Marketing Mix

Marketing Mix

1. Product

   • Unique Selling Proposition (USP)
   • tangible object or an intangible service
     • Durable Goods
     • Non Durable Goods
     • Services
   • A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organisations, information and ideas
   • Five product levels
     • Core benefit
       • basic product
         • Expected product
           • Augmented product:
             • Potential product
               • : all possible augmentations to the product in the future
             • exceeds customer expectations e.g. free wi-fi, complimentary drinks etc.
           • amenities all hotel guests expect, clean bed, fresh towels etc.
         • Turn that benefit into a basic product: hotel room
       • the benefit the customer is really buying
   • Design, Packaging & labelling

2. Price

   • Price is the only element in the marketing mix that produces revenue, all the rest produce costs
   • Adapting the price
     • Price discounts and allowances
       • Early payment, volume purchases & off-season buying
     • Promotional pricing
       • Loss leader pricing
         • Eg Tescos sells skins at less than cost so people will buy baccy there
       • Special event pricing
       • Cash rebate & lower interest financing
       • Psychological discounting
         • e.g. was €359 now €299
   • Objectives
     • Survival
     • Max current Profit
     • Max Market Share
     • Max Market Skimming
       • Eg IPhone, price starts high and then gets cheaper
     • Price Quality Leadership
       • Eg Rolex does not aim to be cheap

3. Place

   • Supply chain management (SCM) encompasses the planning and management of all activities in buying, making, providing and distributing. It also includes coordination and collaboration with channel partners.
   • Channels of Distribution
     • Multichannel distribution systems
       • two or more marketing channels to reach customers
       • Each channel targets a different segment of buyers
       • channel integration
         • Order online and pick up at a convenient location
     • Channel design decisions
       • 1. Analyse customer needs
         • Catalogue-browsing
         • Online-purchase
         • price, product range and convenience
       • 2. Establish channel objectives
         • Bulky products-channels that minimize shipping distance and handling
         • During economic uncertainty producers want goods to market using shorter channels and cutting out additional services
       • 3. Decide on number of intermediaries
         • Exclusive distribution
           • Severely limiting the number of intermediaries
           • Rolex in Harrods
         • Selective distribution
           • Apple authorised providers
         • Intensive distribution
           • As many outlets as possible
       • 4. Select channel members and evaluate alternatives
         • EG Pure click companies, such as online fashion
       • 5. Identify and evaluate major channel alternatives
   • Most producers do not sell directly to the final user
   • Between them is a set of intermediaries to make the offering available to buyers

4. Promotion

   • Communications
     • What to say, how and when to say it, to whom and how often?
     • Marketing communications are the means by which firms attempt to inform, persuade and remind consumers, directly or indirectly, about the products and brands they sell.
     • Sales promotion platforms
       • Premiums and gifts
       • Coupons
       • Contests, games
       • A variety of short-term incentives to encourage trial or purchase
     • Advertising communication platforms
       • Any paid form of non-personal presentation of ideas, goods or services by an identified sponsor
       • Print and broadcast ads
       • Brochures and booklets
       • Billboards
     • Events and experiences communication platforms
       • Company-sponsored activities and programs designed to create interactions
       • Sports
       • Festivals
     • Public relations and publicity communication platforms
       • Designed to promote or protect a company’s image or offerings
       • Seminars
       • Community relations
     • Direct and interactive communication platforms
       • Use of mail, telephone, email, or internet (online activities) to communicate directly with specific customers and prospects
       • Mailing (spam, junk Mail)
       • Telemarketing
       • Social Media
     • Other common communication platforms
       • Word-of-mouth marketing
       • Personal selling
   • Advertising Appeals
     • Rational/informational appeals
     • Emotional Appeals
       • Humor
       • Guilt (charities)

5. People

   • Front Line Staff
   • Customer Service
   • Human Point of Contact

6. Process

   • Total Process of purchasing the product
   • After sale and before Sale
   • Buger King, Order instantly and get food within two minutes
   • Replacement Bank Cards automatically reissued when the current is due to expire

7. Physical Evidence

   • What you can see
   • How clean the retailer is
   • Hotel rooms of different standard

8. Life Cycle

   • Introduction
     • Inform About your product
     • Encouraging consumers to try it
     • Secure Distribution
     • First mover vs Quick Follower
     • Price tends to be high
   • Growth
     • Retaining Rapid growth
     • Attracting New consumers
     • Prices remain steady
     • Promotional Spending is increased or remains the same
     • Expenditure rises slower than sales there for profit increasesed
   • Maturity
     • Longest Stage
     • Sales and Profit reach their peak
     • Price reductions & promotions offered
       • Buy 1 get 1 free
     • Tends to leave only a few highly competitive firms
   • Decline
     • Sales Decline
       • Change in consumer taste
       • Increased Compitition
     • Choose Between
       • Harvesting
         • Gradually reducing a product costs while maintaining sales
       • Divesting
         • Drop a market offering either through selling or liquidation
   • LEARN THE DIAGRAM

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