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Booklet 19,20,21,22 (Price (Pricing strategy for new products (Pricing…
Booklet 19,20,21,22
Price
Influences on price
-price elasticity
-positioning
-elements of the mix
-degree of competition
-stage in life cycle
-costs
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Distribution channels
Traditional Producer :arrow_right: Wholesaler :arrow_right:Retailer :arrow_right:Consumer
Modern Producer :arrow_right: Retailer :arrow_right:Consumer
Direct Producer :arrow_right: Consumer
Intermediaries
Wholesalers
:check: allows producers to save on storage costs,
:check: they break bulk, can help smaller retailers,
:red_cross: they add mark up so more expensive
Retailers
:check: link between wholesaler and consumer
:check: convenient for consumer
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Choice of distribution factors
Size of business - large retailers will bypass wholesaler
Type of product-characteristics of the product need to be taken into account eg might need more than one channel Technology-internet sales,particularly food shopping
Cost-each stage adds a cost
The marketing mix--PLACE-ensuring that products and services are available to consumers when and how they want
Location factors
Cost of access- free to park ?
Reputation- does the location affect it?
Localisation-near to competition?
Convenience- how convenient is location for customers?
Accessibility- easy to access,parking etc?
Placement can increase sales such as complementary products next to eachother,and end of aisle placement for popular products
Ways to increase outlets the product is stocked in
:<3: Paying commission :<3: Exclusivity deals :<3: Display materials
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Advertising occurs when firms pay for the promotion product, informative advertising is increasing awareness customers have of the product and features. whereas persuasive promotion is encouraging customers to buy the product.
Model applied specifically for advertising
Attention-creating awareness of the product.
Interest- the promoter wants us to find out more about it and trust is
Desire- to make us want the product
Action- converting the desire into a purchase
Methods of advertising
Posters :check:cheap :red_cross:not targeted
Magazines :check:focus of specific audience :red_cross:cannot guarantee they'll read
National newspapers :check:large coverage :red_cross:expensive
Television :check:memorable :red_cross:expensive
Local radio :check:cheaper :red_cross:cant guarantee customers
Internet :check:cheap :red_cross:hard to keep updated
Telephone sales :check:people tend not to be rude and hang up :red_cross:negative image
Digital Marketing is the promotion of products via forms of electronic media has meant: -More info about customers available -Relationship building with customer -Easy to target specific segments -Global sales 24/7
Advantages of digital marketing
Reduced promotion costs
Targeted marketing
Flexibility and immediate impact
Greater exposure to international markets
E commerce- buying and selling goods through electronic media :check:Saves costs :check:Fewer staff needed :check:Lower stock needs to be held :red_cross:Theres set up costs :red_cross:Security of customer detail issues :red_cross:lack of direct contact with product
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Influences on the marketing mix :diamond_shape_with_a_dot_inside: Position in product lifecycle :diamond_shape_with_a_dot_inside:Boston matrix :diamond_shape_with_a_dot_inside:Type of product :diamond_shape_with_a_dot_inside:Target market :diamond_shape_with_a_dot_inside:Objectives
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Brand-a promise to deliver certain benefits and services
Branding- process of differentiating a product from its competitors through the name,sign,symbol,or slogan linked to that product :check: higher prices can be charged cause it adds value :check:creates barriers to entry for competition :check:encourages 'repeat purchases'