Target market (Marketing mix)

Elements in product/service

1. The USP

-The differentiating feature making the product stand out.

2. Branding

-Differentiates a company from competitors by giving it a name, design or logo.

3. Product Design

-The branding, sustainability/ethics and features all play a part in the product.

How target market can influence product

1. The USP

-USP must match the target market’s values.

1. Branding

-Branding should look like and reflect the target market’s taste.

3. Product design

-Design must suit target market’s needs in price, style and usability.

Product life cycle stages

1. Introduction

-Product is just launched into market.

-Sales are low, costs are high.

2. Growth

-Product is gaining more popularity.

-Sales begin increasing, cost per unit falls.

3. Maturity

-Product is established in market and profits culminate.

-Sales peak but growth slows down.

4. Saturation

-Market becomes crowded with similar products. New strategies needed to avoid decline.

-Sales slowly begin dipping.

5. Decline

-Business could decide to end production and reduce prices to eliminate stock.

-Product loses demand and sales fall sharply.

Ways to extend product life cycle

1. Product (New variant or limited edition).

2. Price (Special offers or bundle deals).

3. Place (Expand availability).

4. Promotion (influencer campaigns or nostalgia marketing).

Factors for setting a price

1. Target market

2. Cost of production

3. Competitor prices

4. Economic conditions

Types of pricing

1. Price skimming

-Price high on release to target early buyers then drop price later (iPhone).

2. Premium pricing

-Higher price to signal superior quality or luxury status (Balenciaga)

3. Cost-plus pricing

-Price=total cost+markup for profit. (Restaurants do this up to 70% on average).

4. Tiered pricing

-Different features for different price; higher quality, more expensive. (Netflix)

5. Dynamic pricing

-Pricing that changes according to consumer demand, time or profile. (Tickets).

How target market influences price

1. Disposable income

2. Perceived value and expectations

3. Price sensitivity

Types of advertising

1. Informative advertising

2. Persuasive advertising

3. Generic advertising

4. Competitive advertising

Types of PR strategies

1. Press releases

2. Sponsorships

3. Community initiatives

4. Crisis response

Types of sales promotion techniques

1. Discounts

2. Buy one get one free

3. Loyalty cards

4. Competitions

How target market influences promotion

-Business tailor their promotion to what their target market want most.

-More premium businesses may opt for personal selling so they can have expert guidance for customers coming in with expectations.

-Younger audiences may have digital promotion used on them as they can be influenced by online influencers more easily.

-Older people may prefer direct marketing such as leaflets or letters as they’re not as tech savvy.

Promotion strategies

1. Advertising

2. Sales Promotions

3. Public Relations

4. Direct Marketing

5. Digital Promotion

6. Personal Selling

People in marketing mix

-People refers to everyone involved in delivering the product/service, especially those who interact with customers.

-The people may give a taste of what the business and its vibe is like and may change according to the target market.

How target market influences people

1. Customer experience

2. Knowledge and skills

3. Appearance and behaviour

Functions of packaging

1. Protection from damage and staleness

2. Provide important information (allergies, etc)

3. Point of differentiation from other brands

4. Promote this and sustainability

How target market influences packaging

1. Design and style match

2. Relevant messaging

3. Convenience and functionality

4. Ethics and environment

Process in marketing

-Refers to the steps the customer takes from interacting with the business to completing their purchase.

-Needs to be easy and quick to maximize conversion rates.

-Examples: Browsing store —→ Add to cart —→ Pay —→ Delivery updates —→ Returns/after sales.

How target market influences process

1. Speed and convenience

2. Ease of use

Channels of distribution

1. Direct

Manufacturer —→ Consumer (Nike)

2. Agent

Manufacturer —→ Agent —→ Consumer (Real estate)

3. Marketplace

Manufacturer —→ Marketplace —→ Consumer (Amazon)

4. Traditional

Manufacturer —→ Wholesaler —→ Retailer —→ Consumer (Coca-Cola)

5. Alternative

Manufacturer —→ Retailer —→ Consumer (Harvey Norman TVs)

How target market influences channel of distribution used

1. Convenience and speed

2. Buying habits and preferences

3. Type of product and brand experience