Presentation on theme: "By: Allison DiPippa INDT 501-02 What is the Marketing Mix? The Marketing Mix is the tactical or operational part of a marketing plan Marketing decisions."— Presentation transcript:
What is the Marketing Mix? The Marketing Mix is the tactical or operational part of a marketing plan Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion
The 4P’s The 4P’s are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the 4P’s on the customers in the target market in order to create perceived value and generate a positive response.
Product The term product in the marketing mix refers to tangible, physical products, as well as services. Some examples of the product decisions to be made include: Brand Name Functionality Styling Quality Packaging
Questions to Understand Product What does the customer want from the product/service? What needs does it satisfy? What features does it have to meet these needs? Are there any features you've missed out? Are you including costly features that the customer won't actually use? How and where will the customer use it? What does it look like? How will customers experience it? What size(s), color(s), and so on, should it be? What is it to be called? How is it branded? How is it differentiated versus your competitors? What is the most it can cost to provide, and still be sold sufficiently profitably?
Price The company’s goal in terms of price is to reduce costs through improving manufacturing and efficiency. Most importantly the marketer needs to increase the perceived value of the benefits of its products and services to the buyer or consumer
Price Cont. Some Example of pricing decisions to be made include: Pricing Strategy Suggested retail price Volume discounts and wholesale pricing Cash and early payments discounts Seasonal pricing Bundling Price Flexibility Price discrimination
Questions to Understand Price What is the value of the product or service to the buyer? Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? What discounts should be offered to trade customers, or to other specific segments of your market? How will your price compare with your competitors?
Place Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer Distribution is about getting the products to the customer
Place Cont. Some examples of distribution decisions include Distribution channels Market coverage Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics
Questions to Understand Place Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? What do you competitors do, and how can you learn from that and/or differentiate?
Promotion Promotion includes all of the tools available to the marketer for marketing communication. It is the communication of information about the product with the goal of generating a positive customer response
Promotion Cont. Promotion decisions include Promotional strategy Advertising Personal selling and sales force Sales promotions Public relations and publicity Marketing communications budget
Questions to Understand Promotion Where and when can you get across your marketing messages to your target market? Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? How do your competitors do their promotions? And how does that influence your choice of promotional activity?
What does it all mean? Marketing has come a long way from the 4P’s and yet understanding this marketing mix is for your product remains very relevant today. The marketing mix serves as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign.
Question 2. True or False The product part of the marketing mix only refers to tangible products. TRUE TRUE FALSE FALSE Next Question
Question 3. True or False The company’s goal in terms of price is to reduce costs through improving manufacturing and efficiency. TRUE TRUE FALSE FALSE Next Question
Question 4 Which part of the marketing mix is also referred to channel, distribution, or intermediary. A. PricePrice B. PromotionPromotion C. ProductProduct D. PlacePlace E. None of them are referred to those.None of them are referred to those. Next Question
Question 5. True or False Promotion includes all of the tools available to the marketer for marketing communication TRUE TRUE FALSE FALSE
Practice Quizzes For more practice quizzes please visit these sites: Revision Quiz - Marketing Mix Revision Quiz - Marketing Mix Marketing Quiz Marketing Quiz Market Planning and the Evaluation of Marketing Opportunities Market Planning and the Evaluation of Marketing Opportunities Marketing Mix Quiz Marketing Mix Quiz Pro Profs Marketing Mix Quiz Pro Profs Marketing Mix Quiz
Credits Jones, J.C. (2012). Definition of Marketing Mix – Product, Price, Place, and Promotion. Retrieved from http://ezinearticles.com/?Definition-of-Marketing-Mix--- Product,-Price,-Place-and-Promotion&id=721799 http://ezinearticles.com/?Definition-of-Marketing-Mix--- Product,-Price,-Place-and-Promotion&id=721799 Marketing Mix. (2012). Retrieved from http://marketingteacher.com/lesson-store/lesson- marketing-mix.html http://marketingteacher.com/lesson-store/lesson- marketing-mix.html The Marketing Mix (The 4 P’s of Marketing). (2010). Retrieved from http://www.netmba.com/marketing/mix/http://www.netmba.com/marketing/mix/ The Marketing Mix and 4 Ps: Understanding How to Position Your Market Offering. (2012). Retrieved from http://www.mindtools.com/pages/article/newSTR_94.htm http://www.mindtools.com/pages/article/newSTR_94.htm