Marketing Mix The 4 P’s and 2 c’s

In order to achieve your marketing objectives, you need to create a plan. In marketing, this plan revolves around the product. Each “P” and “C” or element must be taken into consideration in order to effectively market your business to your customer. These elements interrelated and must be planned in collaboration. The Marketing Mix is better understood when we look at each element.

Product Design Technology Usefulness Convenience Value Quality Packaging Branding Accessories Warranties Tangible object or service Do market research to find out who wants your product Results will tell you who your target market is

Price The process of assigning a value Needs to reflect what the customers are willing to pay To set your price, you need to look at many variables such as: Cost to produce Cost to transport What consumers are willing to pay etc Strategies Skimming penetration Psychological Cost plus Loss leader -skimming: high price first and lowers it over time (price discrimination) -Penetration is initially set low to achieve a wide portion of the market -psychological: 19.99 or words like thrifty -cost plus: adding all the overhead cost and then a percentage mark-up -loss leader: pricing below cost to stimulate the market

Place Essentially the best place to sell your product You need to figure out how to make it easy for your customer to buy your product Look at: Location: retail (display, where on shelf- cereal low), direct sales, internet, etc Time: availability (all the time vs seasonal) Retail Wholesale Mail order Internet Direct sale Peer to peer Multi-channel

Promotion How to make the customer want (need) to buy your product Examples: (class discussion, see picture added to website) To promote you need to decide on the “message” you want to get across. In order to accomplish this, you need to focus on the 5 W’s: who, what, where, when, why Special offers Advertising Endorsements User trials Direct mailing Leaflets/posters Free gifts Competitions Joint ventures If you can get the 5 W’s across, you will be successful

Customer Who is your customers?? A successful marketer must do their homework and find out the demographics, psychographics, and geographics of their customer By researching your customer, a marketer will be able to find out your “target market” and their characteristics If we have a differentiated product that provides a need not already met, we are well on our way to success! Demographics: who they are, what they look like, where they live, etc

competition There is a common phrase in business that states: know your competition better than yourself Although this is impossible, the intention is critical to your success You must understand what it is you do better than your competition… and make sure that this is the focus of everything you do!!

Conclusion Although much research has been done on “marketing,” it is not an exact formula You simply need to incorporate all of this, try it out, re-evaluate, make changes, and continue the cycle Marketing provides you with a plan that offers you a “calculated risk” vs “blind risk”… it doesn’t guarantee success, but your chance of success are higher

Example: Porsche Product -describe in detail what services/products/ideas they sell Porsche sell high performance automobiles that are elite -only the highest end parts are used to create these automobiles -cars are engineered for performance Price -describe the price range -$60, 000 to well over $500, 000 -very expensive, price creates “status” Place -in general, where are they located? -busy area, convenience, high traffic, etc -Porsche dealerships -dealership are very clean and portray image of quality -customers “pull” these cars through distribution chain, therefore location is not critical

continued Promotion -what forms of advertising do they use? -what types of promotions and/or sponsorships do they use? -Porsche use a variety of media to promote their cars -in each case, they will portray an image of high end performance and status -media are focused on high income customers & their interests Consumer -describe who their typical customer is (age, gender, income level, where they come from, interests, education, type of employment..) -male, 35-60, high income, professional career Competition -who is their direct competition? -who is their in direct completion? How do they differ from their completion? -direct: other elite auto manufacturers (Lamborghini, Mercedes, Roll-Royce, Aston Martin, etc) -indirect: any other high priced “toy” -Porsche differ from their competition through branding and strengthening their share within the marketplace

Name the P’s and C’s

Name the P’s and C’s

Name the P’s and C’s

Name the P’s and c’s

Famous competitors Brainstorm photo will be added to webpage at a later date

Pepsi Challenge Interested in trying it?