Studied by 2 peopleWhat is the marketing mix?
It is the combination of marketing elements used by a business to enable it to meet the needs and expectations of customers
Why is it called the marketing mix?
Because each element of the marketing mix is related to the others
Elements of the mix should work together to achieve the desired effect
What are the traditional 4 p’s?
Product: The product or service that the customer buys
Price: How much the customer pays for the product
Place: How the product is distributed to the customer
Promotion: How the customer is found and persuaded to buy
What are the new p’s?
People: The people who make contact with customers in delivering the product
Process: The systems and processes that deliver a product to a customer
Physical Environment: The elements of the physical environment the customer experiences
What are the influences on the marketing mix?
Finance
Cash Flow
Discounts
Marketing budget and cost of promotions
Technology
Technologically advanced products
Sophistication of the organisation’s database
Lower costs
Online selling
Social media
Market research
Level of competition
Availability of substitutes
Consumer opinions
Niche or mass marketing
Market segment
What are other factors which influence the marketing mix?
Relative power of buyers and suppliers
Quality of the promotion
Price elasticity of demand
Reputation of the business
Convenience of location
What are the effects of changes in the elements of the marketing mix?
Product: A product should possess features that appeal to its target market and which are consistent with its market position
Price: In general a price will attract a greater volume of customers. However high prices may prove to be more profitable as they can generate greater income and have greater profit margins
Promotion: Expenditure on promotional activities should enable the business to increase sales. Each promotional mix element must be examined in terms of its cost-effectiveness in generating revenue
Place: A business generally wants its products to be available for purchase in as many places as possible. However, if it is trying to project a certain image for its products then it may make the product available in places that match the image of the product
People: To maximise sales of both goods and services, it is important to ensure that any staff who are in direct or indirect contact with customers are knowledgeable, enthusiastic and well-trained
Process: time is valuable to consumers. The process involved in buying a product, such as the initial enquiry and placing an order, must be conducted efficiently by the business, so the customer gets the product they want at the time and place they desire
Physical Environment: Where the customer comes into contact with the business, such as buildings, website and any communication used by the business, a favourable impression must be given. This will encourage the customer to purchase products from that business
What are product decisions for industrial marketing?
Larger transactions
Specialist buyers and sellers
Quality
Informative advertising
Pricing
Buyer-seller relationship
What product decisions should be used for convenience products (consumer marketing)?
Consumed and purchased regularly
Consumers purchase them by habit
Purchased by a very large proportion of the population
They tend to be low-price items and so businesses need to sell them in large volumes to make a profit
Consumers do not tend to shop around as there is limited scope for saving money by switching brands
Impulse buys, placed near the tills in shops, are often examples of convenience products
What product decisions should be used for shopping products (consumer marketing)?
Consumed and purchased quite often, but less regularly than convenience products as a rule
Because consumers plan their purchases they do not need to be displayed so prominently in stores and are likely to be available in fewer stores
Consumers may purchase them because of augmented qualities, beyond the basic use of the product (such as a feeling of prestige from buying a fashionable brand), so there is often brand loyalty
For sellers, there is more scope for higher prices and greater added value ti than for convenience products
What product decisions should be used for speciality products (consumer marketing)?
These products will often have unique characteristics auc
Consumers are much more selective and there is greater emphasis on image and brand when making purchasing decisions
People may travel some distance to purchase speciality products
Price is not a key consideration in the decision to purchase and so high profit margins can be gained
What product features and design influence the marketing mix?
Reliability: Manufacturers such as Samsung, Sony and Apple have a reputation for reliability that appeals to tablet computer buyers.
Functions and compatibility with other devices: Buyers of tablets desire a flexible product which can be used for a wide range of activities and which can transfer data and activities to and from other products, such as computers and mobile phones.
Size and weight: In general, customers prefer light mobile devices. The small size will thus appeal to customers who prioritise weight, but other users prefer a larger screen.
Convenience of use: Tablet providers make sure that controls are designed for ease of use, with key controls within easy reach. Because of their use on the move the design is intended to aid use with one hand.
Fashion: Tablet designs and covers are made to appeal to fashion-conscious consumers as they have become an accessory to many people.
Aesthetic qualities: Apple products are renowned for their appearance and design so competitors must try to match their reputation.
Durability: Given their usage this is an important feature and so organisations such as Samsung place a high priority on durability.
Value for money: In the UK, Acer and Huawei provide tablets at a lower price than the market leaders.
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