Marketing
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Actual Text
- The Marketing Mix
- Product
- General
- The most important factor of the marketing mix
- Without the product, a business cannot function
- Different types
- Consumer goods
- Consumer services
- Producer goods
- Producer services
- The most important factor of the marketing mix
- Branding
- If the unique features and image of the business are combined, it is known as the brand
- The product and the image of the business will be related
- The brand is a name/logo/slogan to assist the consumer in recognition of a product
- The brand distinguishes products or businesses
- The customer recognises a product with a brand
- The customer relates the qualities of the brand to the product
- The brand can help persuade the purchase of the product
- The customer relates the qualities of the brand to the product
- The customer recognises a product with a brand
- Businesses use branded products to gain loyalty
- By creating a status related with the brand
- A branded product is a guarantee from the business that the product in question is a particular quality
- A successful product
- Satisfy needs/wants
- The product is useful to the consumer and they are willing to buy it
- Design
- Quality
- Consistency
- Performance
- Brand
- Competitive advantage
- Differentiation from the rest of the market
- Cost
- Make a profit
- Opportunity cost
- The customer is sacrificing buying something else
- Satisfy needs/wants
- Developing a product
- 1. Generate ideas
- The idea of the product
- Input is obtained from a variety of sources
- Employees
- The market
- 2. Research/filter the ideas
- Research is done to
- Check the capital required
- Does the product align with the brand of the business
- Skills required
- Raw materials needed
- Research is done to
- 3. Perform viability and feasibility studies
- Feasible
- Is the product practice to implement
- Viable
- Can the product generate profit
- Feasible
- 4. Build a prototype
- This is to check if there are any problems in the manufacturing process
- 5. Test the product
- Deploy the product into a small group of the market segment
- 6. Launch
- Sell on a bigger scale
- 1. Generate ideas
- The product life cycle
- 1. Development
- 2. Introduction
- Introduced into the market
- Lots of sales
- High demand
- Little profit
- Paying off costs
- 3. Growth
- Promotional strategies implemented
- Starts making profit
- Engage with customers for loyalty
- 4. Maturity
- Product saturation
- Business relies on customer loyalty
- 5. Decline
- Trends and tech change
- Introduction of new products
- Businesses will put products on sale to get rid of remaining stock
- 6. Extension
- New variation
- Colour
- Size
- Flavour
- New markets
- Try to get a new demand
- Development
- Develop the existing product further by adding something new
- Example: “S” models of the iPhone
- Develop the existing product further by adding something new
- Distribution channels
- Improved or expanded
- To make the product more accessible
- Improved or expanded
- Promotion
- Promotional strategies implemented
- Cost
- Different pricing strategies
- New variation
- Packaging
- Is important because
- Protects the product
- Makes the product easier to handle
- Can assist in the transportation of the product
- Can be used as part of a promotional strategy
- Relates the product with the business’s brand
- Can contain important labels
- Can assist with product differentiation
- Is important because
- General
- Promotion
- General
- Giving customers the necessary information about the product
- The message focuses on the advantages of the product
- The aim is to create a need for a product
- Consumers must think that they cannot do without the product
- Inform the customer about the product offering
- Introduce new products to the consumer
- Compete for competitive advantage
- Create or improve brand image
- Giving customers the necessary information about the product
- Promotional Mix (ASPP)
- Advertising
- Sales promotion
- Personal selling
- Publicity
- Advertising
- General
- Place
- General
- It is important to get the product to the customer
- The more intermediaries, the higher the cost
- Factors affecting place/distribution
- Type of product
- Perishables need to reach customers quickly
- Location of customers
- Size of the area changes the distribution channel
- Purchase timing
- When do customers buy the product
- Competitors
- How do competitors get the product out
- Type of product
- General
- Price
- Factors determining price
- Business needs to make a profit
- How much the customer is willing to pay
- How does the price relate to the quality of the product
- Competitor’s prices
- The brand of the business
- Pricing strategies
- Price skimming
- When the product is first introduced into the market a high price is set
- Because of high demand
- A business with a good brand image will do this
- For example: Apple
- When the product is first introduced into the market a high price is set
- Cost-plus pricing
- There is a markup percentage on products
- Psychological pricing
- For impulse buys
- R9,99 instead of R10
- Associate a high quality with the product
- For impulse buys
- Penetration pricing
- When a new business enters the market without an established brand image
- A low price is set in order to differentiate the product
- When a new business enters the market without an established brand image
- Competitive pricing
- The price is set relative to competitors
- Promotional pricing
- A low price is set on certain items in order to promote the product
- Loss-leader pricing
- Items are heavily discounted to attract people into the store
- The discounted items are placed in corners of the store in order to get other items high foot traffic
- The increase in sales of other products makes up for the discount
- Items are heavily discounted to attract people into the store
- Price skimming
- Factors determining price
- Product
- Marketing
- Market segmentation
- The idea is to target a market that will return the investment of the business sufficiently
- Examples of market segments
- Income groups
- Age
- Location
- Gender
- Lifestyle
- Culture
- Definition
- Marketing can be described as all activities relating to the business and the customer’s decision to buy or not to buy the product or service, based on different experiences relating to the business
- Context
- The market
- A market is a place where goods and services are sold
- A market can exist
- Online
- In a store
- Product-orientated
- Focuses on the ____ to produce the product
- Skills
- Knowledge
- Systems
- Research is focused on the product
- Focuses on the ____ to produce the product
- Market-orientated
- Focuses on what the customer needs/wants
- Heavy emphasis on market research
- Successful business
- Combines both approaches
- The market
- The marketing process
- 1. Market research and development
- Determining behavioral patterns of the consumer
- The product they want
- Including packaging
- The price they expect
- Where they expect it
- How they expect to know about it
- Channels of communication
- The product they want
- Determining behavioral patterns of the consumer
- 2. Promotion
- Informing the consumer about the product
- 3. Logistics and distribution
- The movement of the product to get it to the target market on time
- 4. Sales
- The transfer of ownership from business to consumer
- 1. Market research and development
- The aims of the marketing function
- Create and maintain a competitive advantage
- Develop new products or services or improve current offerings
- Identify new markets for expansion
- Local and global
- Market segmentation