Marketing Mix, Planning & Objectives

1. Marketing Mix, Planning & Objectives GCSE Business Studies tutor2u™ Revision Presentations 2004

2. Marketing Mix - Introduction Marketing Mix Product Price Place Promotion Often referred to as the “Four P’s of Marketing

3. Product • Can be both • A tangible good (e.g. iPod media player) • A service (e.g. cinema) • Product is something that satisfies customer needs and wants • Many products try to develop an associated brand – a name, design, sign or symbol that helps it to be differentiated from competitor products • Products rarely last for ever – they have a “life cycle” • Businesses need to think carefully about new product development if they are to remain competitive

4. Price • Price – the value a customer is prepared to pay in exchange for taking ownership of a product, or receiving a service • Price directly affects revenue • Revenue = number of units sold x price • But how much a customer buys (“demand”) is also affected by price • So an increase in price doesn’t always mean an increase in revenue • Various methods of setting a price • Pricing strategy is important • Products need to be “competitive” • Price needs to be consistent with the overall objectives of the business

5. Place • Not really a “P” – since Place is all about distribution • Channels of distribution – the method by which goods or services are transferred from producers to consumers • In most markets there are several distribution channels • E.g. wholesalers, agents, retailers • Business may use one or more channels • Direct selling (i.e. from producer direct to consumer) is an increasingly popular method of distribution • E-commerce (selling via the Internet) is another kind of distribution channel

6. Promotion • Covers all the different ways a business can communicate with its customers; e.g. • Personal selling • Direct marketing • Advertising • Sales promotion • Public relations • Sponsorship

7. Marketing Planning • Marketing planning – all about deciding what the marketing objectives are – and coming up with a way of achieving them! • Main steps • Do an annual audit to establish “where we are” by gathering data through market research etc • Set SMART marketing objectives • Create and evaluate alternative strategies to deliver objectives • Implement strategy by changing the marketing mix i.e. day to day tactics • Evaluate the success of marketing activities in meeting set objectives before the next annual audit

8. Marketing Audit • A marketing plan is usually prepared following a review of the current situation (sometimes called a “marketing audit”) that looks at questions such as: • What are our existing products and brands? • Are the markets we do business in growing? • If so, how fast? • Who are our competitors? • What advantages (if any) do we have over them? • How effective has our marketing been in recent history? • Are there ways in which we could achieve the marketing objectives differently and more profitably?

9. What are Marketing Objectives? • Marketing objectives are the expected outcomes a business is trying to attain through its marketing activities at the end of a given time period • Ideally - marketing objectives must be SMART (see next slide) • Marketing objectives need to be in line with the other objectives for the business • Marketing objectives can be used as a way of measuring performance over time

10. SMART Marketing Objectives • Ideally, marketing objectives need to be SMART • S = Specific: i.e. state what the firm is seeking to achieve e.g. increase sales • M = Measurable i.e. set in terms of a number value e.g. achieve sales of £1m or increase market share to 15% etc • A = Achievable i.e. the target can be met within the resources of the firm • R = Realistic the target must be achievable in terms of financial and human resources available. • T = Time bound i.e. within a given period of time e.g. 12 months

11. Marketing Strategies