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The Marketing Mix

The Marketing Mix. What is Marketing?. Putting the right product in the right place at the right time. A lot of hard work goes into finding out what the customers want, where they shop for it, and how much they are willing to pay for it. Getting one element wrong can lead to failure.

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The Marketing Mix

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  1. The Marketing Mix

  2. What is Marketing? • Putting the right product in the right place at the right time. • A lot of hard work goes into finding out what the customers want, where they shop for it, and how much they are willing to pay for it. • Getting one element wrong can lead to failure.

  3. 4p’s of marketing

  4. Product

  5. Product • A product is any type of goods or services that you give and or provide a customer.

  6. Things to think about • Needs to meet the needs and wants of the customers • Needs to look appealing like it is something that people will actually want to buy. • The name of the product needs to be appealing. • What type of a brand does it have? • Needs to be different from competitors.

  7. Things to think about • Design • Technology • Usefulness • Convenience • Value • Quality • Packaging • Branding • Accessories • Warranties

  8. Product • Methods used to improve / differentiate the product and increase sales or target sales more effectively to gain a competitive advantage. For example…

  9. Product Methods • Extension Strategies • Repositioning the product in the market • Re-launching the product. • Aiming and a different market segment. • Targeting a different geographical Market • Using the “now with” policy • Different distribution

  10. Product Methods • Specialized Versions • New Editions • Improvements – real or otherwise! • Changed packaging etc.

  11. Product Life Cycle

  12. Example of Product Lifecycle • Nutri-grain was originally designed to meet the needs of those that missed breakfast and needed a healthy on-the-go solution. • Launch – May products do well when they are first brought out. When they launched it in 1997, it was immediately successful selling about 3,000 tons of the product.

  13. Product Lifecycle • Growth – The sales increased till about 2002 when they expanded the original product with new flavors and formats of the same product. • The product subtly changed from “missed breakfast” to “all-day” healthy.

  14. Product Life-cycle • Maturity- • This is the known as Maximum Profitability. As the profits from the product can be used to better build the brand.

  15. Life Cycle – Saturation - • This is when the market is “full” • Most people have the product • There are other better and or cheaper competitor products • Sales decrease • By 2004 nutri-grain found that their sales were declining by about 15%

  16. Life Cycle - Decline • Clearly they had to make a decision. They could let the product die, or they could re-launch the product and try other promotional strategies.

  17. Q and A • What needs or wants does your product give to the customer? • What features does it have to meet those needs? • How and where will the customer use your products? • What does the product look like? Color? Shape? Size? • What is it called? • How is it branded? • How is your product different from your competitors?

  18. Price • Skimming- Setting a relatively high price for a product for the first service, and then lowers the price over time. • Penetration- Setting a relatively low entry price to sell more. – increases shares rather than making a profit

  19. Price • Psychological • Perception of saving – 1.99 is better than 2.00 • Perception of value – Buy now and get one free • Perception of Discount – 10% off • Perception of unbundling – Pay $1 a day sounds better than 1,825 annually. • Perception of quality – Higher the price the better the quality

  20. Price • Cost-Plus- find the base cost and then charge x amount more to insure that you are making money. • Loss Leader- Sell one item at a low cost to draw customers in to buy other items.

  21. Pricing Strategy • Know the importance of: • Knowing the Market • Elasticity • Keeping an eye or rivals.

  22. Promotion • Price • Marketing Mix • Place • Product • Promotion

  23. Promotion • Strategies to make the consumer aware of the existence of a product or service • NOT JUST ADVERTISING

  24. Things to think about • Special offers • Advertising • Endorsements • User Trials • Direct Mailing • Leaflets / posters • Free gifts • Competitions • Joint ventures

  25. Nutri-grain

  26. Place • Price • Marketing Mix • Place • Product • Promotion

  27. Place • The means by which products and services get from the producer to consumer and where they can be accessed by the consumer. • The more places that you can buy the product and the easier it is made to buy it, the better the business becomes, and the happier the consumer will be.

  28. Place • Retail • Wholesale • Mail order • Internet • Direct sales • Peer to peer • Multi-channel

  29. The Marketing Mix • The blend of the mix depends upon: • Marketing objectives • Type of products • Target market • Rivals’ behavior • Global issues – culture / religion etc • Marketing position • Product portfolio • Product lifecycle • Boston Matrix

  30. Bibliography • http://www.powerhomebiz.com/vol119/psychology.htm • http://businesscasestudies.co.uk/kelloggs/extending-the-product-life-cycle/the-product-life-cycle.html

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