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Unit 3 revision note (part 2): MARKETING-MIX-4Ps - Coggle Diagram

- - - - a form of promotion that is undertaken by a business by paying for communication with consumers.
    - - Adverts that gives information to potential purchasers of a product
    - - Adverts trying to create a distinct image or brand identity for the product
    - - Cost
      - Size of audience
      - The profile of the target audience in term of age, income levels, interests and so on.
      - Message to be communicated
      - Other aspects of the marketing mix
      - Legal and other constrains
  - - - Promotion that is not a directly paid-for means of communication, but based on short term incentives to purchase
    - - Price promotions
      - Money-off coupons
      - Customer loyalty schemes
      - Money refunds
      - BOGOF
      - Point-of-sale displays
  - - - The financial amount made available by a business for spending on marketing/promotion during a certain period of time
- - - - x < 0 :perfectly inelastic
      - 0 < x < 1 :inelastic demand
      - x=1 :unit elasticity
      - 1 < x < infinity :elastic demand
      - x= infinity :perfectly elastic demand
    - - How necessary the product is
      - How many similar competing products and brands
      - Level of consumer loyalty
      - Price as proportion to consumers' income
    - - Making more accurate sales forecast
      - Assist in pricing decisions
    - - Get outdated quickly
      - Not easy or sometimes not possible to calculate PED
      - Assumes that nothing else changed
  - - - Cost of production
      - Competitive conditions in the market
      - Competitor's price
      - Business and marketing objectives
      - PED
      - Whether it is a new or existing product
    - - Competitor pricing
      - Price discrimination
      - Contribution pricing
      - Full cost pricing
    - - Penetration pricing
      - Market skimming
- - - - Free publicity
      - Higher sales than those of undifferentiated products
      - Opportunities to charge higher prices
      - Customers are more willing to be identified with the brand
      - Promotion
  - - - Can leave a perception on every product from the brand
      - Give one firm's products a unique identity
      - It can create a powerful image of the product associate with the brand
    - - Def: the pattern of sales recorded by a product form launch to withdrawal from the market and is one of the main forms of product portfolio analysist
      - Product portfolio analysis: Analyzing the range of existing products of a business to help allocate resources effectively between them
      - Stages:
        
        Growth
        
        Maturity or saturation
        
        Decline
        
        Introduction
        
        Extension strategies
        
        Selling the product to a new market
        
        Repackaging
        
        Relaunch the product
        
        Def: Marketing plan to extend product life cycle
      - Uses of product life cycle
        
        Identify how cash flow might depend on the cycle
        
        Recogniszng the need for a balanced product portfolio
        
        Assisting with planning marketing-mix decision
      - Assist the planning of marketing mix decision
        
        Growth
        
        Price: Rising in price
        
        Promotion: Convince customer to repeat purchase
        
        Place: Increase number of outlets
        
        Product: Planning on the development of the produc
        
        Maturity
        
        Price: Keep prices of competitive levels
        
        Promotion: Stress the important differences of the product with competitors
        
        Place: Maximize the number of outlets
        
        Product: New models
        
        Introduction
        
        Promotion: High level of informative advertising
        
        Place: Restricted outlets
        
        Price: May be high compared to competitor
        
        Product: Basic Model
        
        Decline
        
        Promotion: Limited advertisement
        
        Place: Eliminate unprofitable outlets
        
        Price: Lower price to sell off stock
        
        Product: Prepare other products to replace
      - Cash Flow
        
        At introduction and growth, extensive promotion and unused storage may keep cash flow negative, but overtime as sale are made, cash flow should improve
        
        At maturity stage, cash flow should be the highest
        
        Cash flow is negative during the development stage
        
        At decline stage, sale drop would likely reduce cash flow
        
        Cash flow is very related to product life cycle
      - Balanced product portfolio
- - - - Consumer may need easy access to the product
      - Manufacture need outlets for their product but with the desired image of the product appropriately promoted.
      - Retailers will demand a mark up so using a few or no intermediaries would be an advantage.
    - - Convennient for the customer
      - Cheap cost for the business
    - - One-intermediary channel
      - Two-intermediary channel
      - Direct selling
- - - - CRM is using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained.
      - CRM is at the hear of the customer-focus concept
- - - - World wide audience
      - Cheaper
      - Lower fix cost
      - Dynamic pricing
      - Convenient
      - Accurate consumer records
    - - Goods can not be touch or felt
      - Unreliable and internet security
      - Slow internet speed