Marketing Mix

1. Marketing Mix

2. The marketing mix The marketing mix is also known as the 4Ps: • Product • Price • Place • Promotion

3. Product • ‘Product’ refers to the functions and features of a good or service • Should satisfy the needs of the customer • May have a Unique Selling Proposition (USP) • ‘Product’ also includes a range of factors such as packaging, quality, warranties, after-sales service and branding • Products and brands may suggest certain images e.g. sporty, sophisticated, value

4. Product lifecycle The product lifecycle looks at the sales of a product over time

5. Stages of the product lifecycle Development – high costs but no sales Launch – high expenditure on promotion and product development, low sales Growth – sales increase and product should break even Maturity – sales stabilise, less expenditure on promotion needed, revenue & profit should be high Decline – sales decline, extension strategies canbe adopted or the product withdrawn

6. Extension strategies Extension strategies should maintain or increase sales. They include: • Modifying the product • Reducing the price • Adding a feature • Promoting to a different market sector Extension strategies

7. Price The price of a product will depend on: • The cost to make it • The amount of profit desired • The price competitors charge • The objectives of the business • The price customers are willing to pay • Is there a high demand? • Is demand sensitive to changes in price?

8. Pricing strategies and tactics

9. Pricing strategies and tactics

10. Place • Products should be conveniently available for customers to buy • ‘Places’ include: • Stores • Mail order • Telesales • Internet The use of e-commerce (promoting and selling on the internet) has grown massively over the last few years

11. Channels of distribution

12. Promotion The aims of promotion are to: • Raise awareness • Encourage sales • Create or change a brand image • Maintain or increase market share

13. Types of promotion Above-the-line promotion This uses mass media advertising over which a firm has no direct control e.g. television, radio and newspapers Below-the-line promotion This uses promotional media which the firm can control e.g. direct mail, sales promotions, sponsorship and social media

14. Promotional activities • Advertising e.g. TV, billboards and internet. • Sales promotions e.g. loyalty cards, BOGOF, discounts & free gifts • Sponsorship – a business pays to be associated with another firm, event or cause • Direct mailing – promotional material is sent to potential customers by post/email • Public relations – building the relationship between the firm and the public by enhancing its reputation

15. Promotional mix Most businesses use a combination of different promotional activities. The chosen promotional mix will depend on: • Cost • Target market • Product • Competitors

16. AIDA Promotional campaigns often take into account the AIDA model: • Awareness - raising awareness of a product • Interest – exciting interest in the product • Desire – creating desire for the product • Action – encouraging a purchase

17. AIDA Marketing v. Sales

18. Marketing vs. Sales

19. Marketing vs. Sales

20. Marketing vs. Sales

21. Marketing vs. Sales

22. Marketing vs. Sales