2877446
Description
Mind Map by jakeyboihc, updated more than 1 year ago
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Created by jakeyboihc
about 9 years ago
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THE MARKETING MIX
- DEFINITION:
The marketing
mix is a tool
used in
marketing to
best ensure
successful
marketing of a
product or
service.
- PRICE
- PRICING STRATEGIES
- PRICE SKIMMING:
High price attract
high social economic
groups
- PRICE TAKING:
Use the same
price as your rivals
- PENETRATION PRICING:
Low price to attract
market share
- PRICE LEADERS:
Dominate the market
and can set the price
- PRICE SKIMMING:
High price attract
high social economic
groups
- PRICING TACTICS
- LOSS LEADER:
Selling one item at a
loss with the aim of
attracting customers
to your business (e.g
petrol, tesco milk)
- PSYCHOLOGICAL PRICING:
Pricing that uses a number that
makes the product appear
cheaper (e.g 99p, £1.47)
- LOSS LEADER:
Selling one item at a
loss with the aim of
attracting customers
to your business (e.g
petrol, tesco milk)
- PRICE ELASTICITY:
The responsiveness
of a change in
demand to a change
in price
- MORE RESPONSIVE = ELASTIC
e.g. price increase by 20%,
demand falls by 30%. Bad for a
business, lots of substitutes lack of loyalty.
- LESS RESPONSIVE = INELASTIC
e.g. price increase by 10%,
demand falls by 5%. Good for a
business, few substitutes, brand loyalty.
- MORE RESPONSIVE = ELASTIC
e.g. price increase by 20%,
demand falls by 30%. Bad for a
business, lots of substitutes lack of loyalty.
- PRICING STRATEGIES
- PROMOTION
- The right promotional method will
take into consideration factors such as;
cost, target market, customer
expectations, competitor actions.
- ABOVE THE LINE:
Promotion that is evident
to the whole market
- BELOW THE LINE:
Promotion that's
controlled and
more targeted
- The right promotional method will
take into consideration factors such as;
cost, target market, customer
expectations, competitor actions.
- PRODUCT
- The key to success is to have a good product.
- ESTABLISH USP:
Something that
makes the product
stand out to the
consumer and
different to their
rivals.
- ESTABLISH USP:
Something that
makes the product
stand out to the
consumer and
different to their
rivals.
- Factors influencing the
development of new products/
services include:
- Technology available
- Competitors actions
- Entrepreneurial
skills of
managers/owners
- Technology available
- A company with a range of products
will have a product portfolio. The
boston matrix can be used to assess
the position of each product.
- A company with a range of products
will have a product portfolio. The
boston matrix can be used to assess
the position of each product.
- BOSTON MATRIX
- PRODUCT LIFE - CYCLE
- The product life cycle is a tool that can
be used to assess the life span of a
product and when extension strategies
need to be used.
- The product life cycle is a tool that can
be used to assess the life span of a
product and when extension strategies
need to be used.
- The key to success is to have a good product.
- PLACE:
Where the
product is
sold or
how it is
distributed
- Distribution channels include;
- Business to business
(B2B) (Traditional)
- Business to consumer
(B2C) (Direct)
- Business to business
(B2B) (Traditional)
- Placement is important as if
you sell your product in the
wrong place then you will not
maximise your sales potential.
e.g you wouldn't sell
computers in a leisure centre.
- Distribution channels include;
Media attachments
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