Marketing Mix

The Marketing Mix

- mode, means or tool used by the entrepreneur to position the product and deliver it to the consumers

- to convince them about the benefits that will derive from buying the product.

PRODUCT

- Tangible good or intangible service offered by the business

- indicates a description of the product or servic

PRICE

-The amount paid by a consumer for the product.

Cost

-the amount of money use in producing the goods or services

- labor and overhead expenses.

Margins (Profit Margin)

- refers to the revenue earned after deducting the cost of the goods sold.

Markups

- refers to the additional amount added to the cost of the goods or services to determine its selling price

TARGET RETURN PRICING

A pricing strategy that allows a product manufacturer to recover a certain portion of his/her investment every year.

ODD PRICING OR PSYCHOLOGICAL PRICING

Premised on the theory that consumers will perceive products with odd price endings as lower in price than they actually are.

LOSS LEADER PRICING

It prices a product lower than its production cost in order to attract customers or sell other, more expensive products.

PRESTIGE PRICING

It capitalizes on the high value perception or positive brand reputation of a product or service.

GOING RATE PRICING

Competitive pricing

(benchmark pricing)

A company prices its product at the same level or very close to its competitor's price

PROMOTIONAL PRICING

A pricing strategy involving a temporary reduction in the selling price of a product/service in order to induce trial or to encourage repeat purchase.

Cost plus pricing(Mark-up pricing)

you add a specific mark-up to the cost to determine the selling price.

Bundling

- This offers one or two products at a reduced price, for example coffee plus doughnut.

PLACE

- pertains to the distribution strategy

- should provide convenience to the customers

- refers to the where, how, and when you are going to deliver the product or service

EXCLUSIVE DISTRIBUTION

- limited to a select number of dealers, usually one or few.

INTENSIVE DISTRIBUTION

- used mostly by fast-moving consumer goods and convenience goods, involves making a product available in as many retail outlets as possible.

SELECTIVE DISTRIBUTION

- positioned between exclusive and intensive distribution

PROMOTION

The communications used in the marketplace to raise the awareness of the product along with its benefits to the aimed segment.

•RADIO

•PRINT

•CINEMA

•BILLBOARD

•WEBSITES

•SOCIAL NETWORKING SITES

•DIRECTORY ADVERTISING

•PRODUCT PLACEMENT

•EMAIL ADVERTISING

SOME COMMONLY USED ADVERTISING MEDIA AND TECHNIQUES

PEOPLE

The individual employees or workers who are directly involved in the production, marketing and sale of the product or services.

PACKAGING

The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean.

POSITIONING

Refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors

1.Positioning based on product characteristics

2.Positioning based on price

3.Positioning based on quality or luxury

4.Positioning based on product use or application

5.Positioning based on competition

The five main strategies upon which businesses can base their positioning are the following:

VALUE PROPOSITION (VP)

- refers to the value a company promises to deliver to customers should they choose to buy their product.

UNIQUE SELLING PROPOSITION (USP)

- one thing that makes your business better than the competition.

BRAND

- name, design, color, symbol, quality, features

- make the product separate and distinct from similar products and competitors.

BRANDING STRATEGY

- FORMULATION OF A BRAND NAME FOR THE FIRST SINGLE PRODUCT THAT THE BUSINESS INTENDS TO MAKE.

UMBRELLA BRAND APPROACH

- All products of the business carry the same brand.

- Ex: Google

HOUSE BRAND APPROACH

- Every product of the same business has a separate brand name that distinguishes it from the rest of the products

BRAND EQUITY

- THE LEVEL OR DEGREE OF THE CONSUMER'S PERCEPTIONS OR REACTIONS TO A BRAND.

- Awareness, Association, Experience, Perceived Quality, Loyalty

LINE EXTENSION APPROACH

- The existing product has been modified or altered resulting in a new product or more products without eliminating the original product.

PRODUCT EXTENSION APPROACH

- A new product carries the brand name in a new category.