Your Project Brief!

1. Your Project Brief!

2. UNIT TITLE:Unit 9: Creative Product Promotion LESSON TITLE:The Marketing Mix (4P’s) CRITERIA: Contribution towards P1 COMPETENCY FOCUS: Creativity:learners will develop skills in creativity and design by firstly looking at how promotion is used in business to help them to reach their goals and secondly, to design their own promotional campaign responding to a creative brief from the client. Reasoning:Learners will develop skills in reasoning as after providing advantages and disadvantages for the use of the promotional mix, you will be required to make a reasoned judgment. Learning Objectives By the end of the lesson, you should be able to… LO1) To identify the components of the marketing mix (Gui) LO2) To explain each of the components of the marketing mix, providing real life examples for each (Reg) LO3) To assess how the marketing mix is used in product promotion providing reasoned judgments (Str-Adv). CRITICAL THINKING KEY: Knowledge ApplicationAnalysis Evaluation SMSC: You will assess the moral implications and consideration of product promotion.

3. True or False? Marketing is about making sure the company accounts balance.

4. True or False? Marketingplanning is looking at how well the product is doing after it has been launched?

5. True or False? The marketing mix consists of 3P’s.

6. True or False? Creating an effective marketing mix helps businesses produce the right product, at the right price, make it available at the right place and let customers know about it through promotion.

7. True or False? The product part of the mix looks at the price a product is charged to customers.

8. True or False? The place part of the marketing mix looks at how the product will be distributed to customers.

9. The Marketing Mix • Also known as the 4P’s (product)/7P’s (service) • Businesses must consider its marketing mix in order to market its products successfully • To meet customer’s wants/needs, marketers must create the right product, at the right time, at the right price, make it available at the right place and let customers know about it through promotion.

10. The Marketing Mix [www.bbc.co.uk]

11. PRODUCT • What is the product? • Who are the potential customers? • What are the features/benefits? Has the product got a ‘unique selling point’ (USP)? • What makes the product appealing to customers? • How is the product better than the competition?

12. PRODUCT Anatomy of a product Additional value/add-ons i.e. warranty, free delivery etc The physical (tangible) item you are selling. What does your product offer compared to competitors? This is where your branding, added features come in to play. Augmented Product Actual Product CORE The benefit of the product that makes it valuable to you? Can you apply this principle to the Apple Ipad?

13. Product Life Cycle

14. Product Life Cycle (PLC) • What might the PLC look like for a new games console? Say the Playstation 3? • How might the organisation be affected at each stage of the cycle?

15. PLC: Extension Strategies Types of strategy include: How might putting an extension strategy in affect an organisation?

16. CASE STUDY TASK Kommunic8, a mobile phone company developed a new phone that was smaller, lighter and contained many more applications than its nearest rival. The phones sold well, but are now passing from the growth stage into the maturity stage. Competitors have already entered the market. Give two extension strategies that Kommunic8 can use to hold on to sales.

17. MAIN TASK In pairs, invent/create a new product following elements of the product mix including PLC, product anatomy etc You will need to provide an image/diagram of your new product and applied principles of the product mix. You will present your product to your peers.

18. PRICE • How much is the product sold for? • Are any discounts offered? • What price is charged compared to the competition?

19. PRICE Pricing Strategies • Price Skimming • Penetration Pricing • Price Leader • Destroyer Pricing • Price Discrimination • Psychological Pricing • Cost+ Pricing • Contribution Pricing • Loss Leaders (Economy Pricing) TASK: You will each be given a strategy and you will need to use your research skills to explain to your peers what each one involves.

20. PRICE Pricing Strategies • Price Skimming (charging higher price at first) • Penetration Pricing (Set a low price to gain a foothold in the market) • Price Leader (Leader in market, others follow) • Destroyer Pricing (Set really low price to eliminate competition from market) • Price Discrimination (charging different prices to different customers) • Psychological Pricing (£9.99) • Cost+ Pricing (‘bottom-line’ + extra) • Contribution Pricing (Contribution towards fixed costs) • Loss Leaders (Economy Pricing) (very low price to attract customers)

21. PLACE • Where is the product sold (UK, globally)? • Is the product sold through retailers, wholesalers, distributors, agents, direct to the customer? • How is the product sold (face to face, via the internet, telephone/cold-calling)?

22. PLACE How a product is distributed. Manufacturer Wholesaler Retailer Customer Manufacturer Customer How has the increase in online shopping had an effect on the above diagram? How will the diagram look in 5 years time?

23. PROMOTION • How is the product advertised? • Are there any promotions on the product (BOGOF, 10% extra free, free gift)?

24. AIDA MODEL

25. PROMOTION • Advertising (above-the-line/below-the-line) • Sales promotion (i.e. BOGOF) • Online advertising • Personal Selling • Public Relations Advertiser’s tricks: Celebrity endorsement Put-down competition (i.e. Asda’s price promise Jumping on the bandwagon: everyone else is buying this product, why aren't you?

26. 7P’s EXTENSION (Advanced – Autonomous learners) Used for marketing a Service People: who is involved in marketing the service i.e. Customer Service Representatives, how are you going to train/recruit these staff?) Process: Systems used to assist transaction i.e. Credit card machine, drive thru, efficient service through fast systems) Physical Evidence: where will the new service be delivered? i.e. aircraft

27. a) To include in your audit, you are to prepare a case study of two organisations. Firstly, for your organisationwith which you have had some contact, describe the promotional mix used in a campaign it has been running to attract customers to buy their products. In your description, consider the following constituents of the promotional mix for this institution. What products/services do they sell? What are their promotional objectives? Who are the target customers? How are prices defined? How are their products distributed? What are the elements of the promotional mix and the media used, including exhibitions, written materials, websites and electronic communications, person-to-person contact etc. How have the elements in the promotional mix been designed to appeal to the target group? b) Now choose one of their competitors and repeat the above steps for that organisation.

28. For one of your selected organisations: • explain how their promotional activities are integrated (M1) • explain how the promotional activities contribute to the achievement of its marketing aims and objectives (M1) • evaluate and justify the use of the promotional mix with respect to your chosen business and marketing objectives (D1) • make reasoned suggestions for changing aspects of the promotional mix, bearing in mind that the budget is likely to be very constrained (D1).