What is the Marketing Mix?

• The marketing mix 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

The Traditional Four 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

The new Ps:

• 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

Influences on the elements of 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

Other factors which influence the elements of the marketing mix:

• Relative power of buyers and suppliers

• Quality of the promotion

• Price elasticity of demand

• Reputation of the business

• Convenience of location

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

Product decisions:

Industrial marketing:

• Larger transactions

• Specialist buyers and sellers

• Quality

• Informative advertising

• Pricing

• Buyer-seller relationship

Consumer marketing:

• Convenience products:

  • 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

• Shopping products:

  • 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

• Speciality products:

  • 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 so high profit margins can be gained

Product features and design:

• 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.