Transcript Marketing mix

How does a major fast food high street chain
develop its marketing strategy?
The first step in developing a marketing strategy is to understand your
customers, enabling reaction to their changing needs and the changing
dynamics of the market.
To this end we conduct several stages of in-depth customer research
and audits of the company’s own brand. This research tells us a lot
about how the company is perceived and about trends that are taking
place in the market. They also conduct research into the local area of
our restaurants, into the general market environment, and into specific
areas of our business, children for example.
We also have to have a thorough understanding of our competition. A useful
way to gaining knowledge of all aspects of the competition is the examination
of the four P’s of the marketing mix: Price, Promotion, Place, Product.
•Competitive Pricing : Being in touch with the pricing of our competitors
allows us to price our products correctly, balancing quality with value.
•Competitive Promotion : Before we communicate with our customers we
must be aware of what our competitors are communicating so that we can
create a beneficial difference between us and them.
•Competitive Place : Distribution is key to any retailer or brand.
•Competitive Product : Fast food restaurants are constantly expanding their
menus. This can be done on a short-term promotional basis or as a longterm expansion strategy.
Product and Packaging
Place
Sketch the appearance and packaging of your product:
Where will your product be sold?
What channels of distribution will be used?
What is the purpose and use for the product?
Product:
Promotion
Target Audience:
Where and how will the product be advertised? (Different
types of advertising media).
Price
What price will be charged for your product? (Give
reasons and identify a pricing strategy if possible).
Will you use different types of sales promotion?
Will your packaging have promotions on it?
Competitors prices if known?
Product and Packaging
Place
Without a product, there could be no price, no
promotion and no place!
Products can have many different characteristics.
Manufactures can produce a range of products to
appeal to different kinds of customer.
The product must satisfy a need.
Packaging is the wrapping of a product, which can
also be used for promotion and selling appeal.
Promotion
Place deals with the distribution process of the
product. It depends greatly on the product itself.
A traditional distribution method is from
producer, to wholesaler, to retailer, to customer.
However, some of these can be missed out
depending on whether the product is a fast moving
good, a perishable good, etc.
Place also looks at where the product is going to
be available for customers to buy and making sure
that products are in these places at the right time.
Marketing Mix
Price
Promotion involves four elements:
Price can depend on a number of things.
Sales Promotion: buy on get one free, 25% extra
free, competitions, collecting tokens, trial prices,
etc.
You need to cover your cost of production and
also make a profit (cost-plus pricing).
Advertising: tv, radio, posters, billboards,
leaflets, cinema, public transport, etc.
Public Relations: distributing information about
the business/product with the aim of improving its
public image (ASDA and Children In Need).
Direct Selling: door to door,
agents/representatives visiting retailers to
persuade them to stock their product.
What are competitors prices (competitive
pricing)?
Has it cost you a lot of money to research and
develop the product because of it being advanced in
technology or unique(skimming - high price to skim
the market, lowers as competitors copy product)?
Are you entering a highly competitive new market
(penetration pricing - low price at first)?
A new energy
drink
A breakfast
snack bar
A new
computer
games
console
A new range
of make-up
A new low fat
packet of
crisps
A new trainer
A new family
car
A new
magazine