Marketing Mix

Product
1. Unique Selling Proposition (USP)
2. tangible object or an intangible service
  1. Durable Goods
  2. Non Durable Goods
  3. Services
3. 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
4. Five product levels
  1. Core benefit
    1. basic product
      1. 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.
      2. Turn that benefit into a basic product: hotel room
    2. the benefit the customer is really buying
5. Design, Packaging & labelling
Price
1. Price is the only element in the marketing mix that produces revenue, all the rest produce costs
2. Adapting the price
  1. Price discounts and allowances
    1. Early payment, volume purchases & off-season buying
  2. Promotional pricing
    1. Loss leader pricing
      1. Eg Tescos sells skins at less than cost so people will buy baccy there
    2. Special event pricing
    3. Cash rebate & lower interest financing
    4. Psychological discounting
      1. e.g. was €359 now €299
3. Objectives
  1. Survival
  2. Max current Profit
  3. Max Market Share
  4. Max Market Skimming
    1. Eg IPhone, price starts high and then gets cheaper
  5. Price Quality Leadership
    1. Eg Rolex does not aim to be cheap
Place
1. 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.
2. Channels of Distribution
  1. Multichannel distribution systems
    1. two or more marketing channels to reach customers
    2. Each channel targets a different segment of buyers
    3. channel integration
      1. Order online and pick up at a convenient location
  2. Channel design decisions
    1. 1. Analyse customer needs
      1. Catalogue-browsing
      2. Online-purchase
      3. price, product range and convenience
    2. 2. Establish channel objectives
      1. Bulky products-channels that minimize shipping distance and handling
      2. During economic uncertainty producers want goods to market using shorter channels and cutting out additional services
    3. 3. Decide on number of intermediaries
      1. Exclusive distribution
        Severely limiting the number of intermediaries
        Rolex in Harrods
      2. Selective distribution
        Apple authorised providers
      3. Intensive distribution
        As many outlets as possible
    4. 4. Select channel members and evaluate alternatives
      1. EG Pure click companies, such as online fashion
    5. 5. Identify and evaluate major channel alternatives
3. Most producers do not sell directly to the final user
4. Between them is a set of intermediaries to make the offering available to buyers
Promotion
1. Communications
  1. What to say, how and when to say it, to whom and how often?
  2. 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.
  3. Sales promotion platforms
    1. Premiums and gifts
    2. Coupons
    3. Contests, games
    4. A variety of short-term incentives to encourage trial or purchase
  4. Advertising communication platforms
    1. Any paid form of non-personal presentation of ideas, goods or services by an identified sponsor
    2. Print and broadcast ads
    3. Brochures and booklets
    4. Billboards
  5. Events and experiences communication platforms
    1. Company-sponsored activities and programs designed to create interactions
    2. Sports
    3. Festivals
  6. Public relations and publicity communication platforms
    1. Designed to promote or protect a company’s image or offerings
    2. Seminars
    3. Community relations
  7. Direct and interactive communication platforms
    1. Use of mail, telephone, email, or internet (online activities) to communicate directly with specific customers and prospects
    2. Mailing (spam, junk Mail)
    3. Telemarketing
    4. Social Media
  8. Other common communication platforms
    1. Word-of-mouth marketing
    2. Personal selling
2. Advertising Appeals
  1. Rational/informational appeals
  2. Emotional Appeals
    1. Humor
    2. Guilt (charities)
People
1. Front Line Staff
2. Customer Service
3. Human Point of Contact
Process
1. Total Process of purchasing the product
2. After sale and before Sale
3. Buger King, Order instantly and get food within two minutes
4. Replacement Bank Cards automatically reissued when the current is due to expire
Physical Evidence
1. What you can see
2. How clean the retailer is
3. Hotel rooms of different standard
Life Cycle
1. Introduction
  1. Inform About your product
  2. Encouraging consumers to try it
  3. Secure Distribution
  4. First mover vs Quick Follower
  5. Price tends to be high
2. Growth
  1. Retaining Rapid growth
  2. Attracting New consumers
  3. Prices remain steady
  4. Promotional Spending is increased or remains the same
  5. Expenditure rises slower than sales there for profit increasesed
3. Maturity
  1. Longest Stage
  2. Sales and Profit reach their peak
  3. Price reductions & promotions offered
    1. Buy 1 get 1 free
  4. Tends to leave only a few highly competitive firms
4. Decline
  1. Sales Decline
    1. Change in consumer taste
    2. Increased Compitition
  2. Choose Between
    1. Harvesting
      1. Gradually reducing a product costs while maintaining sales
    2. Divesting
      1. Drop a market offering either through selling or liquidation
5. LEARN THE DIAGRAM

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	Created by Owen Monagan almost 11 years ago