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Marketing Mix - Coggle Diagram

- - - - Setting a price similar to that of competitors’ products which are already available in the mark
        
        adv
        
        Business can compete on other matters such as service and quality
        
        disadvantage
        
        need to find ways of competing to attract sales.
    - - Setting price by adding a fixed amount to the cost of making the product
        
        adv
        
        Quick and easy to work out the price
        
        Makes sure that the price covers all of the costs
        
        disadv
        
        might be set higher than competitors or more than customers are willing to pay, which reduces sales and profits
    - - Setting a very low price to attract customers to buy a new product
        
        adv
        
        Attracts customers more quickly
        
        Can increase market share quickly
        
        disadv
        
        Low revenue due to lower prices
        
        Cannot recover development costs quickly
    - - Setting the price of a few products at below cost to attract customers into the shop in the hope that they will buy other products as well
        
        adv
        
        Helps to sell off unwanted stock before it becomes out of date
        
        good way of increasing short term sales and market share
        
        disadv
        
        Revenue on each item is lower so profits may also be lower
    - - Setting a high price for a new product that is unique or very different from other products on the market.
        
        adv
        
        Profit earned is very high
        
        compensate research and development costs
        
        disadv
        
        It may backfire if competitors produce similar products at a lower price
  - - - If the product is found to have an elastic demand, the producer can lower prices to increase profitability.
      - If the product is found to have an inelastic demand, the producer can raise prices to increase profitability
- - - - the tendency of customers to keep buying the same brand continuously instead of switching over to competitors’ products.
        
        charge higher
        
        easier to launch new products
        
        recognize the firm’s product more easily
    - - design
      - distinctive from its competitors and stands out
      - able to stimulate new wants from the consumers
      - not too expensive to produce
      - satisfies existing needs and wants of the customers
    - - adv
        
        Charge higher prices for new products
        
        Increase potential sales
        
        Can create a Unique Selling Point (USP)
        
        Helps spreads risks
      - disadv
        
        Market research is expensive and time consuming
        
        Investment can be very expensive
      - generate idea
        
        further research
        
        decide if shld sell
        
        develop prototype
        
        launch to test market
        
        go to full launch
    - - provide information about the product
      - help consumers recognize the product
      - protects the product
      - keeps the product fresh
    - - consumer goods
      - consumer services
      - producer goods
      - producer services
  - - - new uses
      - redesign product/packaging
      - new market
      - increase advertisment
- - - - The manufacturer will sell its products to a retailer who will then sell them to customers
        
        adv
        
        The cost of holding inventories of the product is paid by the retailer
        
        The retailer will pay for advertising and other promotional activities
        
        Retailers are more conveniently located for consumers
        
        disadv
        
        The producer loses some control of the marketing mix
        
        The producer must pay for delivery of products to the retailers
        
        The retailer takes some of the profit away from the producer
        
        Retailers usually sell competitors’ products as well
    - - The manufacturer will sell large volumes of its products to a wholesaler, Retailer will buy small quantities of the product from the wholesaler and sell it to the consumers.
        
        adv
        
        – Wholesalers will advertise and promote the product to retailers
        
        – Wholesalers pay for transport and storage costs
        
        disadv
        
        Another middleman is added so more profit is taken away from the producer
        
        The producer loses even more control of the marketing mix
    - - The product is sold to the consumer straight from the manufacturer.
        
        adv
        
        The producer controls all parts of the marketing mix
        
        Quickest method of getting the product to the consumer
        
        All of the profit is earned by the producer
        
        disadv
        
        All storage costs must be paid for by the producer
        
        All promotional activities must be carried out and financed by the producer
        
        Delivery costs may be high if there are
    - - he manufacturer will sell their products to an agent who has specialized information about the market and will know the best wholesalers to sell them to.
        
        adv
        
        The agent has specialised knowledge of the market
        
        disadvantage
        
        Another middleman is added so even more profit is taken away from the producer
  - - - The type of product it is
      - The technicality of the product
      - How often the product is purchased
      - The price of the product
      - The durability of the product
      - Location of customers
      - Where competitors sell their product
- - - - -
        
        Inform customers about a new product
        
        Persuade customers to buy the product
        
        Create a brand image
        
        Increase sales and market share
    - - -
        
        Stage of product on the PLC
        
        The nature of the product
        
        The nature of the target market
        
        Cost-effectiveness
    - - Advertising: Paid-for communication with consumers which uses printed and visual media .
        
        This can be informative (create product awareness) or persuasive (persuade consumers to buy the product)
        
        Sales Promotion
        
        ‘buy one get one free’,
        
        occasional price reductions
        
        free after-sales services
        
        gifts
        
        point-of–sale displays
        
        Below-the-line promotion: promotion that is not paid for communication but uses incentives to encourage consumers to buy.
        
        Incentives include money-off coupons or vouchers, loyalty reward schemes, competitions and games with cash or other prizes.
        
        Personal selling: sales staff communicate directly with consumer to achieve a sale and form a long-term relationship between the firm and consumer.
        
        Direct mail: also known as mailshots, printed materials like flyers, newsletters and brochures which are sent directly to the addresses of customers.
        
        Sponsorship: payment by a business to have its name or products associated with a particular event.