4.5 Marketing Mix/ 7ps of Marketing

Product

A product is any good or service that serves to satisfy the needs or wants of customers

Consumer Products

those purchased by private individuals for the own use

Producer Products

Purchased for commercial use

Research and Development (PLC)

Organising and developing ideas for a new product as well as conducting market research

Launch (PLC)

Product is introduced to the market

Growth (PLC)

Sales growth and brand recognition

Maturity (PLC )

Rate of growth slows down and economies of scale

Decline (PLC)

Sales revenue and profit fall

PLC stages (5)

• Research and development

• Introduction

• Growth

• Maturity

• Decline

Extension Strategies definition

Means of prolonging a PLC and delaying it’s decline

Extension Strategies (9)

• Price reduction

• Advertising

• Redesigning

• Repackaging

• New markets

• Brand extension

• Product differentiation

• Change brand name

• Reposition product

Prototype

Trial product after extensive market research

Test Marketing

Trial of a new product w/ focus groups

Innovators

Customers who tend to buy product in launch stage

Early Adopters

Influx of customers who help boost sales and case flow in growth stage

Saturation

Too many competitors in the market and sales revenue peaked/started to fall

Early and late majority

Early stage of growth/maturity customers and ending stage of maturity customers/

Laggards

Customers in decline stage

Brand

A name that is identifiable with a product of a particular business

Brand Awareness

Measures the extent to which people recognize a particular brand

Brand Loyalty

When customers buy the same brand/product repeatedly over and over period of time.

Brand Switching

When customers turn to an alternate brand mainly because the original lost it’s Appel

Brand Value

Premium that customers are willing to pay fir a brand name over and above the value of the product itself

Importance of branding (4)

• Legal identity of a product

• Risk reducer

• Image enhancer

• Revenue earner

What makes a good brand (3)

Intangibility; Uniqueness; Timelessness

Price

Refers to the amount paid bt a customer to purchase a good or a service

Cost plus pricing

Adding a percentage to the cost per unit to determine the selling price

Penetration Pricing

Setting a low price in order to enter an industry

Loss leader pricing

Selling a product below cost value in order to attract customers

Predatory Pricing

Temporarily reducing price to force out competition — illegal

Premium Pricing

When the price is set significantly higher than competition due to USP or higher quality

Promotion

Refers to the methods of communication marketing messages to existing and potential customers.

Promotional Activities aim to ……

RAPID;

• Remind

• Attract

• Persuade

• Inform

• Develop

ATL promotion

Any form of paid material through mass media sources

ATL promotion techniques (6)

• Television

• Radio

• Cinema

• Newspaper articles

• Magazines

• Outdoor activities

BTL promotion

non-mass media promotion, allowing the business to have direct control

BTL promotion Strategies (10)

• Direct marketing

• Personal Selling

• Sales promotion

• Point of sale promotion

• Publicity

• Trade shows

• Sponsorships

• Work of mouth

• Guerrilla Marketing

• Packaging

Through the line promotion

Both ATL and BTL

Place

refers to the distribution of products

Channels of distribution

Means used to get a product t the consumer

Zero level distribution channel

Skips out intermediaries and sells directly to the consumer

One level distribution channel

One intermediary

Two level distribution channel

Uses 2 intermediaries

Types of channels of distribution (6)

• Wholesalers

• Distribution agents

• Retailers

• E-commerse

• Vending machines

• Mail order

People (4)

• Apereance and body language

• Aptitudes and attitudes

• Feedback

• Efficiency

Proceses

refers to the way the service is provided

Physical Evidence

Refers to the tangible aspects of a service