Marketing Mix - Business

What is the Marketing Mix?

A strategic Framework that businesses use to develop a comprehensive marketing plan by breaking down each part of what is being offered and how it can be marketed. It Allows businesses to understand and address their target market's needs and wants. It provides a framework for making decisions about how to best reach and engage customers and helps to differentiate a business from competitors by building a strong brand. The key elements of the marketing mix are; product, price, promotion and place.

Product

The goods or services that the business sells to meet the needs and wants of the target market.

What are the 4 marketing strategies to promote market growth of a product

Businesses market their products through their features, branding, packaging and positioning

What is product positioning?

How a product is perceived by consumers relative to competitors, aiming to establish a unique and memorable image in their mind.

What is product branding and how does it help a business?

Creating a unique identity for a product or service so that customers can identify with it. Helps a business make its product stand out compared to competitors.

Relation between branding and brand

Branding is the words associated with the brand which is the name symbol or design that is used to identify a product.

What is product packaging?

Materials used for the containment, protection, handling, delivery and presentation of goods.

What are the 3 types of packaging?

1. primary - Packaging in direct contact with and containing the product. 2. secondary - Used to package the product for display in the store 3. Tertiary packaging - Packaging used to handle and transport the product

What are product features

The attributes, quality, design and benefits of a product.

Price

The amount of money a customer has to pay a business for a product.

What are the 4 pricing strategies?

Skim, penetration, psychological and premium pricing

What is skim pricing and when is it used?

Setting a high price because customers are happy to pay more. Used when a new product is launched as consumers are unaware of the market pricing of the product. Used for a niche market

What is penetration pricing and when is it used?

Setting a low price to attract customers to buy more and a higher number of new customers. Used in mass markets on products that are already relatively popular and when a competitor moves into the same market segment.

What is Psychological pricing and what are some examples?

Price is set based off customer perceptions. This causes customers to perceive the price to be significantly lower and therefore more attractive. Examples include odd-even pricing or pricing that is just below a whole number value.

What is premium/prestige pricing?

Setting the price above the market price to create a sense of exclusivity. Gives a business a niche market for exclusive and high-end products.

Promotion

The communication of information about the product to the target market, while also attempting to influence the behaviour and attitudes of the customer.

What are 4 promotional methods?

Personal selling, Sales incentives, Advertising, Publicity

What is personal selling?

Sales personnel directly selling the product to customers through viral marketing, door-to-door or telemarketing.

What are 2 examples of personal selling?

Real estate, car sale and shoe store sales staff

What is sales promotion and what are some examples?

Sales through special deals. E.g. Coupons, discounts and samples

What is advertising as a promotional method and examples?

Promotion in advertising media that is paid for. E.g. Internet, newspaper and viral social media

What is publicity as a promotional method and examples?

Positive stories set up about a business product that is not paid for. E.g. Internet, newspaper and viral social media.

What is viral marketing and examples?

A promotional technology where a multimedia message is passed along from person to person creating awareness and interest for a brand or product.

Place

The method that a business uses to distribute the product or service to the customer.

What is direct distribution and what type of business is likely to use it?

Direct distribution means a business sells products directly to consumers, used by small businesses.

What is indirect distribution and what type of business is likely to use it?

Indirect distribution involves using wholesalers or retailers to reach customer used by large manufacturers.