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marketing mix - Coggle Diagram
marketing mix
place- catch consumer's eye & easy to buy
place mix- timely delivery of product
distribution channel- path along which goods move from producer :arrow_right: consumer
- :arrow_down: flow of goods
- :arrow_up: flow of cash payments
- both :arrow_up:- feedback & :arrow_down:- new stuff, flow of marketing info
producer :arrow_right: customer (direct 0 level)
- most economical
- door to door, direct mail, retail stores
- used by big firms to sell products of :arrow_up: value
- producers of perishable commodities also use
producer :arrow_right: retailer :arrow_right: consumer (indirect- 1 level)
- 1 middleman- retailer
- relives burden on manufacturer, gives him control
- for marketing consumer durables, :arrow_up: value products
producer :arrow_right: wholesaler :arrow_right: retailer :arrow_right: consumer (indirect- 2 level)
- traditional channel
- for products having limited finance, narrow product line, who need expert services & promotional support
- for widely scattered market
producer :arrow_right: agent :arrow_right: wholesaler :arrow_right: retailer :arrow_right: consumer (indirect level 3)
- longest channel
- to market various industrial products
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price
- value put on product that consumers are willing to exchange for having/ using the product
cost plus pricing
- manufacture charges to cover cost+ reasonable profit
- estimates made to justify planned capital expenditure, costs & areas of :arrow_up: cost
- resources required, their cost & time for which they're needed
advantages:
- know exact amt of expenditure so profit added to achieve desired revenue
- simplest method
- evaluate reason for escalation in expense as u have ready data
disadvantages:
- don't take future demand in consideration
- no account of competitor's actions and their effects
- can overestimate as includes sunk cost not opportunity cost & profit margin can be biased
penetration-
- lower than market price to attract customers & :arrow_up: market share
- aim is not to increase profit
- price is raised later
advantages:
- quick diffusion
- generates enthusiasm
- reduces competitors as already :arrow_down: price
- high stock turnover
- creates goodwill
- greater efficiency
diadvantages:
- long- term price expectation & image preconceptions make hard to :arrow_up: price
bargain hunters don't buy when high price
- low profit margin hard to survive and sustain business
creaming/ skimming-
- having higher price than market so fewer sales needed to break- even
- reimburse cost of investment
- early adopters: better understanding, need it & disposable income w/ lower sensitivity to the prices
advantages:
- recover research and development cost quickly
- quality conscious
disadvantages:
- backfires if competitors introduce same product w/ :arrow_down: price
- government regulations regarding consumer rights
- if consumers know about policy, they'll wait till prices drop
variable pricing
- different rates to different customers for same good/ service
-diff in order size, bargaining capability, paying ability diff in anticipated businesses
advantages:
- sell those goods that couldn't have been sold at original price
- earn modest profit and recoup investment
disadvantages:
- might lose customers who paid full value for product
- goodwill is adversely affected
product -
- smth of value
- can be sold
- min level of performance
branding-
- brand name/ generic name
- a tool where a symbol/ sign is given to a product to
differentiate from rival products
- brand
a name used to identify & differentiate ur business
1) brand name: is spoken
2) brand mark: non-utterable, symbol- can be recognised
3) trademark: legal protection against other firms
various types of brand name-
1) individual brand: distinct name for each offering
2) family brand: common successful family name
3) corporate: corporate name/logo w/ brand names
4) alpha- numeric: signifies physical characteristics
- logo
graphic mark of emblem to aid & promote public recognition
anchor for company's brand
graphically displays the uniqueness
provide company's essential information
shortcut advertising and key visual component
- tagline
simple message to communicate enterprise's goals,
mission and distinct qualities
can be question, statement or exclamation
packaging-
- designing and producing the container/ wrapper of product
- for goods to look attractive & secure safety while holding its
contents together
- makes the product marketable
1) primary package- encloses actual commodity
2) secondary- added to primary for protection
3) transportation- for storage and transport
- helps in product identification, differentiation & promotion too
labelling-
- enables product identification
- displays information about product on container
form of a simple tag/ complex graphic etc.
- describes product & specifies the contents inside
- helps to grade it, promote it and provide info
promotion- customer awareness, generate sales,
create brand loyalty
promotion strategy- find market
- ATL (large audience)
- BTL- memorable activities focused on target groups
- TTL (involves both ATL & BTL)
advertising-
- paid form of non- personal communication to persuade customers to choose a product over the competitor's
- aims: make business familiar to public, build favourable image, offer product/ services, inform public, attract customers
- rules: 1) aim- basic purpose before drafting it out
2) target- which sector is aimed
3) media- which available media is most apt
4) competitors- analyse competitors actions
- develop effective advertising- AIDA- (attention, interest, desire, action)
- commonly used media for advertising:
stationery, window display, press, radio, television, direct mail, outdoor,
ambient, cinema, point of sale, online, directory listings
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