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The marketing mix - Coggle Diagram
The marketing mix
Product
USP
Unique Selling Point - different / special about your product - features, packaging, brands ----competitive adv
Attributes
Tangible: attributes that one can touch, feel, see in a product / can be easily measures & compared. Example: leather seats, GPS system, self-parking features
Intangible: attributes that cannot be touch, seen / subjective -- x to measure / comparison. Example: beauty / style -- personal appeal / relationship / reputation
Brands
Name, symbol, personality that differentiate one brand from another ----- unique identity of the product
- Increase awareness / recognition of brand 2. Helps customer to distinguish brand A and brand B -- purchase decision 3. Assists in brand recall ---- repeat purchase 4. Basis --- build your brand story 5. Charge a premium price if --- premium image through branding (maximize profit) 6. Allows the development of new variants / products under the same brands --- success is more likely 7. Strong brand will reduce PED (less sensitive to price changes) 8. Build customer loyalty
Positioning: Customers' perception of your product / brand / services Example: Slogans (Nike: Just Do It, Walmart: Everyday Low Prices)
Positioning map - 2 main features (mapping different brands) --- gaps (areas that were not penetrated by competitors) --- developed positioning strategy
Product Life Cycle
Introduction: starting point (new product is launched into the market--- after R&D)/ Sales slow/ Awareness is Low /Negative cash flow - capital used --in promotion (high), production process/ spillover R&D -- cost
Growth: Sales increasing in a higher rate, cash flow is still negative (improving), brand awareness is higher than introduction
Maturity
Sales and profit -- maximum point (peak), cash flow is positive -- recovered expenditure in promotion, production ---EOS
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Price: Amount of $ charged to the potential customer / for the product definition / Higher price --- value added (Premium) / influence revenue/ market share/ demand
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Pricing Methods
Cost Based Pricing
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Contribution / Marginal Cost Pricing: Set price based variable cost / direct cost & decide on the contribution to the fixed cost
Market Based Pricing
Perceived-Value: Set price that reflects the value of the product (based on Cust perception) ---- worth / value product in consumer perception
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Dynamic: setting different price for different customer (based on the customer ability to pay / level of demand)
New Products
Market Skimming
High price, lower the price slowly to skim revenue layer by later (target different income groups)
Market Penetration
Low price -- enter market. To increase sales volume / increase market share ---- EOS (focus: production efficiency)
Levels of Competition
Monopolistic Competition: many buyers and sellers / charge different price range --- differentiation through branding / advertising (food and beverage, clothing)
Oligopolistic
Fewer sellers / dominant / , highly competitive
Perfect competition: large no of buyers and sellers / price similar / determine demand and supply / identical products (agricultural products)
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Place
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Transportation / warehousing / movement goods from A to B (supply) Obj: maximise coverage, customer service, cost
Promotion
ATL
Advertising (TV, radio, broadcasting) - mass market (large range of customers) / wide reach / increase brand / product awareness
BTL
PR, Sales Promotion, Direct Marketing, Personal Selling, Sponsorship
More targeted / reach out to specific target market (Selling properties -- direct interaction with the potential cust) --- objective: achieve short term sales increase / conversion (non-buyer -- buyer)