BTEC Business Level 3 Unit 3- Assignment 4 P6, M3
Marketing Mix The marketing mix provides a frame work for developing a marketing plan. This includes; Product Price Promotion Place
Product A product can be tangible and can be viewed in three different levels; Level 1-the core product- the benefit of the product, e.g. To fill hunger, facilitate a journey Level 2 – the actual product- the physical item, branding often supports the sale of this Level 3 – the augmented product – after sales service, warranties, deliveries Core product Actual product Augmented product
Product Range The business will change and update the product mix that it offers. If the range of products is too small a business could go out of business. The range is limited by the experience of the business and its resources
Product Life Cycle Sales introduction maturity Decline growth Time
Price To set the price of a product a business must determine the following factors; Select the price objective- to survive, maximise profit, increase market share Determine demand- the higher the price the lower the demand Estimate costs- the prices should at least cover the costs Analyse the competitor costs, prices and offers Select a pricing strategy Select the final price.
Pricing Strategies Premium Pricing - the price is kept high to encourage customers to associate it with high quality. Penetration Pricing - the price is initially low to attract customers before the price rises. Economy Pricing - the price is low to encourage sales. Skim Pricing - when there is little competition the price is set high to raise profits, price is lowered as other competitors enter the market. Psychological Pricing- this is setting prices that rely on consumers emotive responses. E.g. designer product = designer prices. £9.99 is less than £10. Captive Product Pricing-this is pricing strategies for products that are needed e.g. Tyres for a new car, blades for a new razor. Product Line Pricing – different pricing for the same products at different price points- e.g. Technological products with different benefits.
Place This is about where the product is sold and how it is distributed. This can be indirect distribution or direct distribution. Indirect Distribution Direct Distribution Manufacturer Wholesaler Retailer Consumer Manufacturer Consumer
Promotion Promotion consists of the various methods of communicating with a business’s target audience. Promotion should inform, persuade and influence a consumer to purchase a product. Capture Attention Create Interest Generate Desire Call to Action.
Promotional Mix Advertising Sales promotion Personal selling Public relations
P6 –M3: P6- You will need to write an article about your a new product and the strategy that will be used for your new product. Make sure you have followed the correct layout for an article. Choose a new product and create a coherent strategy for the product- you must include a detailed plan and explain your choices. Product- Explain a detailed explanation of your product including the target audience, the USP and why your product will be a success. Promotion- explain the methods of advertising and promotion that you will use and explain your choices Pricing – explain the pricing strategy that you will apply to your product and explain the reasons behind your choices Place- explain the types of distribution for your product- online, in store and which types of retailers will sell you product, explain the reasons behind your choices. Conclusion- Explain who your target audience is and justify the decisions you have made- why are your pricing and promotional mix suitable for your target audience.