Making marketing decision

• Market mix topics


  1. Product

  2. Price

  3. Promotion

  4. Place
• Design mix


  • Priorities a business has when designing a product or service: Aesthetics, Function, Economic/Manufacturing cost
• Product life cycle


  Stages a product goes through over time: Introduction, Growth, Maturity, Decline
• Product reaches decline phase

  Business may implement an extension strategy to extend the product's life
• Technology products often have short life cycles due to rapid innovation
• Differentiation


  Creating a way to make a product stand out from the competition
• Not all businesses want to differentiate, some focus on low price
• High price


  Product must be of sufficient quality, may result in lower sales volume but higher profit margins
• Low price


  Product is likely less differentiated, may result in higher sales volume but lower profit margins
• Factors affecting price


  • Brand
  • Technology
  • Competition
• Advertising methods


  1. TV

  2. Radio

  3. Print

  4. Online
• Advertising aims to target the appropriate audience
• Advertising


  Linking towards target audience
• Advertising on TV


  • Advertising around Love Island for targeting young women/teenage girls
• Advertising on TV


  • Advertising during a football match for targeting people interested in sport
• Advertising on radio


  • Advertising on Classic FM for targeting older audience
• Advertising in print


  • Advertising in children's magazines for children's toys, in men's/women's health magazines for sports equipment
• Online advertising


  Can gain a wide audience, especially for mass market products
• Sponsorship


  Paying an event or individual to use or advertise a product
• Sponsorship in sports


  • Teams sponsored with logo on shirts, players sponsored with branded equipment
• Sponsorship


  • Sponsoring TV programs, events
• Branding


  Logos and brand names can be a differentiating factor and powerful form of advertising
• Putting a Nike logo on a t-shirt can increase the price from £5 to £25
• Offers and sales


  Can increase sales but risk devaluing the perceived value of the product
• Offers and sales


  • Domino's Pizza, buying Newcastle United training gear at end of season sale
• Product trials


  Offering samples to encourage trial of new/unique products
• Social media advertising


  Allows for targeted advertising based on user data and history
• Retailer


  Organization that sells products directly to customers
• 1. commerce


  Selling products online
• 1. tailer


  Online retailer that sells products from multiple brands, not just their own
• Direct distribution channel


  Producer sells directly to consumer
• Indirect distribution channel


  Producer sells to wholesaler, who sells to retailer, who sells to consumer
• Indirect distribution channels allow businesses to focus on production rather than logistics, but result in higher prices for consumers
• Market mix


  All elements of marketing (product, price, promotion, place) must work together cohesively