marketing mix

• market mix: promotion, place, product, price
• product: the actual product/service

  • quality
  • packaging
  • branding
• price: how much customer pays for the product

  • pricing strategy
  • price elasticity
• promotion: how the customer is made aware and persuaded to buy the product

  • advertising
  • public relations
  • relationship marketing
• place: how the product is distributed to the customer

  • market coverage
  • distribution channel
• benefits of market mix:

  • helps the business remain relevant
  • helps compete against rivals/competitors
  • the business may fail if new products are not developed as it loses attraction from customers
• however new products maybe expensive
• branding: using a name, symbol or design to differentiate and identify particular product
• brand image can be destroyed if needs are not met of the customers
• premium prices can help with the brand reputation and customer loyalty and more people are willing to pay the higher price

  • also helps when launching products as they are more recogniseable to customers
• purpose of branding:

  • create + maintain customer loyalty
  • expand product ranges
  • differentiate products
  • aids in recognition
  • charging premium prices
• purpose of packaging:

  • promote the product
  • differentiate the product
  • protect the product from damage
  • makes it easier to use
  • makes the product easy to transport, store and display
• stages of product cycle:

  • introduction
  • growth
  • maturity
  • decline
  • extension
• introduction features:

  • low sales
  • high cost per customer
  • financial losses
  • innovative customers
• growth:

  • increasing sales
  • profits rise
  • increasing number of customers
  • more competitors
• maturity:

  • peak sales
  • cost per customer is lowest
  • high profits
  • mass market
  • stable number of competitors
• decline:

  • falling sales
  • profits fall
  • cost per customer is low
  • customer base contracts
  • number of competitors fall