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Summary theme 1 - 1.3 marketing mix and strategy

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Includes images and well explained points covering fully all of 1.3 including some text from the Pearson Alevel Business textbook as well as class notes and my own knowledge.

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Voorbeeld van de inhoud

Varnika RAMJEE


1.3 Marketing mix and strategy

1.3.1 Product/service design

- Design means finding the right balance between creating something that people desire to have,
that they can afford to buy and that works reliably

Introduction to design:

- Design of a product is not just about its appearance and shape, it is also about the function,
quality and durability. Designers work to a design brief which tells them the criteria for
looks, cost and quality. All must be considered in designing the finished product. Larger firms
have their own design team on the payroll whereas smaller firms may rely on design
consultants to turn a product idea or requirement into a finished product.
- Good design adds value to product and can be the key to differentiation that marks one
brand out from its competitors

The design mix

Every designer must consider:

1. Aesthetics – the look, feel or smell (that is the appeal to the senses)
2. Function – does it work? Is it reliable? Is it strong or light enough for the customers purpose?
3. Costs/ economic manufacture – is the design simple enough for it to be made quickly and
efficiently and therefore relatively cheaper?

In some cases, all three factors will be equal in importance however sometimes a product can
different priorities regarding the design mix.

Changes to the mix to reflect social trends:

 Concern over resource depletion

- As population is increasing, people worry that key resources such
as fresh water will not be able to keep up as they may be
depleted enough that there are not enough to go around.
- Sustainability mean the purchase made will not affect long-term
supplies of the product because it is automatically replenished.
- As resources deplete, their price will rise. This will be a signal for
designers to try and find alternative solutions based on different
materials such as oil having to be switched to glass or plastic
bottles, however fortunately, it would be aesthetically pleasing.

 Designing for waste minimisation and re-use

- A well-designed product can be design with little wastage. This
keeps costs down and the process starts with CAD, computer-
aided design, software which enables the designer to work out
the wastage implications of the product process. It also helps to
reduce the environmental footprint of the business and can be
therefore used as a marketing message to its customers.
Economic growth is associated with a disposable society.

, Varnika RAMJEE


 Recycling
- Waste can only be disposed by burning, burying or reusing them. Burning them emits
greenhouse gases that is destructive to the environment so recycling is better for the
environment as original materials are used.



Ethical sources

The term ethical sources ca be taken in two terms:

- Sourcing based on manufacturer or retailers’
ethical values: this might include buying supplies from known businesses or farms, where
the customer knows the supplier treats staff, animals and the environment with respect.
Implicitly, for this to be based on ethics, the customer must be prepared to sacrifice some
profit in this buying process
- May also be a buzz-term, just a box which needs to be ticked. It’s better to trust companies
that actually are concerned about ethical sourcing and not just about profit maximisation.



1.3.2 Branding and promotion

- Branding is the skill of giving a product/service distinctiveness, even personality. Promotion is part
of the marketing mix that focuses on persuading people to buy the product/service.

Introduction to branding:

Branding is the process of creating a distinctive and lasting identity in the minds of consumers. It can
take time and marketing effort but becomes its own means of promotion when established. The
brand is recognised by customers and therefore they will be satisfied and they will continue to
choose the brand. Once established, branding has many advantages:

- Enables the business to reduce the amount spent on promotion
- Customers are likely to purchase the product again (repeat purchase)
- It is easier to persuade retailers to put the products in their stores
- Other products can be promoted using the same brand name


Types of branding:

 Individual brand – some brands are so distinctive and powerful that they stand on their
own. An advantage of this is that publicity disaster has no effect on the others
 Brand family – for example Cadbury, when u buy a Twirl, Wispa or bar or Dairy Milk, the
Cadbury logo is prominent. It adds value, acceptability and comforting familiarity. A
good brand has emotional qualities.
 Corporate brand – in global food business, there are three mighty brands, one is Nestle
which feels the need to put the logo on everything like KitKat, as it adds credibility to the
individual brand names.
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