Transcript Introduction to Marketing Mix - School

Introduction to
Marketing Mix
Introduction
The marketing mix covers
the way a business uses
price, product, promotion
and distribution (place) to
market and sell its product
The Four P’s
The marketing mix is often referred to as the Four P’s
Product
Price
The product or service that
the customer buys
How much the customer pays
for the product
Place
Promotion
How the product is distributed
to the customer
How the customer is found &
persuaded to buy
Why is it called a marketing MIX?
Because each element of the
marketing mix is related to
the others. Elements of the
mix should work together to
achieve the desired effect
Blending the Mix
• The marketing mix blends
together the elements of a
marketing strategy
• There must be internal
consistency within the mix
• Mix must be consistent
with the product and its
target market
Example – launch of iPhone
Product
Three products in one – phone,
iPod & web browser
3G broadband connection
Innovative design
Place
O2 exclusive distribution (locked)
Unlocked phones from online
retailers
Price
Depends on phone tariff & model
£350-£750 range
Price falling
Promotion
Web & TV advertising
Retail distribution
Widespread PR coverage
Product placement
What is an effective mix?
•
•
•
•
•
Achieves marketing objectives
Meets customer needs
Is balanced and consistent
Creates a competitive advantage
Makes sensible use of the business
resources
Businesses emphasis different parts of the
marketing mix
Emphasis on
Examples
Price
Discount supermarkets
Low-cost airline
Promotion
Soap powders
Furniture retailers
Product
Luxury motor vehicles
Tailor-made holidays
Place
Convenience stores
Coffee shops
What is a Product?
A product is anything
that is capable of
satisfying customer
needs
The Importance of Product
Product
Price
Promotion
Place
Products are at the heart of marketing
The product needs to exist for the other elements
of the mix to happen
Main elements of a product
Core
benefits
What the product actually does - the main functions of the
product
E.g. washing machine – it cleans clothes
Cinema ticket – it lets you see a film
Tangible or
physical
element
What the product is made of; what it looks like; dimensions
or duration
Other
product
benefits
The extra elements which add to the perceived value of the
product in the eyes of the consumer
E.g. 500g of ice-cream
A flat-screen, plasma television which is HDTV compatible
Can be tangible (e.g. materials, weight, extra features) or
intangible (e.g. brand name, after-sales service, reputation
for reliability)
Promotion = marketing communication
Communication
techniques aimed at
informing, influencing
and persuading
customers to buy or use
a particular product
Many Uses of Promotion
• Increase sales
• Attract new customers
• Encourage customer
loyalty
• Encourage trial
• Create awareness
• Remind potential
customers
• Reassure new
customers
•
•
•
•
Change attitudes
Create an image
Position a product
Encourage brand
switching
• To distribution (e.g.
sales by retailers)
Main methods of promotion
• Advertising (offline &
online)
• Sales promotion &
merchandising
• Personal selling
• Public relations/publicity /
Sponsorship
• Direct marketing
What is price?
• The amount charged
for buying a product
• Everything that a
customer has to give
up in order to acquire
a product or service
• Usually expressed in
terms of £
Many factors affect price
• Costs of production
• Competitors’ prices
• Customer perception of
value
• Business objectives
• Customer demand
• How sensitive demand is
to price
• Target market
•
•
•
•
Marketing mix
Age of the product
State of the economy
Expectations of
distributors
• State of competition in
the market
• Likely reaction from
customers
The aim of effective distribution
To make products
available in the right
place at the right time
in the right quantities
Issues about place (distribution)
• How can a business
ensure that its products
reach existing and
potential customers?
• How and where do
customers prefer to buy
the product?
• How important are factors
such as stock availability,
price, speed?
Distribution can have several stages
Each stage in a distribution channel is called an
“intermediary”
Producer
Producer
Wholesaler
Distributors
/ Agents
Producer
Retailer
Customer
Customer
Customer
Who gets involved in distribution
Retailer
Wholesaler
Distributor
Agent
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