MARKETING MIX

DEFINETION OF MARKETING MIX The policies adopted by the manufacture to attain success in the firm is constitute the marketing mix. 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to encompass growth of service industry

The marketing mix principles are controllable variables which have to be carefully managed and must meet the needs of the defined target group. All elements of the mix are Linked and must support each other.

4P’S PRODUCTPRICE PLACE PROMOTION

PRICE Pricing is the only mix which generates a turnover for the organisation. The remaining 3p’s are the variable cost for the organisation. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship.

Price level margins Pricing policy Pricing strategies Price changes

Pricing Strategy Importance of: knowing the market elasticity keeping an eye on rivals

PROMOTION A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional mix can consist of:

Advertising Public relation Sale promotion Personal selling Direct mail Internet/ E-commerce

Strategies to make the consumer aware of the existence of a product or service NOT just advertising

PLACE The means by which products and services get from producer to consumer and where they can be accessed by the consumer – The more places to buy the product and the easier it is made to buy it, the better for the business (and consumer)

DIRECT DISTRIBUTION Manufactureconsumer INDIRECT DISTRIBUTION manufactureretailerconsumer

PRODUCT Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. – Extension strategies – Specialised versions – New editions – Improvements – real or otherwise! – Changed packaging – Technology, etc.

The success of a market offer will depend on how well these ingredients are mixed to create superior value for the customers and simultaneously achieve their scale and profits objective.