Transcript The Marketing Mix

1
1. To identify the key elements in the
marketing mix.
2. To understand the relationship and
importance of the 4 Ps.
3. To explore the decisions and roles
affected by the marketing mix.
2
• Marketing Mix
• Price
• Product
• Place
• Promotion
• Limitations & the 5th “P”
3
4
• Defines the key management decisions
needed to be successful in marketing
• Includes four basic marketing strategies,
known as the “4 Ps”
– price
– product
– place
– promotion
5
• Must be customer driven
• Should relate directly to a company’s target
market
• Includes four interrelated concepts and
tactics
• Refers to the variables a company can
control
6
• Represents the idea that four significant
marketing concepts (the 4 Ps) must be
strategically coordinated and work together
in order to create cohesive business
decisions
Business Buzz:
The “marketing mix” concept was first developed by
Neil H. Borden in 1964 after he published an article
describing the role of marketing as a “mixer of
ingredients”
7
• The 4 Ps are directly related
– decisions cannot be made about a product,
without also considering the relationship of
price
– decisions cannot be made about promotion
without understanding the importance of place
• Proper utilization of the 4 Ps provides a
company with a solid foundation for
success
8
Price
Place
The Marketing Mix
Promotion
Product
9
Price
Product
Place
Promotion
list price
appearance
advertising
discounts
quality
payment
terms
financing
packaging
channel
members
market
coverage
sales locations
branding
transportation
promotional
pricing
services
inventory
control
personal
selling
public
relations
message
media budgets
Business Buzz:
The marketing mix consists of a number of essential functions.
Which of the 4 Ps do you think is most important?
10
11
• Includes a wide range of functions and
strategies, including:
– creating a sales price or price list
– calculating mark-up percentage
– using promotional pricing techniques
– understanding pricing laws and discrimination
– determining discounts, credit terms and
available payment methods, such as:
 cash and credit options
 credit card machines
 financing and payment plans
12
•
•
•
•
•
Determining a suggested retail price
Implementing a pricing strategy
Creating volume discounts
Generating seasonal pricing
Producing bundle prices
13
• Customers understand value
• Price is a psychological variable
– it alters a buyer’s motivation
– price can influence the perception
of status or luxury
– price can stimulate or decrease demand
• Pricing strategies which do not relate to
customer habits will be unsuccessful
14
15
• Selecting which products to buy and sell
• Researching and creating product designs
• Naming and packaging products
• Updating, improving or eliminating
products from a product line
16
• Developing new uses or new target
markets for a product
• Examining the product life cycle
• Adding features to an old product
17
•
•
•
•
•
•
•
Brand or product name
Styling
Quality
Safety
Packaging
Repairs and support
Accessories and services
18
• Customers buy benefits – not products
• Products must satisfy a customer want or need
• Consumers are often heavily influenced by brand
name or packaging
• Extended services or warranties can create
customer loyalty
• New and improved products often have a high
success rate
19
20
• Is also described as “distribution”
• Refers to introduction of the product to
consumers and determining appropriate
transportation or delivery methods
– using semi-trucks or airfreight carriers
– utilizing intermediaries or wholesalers in the
distribution process
• Includes whether or not products should be sold
online or internationally
21
• Understanding where customers shop
• Determining how and when a product will
be distributed
• Making decisions about product expansion
or international sales
22
• Determining which retail outlets will carry
specific products
• Selecting the shelf space or display style
which is most effective
• Researching where a store should be
located
23
• Distribution channels (trucks, pipes, air,
water, etc.)
• Market coverage (exclusive, selective,
inclusive)
• Inventory management
• Warehousing
• Transportation and logistics
24
• Products should arrive on-time in order to
meet customer needs
• Inventory shortage may drive
customers away
• A store’s location may impact
buying decisions
• Some customers are prone to specific
product outlets, such as the Internet
25
26
• Includes decisions about the following:
– advertising
– personal selling
– sales promotions
– publicity and public relations
27
• Relates to the timing of promotional
campaigns
• Refers to the type of message communicated
to customers
• Requires selecting media outlets
• Creates activities and strategies to increase
sales
28
• Selecting advertising mediums
• Creating personal sales force tactics
• Designing sales promotions and
special offers
• Maintaining effective media and
public relations
• Establishing a marketing
communication budget
29
• Brand awareness is the first step toward
product sales
• Public relations and advertising have a
direct impact on customer loyalty
• Promotion stimulates a need
and desire to buy
• Special offers or campaigns
often yield higher sales results
30
31
• The marketing mix specifically applies to
companies with physical products and
often limits Internet and service-based
organizations
• By grouping marketing decisions into four
broad categories, it is difficult to distinguish
between specific activities such as
financing, branding, shipping, etc.
• Some industry-professionals have
attempted to expand the concept by
32
adding a “fifth P”
• People
– includes the following concepts:
 clearly defining a target market
 implementing customer-driven strategies
 creating a service-oriented corporate image
33
• People determine a company’s level of
success
• Customers often provide helpful and
needed suggestions
• Word-of-mouth is the most powerful form
of buying suggestion
• Directing decisions toward the right market
is critical
34
• Marketing mix decisions may directly relate to
a company’s online presence
• Leveraging full power of the Internet may be a
key business strategy
• The Internet can be used to change, optimize
and enhance marketing strategies
• Online services can be easily adapted to
meet changing trends
35
36
1. What is the “Marketing Mix”?
2. Why is it important for all four elements in
the marketing mix to work together?
3. Which of the 4 Ps relates to packaging?
A. Price
B. Product
C. Place
D. Promotion
37
4. Which of the 4 Ps relates to warehouse inventory?
A. Price
B. Product
C. Place
D. Promotion
5. Which of the 4 Ps refers to creating a 50 percent off
coupon?
A. Price
B. Product
C. Place
D. Promotion
38
6. Which of the 4 Ps would consist of
offering credit arrangements?
A. Price
B. Product
C. Place
D. Promotion
7. What is sometimes referred to as the
“Fifth P”?
39
8. Which of the following is not a basic
pricing decision?
A. Determining suggested retail price
B. Creating volume discounts
C. Determining packaging
D. Producing price bundles
9. List two of the seven basic product
decisions.
40
10. Which of the following is not a basic
place decision?
A. Distribution channels
B. Repairs and support
C. Inventory management
D. Warehousing
41
• Merrihew, B. C. (2006, January 23). The Fifth "P" of
Automotive Marketing. Retrieved October 7, 2008, from
iMedia Connection:
http://www.imediaconnection.com/content/7866.asp
• The Marketing Mix. (1999-2007). Retrieved October 7,
2008, from QuickMBA.Com:
http://www.quickmba.com/marketing/mix/
• The Marketing Mix. (2002-2007). Retrieved October 7,
2008, from NetMBA:
http://www.netmba.com/marketing/mix/
42
Production Coordinators:
Technical Writer:
Megan Mitchell & Liz Weber
Project Coordinator:
Jessica Odom
Production Manager:
Maggie Bigham
Dusty Moore
Brand Manager:
Executive Producers:
Megan O’Quinn
Gordon Davis, Ph.D.,
Jeff Lansdell
Graphic Designers:
Ann Adams & Daniel Johnson
© MMXIII
CEV Multimedia, Ltd.
43