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1.3 Marketing mix and strategy - Coggle Diagram
1.3 Marketing mix and strategy
1.3.1 The Design mix
Design mix
Market Research Done
Market research is done to find consumer needs and to evaluate the state of the market. This is often done through questionnaires and surveys.
Identify the Gap
The data gained from the market research is analyzed for trends in consumer spending and to help identify the gap in the market.
Original Idea Developed
The gap in the market is identified, and the product designers work to develop an original product idea to fill the gap in the market.
Design Brief Prepared
Once the original idea has been developed the business works to produce a design brief that outlines the design of the new product.
Designers Approached
The design brief is taken to the designers who are asked to design the product and make it the 'real thing'.
Design Chosen
The final design of the product is chosen and taken to be put into production by the company.
Models or Prototypes Made
Models and/or prototypes are made to see how the design looks.
Working Samples Made
Working samples or prototypes are made to test functionality of the product and to test the components.
Consumer Trials
Trials are done on the consumers in the target group, this is done in stages and can take a few weeks to complete.
Tooling for Manufacture
Steps and machinery put in place to prepare for the manufacturing of the products.
Organize Raw Materials
Supplies of raw materials are sourced and source deals are put in place ready for the manufacturing of the products.
Full Scale Production
Production is under way and distribution deals have been organized. The product is now being sold to the consumers.
Product Aesthetics
How does the product look? How does it feel? Does it appeal to the senses? Is it something that would appeal to the consumer?
Product Function
Does the product work? Is it a reliable product? Is it strong enough or light enough to suit the consumer's needs or purpose?
Cost of Production
How much will the product cost to produce? Is the design of the product simple enough to make it cheaply and efficiently? Does the design of the product make it relatively cheap to produce?
1.3.2 Branding and Promotion
a) Types of Promotion
Advertising- Communicating with potential customers using recognised media e.g. posters, newspapers, magazines, TV and radio
Advantages:
Television:
Huge audiences can be reached
Use of products can be demonstrated
Radio:
Sounds can be used
Minority audiences allow targeting, targeting a wider audience than the internet
Internet:
Can be updated regularly
Hits and responses can be measured
Cinema:
Big impact on screen
Specific age groups can be targeted
Newspapers and Magazines:
National and local coverage
Reader can refer back
Posters and Billboards
Can produce national campaigns
Seen repeatedly meaning the brand ingrains into the consumers head’s so they remember them
Disadvanatages:
Television
Message can be short lived as disappears
Some viewers may avoid TV ads as can be seen as being annoying
Radio
May lack impact
Can be intrusive when listening
Internet
Some ads such as pop up ads are irritating
Possible technical problems
Cinema
Limited audience
Message may only be seen once
Newspapers and Magazines
No movement of sounds
Individuals may be lost in a seas of ads meaning they ignore them reducing the audience they are targeting
Posters and Billboards
Posters can become damaged by vandals
Only limited information can be shown
Difficult to evaluate effectiveness
Public Relations- The process of obtaining favourable publicity via the editorial columns of the press media, or in television or radio broadcasts
Advantages:
Can improve the business’s profile & reputation- make the business better known with little expense
Consumers are likely to trust messages from an objective source more than a paid for advertisements
Disadvantages:
If involved in scandal/controversy, people are less likely to want to be involved with the business - news travels quickly
no direct control - you have no power over how your business is portrayed by the media
Direct Marketing-selling products or services directly to the public, e.g. by mail order or telephone selling, rather than through retailers.
Advantages:
Cost effective: You do not have to pay a percentage of your sales meaning you can retain more profit
A direct marketing campaign can build brand loyalty by continually sharing you brand’s message on different marketing channels meaning you can build loyalty
Disadvantages:
The response rate from the company can vary enormously
Consumer overload: the consumer can be overloaded with marketing campaigns and other companies contacting them. face increases the consumer ignoring these campaigns meaning that it is much harder for the business to gain a consumer in less they have a unique approach
Sponsorship - Where funds are provided for a sporting, cultural or social event in return for prominent display of the sponsor’s company or brand name
Advantages:
Raise brand awareness, create preference and develop brand loyalty- develop a good brand image
PR and raise corporate awareness
Disadvantages:
If the thing or person the company is sponsoring suddenly gets a bad rep, the brand can be negatively effect as people associate the brand with the bad reputation
If the sporting event is disrupted media exposure and advertising potential are lost
Personal Selling- People are the sale force to sell the product after meeting face-to-face with the customer to promote the product through their attitude, appearance and specialist product knowledge
Advatages:
The customer feels that they are receiving special treatment and therefore may be more inclined to purchase leading to sales
person sell the product to you, the customer should be able to ask more questions- result in the customer feeling the product is really useful.
Disadvatges:
Limited Reach- cannot reach as many customers as quickly- longer to build awareness of your brand and products
High costs- have to create a stand- salesperson's salary, commission, bonus and travel times- costs a lot of money to train your sales reps, teaching them about various products and sales procedures
Sales promotion- The use of short-term incentives to purchase, such as: Free offers, Competitions, BOGOF, Price discounts, Money-off coupons
Advantages:
-Sales promotion products draw customers in and always seem like a good deal to consumers making the products stand out from competitors.
Effective at achieving a quick boost in sales.
Disadvantages:
May damage brand image in the long term as it might be known as a cheap unpopular company that can’t sell their products without an incentive (undesirable)
Customers may come to expect this constant promotion and if the brand doesn't keep up with it they may lose customers to whoever is doing the new sales promotions
Digital Communications- Electronic transmission of information that has been encoded digitally e.g. online advertising
Advantages:
Personalisation of information meaning it can be targeted at a specific audience which can make the advertising more efficient.
A business can measure how many people has the information reached, how long each person looked at it etc. so overall easier to analyse
Disadvantages:
There is high competition as most businesses now do digital communication.
There may be specifically trained staff that have to be hired if promoting digitally is to be ongoing
b) Types of Branding
Corporate Brand
Images and slogans to define brands
Build communication and relationships between brand and product
Advantages:
Spreads the costs of marketing across all the individual brands
Awareness of the company can go worldwide
Disadvantages:
Long time to build solid brand image
Too much advertising exposure can cause indifference to the brand
Brand Family
distinctive to consumers as they remember and recognize the brand family by the logo on the packaging.
Advantages:
Creates loyalty to the whole brand
Disadvatages:
One product can ruin brand reputation
Individual Brand
Aims to show the customers the features and benefits of a products which will differentiate it from the other products in the market
Advantages:
Can command higher prices than non-branded
Expect high profits
Disadvantages:
High investment
Limited flexibility when try to build new brand
Own brand
Made of behalf of manufacturers or the supermarket
Advantages:
Boosts customer loyalty to the supermarket
Competes with manufacturer brands
Fills gaps left by competitors
Disadvantages:
Store brands are mixed
Re- Branding- Process of changing the corporate image of an organisation. It is a market strategy of giving a new name, symbol, or change in design for an already-established brand. To create a different identity for a brand, from its competitors, in the market
Benefits:
New competition in the market- Create own USP
Keep up with changes customer wants and changing needs
Due to financial difficulties
Change the image of the brand- Reconnect with the customers- risky- long term increase revenue- appeal to new generation- bring in new revenue
1.3.1 The design mix
Changes in the elements of the design mix to reflect
social trends
Recycling
Recycling offers simple solutions to the small waste products that shoppers seem to be uninterested in: getting milk from a milkman who collects, washes, and refills the glass milk bottles is an example of this. Individual businesses cannot focus on re-educating the public on the values of recycling, it is up to them to attract customers by doing the ethically and morally right thing.
Designing for Waste Minimization and Re-Use
If a product has been designed well it can be manufactured with minimal wasted by-products. This process starts with computer-aided design programs that calculate how much wastage there will be during the manufacturing process. Adapting a waste-minimization scheme could help cut down production costs and also reduce the environmental impact of the business
Social trends and consumer trends have major impacts on the design mix as they are a reflection of what the consumer wants to have. These are constantly changing over time, especially in the fashion industry, and it is important for businesses to keep up with them otherwise they may find themselves falling behind and, potentially, falling off of the market radar.
Ethical Sourcing
Based on Manufacturer or Retailer Values
This can include buying their supplies from businesses and farms that are known to treat their staff, animals, and the environment with respect.
As a "Buzz Term"
This suggests that the business is taking the ethical route purely for brand image, and not based on their core business values.
Ethical sourcing does not always have an impact on design. It depends on the product and the company, as Apple designers have a crucial job to do but have nothing to do with sourcing the materials involved in production, whereas in clothing companies the designers have more of a major role in sourcing the materials. If Primark were to produce a sustainable clothing range it would be up to Primark's designers to source the materials involved from sustainably produced materials, such as cotton.
1.3.2 Branding and Promotion
d) Ways to build a brand
Unique Selling Point
Small deatails that make one product different from another
Market leader in their chosen market this sometimes makes them able to charge premium prices for their products
Built such a strong brand for themselves, the extent of the brand loyalty of the customers makes the premium pricing strategy, and the brand itself, highly profitable
Advertising
Easy method of delivering clear messages about the superiority of the product and the brand image over rivals
Encouraging new, younger buyers to join the mainstream consumer decision and follow trends.
Sponsership
Building a brand over the long term, and when this is done cleverly it can help give a brand a 'personality'
Successfully in cooperation with the sports industry, where large companies pay hundreds of thousands to sponsor teams or stadiums as it helps to build the brand image.
The use of social media
Promote themselves as an alternative to a product searched
Heaily viewed
Can see trends and statistics
c) Benefits of Strong Branding
Ability to charge premium prices
Market leader in their chosen market this sometimes makes them able to charge premium prices for their products
Extent of the brand loyalty of the customers makes the premium pricing strategy, and the brand itself, highly profitable
Brand name just adds value
Reduced price elasticity of demand
High brand loyalty
Brand loyalty lowers price elasticity, enabling producers to push prices up with little reductions in sales
Added Value
Stong brand gives reassurance, and sometimes aspirational benefits, to the consumer
Benefits seen in the product by consumers
Adds value to the brand and the purchase
e) Changes in branding and promotion to reflect social
trends:
Emotional Branding
Social media
Viral Marketing