Marketing Mix (Copy)
- Marketing Mix
- All the activities that are part of the marketing
- There are 4 Ps of the marketing Mix
- The product itself and the packaging
- The price of the product
- The place which means the channel of distribution
- The promotion including advertisement and other forms of promotion.
- Product
- Different types of products exist
- Consumer goods are used by the end consumer for their own benefit and satisfaction
- Consumer services are services used by the consumer
- Producer goods are goods that are for other businesses to use
- Producer services are services that are used by other businesses
- Right product is important
- It must satisfy the needs and wants of the customers
- Right quality
- Cost of production should be low so profit can be made
- Design must be appropriate and promote the brand image
- Different types of products exist
- Product Development
- New products
- Idea generation
- Best ideas for further research
- Decide whether the product will be sellable
- Develop a prototype – a working model of the final product
- Test the market
- Full launch of the product if testing successful
- Benefits of new products
- USP – unique selling point
- Business diversifies
- Expansion into new markets
- Market share in existing markets increased
- Problems of developing new products
- Market research is costly
- Trial products are costly
- Target market must be right or low sales
- Company image negatively affected if consumers don’t like the product.
- Brand Image
- Means the way a brand is perceived by the customers
- Brand loyalty means customer returning to buy from the same brand every time
- Brand name is the unique identifier for a brand
- Packaging
- Right packaging is important for the product to succeed
- It must protect the product
- It should ensure great promotion
- The feel should be great
- It should also meet any legal requirements for the packaging of the specific type of product.
- Product Life Cycle
- First, the product is developed and tested, no sales.
- Then it is introduced – slow growth at first then fast growth – better to use price skimming if brand new product
- Sales then enter growth and advertising can help in sales increasing rapidly
- Maturity is where the sales grow slowly, high competition and pricing has to be either promotional or competitive
- Saturation is the point where the sales stabilize and no new competitors are entering the market. Competitive pricing is used.
- Decline in the product can occur when new products come or when the product is withdrawn from the market due to low sales.
- How it can influence other decisions
- Price
- Skimming at the start
- Higher price than competition in growth
- Competitive pricing or promotional pricing in maturity or saturation
- Discounting during the decline stage.
- Promotion
- Higher spending in introduction
- Advertising reduced later because the product develops its own market
- Extension strategy during the later stages to increase promotional spending
- Price
- Extending the product life cycle
- New variations
- New markets
- Small changes in design
- Advertising campaigns
- New version and improvements
- More outlets to sell and new areas.
