The Marketing Mix: Product Lesson 1 P6

Competence Development Reasoning (I2): you will develop your reasoning skills by assessing how effective an organisation’s marketing mix has been on the success of a newly launched product. Research (I1): you will use your research skills to look at the different strategies businesses use to develop and market their products.

Learning Objectives By the end of today’s lesson, you should be able to… LO1)Identify the 4 components of the marketing mix (Guided) LO2)Explain how each component of the marketing mix helps a business to successfully sell a product (Regular) LO3) Using your skills of reflection, apply each component of the marketing mix to real life products/services (L2) (Strong) Extension: LO4)Using your reasoning skills, question the appropriateness of the existing marketing mix and make recommendations for improvement (I2) (Advanced – Autonomous)

True or False? Marketing is about making sure the company accounts balance.

True or False? Marketing planning is looking at how well the product is doing after it has been launched?

True or False? The marketing mix consists of 3P’s.

True or False? Creating an effective marketing mix helps businesses produce the right product, at the right price, make it available at the right place and let customers know about it through promotion.

True or False? The product part of the mix looks at the price a product is charged to customers.

True or False? The place part of the marketing mix looks at how the product will be distributed to customers.

The Marketing Mix  Also known as the 4P’s (product)/7P’s (service)  Businesses must consider its marketing mix in order to market its products successfully  To meet customer’s wants/needs, marketers must create the right product, at the right time, at the right price, make it available at the right place and let customers know about it through promotion.

The Marketing Mix [

PRODUCT What is the product? Who are the potential customers? What are the features/benefits? Has the product got a ‘unique selling point’ (USP)? What makes the product appealing to customers? How is the product better than the competition?

PRODUCT Anatomy of a product CORE Actual Product Augmented Product Additional value/add-ons i.e. warranty, free delivery etc The physical (tangible) item you are selling. What does your product offer compared to competitors? This is where your branding, added features come in to play. The benefit of the product that makes it valuable to you? Can you apply this principle to the Apple Ipad?

Product Life Cycle

Product Life Cycle (PLC) 1)What might the PLC look like for a new games console? Say the Playstation 3? 2)How might the organisation be affected at each stage of the cycle?

PLC: Extension Strategies How might putting an extension strategy in affect an organisation? Types of strategy include:

CASE STUDY TASK Kommunic8, a mobile phone company developed a new phone that was smaller, lighter and contained many more applications than its nearest rival. The phones sold well, but are now passing from the growth stage into the maturity stage. Competitors have already entered the market. Give two extension strategies that Kommunic8 can use to hold on to sales.

MAIN TASK In pairs, invent/create a new product following elements of the product mix including PLC, product anatomy etc You will need to provide an image/diagram of your new product and applied principles of the product mix. You will present your product to your peers.

The Marketing Mix: Price Lesson 2 P6

Competence Development Reasoning (I2): you will develop your reasoning skills by assessing how effective an organisation’s marketing mix has been on the success of a newly launched product. Research (I1): you will use your research skills to look at the different strategies businesses use to develop and market their products.

Learning Objectives By the end of today’s lesson, you should be able to… LO1)Identify the 4 components of the marketing mix (Guided) LO2)Explain how each component of the marketing mix helps a business to successfully sell a product (Regular) LO3) Using your skills of reflection, apply each component of the marketing mix to real life products/services (L2) (Strong) Extension: LO4)Using your reasoning skills, question the appropriateness of the existing marketing mix and make recommendations for improvement (I2) (Advanced – Autonomous)

PRICE How much is the product sold for? Are any discounts offered? What price is charged compared to the competition?

PRICE Pricing Strategies  Price Skimming  Penetration Pricing  Price Leader  Destroyer Pricing  Price Discrimination  Psychological Pricing  Cost+ Pricing  Contribution Pricing  Loss Leaders (Economy Pricing) TASK: You will each be given a strategy and you will need to use your research skills to explain to your peers what each one involves.

PRICE Pricing Strategies  Price Skimming (charging higher price at first)  Penetration Pricing (Set a low price to gain a foothold in the market)  Price Leader (Leader in market, others follow)  Destroyer Pricing (Set really low price to eliminate competition from market)  Price Discrimination (charging different prices to different customers)  Psychological Pricing (£9.99)  Cost+ Pricing (‘bottom-line’ + extra)  Contribution Pricing (Contribution towards fixed costs)  Loss Leaders (Economy Pricing) (very low price to attract customers )

The Marketing Mix: Place Lesson 3 P6

Competence Development Reasoning (I2): you will develop your reasoning skills by assessing how effective an organisation’s marketing mix has been on the success of a newly launched product. Research (I1): you will use your research skills to look at the different strategies businesses use to develop and market their products.

Learning Objectives By the end of today’s lesson, you should be able to… LO1)Identify the 4 components of the marketing mix (Guided) LO2)Explain how each component of the marketing mix helps a business to successfully sell a product (Regular) LO3) Using your skills of reflection, apply each component of the marketing mix to real life products/services (L2) (Strong) Extension: LO4)Using your reasoning skills, question the appropriateness of the existing marketing mix and make recommendations for improvement (I2) (Advanced – Autonomous)

PLACE Where is the product sold (UK, globally)? Is the product sold through retailers, wholesalers, distributors, agents, direct to the customer? How is the product sold (face to face, via the internet, telephone/cold-calling)?

PLACE How a product is distributed. ManufacturerWholesalerRetailerCustomer Manufacturer Customer How has the increase in online shopping had an effect on the above diagram? How will the diagram look in 5 years time?

The Marketing Mix: Promotion Lesson 3 P6

Competence Development Reasoning (I2): you will develop your reasoning skills by assessing how effective an organisation’s marketing mix has been on the success of a newly launched product. Research (I1): you will use your research skills to look at the different strategies businesses use to develop and market their products.

Learning Objectives By the end of today’s lesson, you should be able to… LO1)Identify the 4 components of the marketing mix (Guided) LO2)Explain how each component of the marketing mix helps a business to successfully sell a product (Regular) LO3) Using your skills of reflection, apply each component of the marketing mix to real life products/services (L2) (Strong) Extension: LO4)Using your reasoning skills, question the appropriateness of the existing marketing mix and make recommendations for improvement (I2) (Advanced – Autonomous)

PROMOTION How is the product advertised? Are there any promotions on the product (BOGOF, 10% extra free, free gift)?

AIDA MODEL

PROMOTION  Advertising (above-the-line/below-the-line)  Sales promotion (i.e. BOGOF)  Online advertising  Personal Selling  Public Relations Advertiser’s tricks: Celebrity endorsement Put-down competition (i.e. Asda’s price promise Jumping on the bandwagon: everyone else is buying this product, why aren't you?

7P’s EXTENSION (Advanced – Autonomous learners) Used for marketing a Service People: who is involved in marketing the service i.e. Customer Service Representatives, how are you going to train/recruit these staff?) Process:Systems used to assist transaction i.e. Credit card machine, drive thru, efficient service through fast systems) Physical Evidence: where will the new service be delivered? i.e. aircraft

LO3) Scenario… Your Marketing Director is not sure that the company has implemented the correct marketing mix on their recently launched product. As the company’s Senior Leadership Team, she has given you the task of…  …reviewing the current marketing mix for the product.  …developing new strategies relating to each component of the 4P’s that the company could implement in practice (extension). [20mins]

Learning Objectives By the end of today’s lesson, you should be able to… LO1)Identify the 4 components of the marketing mix (Guided) LO2)Explain how each component of the marketing mix helps a business to successfully sell a product (Regular) LO3) Using your skills of reflection, apply each component of the marketing mix to real life products/services (L2) (Strong) Extension: LO4)Using your reasoning skills, question the appropriateness of the existing marketing mix and make recommendations for improvement (I2) (Advanced – Autonomous)