Transcript Aim for today - GCSE Business Studies

Building a Successful
Marketing Mix
Unit 3
Topic 3.1.2
Aim for today
• To understand the role of
balancing the ‘4Ps’ in
managing the marketing
mix.
Podcast
•
http://www.bized.co.uk/cgibin/chron/typein/typein.pl?itn=2979
The Marketing Mix
• The Marketing Mix is a combination of factors
that help businesses sell its products
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The marketing mix is made up of the 4 P’s
Product
Price
Place
Promotion
Marketing Mix
Neil H.Borden
1. Product
• A product is a good or service produced
by a business.
• To be successful, the PRODUCT must meet
customer needs. It must do what it says, have
the appropriate specifications and be
appealing (where design/looks are important).
Task 1: Heinz Beans
List everything you know about Heinz Baked Beans.
• Product: High quality Haricot Beans
• Formula: Unique tomato sauce formula (updated
to meet changing consumer needs) – reduced
sugar & salt, micropots, meatballs, organic beanz.
• Name: 2004 Heinz Baked Beanz then 2008
changed to Heinz Beanz.
• Label: Changed to highlight nutritional benefits.
• Varieties: Adapted for different countries
Heinz through the years
Heinz Packaging Innovation
• North America: The Heinz Dip & Squeeze™ for the
foodservice industry makes eating on-the-go
more fun and convenient.
• In the U.K., Australia, Indonesia & New Zealand,
Heinz are converting to lighter-weight cans for
products such as beans and soups.
• In China, infant food jars are wrapped in paper
sleeves, a more environmentally friendly
alternative to plastic shrink-wrap.
http://www.heinz.com/our-food/innovation/packaging-innovation.aspx
2. Price
• The price of a product must reflect the value
customers place on it.
• No matter how good the product is, it is unlikely to
succeed unless the price is right.
• PRICING can also be used as a strategy to build
reputation and attract customers.
• Brands can be sold at a premium price. Why?
Task 2: Price – arrange these products in
order from lower to higher
1.Asda
2.Tesco
3.Staples
4.VIKING
5.WH Smith
6.Xerox
How many did you get?
1. Asda £1.94
2. Tesco- £2.18
3. Staples £2.99
4. VIKING – £2.99
5. WH Smith - £5.99
6. Zerox - £8.49
Brands attract a premium as:
1. Cost of product is usually higher;
2. Cost of marketing is higher – ad campaigns &
other promotions used to support big brands.
3. Higher price suggests to consumers that it is
higher quality;
4. Higher prices allow the business owning the
brand to make more profit.
3. Place
• Place is about how products are distributed from
producers to consumers. It involves ensuring that
goods/services are available to customers where
and when they want them.
Place – distribution channels
• Distribution channels can be direct or indirect.
• Wholesalers can sell their products to retailers
who then sell them to consumer.
• The fastest channel and often the cheapest for
the consumer is where manufacturers sell
directly to the customer, this is more common
due to the growth of the internet.
TASK: Identify 2 products that use direct and
indirect distribution methods and explain why the
method is suitable.
4. Promotion
• Promotion is the
communication between
businesses and customers.
• It informs customers about
the product, where it is,
what it does and persuades
them to buy it.
• Task: Create a 30 second
radio ad to promote a new
brand of Dog Food.
Promotions
Promotions methods include:
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Mail
• Trade Fairs and Exhibitions
• Advertising
• Sponsorship
• Task: For every method, identify two businesses that
use that type of promotion.
1. Informative
2. Persuasive
3. Generic –
advertise an
industry or
business
rather than a
specific
product
TV advertising costs
Other advertising costs
Advertising & the law
• Ad’s must be ‘legal, decent & honest &
truthful’. They are controlled by the ASA and
Ofcom .
Sales promotions
Sales promotion methods
In your groups, find 3 promotions that Asda
or Ikea are currently running.
Packaging can also used as
a method of promotion
Products the
product
Makes
transport easy
Eye catching
Uses of
Packaging
Promotes the
brand
Shows product
info/nutritional
info
Packaging task
Paired Task
• Think of a product that
you always use no matter
if the competitions
product is cheaper.
• Why do you do insist on
the original product?
Marketing Summary
• The most important thing about marketing is
anticipating and fulfilling customer needs. This is
called consumer-orientation.
• To identify these needs, businesses carry out
extensive market research.
• The marketing mix encourages businesses to
consider customer needs when developing
products.
• The mix is made up of 4 P’s but often extended to
the 7P’s (people, physical resources & processes).
Revisiting the Aim
• Why is it important for do
businesses to balance the
‘4Ps’ of the marketing mix?
Analyse KFC’s marketing mix
Continue
working on
1 of the 3
independent
study options