • a huge impact on pricing decisions.
      • influences whether a business can set prices independently
    • Costs
      • A business cannot ignore the costs of production.
      • In th elong term, a business will fail if it sells at a lower price then normal.
      • gross profit margin is too low to cover the fixed costs then it will fail.
    • The state of the market for the product
      • If there is a high demad for a product, but a shortage of supplies a company can up their prices.
    • The state of the economy
      • Some products are more sensitive to changes in umemployment etc.
      • Luxury products will need to have drop their prices when the economy is in turndown.
    • Bargaining power of the customer
      • Who are the buyers of a product?
      • Do they have any bargaining power over the price set?
      • An individual consumer has little bargaining power over a supermarket.
    • Other elements
      • Distribution channels used will affect price.

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