1 / 38

Understanding Marketing Mix and Advertising

This unit aims to help learners understand the concept of marketing and how to explain the marketing mix and advertising. It emphasizes the importance of targeting the right customers, having the right product, price, place, and promotion, and constantly reviewing and adapting the marketing mix.

georgiav
Download Presentation

Understanding Marketing Mix and Advertising

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Learning Intentions At the end of this unit I will: • Understand the concept of marketing • Know how to explain the marketing mix and advertising • Value and be able to apply the marketing mix

  2. 3

  3. BEFORE WE BEGIN #04AFEF Do this exercise individually or in pairs. Tick whether you agree or disagree with the statements. Revisit it after the unit to see if you have changed your mind about any of them.

  4. Websites Wonderful Worthwhile Websites www.thinkbusiness.ie www.khanacademy.org www.studententerprise.ie 5

  5. Marketing Marketing involves identifying what the customer wants and promoting and selling the product/service so that the company makes a profit. • The business world is highly competitive • Highlighting a small difference could make a product more attractive and increase sales • Marketing is central to any business plan • 80/20 idea – 80 per cent of sales come from 20 per cent of customers • Businesses should target their important customers 6

  6. The Marketing Mix The marketing mix refers to the actions or tactics that a company uses promote its brand or product/service in the market. A typical marketing mix is made up of what is known as the 4Ps: 1. Product 2. Price 3. Place 4. Promotion 7

  7. The Marketing Mix The marketing mix is about having: • The right product (or service) • At the right price • In the right place • With the right promotion to sell it and make a profit 8

  8. Time to think Think of what made you buy your mobile phone. Was it the features of the phone, the price, how the sales rep convinced you or perhaps a special offer like a free gift? Did You Know? The idea of the 4Ps was introduced in the 1960s. In recent years, people have extended the mix to include other Ps like packaging and personnel.

  9. Product • Research – there must be a customer demand for your product/service The product is the item/service for sale. • Unique Selling Point (USP) – stand out from the competition • Brand image – develop an image for your brand • Packaging – have eye catching packaging that also protects the product • Safety – consider safety issues • Patent – is your product a new invention that needs a patent? • Product Life Cycle – understand where your product is in the product life cycle: introduction, growth, maturity, decline 10

  10. Price Price is the value placed on a product. This is usually what a customer is prepared to pay. • Choose the most suitable price for the intended market • Cover costs and have a profit margin • Profit margin will depend on the organisation • Take competitors’ prices into consideration • Price will depend on your target market • New product – low price to encourage sales or high price to create a superior image • Different prices may be charged – such as discounts, special offers, sales 11

  11. Place Place refers to the point of sale. Identify your market and choose the most appropriate way to distribute your product, known as the channel of distribution. 12

  12. Time to think Have you ever bought online? Were you happy with the product/service? Will all retailers move to an online platform in the future? Why might more and more advertising be moving to an online/digital platform?

  13. Promotion Promotion is all about getting the attention of the customer so they know about the product/service. • Sales promotion – using special offers to encourage customers to buy • Personal selling – face to face or telemarketing • Public relations (PR) – communicating with the media to get a positive public image • Celebrity endorsements – using a famous person’s image to get the consumer to know and have confidence in the product • Advertising – sending messages to the consumer to get them to want to buy the product/service 14

  14. Promotion: Social Media • Social media is a fantastic way to market products and services • It can be used to identify and to market to specific customer groups at very little cost Time to think Why might a business have a brand name? 15

  15. 4Ps 16

  16. CHECKING IN • Name the 4Ps and give an example of each in action. • Copy and complete the star to demonstrate the marketing mix.

  17. CASE STUDY THE MARKETING MIX FOR GREENGO Read the case study on pages 286 and 287, then answer the questions: • How would you rate Ben's approach to the marketing mix? • Based on your knowledge of the 4Ps is there any advice you would give him so that he remains close to his market?

  18. Reviewing the Marketing Mix Organisations must continually review the marketing mix to ensure that they remain close to their market. They may need to: • Change prices • Adapt promotion • Update products/services 19

  19. Advertising Advertising is the paid promotion of a product or service with the aim of informing and influencing people about the product or service. • Advertising is expensive and a cost in the business accounts • Some companies spend billions of euros on advertising, for example Apple, Coca-Cola, McDonald’s • Advertisers know people buy based on emotions 20

  20. Advertising Advertisers use interesting techniques and language in their ads. 21

  21. Time to think Can you associate other products with slogans? Why do you think you remember these slogans?

  22. WORKING WITH OTHERS #04AFEF • Working in pairs or small groups, source an advertisement. Has the advertiser used any of the techniques on page 288? • Download an ad from YouTube and list the advertising techniques used. Would the ad convince you to buy the product? Page 289 Be a Researcher Find out the cost of a standard full-page advertisement in a national newspaper.

  23. Reasons for Advertising Advertising communicates information about a product or service, with a view to persuading potential customers to buy the product or service. Reasons for advertising – AIDA: • Advertising attracts attention • It inspires interest • It develops a desire • It achieves action 24

  24. Types of Advertising There are three types of advertising: 1. Informative – provides factual information. 2. Persuasive – aims to convince you that you need the product/service. 3. Competitive – shows that a particular brand is better. 25

  25. Forms of Advertising There are many forms of advertising: • Television • Social media • Radio • Websites • Cinema • Magazines • Billboards • Newspapers • Competitors • Shopping bags • Sponsorship 26

  26. Forms of Advertising The form of advertising you choose will depend on: • Media preferences of the customers • The type of product/service • The budget • If there is a need to demonstrate the product/service • If it needs to be advertised locally or nationally 27

  27. Time to think What’s your favourite advertisement? Why? Identify a plus and a minus for each form of advertising listed on page 289.

  28. Planning an Advertising Campaign When planning an advertising promotion, it is important to: • Have clear outcomes or intentions • Decide on a budget • Choose an appropriate form of advertising • Decide whether to use an advertising agency or employ someone 29

  29. Evaluate the Campaign After the campaign, evaluate to see: • What worked well? • What you would do differently? How can you evaluate? • Determine if the campaign was cost-effective • Survey the public • Check whether sales have increased significantly • Ask employees for their opinions 30

  30. CHECKING IN • Name three techniques used by advertisers to get our attention. • List the types of advertising and say why an organisation would choose each one. • What are the key elements in planning and evaluating an advertising campaign? Time to think How might a business advertise globally?

  31. 2.8 MARKETING MIX • What are the 4Ps? Quick Quiz Product, Price, Place, Promotion Product, Percentage, Price, Promotion Product, Price, Packaging, Promotion

  32. 2.8 MARKETING MIX • What are the 4Ps? Quick Quiz Product, Price, Place, Promotion Product, Percentage, Price, Promotion Product, Price, Packaging, Promotion

  33. 2.8 MARKETING MIX • What are the 4Ps? Quick Quiz Product, Price, Place, Promotion Product, Percentage, Price, Promotion Product, Price, Packaging, Promotion

  34. 2.8 MARKETING MIX • What are the 4Ps? Quick Quiz Product, Price, Place, Promotion Product, Percentage, Price, Promotion Product, Price, Packaging, Promotion

  35. 2.8 MARKETING MIX • The 4Ps are: • Product • Price • Place • Promotion Quick Quiz: Review

  36. 37

  37. Promotion • 4Ps • Advertising • Public Relations (PR) • Marketing • Sales promotion • Marketing mix • Slogan • Packaging • Place • Price • Product

More Related